NCERT Questions for Class 12 Business Studies Chapter 8 – Controlling

Important Questions with Solutions of Class 12 Business Studies Chapter 8 – Controlling

1) Define the statement ‘Planning is focusing forward and managing is seeing backward.’

Ans – Planning is focusing forward and managing is seeing backward. The above statement can be slightly true. Here are the reasons,

• Planning is a variant of mental practice that assists in making informed decisions based on desired requirements and determining the ways of attaining those goals and functions. In different terms, planning helps you attain preferred goals and assists you in focusing on the path of action that must be accomplished. Hence, planning is all about focusing on implementing the future course of action.
• Meanwhile, controlling requires a background verification of previous performance and evaluation of the preferred standards. So, control is always defined as a backward-looking operation.

These above statements are partially acceptable. Since, planning is a future-based idealogy, as it solely depends upon earlier experiences.

2) Create a brief message on budgetary control management as a part of managerial control.

Ans – Budgetary control is a concept of managing finance that consists of curating specialized plans in the form of funds and budgets. A budget is defined as a financial or quantitative phrase that portrays the desired goals and the standard set of policies to be incorporated in a desired time duration. 

The desired outcome is then compared with the budgetary regulations and standards. A budget can be curated for various categories of the firm, like sales budget, development finance, purchase budget allocation, etc. 

The future estimation must be calculated precisely. Budgeting is defined as a mode of motivation for employees assigning the desired standards against which performance can be assessed closely. Hence, it motivates them to attain the desired motto. Also, it can be incorporated to manage coordination over multiple sections or working departments of the firm.

3) Mention any 5 factors focusing on the need for controlling.

Ans – Controlling is a vital phenomenon and undeniable operation in management. The primary target is maintaining seamless managerial protocols by launching predefined standards comparing the final performance to those prerequisite goals. It can offer you the most efficient usage of expert resources while resolving issues that must be addressed. The below-mentioned ones are some common concerns that focus on the importance of control.

• Controlling assistance in attaining company goals: The controlling operation tracks down the final progression based on the company’s goals and warns if any significant changes occur for deploying instant remedial measures.
• Knowing the precision of standards: An effective control device allows management to focus on whether the desired standards defined are correct or wrong by closely checking the modifications that happen in a firm.
• Enhancing employee belief: A robust control mechanism will ensure that all their workers understand prior on what they are intended to accomplish and are also certain about the company’s standards of final performance. Hence, it instills confidence and assists them to provide maximum performance.
• Ensure proper order and discipline standards maintained: Controlling operations might build a proper atmosphere of desired order and ethical discipline in the firm by having a fine look at the operation of its employees to monitor their performance.
• Streamlining coordination in place: Proper standards are created to maintain every sector and employee in a firm. It ensures employee collaboration between different sectors/departments and the personnel engaged.

4) A firm develops solar panels for charging mobile phones are in massive demand. It came to notice that the target of creating 500 solar panels every day was not attained by the employees. Based on the recent analysis, it was also known that the workers aren’t the responsible ones. Because of the non-existence of raw elements and a massive gap between skilled workers, the firm could not attain the desired targets, and optional measures were required. To accomplish the increased need for the company monitored that 66 extra workers (appx.) were needed of which 6 would be employed as a head crew of various sectors and 10 would be employed as assistants under the respective heads. The desired qualifications and job details were also mentioned in the document. It was also planned that desired assistance must be given to motivate women, people from backward and rural regions, and persons who need special assistance to get desired positions in the firm. All the necessary steps were accomplished to stay on track with the skill of the applicants based on the nature of their operation.

a. Locate the operations of management as mentioned above.

Ans – The overall operations of management can be classified as:

Here are the end-to-end functions of management as mentioned above can be defined into 2 groups: staffing and controlling.

Quote for staffing: “To accomplish the rise in demand of the company can be monitored that around 66 additional resources were needed out of which 6 may operate as head of the operations across multiple sectors and around 10 might function as associates under each department head”.

Quote for controlling: “It came to notice that the target of creating 500 solar panels every day was not attained by the employees. Based on the recent analysis, it was also known that the workers aren’t the responsible ones. Because of the non-existence of raw elements and a massive gap between skilled workers, the firm could not attain the desired targets, and optional measures were required.”

b. Mention the 2 possible methodologies in the process of every operation as discussed in the above statement.

