CBSE Class 12 Business Studies Controlling Worksheet Set B

Very Short Answer

Question. Which function of management ensures that actual activities conform to planned activities? 
Answer: It is controlling function of management ensures that actual activities conform to planned activities.

Question. Name the function which reviews the operations in a business unit. 
Answer: Controlling function.

Question. What should be the "focus point for a manager while controlling, as controlling at each and every step is not possible? 
Answer: Focus point for a manager while controlling should be the Key Result Areas.

Question. What should be done while taking corrective action' in the process of controlling when especially in the important areas deviations go beyond the acceptable range?
Answer: In this situation, standards may have to be revised.

Question. In controlling process, standards were set according to the efficiency of the average employee which value has been kept in mind while setting the standards?
Answer:  (a) Increase in the morale of the employees.
 (b) Improving the quality of production.

Questions  And  Answers

Question. Define Controlling.
Answer: It is a process of taking steps to bring actual results and desired results closer together.

Question. Which function of management ensures that actual activities confirm to planned activities? 
Answer: Controlling

Question. Name the function of management which reviews the operations in a business unit. 
Answer: Controlling

Question. Why it is said that planning is meaningless without controlling? 
Answer: In the absence of controlling, actual performance will not be measured and compared.
So, how far plans are implemented cannot be known.

Question. Why it is said that controlling is blind without planning?
Answer: Without laid standards actual performance cannot be compared.

Question. Explain how controlling helps in „achieving better co-ordination‟ and „better planning‟. 
Answer: Controlling ensures order and discipline by fixing standards in advance which leads to improved employee motivation, it also facilitates efficient use of resources, judging the accuracy of standards, facilitates coordination in action which will result into accomplishment of organizational goals.

Question. Controlling is a pervasive function. Explain
Answer: It is a pervasive function, it is required every level and in any type of organisation.

Question. “If you try to controlling everything you may end up by controlling nothing” Discuss.
Answer: Management by exception.

Question. “Controlling is not a panacea for every problem in the organisation” Discuss.
Answer: 1. Difficulty in setting quantitative standards: It is difficult to set standards for all types of activities this makes measurement of performance and their comparison with standards a difficult task.
2. Little control on external factors: Business environment is ever changing. The firm has no control on external factors such as government policies, technological changes, competition etc.
3. Resistance from employees: Employees oppose controlling measures taken by any organisation.
4. Costly affair: It is a costly affair as it involves a lot of expenditure, time and effort.
Especially small organizations cannot afford.

Question. What is Critical Point Control?
Answer: It is neither economical nor easy to keep a check on each and every activity in an organisation. Controlling should focus on key result areas (KRAs) only which are critical to the success of the orgnisation.

Question. What are the factors to be kept in mind while setting standards? 
Answer:
i) Standards should be in measurable terms
ii) Standards should be flexible to change
iii) They may be in qualitative or quantitative
iv) They should be stated in clear terms without any ambiguity.

Question. There are two managers of a company Rahul and Rohit. Rahul is saying that „Planning is looking ahead whereas controlling is looking back‟. On the other hand, according to Rohit planning is looking back whereas as controlling is looking ahead. Who is correct and why? 
Answer: Both are correct.

Question. “A production in change was given a standard toy train. He was asked to produce similar other toy trains. What control process would he have followed? 
Answer:
1. Setting performance standards: Standards are the Criteria against which actual performance would be measured. Standards serve as bench marks. They can be set in both quantitative as well as qualitative.
2. Measurement of actual performance: Performance should be measured in an objective and reliable manner.

Question. Suggest the corrective actions to be taken for the following causes of deviation.
i) Defective material
ii) Defective machinery
iii) Obsolete machinery
iv) Defective Process
v) Defective physical conditions of work 
Answer:
i) Change the quality specification for the material used.
ii) Repair the existing machine or replace the machine if it cannot be repaired.
iii) Undertake technological up gradation of machinery
iv) Modify the existing process
v) Improve the physical conditions of work

Question. “Control does not require any process” .
Answer: This statement is wrong. Controlling has a process which contains five steps in a given serial order.

Question. “In the absence of of a managerial function, planning goes unchecked “ Name the function and explain its importance. 
Answer:
(i) Accomplishing organizational goals: The controlling function measures progress towards the organisational goals and brings to light the deviations, if any ,and indicates corrective action.
(ii) Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective.
(iii) Making efficient use of resources: By exercising control, a manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with predetermined standards and norms.
(iv) Improving employee motivation: A good control system ensures that employees know well in advance what they are expected todo and what are the standards of performance on the basis of which they will be appraised. It, thus, motivates them and helps them to give better performance.
(v) Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimizedis honest behaviour on the part of the employees by keeping a close check on their activities.
(vi) Facilitating coordination in action: Controlling provides direction to all activities and efforts for achieving organizational goals.

Question. Planning without controlling is blind and vice-versa. Discuss. 
Answer: Planning and controlling are inseparable twins of management. A system of control presupposes the existence of certain standards. These standards of performance which serve as the basis of controlling are provided by planning. Once a plan becomes operational, controlling is necessary to monitor the progress, measure it, discover deviations and initiate corrective measures to ensure that events conform to plans.
planning without controlling is meaningless. Similarly, controlling is blind without planning. If the standards are not set in advance, managers have nothing to control. When there is no plan, there is no basis of controlling. Planning is clearly a prerequisite for controlling. It is utterly foolish to think that controlling could be accomplished without planning. Without planning there is no predetermined understanding of the desired performance.