CBSE Board’s Previous Year’s Case Studies - Controlling Commerce Notes | EduRev

Crash Course of Business Studies(BST)- Class 12

Commerce : CBSE Board’s Previous Year’s Case Studies - Controlling Commerce Notes | EduRev

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CASELECT 1: What should be done while "taking corrective action" in process of controlling, when specially in the important areas deviations go beyond the acceptable range? (1 Mark) [CBSE, DELHI 2012]

Solution : When deviations in important areas go beyond the acceptable range, managerial control such as training, development and educating the employees becomes the need of the hour. It must be ensured that no further deviations from the target occur in future.


CASELECT 2: Hina Sweets is a renowned name for quality sweets since 1935. Harsh the owner of Hina Sweets was worried as the sales had declined during the last three months. When he enquired from the Sales Manager, the Sales Manager reported that there were some complaints about the quality of sweets. Therefore, Harsh ordered for sample checking of sweets.

Identify the step taken by Harsh that is related to one of the functions of management. (1 Mark) [CBSE, DELHI 2017]

Solution : Measurement of actual performance.


CASELECT 3: Kanu is appointment as a Factory Manager in gel-pen manufacturing company. He was given a target of producing one lac gel-pen per month. He knew that the 'essence of manage is to achieve desired results" but he does not know "how to ensure that the work goes on according to plan."

Guide him by specifying the steps in the process so that he is able to achieve the desired results. (3 Marks) [CBSE, DELHI COMPTT. 2009]

Solution : The steps in the controlling process to be performed so as to enable Kanu to achieve the desired results are:

(i) Establishment of standards.

(ii) Measurement of performance.

(iii) Comparison of actual performance with the standard.

(iv) Analysing deviations.

(v) Taking corrective action.


CASELECT 4: 'A.S. Ltd.' is a large company engaged in assembly of air-conditioners. Recently the company had conducted the 'Time' and 'Motion' study and concluded that on an average a worker can assemble ten air-conditioners in a day. The target volume of the company in a day is assembling of 1,000 units of air-conditioners. The company is providing attractive allowances to reduce labour turnover and absenteeism. All the workers are happy. Even then the assembly of air-conditioners per day is 800 units only. The reason the company compared actual performance of each worker and observed through C.C.T.V. that some of the workers were busy in gossiping.

(a) Identify the function of management discussed above.

(b) State those steps in the process of the function identified which are discussed in the above paragraph. (3 Marks) [CBSE, OD 2015]

Solution :

(a) Controlling.

(b) Steps discussed in the above paragraph are:

(i) Setting performance standards: "Recently the company had conducted the 'Time'.... can assemble ten air-conditioners in a day". Performance standards are the criteria against which the actual performance would be measured.

(ii) Measurement of actual performance: "Even then the assembly of air-conditioners per day is 800 units only". The measurement of actual performance with the standards should be in an objective and reliable manner.

(iii) Comparing actual performance with the standards: "...the company compared actual performance of each worker". In this step actual performance is compared with the set standards to find out the deviation, if any.

(iv) Analysing deviations: "observed through C.C.T.V. that some of the workers were busy in gossiping". Analysis of deviations is done to determine the possible causes of their

occurrence.


CASELECT 5: Rajeev and Sanjeev are managers in the same organisation having different units. While discussing about the function of management, Rajeev says "Planning is looking ahead whereas controlling is looking back." But Sanjeev says, "Planning is looking back whereas controlling is looked ahead." Both are giving reasons in favour of their statements.

Explain the possible reasons given by both and justify who is correct. (6 Marks) [CBSE, DELHI 2009]

Solution :

Rajeev said, "Planning is looking ahead whereas controlling is looking back" based on

following reason:

(i) Planning is thinking in advance and deciding the future course of action. Hence, planning is looking ahead.

(ii) Controlling is post-mortem of past activities to find out the deviations. Hence, controlling is looking back.

Sanjeev said, "Planning is looking back where as controlling is looking ahead" based on

following reasons:

(i) Future planning is based on past experiences Hence, planning is looking back.

(ii) The corrective action taken under controlling help to improve future performance. Hence, controlling is looking ahead.

Thus, both of them are partially correct. As, planning and controlling are both backward looking and forward looking functions.

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