5 Marks Each

Question 15 Marks

Explain in detail the various stages of the controlling process.

Answer

Importance of controlling:

A controlled organization steers to the right direction. An organization without proper implementation of control is like a chariot without charioteer.
Controlling is necessary for the achievement of managerial objectives.The main objective of controlling is to check the errors or short comings of the past and stop their recurrence.

Following points bring out the importance of controlling:
$1.$ Helps in achieving objectives:
Controlling helps to identify errors in the enterprise and take corrective measures. As a result it becomes easy to achieve objectives of the enterprise.
$2.$ Control on activities:
Controlling controls functional areas and activities like organization, production, sales, employees, financial and quality aspects, etc.
$3.$ Makes planning effective:

It is said that planning lays the path and controlling helps to find the deviations and improve them.
In this regard, it is said that controlling helps in achieving objectives and making the plan successful as well as effective.

$4.$ Co-ordination between various activities:
Controlling helps in coordinating various activities of the business enterprise.
$5.$ Evaluation of activities:
Under coordination, the activities are compared with pre-determined standards and then evaluated.
$6.$ Removes deviations:
Controlling aims at correcting deviations. It examines the causes of deviation and then takes corrective measures so that deviations can be reduced.
$7.$ Necessary for delegation of authority:

Controlling is important for delegating authority.
Once the authority is delegated, the supervisor or authorized personnel supervises and controls the activity.

$8.$ Find out errors:

Controlling supervises and evaluates the activities of subordinates.
Controlling also helps to find out errors, difficulties, defects and deviations and remove them so that they are not repeated in future.

$9.$ Long term planning:

Controlling helps to make long term plans.
Control can be used to make long term assumptions and forecasts for the business on the basis of the information gathered during controlling activities.

$10.$ Helps in directing:
Controlling simplifies directing. It supervises the personnel, gives guidance and direction in their difficulties so that activities are performed as planned.
$11.$ Barometer of efficiency:
In business enterprises if control is exercised efficiently, management becomes more efficient. So controlling is called the barometer of efficiency of management.
Question $3.$
Explain in detail the various stages of the controlling process.
Answer:
Stages of controlling process:

Controlling is a universal and continuous process.
Each business enterprise has its own procedures of conducting activities.
Hence, the process of controlling does not remain same for each organization.

As a result, it is difficult to define specific step-wise stages of controlling. However, some stages are generalized and discussed below.
$1.$ Setting standards:

The first stage of controlling is to set standards. Standards measure efficiency of the processes and people.
By setting standards, the organization can compare if the activities are taking place according to the set standards.
Unless standards are set, it is not possible to decide what to control and how to control.
These standards can be both qualitative and quantitative.
The standards could be set for cost price, income, capital, profit targets, production targets, cost targets, etc.
Standards may be set for long term or short term.
Standards are decided at the top level management. Employees and subordinates are informed about the same.
The employees then plan their work according to the given targets and they constantly strive to maintain these standards.

$2.$ Gathering information:

In this stage, information $($in the form of data$)$ is gathered about business processes.
Methods of gathering information include personal observation, data collection from the processes and oral and written reports.

$3.$ Measuring performance:

After gathering information about the performance of the business performance, the set parameters are measured.
The objective of measuring is to obtain data from the various processes of the organization so that it can be later compared with the set standards.
Measurement can be either qualitative or quantitative or both.

$4.$ Comparison of work done with set standard:

The information measured is then compared with the standards set under the control function.
Comparison helps the organization to decide whether the set standards have been achieved or not.

$5.$ Corrective measures:

Corrective measure is the last stage of the controlling process.
In the fourth stage, the activities are compared against set standards to find out deviations. If deviations are present, necessary corrective measures can be taken.

Any of the following three corrective measures can be taken:
$(a)$ No change in the condition:
If the deviations are minimal and acceptable, then there is no need to take corrective action. This means there is no change in the condition (process).
$(b)$ Change the condition to remove deviation:
If deviation from actual performance is more when compared to set standards, such deviations are to be examined and necessary corrective measure is to be taken.
$(c)$ Change the condition and establish fresh $($new$)$ standards:

If the established standards are not attained continuously, it clearly means that the standards are too high to meet.
In such a situation, fresh or new standards are to be set by making required changes.
Similarly, if deviations occur on the positive side i.e. if the results from the processes exceed the standards and expectations then the organization needs to set higher standards.
By making such changes, the organization will take its processes to a higher level of performance.

View full question & answer→

Question 25 Marks

Explain the importance of control.

Answer

Importance of controlling:

A controlled organization steers to the right direction. An organization without proper implementation of control is like a chariot without charioteer.
Controlling is necessary for the achievement of managerial objectives.The main objective of controlling is to check the errors or short comings of the past and stop their recurrence.

