The chapter "Controlling" in CBSE Class 12 Business Studies explores one of the critical functions of management. Controlling involves monitoring and evaluating the performance of an organization to ensure that goals are being met. This chapter covers the essential aspects, techniques, and significance of the controlling function in management.
Introduction to CBSE Class 12 Business Studies Chapter "Controlling"
This chapter provides a detailed explanation of the concept of controlling, its characteristics, and its importance in the management process. Key topics include:
- Meaning of Controlling: Controlling is the process of evaluating the progress of activities and ensuring that they are aligned with the planned objectives.
- Characteristics of Controlling: It is a goal-oriented, pervasive, continuous, and dynamic process.
- Importance of Controlling: Controlling helps in achieving organizational goals, ensures efficient use of resources, improves employee motivation, and facilitates coordination among departments.
- Principles of Controlling: These include setting standards, measuring actual performance, comparing actual performance with standards, and taking corrective actions.
Assignments for CBSE Class 12 Business Studies Chapter “Controlling”
- Short Questions:
- Define controlling.
- What is meant by management by exception?
- Explain the term ‘deviation’ in the context of controlling.
- Long Questions:
- Discuss the various steps involved in the controlling process.
- Explain the relationship between planning and controlling.
- Describe the techniques of managerial control with examples.
- Case Study Analysis:
- Analyze a situation where an organization’s performance deviated from its planned objectives and suggest corrective measures.
- Research Project:
- Investigate how a well-known company implements its controlling process and the techniques it uses to measure performance.
- Debate Preparation:
- Prepare for a debate on the importance of controlling in achieving organizational efficiency versus its potential drawbacks.
Conclusion
The chapter “Controlling” equips students with an understanding of how to monitor and evaluate organizational activities effectively. It highlights the significance of the controlling function in ensuring that organizational objectives are met and resources are used efficiently.
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Questions and Answers for CBSE Class 12 Business Studies Chapter "Controlling"
Q1: What is controlling?
- ANS: Controlling is the process of evaluating the performance of activities and ensuring they align with the planned objectives. It involves setting standards, measuring actual performance, comparing it with the standards, and taking corrective actions.
Q2: What is meant by management by exception?
- ANS: Management by exception is a principle where managers focus on significant deviations from standards rather than minor variances. It helps in efficient use of managerial time and resources.
Q3: Explain the term ‘deviation’ in the context of controlling.
- ANS: Deviation refers to the difference between actual performance and the set standards. It indicates whether the organizational activities are on track or require corrective measures.
Q4: Discuss the various steps involved in the controlling process.
- ANS: The steps involved in the controlling process include:
- Setting performance standards.
- Measuring actual performance.
- Comparing actual performance with standards.
- Analyzing deviations.
- Taking corrective actions.
Q5: Explain the relationship between planning and controlling.
- ANS: Planning and controlling are closely related functions of management. Planning involves setting objectives and outlining the steps to achieve them, while controlling ensures that the activities are carried out as per the plan. Effective controlling relies on well-defined plans, and planning is incomplete without controlling to monitor progress and implement necessary adjustments.
Q6: Describe the techniques of managerial control with examples.
- ANS: Managerial control techniques can be categorized into traditional and modern techniques:
- Traditional Techniques: Personal observation, statistical reports, break-even analysis, and budgetary control.
- Modern Techniques: Return on investment (ROI), ratio analysis, responsibility accounting, management audit, PERT (Program Evaluation Review Technique), and CPM (Critical Path Method).
Q7: What are the problems faced by an organization in implementing an effective control system?
- ANS: Problems include difficulty in setting qualitative standards, resistance from employees, high cost of control, and rapidly changing business environments that require frequent adjustments in control mechanisms.
Q8: Explain the importance of controlling in an organization.
- ANS: Controlling is important as it:
- Helps achieve organizational goals.
- Ensures efficient use of resources.
- Motivates employees by clarifying expectations.
- Facilitates effective decision-making.
- Improves coordination among departments and employees.
