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What are the problems faced by the organisation in implementing an effective control system? - Business Studies

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Question

What are the problems faced by the organisation in implementing an effective control system?

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Solution

Controlling suffers from the following limitations:

  1. Difficulty in setting standards: Setting measurable performance standards in areas like customer satisfaction, job happiness, and employee morale isn't always feasible. It becomes extremely challenging to evaluate performance in the absence of quantifiable standards.
  2. Resistance from employees: Workers perceive control as a limitation on their autonomy. They frequently oppose the control system. For instance, workers may object to the installation of closed-circuit televisions (CCTVs) because they believe they will monitor their actions.
  3. Costly process: Control system involves a lot of expenditure, time and effort. A small organisation can not justify and afford the expenses involved in a good control system.
  4. External factors: Control may be disrupted by external causes like competition, government laws, technology advancements, etc. An enterprise has no influence over these elements.
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Chapter 12: Controlling - QUESTION BANK [Page 372]

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C. B. Gupta Commerce Volume 2 [English] Class 12 ISC
Chapter 12 Controlling
QUESTION BANK | Q 5. a ii. | Page 372
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