Test: Controlling - 2 - Commerce MCQ

Employee performance measurements can determine an employee's compensation, employment status or opportunities for advancement.
A Performance Report can tell about the employee and their work done in an organization and observing a person can tell a lot about his personality and the attitude towards work.

The last step in the controlling process is taking corrective action. This step involves making necessary adjustments and improvements based on the results of comparing actual performance with standards. Here is a detailed explanation of each step in the controlling process:
1. Setting Performance Standards: This is the first step in the controlling process, where specific goals and objectives are established. Performance standards serve as a benchmark for measuring and evaluating performance.
2. Measurement of Actual Performance: In this step, the actual performance is measured and quantified. This can be done through various methods such as observation, data collection, surveys, and reports.
3. Comparing Actual Performance with Standards: The next step is to compare the measured performance with the established standards. This helps identify any deviations or gaps between the desired performance and the actual performance.
4. Taking Corrective Action: Once the deviations or gaps are identified, corrective action is taken to address the issues and bring the performance back on track. This may involve implementing new strategies, providing additional resources, training employees, or making process improvements.
By taking corrective action, organizations can ensure that performance aligns with the established standards and goals. This step completes the controlling process by closing the loop between measuring performance and making necessary adjustments to improve future outcomes.

Change in Quantity and the price will definitely not correct the defective material. The best corrective measure for defective material will be to change the quality of the product used to a better quality.

Corrective Action for Defective Machinery:

When dealing with defective machinery, the following corrective actions can be taken:

1. Assess the extent of the defect:
- Determine the exact nature and severity of the defect in the machinery.
- Evaluate the impact of the defect on the overall functionality and productivity of the machinery.
2. Determine the feasibility of repair:
- Analyze whether repairing the machinery is a viable option based on the extent of the defect.
- Consider the cost-effectiveness of repairing the machinery compared to replacing it.
3. Repair the machinery:
- If the defect is minor and repairable, take the necessary steps to fix the machinery.
- Engage qualified technicians or experts to perform the repairs.
4. Replace the machinery:
- If the defect is severe or the cost of repairs is too high, consider replacing the defective machinery.
- Assess the available options for purchasing a new or used replacement machine.
5. Dispose of the defective machinery:
- If repair or replacement is not feasible, dispose of the defective machinery properly and in accordance with environmental regulations.
- Consider recycling or selling parts of the machinery that are still in working condition.
6. Learn from the defect:
- Conduct a thorough analysis to understand the root cause of the defect.
- Implement preventive measures to avoid similar defects in the future.
7. Document the corrective action:
- Maintain records of the defect, corrective actions taken, and associated costs.
- Use this documentation to track trends, identify recurring issues, and improve maintenance processes.
Overall, the corrective action for defective machinery involves carefully assessing the situation, deciding between repair or replacement, and taking steps to ensure the future reliability and productivity of the machinery.

Obsolete Machinery means that it may be defective or may have become worn out or obsolete or no longer used or useful in the operations. So when a machinery is obsolete it causes a lot of cost in repairing and producing less. So upgrading to a better machinery is the best corrective action in case of obsolete machinery.

Controlling is blind without Planning
Controlling is an essential function of management that involves monitoring and ensuring that the organization's goals are achieved effectively and efficiently. However, without proper planning, controlling becomes blind and ineffective. Here's why:
1. Setting objectives: Planning helps in establishing clear objectives and goals for the organization. These objectives provide a basis for measuring performance and determining whether the organization is on track or not.
2. Identifying key performance indicators (KPIs): Planning helps in identifying the KPIs that need to be monitored and controlled. These KPIs act as benchmarks for measuring performance and making necessary adjustments.
3. Establishing standards: Planning involves setting standards against which actual performance can be compared. These standards serve as a basis for evaluating and controlling performance.
4. Allocating resources: Planning helps in allocating the necessary resources, such as manpower, finances, and materials, to achieve the desired objectives. Without proper planning, resources may be misallocated, leading to inefficiencies and ineffective control.
5. Creating accountability: Planning creates a sense of accountability within the organization. It sets clear expectations and responsibilities for each individual and department, making it easier to assess and control their performance.
6. Identifying potential risks: Planning involves identifying potential risks and developing strategies to mitigate them. Without proper planning, these risks may go unnoticed, leading to unexpected outcomes and ineffective control.
7. Providing a roadmap: Planning provides a roadmap for achieving the desired objectives. It outlines the steps and actions required to reach the goals, making it easier to control and monitor progress.
In conclusion, planning is crucial for effective controlling. It sets the foundation for measuring performance, establishing standards, allocating resources, creating accountability, identifying risks, and providing a roadmap for success. Without proper planning, controlling becomes blind and ineffective, making it difficult to achieve organizational goals.

