Chapter Synopsis - Controlling Commerce Notes | EduRev

Crash Course of Business Studies(BST)- Class 12

Commerce : Chapter Synopsis - Controlling Commerce Notes | EduRev

The document Chapter Synopsis - Controlling Commerce Notes | EduRev is a part of the Commerce Course Crash Course of Business Studies(BST)- Class 12.
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1. Concept of Controlling: It is the process through which managers assure that actual

activities conform to the planned activities.


2. Nature of Controlling:

• It is pervasive function.

• It is a dynamic process.

• It is forward looking.

• It is action oriented.

• It leads to post-mortem of past events.


3. Importance of Controlling:

• Accomplishment of organisational goals.

• Judging accuracy of standards.

• Making efficient use of resources.

• Improving employee motivation.

• Ensuring order and discipline.

• Facilitating coordination in action.


4. Limitations of Controlling:

• Difficulty in setting quantitative standards.

• Little control on external factors.

• Resistance from employees.

• Costly affair.


5. Controlling Process:

• Establishment of standards.

• Measurement of performance.

• Comparison of actual performance with

• Analysing deviations, the standard.

• Taking corrective action.


6. Relationship between Planning and Controlling:

Planning and controlling are interrelated and in fact reinforce each other in the sense that:

• Planning is pre-requisite for controlling.

• Planning is meaningless without controlling.

• Effectiveness of planning can be measured with the help of controlling.

• Planning is looking ahead and controlling is looking back.


Identifying the Concepts

Concepts                                      Key Words/Phrases

• Controlling                                    Comparing actual performance with standards.

• Deviation                                       Gap between actual results and desired results.

• Key Result Area                            Critical points of control.

• Management by Exception          Significant deviations to be considered by management.

• Standard                                         Criteria against which performance is measured.

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