Question

Which of the following statements is correct in context of Controlling?

Options

• It is important and economical to keep a check on each and every activity of the organisation.

• Deviations are always due to negligence of employees.

• Corrective action is required when deviations are within acceptable range.

• Control by exception is based on belief that an attempt to control everything will result in controlling nothing.

Answer 1

Control by exception is based on belief that an attempt to control everything will result in controlling nothing.

Explanation:

“Control by exception” means focusing managerial attention only on significant deviations from the set standards. The idea is that trying to monitor every activity can dilute focus and effectiveness, hence only major issues are escalated for action.