It is said that planning lays the path and controlling helps to find the deviations and improve them.
In this regard, it is said that controlling helps in achieving objectives and making the plan successful as well as effective.

Controlling is important for delegating authority.
Once the authority is delegated, the supervisor or authorized personnel supervises and controls the activity.

$8.$ Find out errors:

Controlling supervises and evaluates the activities of subordinates.
Controlling also helps to find out errors, difficulties, defects and deviations and remove them so that they are not repeated in future.

$9.$ Long term planning:

Controlling helps to make long term plans.
Control can be used to make long term assumptions and forecasts for the business on the basis of the information gathered during controlling activities.

View full question & answer→

Question 35 Marks

Explain the characteristics of controlling giving its meaning.

Answer

Meaning:

In layman language, controlling means deciding the activities to be carried out, evaluate, the same and if required, take corrective measures so that they are done in conformity with plan developed by the organization.
Controlling is the last step of management process.
Although controlling is considered as the last step, function of controlling starts as soon as the activities are assigned right in the first stage i.e. the stage of planning.
According to Peter F. Drucker, “Controlling is to maintain a balance between efforts and results and between resources and objectives.”

Characteristics of controlling:
$1.$ Controlling is related to planning:

Planning and controlling are the two sides of the same coin.
Planning function makes the plan whereas controlling ensures that activities are carried out according to the plan.
It is said that planning and controlling are like twins. If there is no planning, there is no scope of controlling.

$2.$ Functions at every level of management:

Controlling is performed at every level of management. It is not confined to one department or section.
Managers of each level control their subordinates at their respective levels.
Controlling is done quite systematically even at the lowest level of workers by their supervisors.

$3.$ Continuous process:

Controlling is an ongoing process. It never ends.
It is wrong to believe that once control is exercised on the activities of the enterprise, work will always be done according to the plan.
Deviations from the set plan can occur at any level and at any time. Hence the organization constantly needs to supervise and control the activities done at various levels.
In the controlling function, quality control and cost control are important activities that need to be constantly controlled.

$4.$ It is an end activity of management:

In the management process, the planning function decides organizational objectives, organizing function implements them and directing gives direction. After these functions, the actual role of controlling begins.
Thus, it is very important that all managerial functions are performed before control is exercised. As a result, control is the end activity of management.

$5.$ Related to future:

Although controlling is done at every stage on day-to-day basis, its core objective is to minimize deviations and errors in processes so that end product or service comes out as planned. In this sense, it can be said that control is related to future.
Controlling also helps the manager to examine past activities and analyse them so that he can learn from past mistakes and prevent them in future.
The objective of control is to see that errors, wastage and losses which occurred in the past are not repeated or if repeated their frequency decreases.

$6.$ It is a constructive activity:

A general perception towards controlling is that under it a person is always monitored and hence his freedom is lost however, this belief in incorrect.
In fact, the real objective of control is to see that workers work as per the plan and that they are guided properly to overcome mistakes and deviations.
Thus, controlling is not a negative, but a positive as well as constructive activity.

$7.$ Internal process:

Controlling is an internal process for the organization.
Control system plays an integral role in all the important activities of the organization such as production, sales, purchase, financial matters, financial accounts and working method of employees, etc.
Since all these activities are part of business, they can be controlled. On the other hand, change in government policy, depression, inflation, changes in the psychology of people, etc. are external factors and hence cannot be controlled.

$8.$ Dynamic process:

Although what to control and how to control is pre-decided in the planning and controlling functions, it is quite likely that the parameters of control may change continuously depending upon situations.
If the organization identifies deviations in its processes, it takes quick decision in its control methods to normalize these processes. Hence, it is said that although controlling is a planned function, it is a dynamic process.

$9.$ Controlling is a person-oriented or subjective activity:

Controlling is done for the improvement of the activities of workers, by the workers and for the workers. Thus, ‘person’ is at the center of controlling.
Hence, it is said that control is majorly person-oriented i.e. is subjective.

$10.$ Controlling can be formal or informal:

Controlling is an extremely important function.
In an organization, what to control, how to control and who will control what is defined very systematically and scientifically.
During the actual processes, it is quite likely that the format of control might need on-site change. So, many a times, the format of controlling becomes informal and the changes are brought stepping aside from the format.

View full question & answer→

Question 45 Marks

Enlist few benefits that an organization can derive by adopting corrective actions.

Answer

An organization derives following benefits by adopting corrective measures:

Time saving
Reducing customer complaints
Increasing efficiency of employees
Increasing efficiency of business processes
Saving organizational resources such as raw material, capital, etc.
Increasing customer loyalty and trust
Improving prestige in the market

View full question & answer→

Question 55 Marks

What role does corrective measure play in controlling process?

