Class 12 Business Studies - Chapter Controlling NCERT Solutions | A company ‘M’ limited is man
A company ‘M’ limited is manufacturing mobile phones both for domestic Indian market as well as for export. It had enjoyed a substantial market share and also had a loyal customer following. But lately it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction. Also mobile market in India has grown tremendously and new players have come with better technology and pricing. This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing.
a. Identify the benefits the company will derive from a good control system.
b. How can the company relate its planning with control in this line of business to ensure that its plans are actually implemented and targets attained.
c. Give the steps in the control process that the company should follow to remove the problems it is facing.
a. Identify the benefits the company will derive from a good control system.
ANS. When company starts following a good control on operations, it leads to certain benefits which are:
- Helpsinachievingdesiredgoals.
- Judging accuracy of operations and standards.
- Making efficient and effective use of resources.
- Improving Employees Morale.
- Ensuring proper flow of orders and that the whole system is in discipline.
- Facilitates coordination and improves the performance of every individual.
b. How can the company relate its planning with control in this line of business to ensure that its plans are actually implemented and targets attained.
ANS. Company relates its planning with control in this line of business by implementing effective control system. This will help in two aspects: planning makes controlling effective and efficient, whereas, controlling improves future planning because it is like a post-mortem of past activities to find out deviations from the standards and in orders to ensure that its plans are actually implemented and targets are attained.
They will take the help from controlling process as it is a systematic process and it leads to various benefits. The process of controlling involves:
- Setting up of standards: In this step, company sets some targets against which the actual performance is measured.
- Measuring of performance: In this step, company is able to measure the performance and evaluate what is actually done by the employees.
- Compare performance: After evaluating the actual result, company compares the actual performance with the planned one. This helps in knowing that the desired goal is achieved or not.
- Analysing deviations: This refers to the difference between actual and desired performance. It helps the company in knowing that the deviation is positive or negative. It needs to focus on a part rather than analysing the whole.
- Taking corrective measures: Final step is to know the type of deviations and try to remove this deviation, so that in future it matches with the plans.
c. Give the steps in the control process that the company should follow to remove the problems it is facing.
ANS. The company should follow these steps in a systematic manner:
- Setting performance standards.
- Measurement of actual performance.
- Comparing actual performance with standards.
- Analysing deviations.
- Taking corrective action.
More Questions From Class 12 Business Studies - Chapter Controlling
- Q:-
‘Planning is looking ahead and controlling is looking back.’ Comment.
- Q:-
Explain the techniques of managerial control.
- Q:-
Write a short note on budgetary control as a technique of managerial control.
- Q:-
Explain the various steps involved in the process of control.
- Q:-
Mr Shantanu is a chief manager of a reputed company that manufactures garments. He called the production manager and instructed him to keep a constant and continuous check on all the activities related to his department so that everything goes as per the set plan. He also suggested him to keep a track of the performance of all the employees in the organisation so that targets are achieved effectively and efficiently.
a. Describe any two features of Controlling highlighted in the above situation.(Goal Oriented, continuous and pervasive – any 2).
b. Explain any four points of importance of Controlling. - Q:-
Mr.Arfaaz had been heading the production department of Writewell 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 MsVasundhara, the CEO of the Company, to file a complaint against MrBhanu Prasad and requested her to terminate his services. Explain the principle of management control that MsVasundhara should consider while taking her decision. (Hint: Management by exception).
- Q:-
Discuss the relationship between planning and controlling.
- Q:-
Give any two standards that can be used by a company to evaluate the performance of its Finance & Accounting department.
- Q:-
Name the principle that a manager should consider while dealing with deviations effectively. State any one situation in which an organisation’s control system loses its effectiveness.
- Q:-
‘An effort to control everything may end up in controlling nothing.’ Explain.
Popular Questions of Class 12 Business Studies
- Q:-
How does planning provide direction?
- Q:-
What is meant by staffing?
- Q:-
Identify the network of social relationships which arises spontaneously due to interaction at work.
- Q:-
What is informal communication?
- Q:-
What is meant by capital structure?v
- Q:-
What is meant by management?
- Q:-
What is a Treasury Bill?
- Q:-
State any two advantages of branding to marketers of goods and services?
- Q:-
What makes principles of management flexible?
- Q:-
Under which consumer right does a business firm set up consumer grievance cell?
Recently Viewed Questions of Class 12 Business Studies
- Q:-
What is the importance of setting objectives in the planning process?
- Q:-
Explain any two types of non-monetary incentives.
- Q:-
What are the levels of management?
- Q:-
What are the responsibilities of a consumer?
- Q:-
What is meant by 'Scalar Chain'?
- Q:-
Explain the significance of management in achieving organizational goals.
- Q:-
Examine the relevance of Taylor’s scientific management principles in the service sector.
- Q:-
Discuss in detail how management can be considered a profession.
- Q:-
Sunrises Ltd. dealing in readymade garments, is planning to expand its business operations in order to cater to international market. For this purpose the company needs additional ₹ 80,00,000 for replacing machines with modern machinery of higher production capacity. The company wishes to raise the required funds by issuing debentures. The debt can be issued at an estimated cost of 10%. The EBIT for the previous year of the company was ₹ 8,00,000 and total capital investment was ₹ 1,00,00,000. Suggest whether issue of debenture would be considered a rational decision by the company. Give reason to justify your answer. (Ans. No, Cost of Debt (10%) is more than ROI which is 8%).
- Q:-
‘No organisation can be successful unless it fills and keeps the various positions filled with the right kind of people for the right job.’ Elucidate
- All Chapters Of Class 12 Business Studies
- All Subjects Of Class 12