Question

Read the passage given below and answer the questions that follow.

XYZ Company had planned to increase its profit margin by 30% in the current financial year. But it could not achieve the set target in the first quarter of the year due to cases of theft by employees. The Board of Directors formulated a policy of ‘zero tolerance’ for theft. To prevent such cases, it was decided to install CCTV cameras in the rooms where the expensive products were stored. The team of Senior Managers communicated the same to all the employees of the organization. The decisions were implemented, and instructions were given to the concerned departments to impose a penalty if an employee was found guilty. The Human Resource department incorporated the same in the employee handbook.

1. A few steps of Controlling have been emphasised in the above case. Discuss any two of them. (2)
2. Mention any two objectives of Communication with reference to the above case. (2)
3. Explain the importance of Controlling by giving any four points. (4)

Answer 1

1. Steps of Controlling:
   • Establishment of Standards: When a company sets a specific performance target, such as increasing profits or reducing losses, it is establishing standards. These standards become the basis for evaluating future results.
   • Measurement of Actual Performance: When the organisation checks its actual results and identifies issues such as unexpected losses, theft or low productivity, it is measuring actual performance. This helps find out whether work is going as planned.
   • Comparison with Standards: After measuring performance, the company compares the actual results with the planned targets. If actual results fall short due to problems like theft or inefficiency, this shows deviations from the standards.
   • Taking Corrective Action: When management decides to introduce strict rules, monitoring systems like CCTV, and penalties to remove the causes of poor results, it is taking corrective action. This step helps ensure that deviations do not occur again and targets can be achieved.
2. Objectives of communication:
   • Implementing Decisions: Communication helps managers inform employees about new rules, policies or disciplinary measures so that these decisions can be implemented properly across the organisation.
   • Implement Change: When changes such as installing monitoring systems, updating rules or introducing penalties need to be adopted, communication helps employees understand and accept these changes smoothly.
   • Secure Feedback: Through two-way communication, managers can observe employee responses and understand if the new measures are effective or if further improvements are needed.
   • Educate Employees: Communication helps inform employees about acceptable behaviour, safety practices and disciplinary policies. This ensures that everyone understands what is expected of them.
   • Motivate Employees: Clear communication about rules, discipline and expectations encourages employees to behave responsibly. It motivates them to follow policies, work honestly and contribute positively.
3. Importance of Controlling:
   • It helps in achieving organisation’s objectives.
   • It ensures an optimum utilisation of resources.
   • It decentralises authority and establishes a democratic work environment.
   • It is an effective means of coordination.
   • It also boosts the morale of employees.
   • It simplifies supervision.
   • It leads to better planning.
   • It helps in coping with change.