Answer

Corrective measure is the last stage of the controlling process.
In this stage, the activities are compared against set standards to find out deviations.
If the organization finds out deviations in the actual performance against the set standards, then it takes necessary corrective measures to fix the deviations and prevent them in future.
By applying corrective measures the organization can control the output of its process. If the output is highly deviated, the organization can reject the product $($or service$)$ it created for its customers.
Corrective measure helps the organization to know the details about the various corrections its people made, the type of corrections, the frequency and so on.
The organization by studying and analyzing the corrective measures can . improve its future processes.

View full question & answer→

Question 65 Marks

When does a company come under the need of changing standards and adopting new standards?

Answer

Corrective measures:

Corrective measure is the last stage of the controlling process.
In the fourth stage, the activities are compared against set standards to find out deviations.
If deviations are present, necessary corrective measures can be ‘ taken.

View full question & answer→

Question 75 Marks

State the measures that can be taken under corrective measures.

Answer

Corrective measures:

Corrective measure is the last stage of the controlling process.
In the fourth stage, the activities are compared against set standards to find out deviations.
If deviations are present, necessary corrective measures can be taken.

View full question & answer→

Question 85 Marks

What is a measurement of performance?

Answer

Measuring performance:

After gathering information about the performance of business performance, the set parameters are measured.
The objective of measuring is to obtain data from the various processes of the organization so that it can be later compared with the set standards.
Measurement can be either qualitative or quantitative or both.

View full question & answer→

Question 95 Marks

How does an organization set its standards for executing the control process?

Answer

Setting standards:

The first stage of controlling is to set standards. Standards measure efficiency of the processes and people.
By setting standards, the organization can compare if the activities are taking place according to the set standards.
Unless standards are set, it is not possible to decide what to control and how to control.
These standards can be both qualitative and quantitative.
The standards could be set for cost price, income, capital, profit targets, production targets, cost targets, etc.
Standards may be set for long term or short term.
Standards are decided at the top level management. Employees and subordinates are informed about the same.
The employees then plan their work according to the given targets and they constantly strive to maintain these standards.

View full question & answer→

Question 105 Marks

List out the stages of controlling process.

Answer

Stages of controlling process:

Setting standards
Gathering information
Measuring performance
Comparing actual performance with set standards
Corrective measures

View full question & answer→

Question 115 Marks

What changes can organizations face due to internal and external factors? How does controlling works as a shield against these changes?

Answer

Protection against change:

How well will the programmes of a plan executed depends on internal as well as external factors. Internal factors are factors related to organization work procedures, policy, human resource, etc. External factors include government policy, competition, inflation, depression, scarcity of raw materials, change in the choices of people, change in fashion, etc.
Taking into consideration the effect of external factors, controlling decides whether activities are being carried out according to plan or not. If not, it suggests the organization to modify the plan and processes.
Thus, planning and controlling give protection against changes.

View full question & answer→

Question 125 Marks

Explain point-wise the relation between planning and controlling.

Answer

Below given points will clarify the relation between the two:
$1.$ Planning and controlling are two sides of the same coin:

Planning and controlling are two very important and interdependent functions of the management process. The success of planning depends on Controlling.
The function of controlling identifies deviations, takes necessary corrective action and hence keeps the business activities on the decided direction.
Looking from other perspective, the role of controlling comes only when something is planned. So, if there is no planning, there is no controlling.
Thus, planning and controlling are two sides of the same coin.

$2.$ Protection against change:

How well will the programmes of a plan executed depends on internal as well as external factors. Internal factors are factors related to organization work procedures, policy, human resource, etc. External factors include government policy, competition, inflation, depression, scarcity of raw materials, change in the choices of people, change in fashion, etc.
Taking into consideration the effect of external factors, controlling decides whether activities are being carried out according to plan or not. If not, it suggests the organization to modify the plan and processes.
Thus, planning and controlling give protection against changes.

$3.$ Planning is a pre-condition for controlling:

The function of planning is to make programmes to achieve the objectives of the business enterprise. On the other hand, the function of controlling is to see whether the activities are performed according to the plan or not.
Additionally, controlling also compares the actual performance with the set standards. If deviations are found, corrective action is taken.
Thus, controlling begins only after planning is done or say planning is the pre-condition of controlling.

$4.$ Planning is the father of controlling:

Controlling exists because of planning. Controlling keeps a check on activities decided in planning.
In short, controlling does not exist without planning.
Hence, it can be said that planning is the father of controlling.

View full question & answer→

Question 135 Marks

Explain the relation between planning and controlling.

Answer

Introduction:

In an organization various activities has to be planned to achieve the pre determined objectives.
Who undertaken what activities and will require what materials is clarified at the planning stage.
Control is a process to monitor whether business activities are carried out according to the plan, set standards and given introduction.
Whenever there is planning, there is controlling and conversely whenever there is controlling planning pre-exists.
The planning and controlling are inter-related.

