Q. 1. State any five points that highlight the importance of ‘controlling’ function of management.[Delhi Set III 2017]
OR
State any five points that highlight the importance of controlling.[Outside Delhi Set I 2017] [Outside Delhi Set II 2016]
OR
Explain any five points which highlight the importance of controlling function of management.[Delhi Set I 2016] [Foreign Set III 2016]
OR
State any five points that highlight the importance of controlling.[Outside Delhi Set II 2016]
OR
‘Controlling is an indispensable function of management.’ Explain this statement with the help of any five points.[Outside Delhi Comptt. Set I 2014]
OR
Explain any five points of importance of controlling.[Delhi Comptt. Set III 2014; Set II 2012]
Ans. Importance of controlling :
(i) Accomplishing organisational goals : It helps in accomplishing organisational goals by bringing to light, deviations if any and indicating corrective action.
(ii) Making efficient use of resources : It helps in making efficient use of resources by ensuring that each activity is performed in accordance with predetermined standards.
(iii) Ensuring order and discipline : It ensures order and discipline among employees by keeping a close check on their activities.
(iv) Improving employee motivation : It improves employee motivation as the employees’ know well in advance the standards of performance on the basis of which they will be appraised.
(v) Judging accuracy of standards : It helps in judging accuracy of standards in the light of changes taking place in the organisation and in the environment.
(vi) Facilitating coordination in action : It facilitates coordination in action as each employee and department in governed by pre-determined standards which are well coordinated with one another.
Detailed Answer :
Importance of Controlling :
(i) Accomplishing organisational goals : The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action. It, thus, guides the organisation and keeps it on the right track so that organisational goals might be achieved.
(ii) Judging accuracy of standards : A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes.
(iii) Making efficient use of resources : By exercising control, a manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with the predetermined standards and norms. This ensures that resources are used in the most effective and efficient manner.
(iv) Improving employee motivation : A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised. It, thus, motivates them and helps them to deliver better performance.
(v) Ensuring order and discipline : Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities.
(vi) Facilitating co-ordination in action : Controlling provides direction to all activities and efforts for achieving organisational goals. Each department and employee is governed by the predetermined standards which are well co-ordinated with one another. This ensures that overall organisational objectives are accomplished.
Q. 2. Describe briefly the relationship between controlling and planning.[Delhi Set II 2017]
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Explain briefly the relationship between controlling and planning.[Outside Delhi Set III 2017]
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Explain the relationship between controlling and planning functions of management. [Delhi Set III 2016][Delhi Comptt. Set III 2016]
OR State the relationship between planning and controlling functions of management.[Outside Delhi Set III 2016]
Ans. Relationship between planning and controlling :
(i) Controlling takes place on the basis of standards developed by planning because if the standards are not set in advance, managers have nothing to control.
(ii) Planning without controlling is meaningless because once a plan becomes operational, controlling ensures that events confirm to the plans.
(iii) Planning is prescriptive whereas controlling is evaluative because planning prescribes an appropriate course of action while controlling evaluates whether decisions have been translated into desired actions.
(iv) Planning and controlling both are forward looking because while plans are prepared for the future, controlling seeks to improve the future on the basis of the past experience.
(v) Planning and controlling are both looking back because, while planning is guided by past experiences, controlling compares the actual performance with the standards.
Detailed Answer :
Relationship between controlling and planning functions of management can be understood with the help of following points :
(i) Planning and controlling are inseparable twins of management : A system of control presupposes the existence of certain standards provided by planning. Once a plan becomes operational, controlling is necessary to monitor the progress, measure it, discover deviations and initiate corrective measures to ensure that events confirm to the plans. Thus, planning without controlling is meaningless.
(ii) Controlling is blind without planning : If the standards are not set in advance, managers have nothing to control. When there is no plan, there is no basis of controlling. Planning is clearly a prerequisite for controlling. Without planning there is no predetermined understanding of the desired performance. Planning seeks consistent, integrated and articulated programmes while controlling seeks to compel events to confirm to plans.
(iii) Planning is prescriptive while controlling is evaluative : Planning is basically an intellectual process involving thinking, articulation and analysis to discover and prescribe an appropriate course of action for achieving objectives. Controlling, on the other hand, checks whether decisions have been translated into desired action. Planning is thus, prescriptive whereas, controlling is evaluative.
(iv) Planning and controlling are both backward and forward looking functions : Plans are prepared for future and are based on forecasts about future conditions. Therefore, planning involves looking ahead and is called a Forward Looking Function. On the contrary, controlling is like a postmortem of past activities to find out deviation from the standards. In that sense, controlling is a backwardlooking function. Also, planning is guided by past experiences and the corrective action initiated by control function aims to improve future performance. This, planning and controlling are both Backward-Looking as well as Forward- Looking Functions. Thus, planning and controlling are interrelated and, in fact, reinforce each other in the sense that :
(a) Planning based on facts makes controlling easier and effective.
(b) Controlling improves future planning by providing information derived from the past experience.
Q. 3. Describe the relationship between ‘Planning’ and ‘Controlling’.[Delhi Comptt. Set I 2014; Outside Delhi Comptt. Set III 2014, Set I 2011; Foreign Set I, II, III 2014; Outside Delhi Set I, II, III 2014; Delhi Set I, II, III 2012]
OR
“There is a close and reciprocal relationship between planning and controlling”. Explain the statement.[Outside Delhi Set I 2011]
Ans. Planning and controlling are mutually interrelated and interdependent activities because :
(i) Controlling is based on planning : Planning provides standards used in controlling to compare with actual performance.
