Class 12 Business Studies - Chapter Controlling NCERT Solutions | Discuss the limitations of controlling i

Welcome to the NCERT Solutions for Class 12th Business Studies - Chapter Controlling. This page offers a step-by-step solution to the specific question from Extra Questions, Question 7: discuss the limitations of controlling in an organ....
Question 7

Discuss the limitations of controlling in an organization.

Answer

Controlling is an essential managerial function, but it has its limitations:

  • Rigidity: Overemphasis on strict adherence to set standards can create rigidity, discouraging creativity and initiative among employees. Employees may hesitate to experiment with new ideas, fearing punishment for deviations.
  • Costly process: The controlling function involves extensive monitoring, measurement, and analysis of performance. This can be costly and resource-intensive, especially in large organizations, where multiple levels of control may be required.
  • Difficulty in setting standards: Setting appropriate standards for all activities can be challenging, especially for tasks that are qualitative in nature, such as employee morale or customer satisfaction.
  • External factors: Some deviations from standards may occur due to external factors beyond the organization’s control, such as economic conditions, governmental regulations, or natural calamities, making controlling less effective.
  • Resistance to control: Employees may view control mechanisms as punitive, leading to resistance, non-cooperation, or manipulative behavior to present favorable performance reports.

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