Relation between Planning and Controlling :

Planning and Controlling are two sides of the Same Coin :

Planning and controlling are two very important and independent function of the management process.
The success of planning depends on controlling.
Controlling finds out the deviations, take necessary corrective action and also take business activities in the right direction.
Controlling is also not possible without planning.
This is because through control it can as cordoned whether the objectives of planning are achieved or not.
So where there is no planning, there is no need of controlling. Thus planning and controlling are two sides of the same coin.

Protection Against change:

Implementation of the programmers of a plan depends on internal factors and external factors.
Internal factors can be regulated whereas control is needed for external factors like government policy, competition, inflation, depression, scarcity of raw material, change in the choice of people, change in the choice of people change in fashion etc.
Thus taking into consideration the effect of external factors, controlling sees to it whether activities are carried out according to plan or not.
Thus planning and control give protection against changes.

Planning is the father of controlling:

Controlling exists because of planning.
Control keeps a check on activities of the business enterprise.
While the function of control is to see whether the activities are performed according to the set standards.
If deviations are fond the corrective action is taken.
Thus planning is the pre condition of controlling.

Conclusion :

Planning and controlling are dependent on each other.
If one function is affected the other function will definitely be affected.
Planning and controlling are also known as twins.

View full question & answer→

Question 145 Marks

Give the meaning of controlling and explain its characteristics.

Answer

Introduction : In the order of the management process, controlling is the last step. Function of controlling is necessary to understand how the function of planning is going on. The function of controlling is to check the progress of the managerial tasks, compare the same with set standards regarding targets determined for planning activities through plans and to find the divisions there of. The function of controlling is also to get information about such deviation, rectify them and take creative steps.

Meaning of Control: In general words "control means constant supervision of activities, evaluation of results and achievements and institution of corrective steps where dissatisfaction is felt."
According to Peter F. Druker, "Controlling is to maintain a balance between effort and results and between resources and objectives."
According to Henry Fayol, “Control of an undertaking consists of ensuring that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given and the principles which hare been laid down. Its objectives are to point out the mistakes in order that they may be rectified and prevented from recurring.’’
The implementation of control affects things, people and functions and an other factors.
The essence of control is to see that functions are carried on according to predetermined standard to regulate the activities.

Characteristics of Controlling: It can be noted as under:

$(1)$ Related to Planning: Planning does the function of making plans and controlling and also ensures that activities are done according to the plan. So Planning and control are twins.
$(2)$ Functions at each level of Management: The step of controlling is not limited to a certain section or department. Manager controls their subordinates at every level. The extent of control depends upon the levels of management.
$(3)$ Continuous Process: It is wrong to think that once control is exercised on the activities of the enterprise, work will always be done according to the plan. By keeping constant supervision over the activities, the personal constant efforts must be made to remove deviations. Quality control and cost control are important and consonants activities.
$(4)$ It is the last activity of Management: In the management process planning decides objectives. Organizing implements them, directing gives direction for the same and after this the function of control begins. It is essential that all managerial functions are performed before control is exercised. This function of control is where the activities start. This control is the end activity of management.
$(5)$ Related to Future: In control we have to examine past activities and analyses them on we do not repeat the errors made in past and can take benefit in the future. The objective control is to see that errors, wastage and losses which occurred in the past are not repeated. And control can be used for improvements in future.
$(6)$ It is a Constructive Activity: Control is not an attack on the freedom of employees but a function to see the workers work as planned and do not repeat the mistakes done in a Control is not of negative but a positive activity. This control is a constructive activity.
$(7)$ Internal process: Control is an internal process. Various activities of the business enterprise like production, sales, purchase, financial matters, financial account and working method employees etc. are an integrate business can be controlled. External factors like change in Government policy, depression part of the control system. Due to this, various activities of the inflation, changes in the psychology of people etc. Cannot be controlled.
$(8)$ Dynamic Process: The process of control is related to planning. It is an intellectual process based on planning and foresight. As the assumption of different factor change, the goals and planning change and accordingly fast chargers are made in the control process.
$(9)$ Control is Person Oriented or Subjective Activity: It is done for the improvement activities of workers, by the workers and for the workers. The person is at the center of control. Control is exercised on workers by workers $($managers$).$ Every activity is performed ultimately by the persons. The errors and deviations are also due to human weaknesses. That is can say that control is very much person oriented or subjective.
$(10)$ Control can be formal or Informal: In the context of the originations and produce activities, Control process is established formally. But with the passage of time, an information system of control can be established. At times such an informal system of control can also more effective.

Conclusion: Through controlling being the last function of management, it is connected in Functions of management. If controlling is not effective, planning would prove to be failure and it would be very difficult to achieve targets with minimum costs.

View full question & answer→

OCM 5 Marks Each

Test yourself on this topic