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Revision: Principles and Functions of Management >> Controlling Business Studies Commerce (English Medium) Class 12 CBSE

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Key Points

Key Points: Departure Control System (DCS)
  • DCS is associated with the controlling function of management.
  • It tracks whether activities meet pre-determined standards.
  • Managers use it to take corrective action proactively.
  • The goal is to prevent damage rather than react to it.
  • It reinforces that controlling is a forward-looking, corrective mechanism.
  • Early detection through DCS makes management more efficient and effective.
Key Points: Controlling
  • Controlling ensures activities are performed as per plans.
  • Resources must be used effectively and efficiently.
  • It is goal-oriented and applies to all types of organisations.
  • It is pervasive - relevant at top, middle, and lower management levels.
  • It is not merely the last step; it completes the management cycle.
  • It compares performance with standards, analyses deviations, and enables corrective action.
  • Corrective outcomes from controlling feed back into and improve future planning.
Key Points: Importance of Controlling
  • Controlling is essential to keep the organisation moving towards its goals.
  • It verifies and updates standards when circumstances change.
  • Efficient use of resources is ensured by reducing wastage through control.
  • Motivated employees result from clear, pre-communicated performance standards.
  • Discipline and order in the organisation are maintained through close monitoring.
  • Coordination across departments is achieved through predetermined, unified standards.
  • Technology (e.g., computer monitoring) can be a tool of control in modern management.
Key Points: Limitations of Controlling
  • Quantitative standards – Hard to measure morale, job satisfaction, and human behaviour.
  • External factors - Government policies, technology, and competition are uncontrollable.
  • Employee resistance – Control seen as restriction on freedom; monitoring and CCTV resisted.
  • Costly - Requires money, time, and effort; not feasible for small enterprises.
Key Points: Relationship Between Planning and Controlling
  • Planning sets standards; controlling measures performance and corrects deviations.
  • Planning is necessary for controlling; without plans there is no basis for control.
  • Planning is prescriptive and forward-looking; controlling is evaluative and mainly backward-looking.
  • Both functions use past experience and feedback, and they continuously support and strengthen each other.
Key Points: Controlling Process
  • Controlling has five steps: setting standards, measuring performance, comparing results, analysing deviations, and taking corrective action.
  • Standards should be clear, measurable, and flexible.
  • Actual performance is measured and compared with standards to identify deviations.
  • Managers focus on important deviations using Critical Point Control and Management by Exception.
  • Corrective action is taken to remove deviations and achieve organisational goals.
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