(ii) Planning without controlling is meaningless : Controlling ensures that commitments under the plans are fulfilled and events confirm to the plans.
(iii) Planning is prescriptive and controlling is evaluative : Planning prescribes the most appropriate course of action for achieving objectives while controlling evaluates whether decisions have been translated into desired actions.
(iv) Both are forward looking : Planning is looking ahead as it is based on forecast about future and prepared for future only. Controlling aims also to improve future performance, if found any deviations.
(v) Both are looking back : Controlling is looking back as it measures and compares actual performance with standards fixed in the past. Planning is also a backward looking function as plans are guided by the past experiences.
Q. 4. Textile manufacturer Super textiles reported 43% fall in its profits in the fourth quarter ended 31 March 2017, which is beyond the acceptable range of 25% decided by the company. This was due to higher fuel cost and lower yield on account of demonetisation. The company aims to implement cost saving measures by restructuring contracts and its business processes to meet its targets in the future.
(i) Name the function of management discussed above.
(ii) Also identify and explain the steps of the function of management discussed above.[SQP 2018]
Ans. (i) Controlling.
(ii) The steps of controlling discussed above are :
(a) Analysing deviations : Some deviation in performance is expected in all activities. It is therefore, important to determine the acceptable range of deviations. Also, deviations in key areas of business need to be attended more urgently as compared to deviations in certain insignificant areas. Critical point control and management by exception should be used by the manager in this regard. After identifying the deviations that demand managerial attention these deviations need to be analysed for their causes.
(b) Taking Corrective Action : The final step in the controlling process is taking corrective action. No corrective action is required when the deviations are within acceptable limits. However, when the deviations go beyond the acceptable range, especially in the important areas, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished.
Q. 5. State the steps in the process of controlling.[Delhi Set I 2017] OR Explain the steps in the controlling process.[Delhi Set II 2016]
OR
State the steps in the controlling process.[Outside Delhi Set I 2016]
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Explain the steps in the process of controlling.[Delhi Comptt. Set II 2014; Outside Delhi Comptt. Set II 2014]
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Explain the various steps in the process of controlling. U [Outside Delhi Set I, II, III, Delhi Set I, 2014; Delhi Set II 2013; SQP 2011]
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“Controlling is a systematic process involving a series of steps.” Briefly explain these steps.[Delhi Comptt. Set I, III 2013; Set III 2012; Outside Delhi Comptt. Set I 2012]
Ans. Steps in the controlling process :
(i) Setting performance standards.
(ii) Measurement of actual performance.
(iii) Comparing actual performance with the standards.
(iv) Analysing deviations.
(v) Taking corrective action.
Detailed Answer :
Steps in Controlling Process :
(i) Setting Performance Standards : The first step in the controlling process is setting up of performance standards. Standards are the criteria against which actual performance would be measured. Standards can be set in both quantitative as well as qualitative terms. For instance, standards set in terms of cost to be incurred, revenue to be earned, product units to be produced and sold, time to be spent in performing a task, all represent quantitative standards. Sometimes, standards may also be set in qualitative terms. For example Improving goodwill and motivation level of employees are examples of qualitative standards.
(ii) Measurement of Actual Performance : The next step is measurement of actual performance. Performance should be measured in an objective and reliable manner. There are several techniques for measurement of performance. For example personal observation, sample checking, performance reports, etc. As far as possible, performance should be measured in the same units in which standards are set as this would make their comparison easier.
(iii) Comparing Actual Performance with Standards : This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results. Comparison becomes easier when standards are set in quantitative terms. For instance, performance of a worker in terms of units produced in a week can be easily measured against the standard output for the week.
(iv) Analysing Deviations : Some deviation in performance can be expected in all activities. It is, therefore, important to determine the acceptable range of deviations. Also, deviations in key areas of business need to be attended more urgently as compared to deviations in certain insignificant areas. Critical point control and management by exception should be used by a manager in this regard.
(v) Taking Corrective Action : The final step in the controlling process is taking corrective action. No corrective action is required when the deviations are within acceptable limits. However, when the deviations go beyond the acceptable range, especially in the important areas, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished.
Q. 6. Kapil and Kamal & Co. is a large manufacturing unit. Recently the company had conducted time and motion studies and concluded that on an average, a worker could produce 300 units per day. However, it has been noticed that the average daily production of a worker is in the range of 200-225 units.
(i) Name the function of management and identify the step in the process of this function which helped in finding out that the actual production of worker is less than the set target.
(ii) To complete the process of the function identified in (i) and to ensure the performance as per time and motion studies, explain what further steps a manager has to take.[Outside Delhi Set I 2010]
OR
Sita, Geeta and Babita Ltd. is engaged in manufacturing machine components. The target of production is 250 units per day per worker. The company had been successfully attaining this target until two months ago. Over the last two months, it has been observed that daily production varies between 200-210 units per worker.
(i) Name the function of management and identify the step in the process of this function which helped in finding out that the actual production of a worker is less than the set target.
(ii) To complete the process of the function identified in (i) and to ensure the performance as per set targets, explain what further steps a manager has to take. A [Outside Delhi Set I 2010]
Ans. (i) The function of management is ‘controlling’.
This is the third step of controlling process i.e., comparison of actual performance with established standards. This step involves finding deviations and their extent in identifying the causes of such deviations.
(ii) Taking corrective actions: This is the last step of controlling process. By comparing actual performance with established standards, deviations are revealed. The remedial or corrective action is to be taken to remove deficiencies. Here, it involves change in working methods, material, machines, policies and procedures. It may also require improvement in the motivation, supervision and modifications in the business plans.
