CONTROLLING

Question 2

Define Controlling according to NCERT.

Answer 2

Controlling is the process of ensuring that actual performance conforms to the planned performance. It includes setting standards, measuring actual performance, and taking corrective actions. Keywords: planned vs actual, standards, corrective.

Question 3

Is controlling goal-oriented? Explain.

Answer 3

Yes. Controlling ensures that activities are directed towards achieving organizational goals. It keeps operations aligned with objectives. Keyword: goal achievement.

Question 4

Is controlling a pervasive function?

Answer 4

Yes. Controlling is required at all levels of management and in all departments. Every manager needs to control activities under their responsibility. Keywords: all levels, departments.

Question 5

Is controlling a continuous process?

Answer 5

Yes. Controlling is an ongoing activity that continues as long as the organization exists. It doesn’t stop after a single correction. Keywords: ongoing, continuous.

Question 6

How is controlling backward-looking?

Answer 6

Controlling is based on the measurement of actual performance which has already occurred, making it backward-looking. Keyword: past performance.

Question 7

How is controlling forward-looking?

Answer 7

Though based on past performance, controlling aims to take corrective actions that impact future activities. Keywords: future correction, improvement.

Question 8

How is controlling linked with planning?

Answer 8

Controlling is meaningless without planning. It compares actual work with planned work. Planning sets the benchmarks that controlling measures against. Keywords: dependent on planning, benchmarks.

Question 9

How does controlling help in achieving organizational goals?

Answer 9

Controlling ensures that activities are completed as per plans. Deviations are identified and corrected, aligning actions with goals. Keywords: deviation correction, alignment with goals.

Question 10

How does controlling judge the accuracy of standards?

Answer 10

By comparing actual performance with standards, controlling helps assess whether the standards set during planning are realistic or need revision. Keywords: standard assessment, feedback.

Question 11

How does controlling ensure efficient use of resources?

Answer 11

Controlling minimizes wastage and ensures that resources are used as planned. It helps maintain cost-effectiveness. Keywords: minimize wastage, efficiency.

Question 12

How does controlling facilitate coordination in action?

Answer 12

Controlling keeps all departments aligned with organizational goals by comparing performance with plans. Keywords: departmental coordination, common direction.

Question 13

How does controlling help in improving employee motivation and discipline?

Answer 13

Clear expectations and performance standards motivate employees to perform better. Discipline improves due to performance monitoring. Keywords: clarity, monitoring, motivation.

Question 14

How does controlling assist in decision-making?

Answer 14

Controlling provides performance data and deviations, helping managers make informed decisions. Keywords: performance data, informed action.

Question 15

Explain the relationship between planning and controlling.

Answer 15

Planning sets the objectives, and controlling ensures their implementation. They are interdependent: planning is the basis, and controlling is the follow-up. Without one, the other is incomplete.

Question 16

Why is planning meaningless without controlling?

Answer 16

Without controlling, implementation of plans cannot be monitored or corrected. Planning stays theoretical. Keywords: no follow-up, no monitoring.

Question 17

Why is controlling blind without planning?

Answer 17

Without planning, there are no standards to compare performance against, so controlling has no direction. Keywords: no benchmarks, no comparison.

Question 18

How does controlling contribute to future planning?

Answer 18

Controlling provides feedback that helps refine future plans. Past performance helps shape better standards. Keywords: feedback loop, improved planning.

Question 19

What is the first step in the process of controlling?

Answer 19

Setting performance standards. These act as benchmarks against which actual performance is measured. Standards can be quantitative (cost, output, time) or qualitative (improvement in customer satisfaction). Keywords: benchmarks, quantitative, qualitative.

Question 20

Why is setting performance standards important in controlling?

Answer 20

Standards provide a basis for comparison. Without standards, actual performance cannot be evaluated. They reflect desired results and guide managerial efforts. Keywords: comparison, basis, desired results.

Question 21

What is the second step in the process of controlling?

Answer 21

Measurement of actual performance. This involves quantifying actual results through observation, reports, or performance metrics. It should be timely and accurate. Keywords: observation, metrics, accuracy.

Question 22

How is actual performance measured in an organization?

Answer 22

Performance can be measured through personal observation, sample checking, performance reports, budgets, or MIS. The method depends on the nature of the task. Keywords: observation, sample checking, MIS.

Question 23

What is the third step in the process of controlling?

Answer 23

Comparing actual performance with standards. This step reveals deviations from the planned performance. Keywords: deviation detection, performance gap.

Question 24

What are deviations in the context of controlling?

Answer 24

Deviations are differences between actual performance and planned standards. They can be positive or negative. Identifying significant deviations is critical. Keywords: gap, variance, actual vs planned.

Question 25

What is the fourth step in the controlling process?

Answer 25

Analyzing deviations. Managers determine causes of deviations, assess their significance, and decide if corrective action is needed. Keywords: cause analysis, significance, action need.

Question 26

What is the principle of critical point control?

Answer 26

It suggests focusing on key result areas (KRAs) where deviations are most impactful. Not all deviations need attention. Keywords: KRAs, key areas, prioritization.

Question 27

What is the principle of management by exception?

Answer 27

Only significant deviations are brought to the attention of management. Trivial deviations are handled at lower levels. This saves time and effort. Keywords: significant deviations, managerial attention, efficiency.

Question 28

What is the final step in the controlling process?

Answer 28

Taking corrective action. It involves steps to correct deviations and bring performance in line with standards. This may include changes in strategy, resources, or personnel. Keywords: correction, alignment, action.

Question 29

Why is taking corrective action an essential part of controlling?

Answer 29

Without corrective action, deviations continue and goals remain unmet. It ensures problems are fixed and future performance improves. Keywords: fix, adjust, improve.

Question 31

What is Critical Point Control in the context of controlling?

Answer 31

Critical Point Control is a principle of controlling which states that managers should focus their attention on Key Result Areas (KRAs) where deviations are most critical. These areas have the greatest impact on organizational success. Monitoring every activity equally is inefficient; instead, managers must prioritize high-impact functions. Keywords: KRAs, prioritization, high impact areas, efficiency.

Question 32

What is Management by Exception in controlling?

Answer 32

Management by Exception is a principle where only significant deviations from standards are reported to top management, while minor or routine deviations are handled at lower levels. This ensures efficient use of managerial time and allows focus on important problems. Keywords: significant deviation, escalation, filtering, managerial focus.

Question 33

Case: In a hospital, the administrator notices that while patient satisfaction scores are stable, the infection control department has seen a 25% rise in post-operative infections. She immediately launches a task force to address infection control and lets other departments continue with routine review. What controlling principle is applied?

Answer 33

Critical Point Control. The administrator is focusing on a Key Result Area (infection control) that is critical to patient safety and overall performance, while not wasting time on minor stable indicators. Keywords: KRAs, targeted action.

Question 34

Case: A restaurant chain uses weekly performance dashboards. If a branch reports a fall in profit below 10%, the data is handled by regional managers. But if the fall exceeds 25%, it is escalated directly to the CEO. What principle is being followed?

Answer 34

Management by Exception. Only major deviations are escalated to top management, allowing routine issues to be handled at lower levels. Keywords: escalation, significant deviation, managerial efficiency.