Planning without controlling is meaningless

When it comes to managing any project or task, planning is an essential step. However, planning alone is not sufficient without controlling. Here's why:

• Lack of direction: Without controlling, planning becomes pointless as there is no mechanism in place to ensure that the planned activities are on track and aligned with the objectives. It becomes difficult to gauge progress and make necessary adjustments if needed.



• Wasted resources: When planning is not accompanied by controlling, there is a higher chance of resources being misused or wasted. Without monitoring and evaluating the progress, it becomes challenging to identify inefficiencies or deviations from the plan.



• Missed deadlines: Without controlling, it's difficult to stay on schedule. Planning helps in setting deadlines, but without monitoring the progress and taking corrective actions, deadlines may be missed, leading to delays in project completion.



• Limited accountability: Controlling provides a framework for accountability. Without it, individuals or teams may not be held responsible for their actions or outcomes, which can lead to a lack of commitment and motivation.



• Unforeseen risks: Planning helps in identifying potential risks, but without controlling, it becomes challenging to mitigate or manage those risks effectively. This can result in increased costs, project failures, or other negative consequences.

Therefore, planning without controlling is meaningless as it lacks the necessary mechanisms to ensure the successful execution of the planned activities and achievement of desired outcomes.

Planning is Looking Ahead and Control is Looking Back
Planning and controlling are inseparable. Planning is the primary function of every organisation it is the thinking process, which mean looking ahead or making plans that how desired goal is achieved in future thus it is called a formed looking function on the other hand controlling is a systematic function which measures the actual performance with the planned performance. It compared and analysed the whole process of an organisation and take correcting actions. Thus, it is a backward looking function but the statement "Planning is looking ahead and controlling is looking back" is partially correct because it should be understood that planning is glided by past experiences and the corrective action initiated by control function which aims to improve future performance. Thus, planning and controlling are both backward looking as well as a forward looking function.

Explanation:
Controlling is an important function of management that involves monitoring and regulating the activities of individuals and departments to ensure that organizational goals are achieved. However, there are certain aspects of controlling that are not correct. Let's analyze each option:
A: Controlling is pervasive function:
- This statement is correct. Controlling is a pervasive function that is performed at all levels of management and in all departments of an organization. It involves setting standards, measuring performance, comparing it with the standards, and taking corrective action if necessary.
B: Controlling is goal oriented:
- This statement is correct. Controlling is aimed at achieving organizational goals. It helps in determining whether the desired outcomes are being achieved or not and enables managers to make necessary adjustments to ensure goal attainment.
C: Controlling is External Source:
- This statement is not correct. Controlling is an internal process that is conducted by managers within the organization. It involves setting standards, monitoring performance, and taking corrective action. It is not dependent on external sources.
D: Controlling is a continuous process:
- This statement is correct. Controlling is an ongoing and continuous process. It is not a one-time activity but requires regular monitoring and evaluation of performance to ensure that organizational goals are being achieved.
Therefore, the correct answer is option C: Controlling is an external source, which is not correct.

Controlling is necessary for:
- Medium Level Enterprise: Controlling is necessary for medium level enterprises as it helps in ensuring that the operations and activities are in line with the set goals and objectives. It helps in monitoring the performance and taking corrective actions if there are any deviations.
- Small Scale Enterprise: Controlling is necessary for small scale enterprises as it helps in maintaining efficiency and effectiveness in their operations. It helps in tracking the progress and making necessary adjustments to achieve the desired outcomes.
- Large Scale Enterprise: Controlling is necessary for large scale enterprises as it helps in managing and coordinating the various departments and units. It helps in ensuring that the resources are utilized effectively and the activities are aligned with the overall organizational goals.
- All of these: Controlling is necessary for all types of enterprises, regardless of their size. It plays a crucial role in managing and monitoring the activities, performance, and outcomes of the organization.
In conclusion, controlling is necessary for all types of enterprises, including medium level, small scale, and large scale enterprises. It helps in maintaining efficiency, effectiveness, and achieving the desired goals and objectives.

