Controlling - Test Papers

 CBSE Test Paper - 01

Chapter - 8 Controlling

  1. The main basis of setting standards is ________.
    1. Quantity
    2. Quality
    3. Time
    4. All of these
  2. Standards means:
    1. Output
    2. Target
    3. Estimates
    4. Results
  3. Controlling is ________ aspect of management.
    1. Mental
    2. Practical
    3. Theoretical
    4. Physical
  4. Which of the following is associated with the marketing standard?
    1. Dispute Rate
    2. Sale expenses
    3. Liquidity
    4. Quantity
  5. Which of the following is not a feature of controlling?
    1. The nature and extent of control doesn't remain same at all levels of management.
    2. Controlling is a continuous process.
    3. The nature and extent of control remains same at all levels of management.
    4. Controlling is pervasive.
  6. State whether each of the following statement is True or False:
    1. Measurement of performance should be done after the task is completed.
    2. Corrective actions are necessary after analyzing the deviations.
    3. Judging accuracy is one of the important aspects of controlling.
    4. Once a plan becomes operational, controlling is not necessary as events will conform to plans automatically.
  7. Fill in the blanks with suitable words:
    1. A good control system helps to judge ________ of standard.
    2. By using the steps of controlling, the manager seeks to reduce the ________ of resources.
    3. Controlling checks whether decisions have been translated into the ________ action.
    4. Controlling ensures that an organization’s resources are being used ________ and ________ for the achievement of pre-determined goals.
  8. Match the following:
    (i) The deviation in the important areas of business needs to be corrected more urgently as compared to deviation in insignificant areas.(a) Measuring of performance
    (ii) Corrective action to be taken for Obsolete Machinery(b) Comparing Actual Performance with Standards
    (iii) Superior prepares a report regarding the performance of an employee.(c) Technological Upgradation of machinery
    (iv) Performance of a salesman in terms of unit sold in a week can be easily measured against the standard output for the week.(d) Analysing deviations
  9. Mr. Sidharth Pandey is the Marketing Manager of Swastik Limited. He is a loyal employee of the company. He makes all possible efforts to enhance the public image of the company's products. That is the sole reason for the continuous rise in the company's sales. Whatever sales target he determines, he realizes much more sales every time. It means that every time there occurs a positive deviation. Mr. Pandey remains in constant rapport with the Production Manager. He always endeavours that the products of the company should be of height quality. On account of maintaining the high quality of the products, he is always ahead of his competitors. As a Marketing Manager, he also fixes the price of the company's products. While fixing the price he takes special care to ensure that prices should have no adverse impact on the budget of the consumers. His main aim is to present the true image of the company and its products in the advertisement.
    1. Which step of the controlling process has been referred to in the above paragraph?
    2. Identify any two values directed to the society by Mr. Pandey.
  10. What do you mean by Quantitative Standards?
  11. Name the two situations in which corrective action is not required.
  12. Shruti has established a small scale factory after completing a course in textile designing. She has tied up with the big home furnishing retail outlets in the city for supplying to them good quality designer home furnishing products like bed covers, cushions etc. She believes that controlling without planning is blind. So, every time she gets an order, she sets the standards
    in terms of the number of personnel required, the estimated requirements in man-hours per product, the requirements of direct materials for the projected production and the amount of normal overhead expenses required at the projected work-load. She also keeps a close watch on the activities so as to ensure that they conform to plans. Whenever the order size
    is too large, she hires extra workers by placing a notice on the notice-board of the factory specifying the details of the jobs available.
    In the context of the above case:
    1. Identify the functions of management being performed by Shruti.
    2. Do you think Shruti is right in her thinking that, "controlling without planning is blind." Explain by bringing out the relationship between planning and controlling.
    3. Name the source of recruitment adopted by Shruti. Also, mention its type.
  13. Why it is said that planning is meaningless without controlling?
  14. 'Controlling is forward-looking'. Explain.
  15. Describe briefly the steps in the process of controlling.
  16. Mr Arfaaz had been heading the production department of Write well Products Ltd., a firm manufacturing stationary items. The firm secured an export order that had to be completed on a priority basis and production targets were defined for all the employees. One of the workers, Mr Bhanu Prasad, fell short of his daily production target by 10 units for two days consecutively. Mr Arfaaz approached Ms Vasundhara, the CEO of the Company, to file a complaint against Mr Bhanu Prasad and requested her to terminate his services. Explain the principle of management control that Ms Vasundhara should consider while making her decision. (Hint: Management by exception).
  17. “In the absence of a managerial function, planning goes unchecked“. Name the function and explain its importance.
  18. Explain any four points of importance of the controlling function of management.

