CONTROLLING Flashcards
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Define Controlling according to NCERT.
Controlling is the process of ensuring that actual performance conforms to the planned performance. It includes setting standards, measuring actual performance, and taking corrective actions. Keywords: planned vs actual, standards, corrective.
Is controlling goal-oriented? Explain.
Yes. Controlling ensures that activities are directed towards achieving organizational goals. It keeps operations aligned with objectives. Keyword: goal achievement.
Is controlling a pervasive function?
Yes. Controlling is required at all levels of management and in all departments. Every manager needs to control activities under their responsibility. Keywords: all levels, departments.
Is controlling a continuous process?
Yes. Controlling is an ongoing activity that continues as long as the organization exists. It doesn’t stop after a single correction. Keywords: ongoing, continuous.
How is controlling backward-looking?
Controlling is based on the measurement of actual performance which has already occurred, making it backward-looking. Keyword: past performance.
How is controlling forward-looking?
Though based on past performance, controlling aims to take corrective actions that impact future activities. Keywords: future correction, improvement.
How is controlling linked with planning?
Controlling is meaningless without planning. It compares actual work with planned work. Planning sets the benchmarks that controlling measures against. Keywords: dependent on planning, benchmarks.
How does controlling help in achieving organizational goals?
Controlling ensures that activities are completed as per plans. Deviations are identified and corrected, aligning actions with goals. Keywords: deviation correction, alignment with goals.
How does controlling judge the accuracy of standards?
By comparing actual performance with standards, controlling helps assess whether the standards set during planning are realistic or need revision. Keywords: standard assessment, feedback.
How does controlling ensure efficient use of resources?
Controlling minimizes wastage and ensures that resources are used as planned. It helps maintain cost-effectiveness. Keywords: minimize wastage, efficiency.
How does controlling facilitate coordination in action?
Controlling keeps all departments aligned with organizational goals by comparing performance with plans. Keywords: departmental coordination, common direction.
How does controlling help in improving employee motivation and discipline?
Clear expectations and performance standards motivate employees to perform better. Discipline improves due to performance monitoring. Keywords: clarity, monitoring, motivation.
How does controlling assist in decision-making?
Controlling provides performance data and deviations, helping managers make informed decisions. Keywords: performance data, informed action.
Explain the relationship between planning and controlling.
Planning sets the objectives, and controlling ensures their implementation. They are interdependent: planning is the basis, and controlling is the follow-up. Without one, the other is incomplete.
Why is planning meaningless without controlling?
Without controlling, implementation of plans cannot be monitored or corrected. Planning stays theoretical. Keywords: no follow-up, no monitoring.
Why is controlling blind without planning?
Without planning, there are no standards to compare performance against, so controlling has no direction. Keywords: no benchmarks, no comparison.
How does controlling contribute to future planning?
Controlling provides feedback that helps refine future plans. Past performance helps shape better standards. Keywords: feedback loop, improved planning.
What is the first step in the process of controlling?
Setting performance standards. These act as benchmarks against which actual performance is measured. Standards can be quantitative (cost, output, time) or qualitative (improvement in customer satisfaction). Keywords: benchmarks, quantitative, qualitative.
Why is setting performance standards important in controlling?
Standards provide a basis for comparison. Without standards, actual performance cannot be evaluated. They reflect desired results and guide managerial efforts. Keywords: comparison, basis, desired results.
What is the second step in the process of controlling?
Measurement of actual performance. This involves quantifying actual results through observation, reports, or performance metrics. It should be timely and accurate. Keywords: observation, metrics, accuracy.
How is actual performance measured in an organization?
Performance can be measured through personal observation, sample checking, performance reports, budgets, or MIS. The method depends on the nature of the task. Keywords: observation, sample checking, MIS.
What is the third step in the process of controlling?
Comparing actual performance with standards. This step reveals deviations from the planned performance. Keywords: deviation detection, performance gap.
What are deviations in the context of controlling?
Deviations are differences between actual performance and planned standards. They can be positive or negative. Identifying significant deviations is critical. Keywords: gap, variance, actual vs planned.
What is the fourth step in the controlling process?
Analyzing deviations. Managers determine causes of deviations, assess their significance, and decide if corrective action is needed. Keywords: cause analysis, significance, action need.
What is the principle of critical point control?
It suggests focusing on key result areas (KRAs) where deviations are most impactful. Not all deviations need attention. Keywords: KRAs, key areas, prioritization.
What is the principle of management by exception?
Only significant deviations are brought to the attention of management. Trivial deviations are handled at lower levels. This saves time and effort. Keywords: significant deviations, managerial attention, efficiency.
What is the final step in the controlling process?
Taking corrective action. It involves steps to correct deviations and bring performance in line with standards. This may include changes in strategy, resources, or personnel. Keywords: correction, alignment, action.
Why is taking corrective action an essential part of controlling?
Without corrective action, deviations continue and goals remain unmet. It ensures problems are fixed and future performance improves. Keywords: fix, adjust, improve.
What is Critical Point Control in the context of controlling?
Critical Point Control is a principle of controlling which states that managers should focus their attention on Key Result Areas (KRAs) where deviations are most critical. These areas have the greatest impact on organizational success. Monitoring every activity equally is inefficient; instead, managers must prioritize high-impact functions. Keywords: KRAs, prioritization, high impact areas, efficiency.
What is Management by Exception in controlling?
Management by Exception is a principle where only significant deviations from standards are reported to top management, while minor or routine deviations are handled at lower levels. This ensures efficient use of managerial time and allows focus on important problems. Keywords: significant deviation, escalation, filtering, managerial focus.
Case: In a hospital, the administrator notices that while patient satisfaction scores are stable, the infection control department has seen a 25% rise in post-operative infections. She immediately launches a task force to address infection control and lets other departments continue with routine review. What controlling principle is applied?
Critical Point Control. The administrator is focusing on a Key Result Area (infection control) that is critical to patient safety and overall performance, while not wasting time on minor stable indicators. Keywords: KRAs, targeted action.
Case: A restaurant chain uses weekly performance dashboards. If a branch reports a fall in profit below 10%, the data is handled by regional managers. But if the fall exceeds 25%, it is escalated directly to the CEO. What principle is being followed?
Management by Exception. Only major deviations are escalated to top management, allowing routine issues to be handled at lower levels. Keywords: escalation, significant deviation, managerial efficiency.