Ans – Here are the various methods involved in Staffing Function

Proper analysis of desired manpower: As a primary process, calculate the number of resources and the kind of resources needed in the firm with a proper estimate.

It also consists of the below 2 categories:

(i). Workload Management: It discusses the total resources and the kind of resources that are demanded in a firm that can manage the desired amount of workload regularly.

(ii). Workforce Management: It discusses the total estimation of the allocated number of resources in the company.

(iii). Recruitment/Hiring: This is regarding the hiring process of desired candidates, and preparing them to apply for the job role as per the organizational requirements.

The process involved in controlling operation:

• Monitoring Performance: Once the final performance is measured, the last recorded performance is then compared with the already allocated standards.
• Monitoring Deviation: After monitoring the actual outcome with the predefined quality standards, the change in performance deviation is targeted.

c. Define any 2 points where the firm must interact with the general public. 

Ans – The 2 mandatory regions where the firm must interact with the society would be,

• The possible ways of incorporating eco-friendly concepts of production
• Areas of women’s empowerment

5) Describe the different concepts involved in the way of controlling

Ans: Controlling depicts the process of evaluating and assessing the total amount of work done. Under the controlling operations, the desired standards are assigned for various tasks & activities. 

The following are the different phases involved in the controlling operations.

1. Marking Standards: Creating standards is the first and foremost process. These are the primary milestones considered when comparing real or actual performance. It might be qualitative and quantitative based on nature. Hence, it’s vital to understand that the unveiled rules must enable a seamless comparison.
2. Calculating Actual Performance: The next process involved in the controlling mechanism is calculating the performance of different functionalities.This measured calculation must be accurate and reliable for making quick comparisons with the predefined standards. Also, performance can be calculated at different phases such as during the operation or at its end phase.
3. Differentiating Performance: This phase consists of differentiating actual performance with the predefined standard value. When the performance aligns with the set standards, it’s safe to assume that things are well under the limit. 
4. Monitoring Deviation Changes: While considering the actual performance using the predefined standards, the change in deviations in the outcome is located. For monitoring deviations, the below concepts can be incorporated in different ways:
   • Vital Point Management: Management must have its complete focus on key result areas (KRAs) that are vital to the overall performance of any firm. These crucial factors might create massive damage to the organization if not kept under control.
   • Management by Exception: Management by exception is often described as control by exception, which is a vital concept in management control. It is based on the assumption that any chance to manage all the things would end up in monitoring nothing. In other words, everything cannot be managed or controlled simultaneously. Changes in the path must be sourced immediately and their root issue must be located. A few of the concerns for change in deviation are due to infeasible set limits, visible drawbacks in the operation, and dynamic business space in the market.
5. Implementing Proper Course of Action: When deviations occur that are more than the prescribed limit can turn into an essential thing for course correction. These precautious measures could be regarding modifying the earlier set standards, offering managerial training, or nullifying the problems related to raw components, built machinery, etc.

6) Explain in detail the bonding over controlling and planning (or) 

“Planning & Controlling are intertwined parts of management” Why?

Ans – Planning & controlling are closely related operations of management. It’s because,

• Planning is a mental process that assists in determining things to be accomplished and the possible ways of how it needs to be done. In other terms, planning plans out the target areas to be attained and the way of functional operation that needs to be taken.
• On the other hand, controlling is defined as the process of monitoring and checking the work accomplished based on the set standards and opting for reliable outcomes, whenever any deficiencies occur. These predefined standards create the base control that is offered due to the planning mechanism. 
• In planning multiple goals, policies are created as milestones over the actual performance.
• Controlling without planning doesn’t make any sense for the end user. You cannot manage anything if the set standards or predefined goals are missing.
• In short, considering that the managers don’t understand the end objective, then they don’t have a predefined milestone against which no operation would suffice be it current performance or hidden issues.
• Hence, planning will go in vain if things are not properly curated using a controlling process. Abiding by the successful concept of the plans, always check and monitor to ensure that the performance is structured according to the set goals.
• So, planning cannot be done when there is no proper structure or protocol for controlling.