Class 12 Business Studies - Chapter Controlling NCERT Solutions | Discuss the limitations of controlling i
Discuss the limitations of controlling in an organization.
Controlling is an essential managerial function, but it has its limitations:
- Rigidity: Overemphasis on strict adherence to set standards can create rigidity, discouraging creativity and initiative among employees. Employees may hesitate to experiment with new ideas, fearing punishment for deviations.
- Costly process: The controlling function involves extensive monitoring, measurement, and analysis of performance. This can be costly and resource-intensive, especially in large organizations, where multiple levels of control may be required.
- Difficulty in setting standards: Setting appropriate standards for all activities can be challenging, especially for tasks that are qualitative in nature, such as employee morale or customer satisfaction.
- External factors: Some deviations from standards may occur due to external factors beyond the organization’s control, such as economic conditions, governmental regulations, or natural calamities, making controlling less effective.
- Resistance to control: Employees may view control mechanisms as punitive, leading to resistance, non-cooperation, or manipulative behavior to present favorable performance reports.
More Questions From Class 12 Business Studies - Chapter Controlling
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Explain the techniques of managerial control.
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‘Planning is looking ahead and controlling is looking back.’ Comment.
- Q:-
Write a short note on budgetary control as a technique of managerial control.
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Explain the various steps involved in the process of control.
- Q:-
Mr Shantanu is a 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).
b. Explain any four points of importance of Controlling. - Q:-
Mr.Arfaaz had been heading the production department of Writewell 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 taking her decision. (Hint: Management by exception).
- Q:-
A company ‘M’ limited is manufacturing mobile phones both for 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 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. - Q:-
Discuss the relationship between planning and controlling.
- Q:-
Give any two standards that can be used by a company to evaluate the performance of its Finance & Accounting department.
- Q:-
Name the principle that a manager should consider while dealing with deviations effectively. State any one situation in which an organisation’s control system loses its effectiveness.
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