Solution of Chapter 8. Controlling (NCERT - Business Studies Part-I Book)

State the meaning of controlling.

Name the principle that a manager should consider while dealing with deviations effectively.

State any one situation in which an organization’s control system loses is effectiveness.

Give any two standards that can be used by a company to evaluate the performance of its Finance & Accounting department.

Which term is used to indicate the difference between standard performance and actual performance?

‘Planning is looking ahead and controlling is looking back.’ Comment.

‘An effort to control everything may end up in controlling nothing.’ Explain.

Write a short note on budgetary control as a technique of managerial control.

Explain how management audit serves as an effective technique of control.

Mr.Arfaaz had been heading the production department of Write well Products Ltd., a firm manufacturing stationary items. The firm secured an export order that had to be completed on a priority basis and production targets were defined for all the employees. One of the workers, Mr.Bhanu Prasad, fell short of his daily production target by 10 units for two days consecutively. Mr.Arfaaz approached MsVasundhara, the CEO of the Company, to file a complaint against MrBhanu Prasad and requested her to terminate his services. Explain the principle of management control that MsVasundhara should consider while making her decision. (Hint: Management by exception).

Explain the various steps involved in the process of control.

Explain the techniques of managerial control.

Explain the importance of controlling in an organisation. What are the problems faced by the organisation in implementing an effective control system?

Discuss the relationship between planning and controlling.

A company M limited is manufacturing mobile phones both for the domestic Indian market as well as for export. It had enjoyed a substantial market share and also had a loyal customer following. But lately, it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction. Also, the mobile market in India has grown tremendously and new players have come with better technology and pricing. This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing.

a. Identify the benefits the company will derive from a good control system.

b. How can the company relate its planning with control in this line of business to ensure that its plans are actually implemented and targets attained?

c. Give the steps in the control process that the company should follow to remove the problems it is facing

Mr. Shantanu is the chief manager of a reputed company that manufactures garments. He called the production manager and instructed him to keep a constant and continuous check on all the activities related to his department so that everything goes as per the set plan. He also suggested him to keep a track of the performance of all the employees in the organisation so that targets are achieved effectively and efficiently.

a. Describe any two features of Controlling highlighted in the above situation. (Goal Oriented, continuous and pervasive – any 2)Answer The two features of controlling highlighted in the above situation are explained below:

a. Goal-oriented: Controlling insurance that the resources of the organizations are being used in the most effective and efficient manner to achieve the predetermined goals.

b. Pervasive: Controlling is a pervasive function. It is the primary function of all the managers. The managers at all the levels- top, middle and lower have to perform this activity.

b. Explain any four points of importance of Controlling.