Control is measuring actual performance, comparing it with standard performance, finding deviations and adopting measures to check the deviations. In a small organisation, managers can check every activity of members by adopting appropriate control devices but as organisations increase in size and complexity, managers cannot control all activities of the organisation single handedly.

They are occupied with many important managerial activities to inspect and control every organisational activity. Besides, this is costly and time-consuming. Managers should, therefore, focus on the critical points or areas of control which best reflect organisational goals.

Control is an expensive process it involves lot of time and effort as sufficient attention has to be paid to observe the performance of the employees. To install an expensive control system organisations have to spend large amount. Management must compare the benefits of controlling system with the cost involved in installing them.

One of the greatest obstacles to the identification of excellence inqualitative studies is the lack of generally accepted criteria.

Why actual performance is compared with standards?
Comparing actual performance with standards is important for several reasons:
1. To identify variances:
- Comparing actual performance with standards helps to identify any variances or deviations from the desired or expected performance level.
- It allows organizations to understand how well they are meeting their goals or targets.
2. To take corrective action:
- When actual performance falls short of the standards, it indicates that there may be issues or problems that need to be addressed.
- By comparing actual performance with standards, organizations can identify areas where corrective action is needed.
- This enables them to take necessary steps to improve performance and bring it back in line with the desired standards.
3. To improve efficiency and productivity:
- Comparing actual performance with standards helps organizations to identify areas where they can improve efficiency and productivity.
- It allows them to analyze the reasons behind any performance gaps and take appropriate measures to enhance their processes, systems, or techniques.
4. To motivate employees:
- Comparing actual performance with standards can serve as a performance benchmark for employees.
- It provides them with clear goals and expectations, motivating them to strive for better performance.
- It also helps in identifying high-performing employees and recognizing their achievements.
5. To evaluate the effectiveness of standards:
- Comparing actual performance with standards helps organizations evaluate the effectiveness of their existing standards.
- If the standards are consistently being met or exceeded, it indicates that the standards are effective and appropriate.
- However, if there are frequent variances, it may suggest that the standards need to be revised or updated to better align with the organizational goals and objectives.
In summary, comparing actual performance with standards is essential for identifying variances, taking corrective action, improving efficiency, motivating employees, and evaluating the effectiveness of standards. It helps organizations to ensure that they are on track towards achieving their goals and objectives.

Limitation of Controlling:

Controlling is an important function of management that involves monitoring, evaluating, and correcting activities to ensure that goals are achieved effectively and efficiently. However, it also has some limitations, and one of them is:

• Cost: Controlling can be expensive to implement and maintain. It requires resources such as personnel, technology, and systems to collect and analyze data, monitor performance, and take corrective actions. These costs can be a significant burden for organizations, especially for small businesses with limited budgets.

It is important for managers to consider the cost-benefit analysis of implementing controlling measures to ensure that the benefits outweigh the expenses involved.

Other options:

• Improves employee motivation: This statement is not a limitation of controlling. In fact, controlling can have a positive impact on employee motivation by providing clear objectives, feedback, and recognition for achieving goals.


• Goal-oriented: This statement is not a limitation of controlling. Controlling is indeed goal-oriented, as it focuses on comparing actual performance with planned goals and taking corrective actions to ensure goal achievement.


• Ensures order and discipline: This statement is not a limitation of controlling. Controlling helps in maintaining order and discipline by setting performance standards, monitoring compliance, and taking corrective actions when needed.

Therefore, the correct answer is C: Controlling is expensive.

