Chapter controlling: Controlling Short Questions | business studies Class 12 CBSE

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Chapter controlling: Controlling Short Questions | business studies Class 12 CBSE | ByteNotes.in

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Question 1

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Define controlling as a function of management.

Controlling means ensuring that activities in an organisation are performed as per the plans.
It ensures that organisational resources are used effectively and efficiently for achieving predetermined goals.
It is a goal-oriented and pervasive function performed by managers at all levels of management.

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Question 2

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Why is controlling described as a pervasive function of management?

Controlling is required at all levels of management — top, middle and lower — to keep activities in their areas on track.
It is not limited to business organisations; it is equally required in educational institutions, hospitals, military and clubs.
Every manager, regardless of department or level, must exercise control to ensure activities conform to plans.

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Question 3

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How does controlling help in accomplishing organisational goals?

Controlling measures the progress of activities towards organisational goals and highlights any deviations from planned performance.
It indicates the corrective action needed to bring activities back on track.
By guiding the organisation in the right direction, it ensures that organisational goals are ultimately achieved.

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Question 4

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How does a good control system help in judging the accuracy of standards?

An efficient control system enables management to verify whether the standards set are accurate and objective.
It keeps a careful check on changes taking place inside the organisation and in the external environment.
On the basis of such monitoring, it helps management to review and revise standards to keep them realistic.

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Question 5

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Explain how controlling improves employee motivation.

A good control system ensures employees know in advance what is expected of them and the standards by which they will be appraised.
This clarity of expectations motivates employees to direct their efforts appropriately.
When employees understand the performance criteria, they are better positioned to give superior performance.

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Medium

Question 6

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State two limitations of controlling related to human factors.

It is difficult to set quantitative standards for activities involving employee morale, job satisfaction and human behaviour, reducing the effectiveness of control.
Employees often resist control measures, viewing them as restrictions on their personal freedom — for example, objecting to CCTV surveillance.
These human factors make the design and implementation of an effective control system challenging for managers.

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Question 7

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Why is controlling considered a costly affair, especially for small organisations?

Establishing and operating a control system involves significant expenditure, time and effort.
A small enterprise may not be able to afford an expensive control system and cannot easily justify the costs involved.
Managers must ensure that the costs of a control system do not exceed the benefits derived from it.

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Medium

Question 8

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Why is it said that planning is a prerequisite for controlling?

Without planning, there are no predetermined standards of performance, which are the very basis of controlling.
Controlling compares actual performance with planned targets; without a plan, there is nothing to compare against.
Thus, controlling is blind without planning — if no standards are set in advance, managers have nothing to control.

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Question 9

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In what sense is planning a forward-looking function and controlling a backward-looking function?

Plans are prepared for the future based on forecasts about future conditions, making planning a forward-looking function.
Controlling involves a post-mortem of past activities to find deviations from standards, making it a backward-looking function.
However, both planning and controlling are simultaneously backward-looking and forward-looking, since past experience guides planning and control actions aim to improve future performance.

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Question 10

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What is the first step in the process of controlling, and why is it important?

The first step is setting performance standards, which are the criteria against which actual performance will be measured.
Standards serve as benchmarks towards which an organisation strives to work; they can be quantitative (cost, revenue, units) or qualitative (goodwill, motivation).
Without well-defined standards, it is impossible to measure or compare performance, making effective control unachievable.

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Question 11

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What techniques are used to measure actual performance in the controlling process?

Techniques for measuring performance include personal observation, sample checking and performance reports.
Performance should be measured in the same units in which standards are set to make comparison easier.
Measurement can be done during performance (e.g., checking gas levels continuously in a factory) or after task completion.

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Question 12

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What is 'sample checking' and why is it used in large organisations?

Sample checking is a method where certain pieces or outputs are checked at random rather than inspecting every unit produced.
In large organisations, checking each piece individually is neither practical nor feasible due to the high volume of output.
By checking a representative sample, the organisation can verify quality conformance without incurring the time and cost of 100% inspection.

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Medium

Question 13

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Explain the concept of Critical Point Control.

Critical Point Control means focusing managerial attention on Key Result Areas (KRAs) that are critical to the success of the organisation.
These KRAs are set as critical points; if anything goes wrong at these points, the entire organisation suffers.
For example, a 5% increase in labour cost in a manufacturing firm may be far more serious than a 15% increase in postal charges.

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Chapter sections

Chapter controlling: Controlling | Short Questions

Define controlling as a function of management.

Why is controlling described as a pervasive function of management?

How does controlling help in accomplishing organisational goals?

How does a good control system help in judging the accuracy of standards?

Explain how controlling improves employee motivation.

State two limitations of controlling related to human factors.

Why is controlling considered a costly affair, especially for small organisations?

Why is it said that planning is a prerequisite for controlling?

In what sense is planning a forward-looking function and controlling a backward-looking function?

What is the first step in the process of controlling, and why is it important?

What techniques are used to measure actual performance in the controlling process?

What is 'sample checking' and why is it used in large organisations?

Explain the concept of Critical Point Control.

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