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Question
What are the problems faced by the organisation in implementing an effective control system?
Very Long Answer
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Solution
Controlling suffers from the following limitations:
- 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.
- 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.
- 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.
- 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]