Explanation:
When actual performance is better than the standard performance, it is called positive deviation. Let's break down the answer into heading and HTML bullet points for a more organized and visually appealing response:
Meaning of positive deviation:
- Positive deviation refers to a situation where the actual performance exceeds or surpasses the standard or expected performance.
- It indicates that the performance has been better than what was anticipated or required.
Examples of positive deviation:
- If a student scores higher marks in an exam than the average marks required to pass, it is considered a positive deviation.
- In a manufacturing process, if the output exceeds the target production, it is a positive deviation.
- When a salesperson exceeds their sales target, it is a positive deviation.
Characteristics of positive deviation:
- Positive deviation is often seen as a desirable outcome as it indicates exceptional performance.
- It can lead to increased motivation and recognition for the individual or team responsible for the deviation.
- Positive deviation can also serve as a benchmark for setting higher standards and goals in the future.
Contrast with negative deviation:
- Negative deviation, on the other hand, refers to a situation where the actual performance falls short of the standard or expected performance.
- It indicates a below-par performance or a failure to meet the required criteria.
In conclusion, when actual performance is better than the standard performance, it is called positive deviation. This term is used to describe situations where performance exceeds expectations or requirements, leading to positive outcomes and recognition.

Explanation:
When the actual performance is less than the standard performance, it is called a negative deviation. Here's a detailed explanation:
- Standard performance: This refers to the expected or desired level of performance. It is often set as a benchmark or goal to be achieved.
- Actual performance: This refers to the real or measured level of performance that is achieved in practice.
- Negative deviation: When the actual performance falls short of the standard performance, it is considered a negative deviation. It indicates that there is a gap or shortfall between what was expected and what was actually achieved.
To summarize:
- The actual performance is less than the standard performance.
- This is referred to as a negative deviation.
- It signifies a gap or shortfall between expectations and reality.
Example:
Let's say a company sets a standard performance target of producing 100 units per day. However, due to various factors such as machine breakdowns or staffing issues, the actual production is only 80 units per day. In this case, there is a negative deviation of 20 units (100 - 80). The company has not been able to meet its target, and there is a gap between the expected and actual performance.

Solution to Lack of Motivation Among Employees
There are several corrective actions that can be taken to address the lack of motivation among employees. One effective approach is to provide suitable incentives to inspire and engage employees. Here is a detailed solution:
1. Identify the underlying causes:
- Before implementing any corrective action, it is crucial to identify the root causes of the lack of motivation. This can be done through surveys, feedback sessions, or one-on-one discussions with employees.
2. Revamp the reward system:
- Introduce a rewards and recognition program that acknowledges and appreciates employees' efforts and achievements. This can include monetary incentives, bonuses, gift cards, or even public recognition within the organization.
3. Offer professional development opportunities:
- Provide employees with opportunities for growth and development through training programs, workshops, or sponsorships for certifications. This will not only enhance their skills but also boost their motivation and job satisfaction.
4. Foster a positive work environment:
- Create a positive and supportive work culture that promotes open communication, collaboration, and teamwork. Encourage employees to share their ideas, opinions, and concerns, and ensure that their contributions are valued.
5. Provide meaningful work:
- Assign employees tasks and projects that align with their skills, interests, and strengths. When employees find their work meaningful and purposeful, they are more likely to be motivated and engaged.
6. Establish clear goals and expectations:
- Set clear performance goals and communicate them effectively to employees. Clear expectations help employees understand what is expected of them and provide them with a sense of direction and purpose.
7. Encourage work-life balance:
- Promote a healthy work-life balance by offering flexible work arrangements, such as telecommuting or flexible working hours. This will help employees maintain a balance between their personal and professional lives, reducing stress and increasing motivation.
8. Provide regular feedback and recognition:
- Regularly provide constructive feedback to employees to help them improve their performance. Additionally, recognize and appreciate their achievements and efforts publicly to boost morale and motivation.
9. Foster a culture of trust and respect:
- Create an environment where employees feel trusted, respected, and valued. Encourage managers and leaders to build strong relationships with their team members, listen to their concerns, and provide support when needed.
By implementing these corrective actions, organizations can effectively address the lack of motivation among employees and create a more engaged and productive workforce.

The task of controlling involves taking corrective action where any deviations are found. Management cannot prevent it and must determine what activities are critical to success and who should have the authority to take corrective action.

The correct option is C.

Control is a function of management which helps to check errors in order to take corrective actions.Controlling cannot prevent deviations, it can minimise them by taking actions that reduce their recurrence. Controlling is taking steps to ensure that actual performance conforms to planned performance; by preventing deviations and taking corrective measures to reduce their recurrence.An ideal control system provides timely feedback that can be used to monitor and correct deviations.