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Controlling Class 12 Cbse Notes

Controlling involves comparing actual performance to planned performance and taking corrective actions for any deviations. It helps achieve organizational goals by measuring progress, evaluating standards, motivating employees, and ensuring coordination and order. Setting performance standards, measuring actual performance, comparing the two, analyzing deviations, and taking corrective actions are the key steps. However, controlling is difficult when standards cannot be quantified, external factors cannot be controlled, employees resist it, and it is costly. Overall, controlling is an essential management function.

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100% found this document useful (1 vote)
93 views24 pages

Controlling Class 12 Cbse Notes

Controlling involves comparing actual performance to planned performance and taking corrective actions for any deviations. It helps achieve organizational goals by measuring progress, evaluating standards, motivating employees, and ensuring coordination and order. Setting performance standards, measuring actual performance, comparing the two, analyzing deviations, and taking corrective actions are the key steps. However, controlling is difficult when standards cannot be quantified, external factors cannot be controlled, employees resist it, and it is costly. Overall, controlling is an essential management function.

Uploaded by

viraj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Controlling involves comparison of actual

performance with the planned performance.


If there is any difference or deviation, then
finding the reasons for such difference and
taking corrective measures
or action to stop those
reasons so that they don‘t
re-occur in future and that
organizational objectives
are fulfilled efficiently.
1. Controlling helps in achieving
organizational goals:
2. For Evaluating/Judging accuracy of
standards:

3. Making efficient use of resources:

4. Improves employees motivation:

5. Facilitating Coordination in action:

6. Ensuring order and discipline:


1. Controlling helps in achieving
organizational goals:
Organizational goals are strategic
objectives that a company's management
establishes to outline expected outcomes
and guide employees' efforts.
The controlling function measures progress
towards the organizational goals and
brings to light/indicates
corrective action.
2. For Evaluating/Judging accuracy of
standards:
A good control system enables
management to verify whether the
standards set are accurate or not by
careful check on the changes taking
place in the organizational environment.
3. Making efficient use of resources:
By the process of control, a manager
seeks to reduce wastage of resources.

4. Improves employees motivation:


A good control system ensures that
employees know well in advance what
they are expected to do & also the
standard of performance. It thus
motivates & helps them to give better
performance.
5. Facilitating Coordination in action:
In controlling each department and
employee is governed by
predetermined standards which are well
coordinated with one another. Control
provides unity
of direction.
6. Ensuring order and discipline:
Controlling creates an atmosphere of
order and discipline in the organization
by keeping a close check on the
activities of its employees.
1. Goal oriented:

2. Pervasive:

3. Continuous:

4. Controlling is looking back:

5. Controlling is forward looking:

6. Depends on planning:

7. Action oriented*:

8. Primary Function of Management* –

9. Brings back management cycle back to planning:*


1. Goal oriented:
Controlling is directed towards
accomplishment of
organizational goals in
the best possible manner
.
2. Pervasive:
Controlling is an essential function of every
manager and exercised at all levels of
management.
3. Continuous:
It is not an activity to be pursued
in the end only; it has to be
done on a continuous basis.

4. Controlling is looking back:


controlling involves measurement of actual
performance and its comparison with the
desired performance. It is the process of
checking and verification.
5. Controlling is forward looking:
It is related to future because it seeks to
improve future results on
the basis of experience
gained in the past.

6. Depends on planning:
It pre supposes existence of planning
because without planning no control is
possible.
7. Action oriented*:
Control has no meaning if no corrective
action is taken; So timely action should be
taken to prevent deviations.
8. Primary Function of Management* –
controlling is performed at all levels and in all
types of organizations.
9. Brings back management cycle back to
planning:* Control should not be viewed as
the last function. In fact it links back to
planning. Controlling involves
Planning and controlling are interrelated and in
fact reinforce each other in the sense that-
1. Planning is pre-requisite for controlling. Plans
provide the standard for controlling. Thus, without
planning, controlling is blind. If the standards are
not set in advance managers have nothing to
control.
2. Planning is meaningless without controlling. It is
fruitful when control is exercised. It discovers
deviations and initiates corrective measures.
3. Effectiveness of planning can be measured
with the help of controlling.
1. Setting Performance Standards:

2. Measurement of Actual
Performance:

3. Comparing Actual Performance with


Standard: T

4. Analysing Deviations:

5. Taking Corrective Action:


1. Setting Performance Standards:
Standards are the criteria against which
actual performance would be
measured. Thus standards become basis
for comparison and the manager insists
on following of standards.
2. Measurement of Actual Performance:
Performance should be measured in an
objective and reliable manner which
includes personal observation, sample
checking. Performance should be
measured in same terms in which
standards have been established, this
will facilitate comparison.
3. Comparing Actual Performance with Standard:
This step involves comparison of actual
performance with the standard. Such comparison
will reveal the deviation between actual and
desired
performance. If the
performance matches
the standards it may be
assumed that
everything is under
control.
Accept or reject the product or outcome
4. Analysing Deviations:
The deviations from the standards are
assessed and analysed to identify the
causes of deviations. Managers must
determine why standards were not met.
This step also involves determining
whether more control is necessary or if
the standard should be changed.
5. Taking Corrective Action:
The final step in the controlling process is
taking corrective action. No corrective
action is required when the deviation are
within the acceptable limits. But where
significant deviations occur corrective
action is taken.
1. Difficulty in setting quantitative
standards:

2. Little control on external factors:

3. Resistance from employees:

4. Costly:
1. Difficulty in setting quantitative
standards:
Control system loses its effectiveness when
standards of performance cannot be defined
in quantitative terms. This makes comparison
with standards a difficult task.
e.g areas like human behaviour, employee
morale, job satisfaction cannot be measured
quantitatively.
2. Little control on external factors:
An enterprise cannot control external factors
like government policies, technological
changes, competition. etc.
3. Resistance from employees:
Control is resisted by the employees as they
feel that their freedom is restricted.
E.g employees may resist and go against the
use of cameras to observe them minutely.
4. Costly:
Control involves a lot of expenditure, time and
effort. A small enterprise cannot afford to install
an expensive control system.
Managers must ensure that the cost of installing
and operating a control system should not
exceed the benefits derived from it.

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