Q1: ‘If planning is done carefully and accordingly other functions of management are going in right direction then there is no need of the controlling function of management.’ Do you agree with the statement ? Justify your answer.
Ans: Importance of Controlling :
8.4 Importance of Controlling
Controlling is an indispensable function of management. Just as road signals are essential to ensure accident-free and smooth traffic, managerial controlling is necessary for the smooth running of business.
“Control is the soul of business management.” A good control system helps an organization in the following ways :
Q2: How are planning and controlling interdependent and inter-linked ?
Ans: The given statement is wrong. Controlling is an indispensable function of management. Rest is same to answer 3 in above.
Q3: Taking corrective action is the last step in the process of management (a) Name the function (b) Explain the steps involved in this process.
Ans: Planning and controlling are interrelated and interdependent as follows :
(i) Planning is the basis for controlling Planning is the basis for controlling too. In the absence of plans it is not possible to measure and assess performance. For example, if the output is 500 units, the manager can know whether it is adequate or not only when there is a standard output set up by the planners. Thus, planning provides the base for comparison of actual performance with the budget performance.
(ii) Controlling helps in planning : Without effective controlling, activities can not be properly planned. Planning is guided by past experiences and corrective measures suggested by controlling.
(iii) Effective controlling helps in formulation of future plans Controlling helps in revising plans to reap maximum benefits at minimum cost. Controlling ensures improvement in future performance.
(iv) Finding out deviations and cause there of effectiveness of planning can be measured with the help of controlling. Planning is based on fore cast about future conditions. Controlling sets standards and finds out deviations from standards. After that corrective actions are to be taken by controlling function.
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