CONTROLLING
1 Explain the meaning of controlling.
2 Management of a company decided to introduce Biometric system of attendance to check its employees from coming late to the office and leaving the office earlier than the fixed time. Which values are affected in this case?
3 Employees of Beta Ltd. were able to achieve the quantitative standards. However, they failed to achieve the qualitative standards. Both quantitative and qualitative standards were set according to correct yardsticks. What is the effect of the standard ignored by the workmen?
4 Give the meaning of „Critical Point Control‟.
5 What is meant by „Management by Exception „in the process of Controlling.
6 Saurashtra is a company involved in the export of indigenous food products like chutneys and pickles. It has tied up with the small farmers in various states for sourcing of fruits and vegetables. In this way it helps the small farmers to sell their produce at reasonable rates. The company follows a practice where only significant deviations from a budget or plan are brought to the attention of management. The degree of deviations allowed in different categories in the budget are well defined in advance, along with the appropriate levels of management who will respond to the deviations in question. For e.g., a deviation of Rs. 20,000 or more in purchase costs will be reported
to the concerned department manager. In context of the above case:
(a) Identify the principle of management control adopted by the company. State the belief underlying this principle.
(b) List any two values that the company wants to communicate to the society.
7 „Ekta Motors‟ had set an objective of selling 1200 cars per year. Mrs. Chawla is the Managing Director of this organisation. With a view to achieve this objective, she worked hard to formulate plans. But at the end of the year it came to light that hardly 870 cars could be sold. She compared the expected and actual results and began to seek the causes of this deviation. She arrived at the conclusion that the goodwill of the organisation had suffered because of the negligence of the Service Division. She then took a firm decision to improve the performance level of the service division at all costs.
(a) Identify the function of management mentioned above.
(b) State its importance.
8 An employee of a company reached his office one hour late. The supervisor scolded him right and left without ascertaining the reason of his coming late. Do you justify the behavior of the supervisor? What values he should have kept in mind while dealing with the employees?
9 Discuss the relationship between planning and controlling.
10 Shruti has established a small scale factory after completing a course in textile designing. She has tied up with the big home furnishing retail outlets in the city for supplying to them good quality designer home furnishing products like bed covers, cushions etc. She believes that controlling without planning is blind. So, every time she gets an order, she sets the standards in terms of the number of personnel required, the estimated requirements in man-hours per product, the requirements of direct materials for the projected production and the amount of normal overhead expenses required at the projected work-load. She also keeps a close watch on the activities so as to ensure that they conform to plans. Whenever the order size is too large, she hires extra workers by placing a notice on the notice-board of the factory specifying the details of the jobs available.
In context of the above case:
(a) Identify the function of management being performed by Shruti.
(b) Do you think Shruti is right in her thinking that, “controlling without planning is blind.”Explain by bringing out the relationship between planning and controlling.
(c) Name the source of recruitment adopted by Shruti. Also, mention its type.
11 „Planning is looking ahead and controlling is looking back.‟ Comment.
12 A Critical Point Control (CPC) approach is followed by McDonald in the cooking and handling process so that any food safety threat can be prevented, eliminated, or reduced to an acceptable level. Hence, continuous monitoring of activities are undertaken to ensure that the process is right at each critical point control. The main principle followed for cooking at McDonald is “less amount many time” Which can ensure the high quality and high fresh level of the food. For instance, if four hamburgers have to be made, a worker cannot cook all the four hamburgers at one time. The time figured out for making one hamburger is one hundred and forty- five seconds. Moreover, nearly all foods in the McDonald have the specific holding time, the holding time for hamburgers is ten minutes and for French fries is seven minutes. If it is not sold within that time it is thrown away. Also, the temperature of the milk sent by the supplier must be under 4 degree centigrade, otherwise, it will be returned.
In the context of the above case:
(a) Name the steps involved in the controlling process which is being discussed in the above line.
(b) What do you understand by “critical point control”? Explain.
(c) How does the controlling function of management help in accomplishing organisational goals and ensure efficient use of resources?
13 „An effort to control everything may end up in controlling nothing.‟ Explain.
14 Explain the various steps involved in the process of control.
15 You are a management expert. You have been asked by a business firm to make its managers understand the importance of controlling function of management. How will you explain this to the managers?
16 Explain the importance of controlling in an organisation. What are the problems faced by the organisation in implementing an effective control system?
17 Application Type
Following are some behaviors that you and others might engage in on the job. For each item, choose the behaviour that management must keep a check to ensure an efficient control system.
1. Biased performance appraisals
2. Using company‟s supplies for personal use
3. Asking a person to violate company‟s rules
4. Calling office to take a day off when one is sick
5. Overlooking boss‟s error to prove loyalty
6. Claiming credit for someone else‟s work
7. Reporting a violation on noticing it
8. Falsifying quality reports
9. Taking longer than necessary to do the job
10. Setting standards in consultation with workers You are also required to suggest the management how the undesirable behaviour can be controlled.
Please click on below link to download CBSE Class 12 Business Studies Controlling Worksheet Set D
