CBSE Class 12 Business Studies Controlling

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Chapter – VIII

Controlling

“Control without its process is a meaningless exercise”. Explain this statement

                                      Or

“Comparing the actual performance with laid standards, finding out the deviations and taking corrective action is an important process of a management function” name and explain this PROCESS.- 5 marks (Ans: Controlling process)

                                      Or

Describe in brief the various steps in the process of control - 5 marks (CBSE-2003)

Following are the 4 steps in controlling process: (Establishing, Measuring, Comparing & Taking)

Establishing standards:

  • 1st step is to establish standards of performance against which actual results can be evaluated.
  • These standards are the yardsticks of performance and clearly specify what should be accomplished.

Measuring performance:

  • 2nd step is to measure actual performance of the entire workforce in the organisation.
  • For easy comparison, actual performance should be expressed in the same terms as planned standards.

Comparing performance with standards:

  • 3rd step involves finding deviations and the causes of such deviations Minor deviations should not be reported to top management, as they are acceptable. But major deviations must be reported so that remedial measures can be taken.

Taking corrective action:

4th and final step in the controlling process is find out the deviations and take corrective action to prevent recurrence of deviations.

There are three actions a manager may take after comparing actual performance with established standards. Let the situation remain as it is.

Correct the deviation by improving the performance Revise the standard set earlier.


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