CBSE Test Paper - 01
Chapter - 8 Controlling

Solution

  1. (d) All of these
    Explanation: Standards can be set in both quantitative and qualitative terms. Also, standards should be flexible and realistic enough to be modified whenever required. Time, Quantity and Quality should be kept in mind while setting standards.
  2. (b) Target
    Explanation: Standards are the criteria against which actual performance would be measured. These standards serve as benchmarks or target towards which an organization strives to work.
  3. (b) Practical
    Explanation: As controlling is the doing function of management activity, that is comparing the executed work with the planned work and measuring the difference and communicating the difference with the performer, it is a practical job.
  4. (b) Sale expenses
    Explanation: Sale expenses come under Marketing standard.
  5. (c) The nature and extent of control remains same at all levels of management.
    Explanation: The nature and extent of control remains same at all levels of management.
    1. False
    2. True
    3. True
    4. False
    1. Accuracy
    2. Wastage
    3. Desired
    4. Effectively, efficiently
  8. (i) - (d), (ii) - (c), (iii) - (a), (iv) - (b)
    1. Third step of Controlling Process i.e., "Comparison of actual performance with standards" has been discussed.
    2. The two values directed to the society by Mr. Pandey are:
      1. Good health
      2. Reasonable price
  10. They are the standards which are shown with the help of figures, e.g., production of 10 units by a labourer in a day.
    1. Zero Deviation
    2. Positive Deviation
    1. The functions of management being performed by Shruti are Controlling and Staffing. Controlling is one of the important functions of a manager. In order to seek planned results from the subordinates, a manager needs to exercise effective control over the activities of the subordinates. In other words, the meaning of controlling function can be defined as ensuring that activities in an organization are performed as per the plans. Controlling also ensures that an organization’s resources are being used effectively & efficiently for the achievement of predetermined goals. Staffing can be defined as one of the most important functions of management. It involves the process of filling the vacant position of the right personnel at the right job, at right time. Hence, everything will occur in the right manner.
    2. Yes, Shruti is right in thinking that, " controlling without planning is blind." Planning provides the basis of controlling by setting the standards in advance. In the absence of these standards, managers will not know what all activities have to be controlled. Planning is prescriptive in nature whereas controlling is evaluative. Thus, planning and controlling are interrelated and interdependent as planning is based on facts and makes controlling easier and effective whereas controlling helps to improve future planning by providing valuable information derived from past experiences.
    3. The source of recruitment adopted by Shruti is Direct Recruitment. It is an external source of recruitment.
  13. In the absence of control, any organization cannot predict its performance and planning is done to fill the deviation between actual performance and estimated performance.
  14. Under controlling, expected results are compared with actual results. Deviations, if any, should lead to an investigation of the factors responsible which may affect future operations Remedial actions should be followed so as to prevent the occurrence of defects thereafter In other words, control must ensure timely detection of deviations and prevention of their repetition in future.
  15. Controlling Process consists of following systematic steps:
    1. Setting Performance Standards: The first step in the process of controlling is concerned with setting performance standards. These standards are the basis for measuring the actual performance.
      Thus, standards act as a lighthouse that warns & guides the ships at sea. Standards are the benchmarks towards which efforts of the entire organisation are directed. These standards can be expressed both in quantitative and qualitative terms.
    2. Measurement of Actual Performance: Once the standards have been determined, the next step is to measure the actual performance. The various techniques for measuring are sample checking, performance reports, personal observation etc. However, in order to facilitate easy comparison, the performance should be measured on the same basis that the standards have.
    3. Comparing Actual Performance with Standards: This step involves comparing the actual performance with standards laid down in order to find the deviations. For example, the performance of a salesman in terms of unit sold in a week can be easily measured against the standard output for the week.
    4. Analyzing Deviations: Some deviations are possible in all the activities. However, the deviation in the important areas of business needs to be corrected more urgently as compared to deviation in insignificant areas. Management should use critical point control and management by exception in such areas.
    5. Taking Corrective Action: The last step in the process of controlling involves taking corrective action. If the deviations are within acceptable limits, no corrective measure is required. However, if the deviations exceed acceptable limits, they should be immediately brought to the notice of the management for taking corrective measures, especially in the important areas.
  16. The principle of management control that MS Vasundhara must consider while making her decision is management by exception. It means that any attempt to control everything results in controlling nothing. Only those deviations must be brought to notice which are beyond the permissible limit. In this case, Mr Bhanu has fallen short of his daily production target only by 10 units. This is only a small deviation and it is not right to terminate him on the basis of this.
  17. Controlling is the function which is being mentioned in the statement.
    Importance of controlling are :
    1. Accomplishing organizational goals: The process of controlling help in accomplishing organizational goals or objectives. The controlling guides the activities of subordinates in achieving the goals. It ensures the use of human and material resources in the best possible manner so that there may be predetermined objectives of the organization.
    2. Judging accuracy of the standards: A manager compares the actual work performance with the standards while performing the function of controlling. He tries to find out whether the accuracy of the standards is not more or less than the general standards. In case of the needs, they are redefined.
    3. Improves efficiency: The organization sets the goal for the future which is not certain. So, controlling is the way which focuses on uncertainty and to attain the goals. Regular control shows the deviation in plan and actual achievement which helps to keep the staffs on the right track.
    4. Improve employee motivation: Motivation is defined as the process of inspiring someone for doing something. Controlling makes all the employees work with complete dedication as they know that their work performance will be evaluated. Their identity will be established if the progress report is satisfactory in the organization.
    5. Ensuring order and discipline: The implementation of controlling help to check all the undesirable activities like theft, corruption, delay in work and uncooperative attitude. Controlling ensures order and discipline, Ensuring order and discipline is also one of the importance of controlling.
  18. Four points of importance of the controlling function of management are:
    1. Accomplishing Organisational Goals It measures progress towards the organisational goals and finds out deviations. In the absence of a control system, activities may not be carried out according to plans. Thus, we can say, it guides the organisation and keeps it on the right track so that it can attain its goals.
    2. Judging Accuracy of Standards Through an effective control system, managers can easily judge the accuracy of standards. It also keeps a careful check on the changes taking place in the organisation and in the environment, which facilitates the review of standards, in the light of such changes.
    3. Controlling ensures order and discipline. With its implementation, all the undesirable activities like theft, corruption, delay in work and uncooperative attitude are checked.
    4. Facilitating Coordination in Action: Controlling provides direction to all activities and efforts for achieving organisational goals. Each department and employee is governed by predetermined standards which are coordinated with one another. This ensures that overall organisational objectives are achieved.