Very Short Q & A
Q1: Define Controlling.
Answer: It is a process of comparing actual performance with standards and finding deviations if any and taking corrective action.
Q2: Both quantitative and qualitative benchmarks are set to measure actual performance. Which element of controlling is referred here?
Answer: Comparing actual performance with standards.
Q3: What are the characteristics of controlling that are also possessed by planning?
Answer: Unity, continuity, flexibility and pervasiveness.
Q4: Is controlling a one-stop process or continuous process?
Answer: Controlling is a continuous process. It involves constant revision and analysis of standards resulting from the deviations between actual and planned performance.
Q5: What are standards?
Answer: Standards are the norms against which the performance is measured to find out the result.
Q6: Which two standards do you suggest for the production department?
Q7: List any three advantages of controlling.
i. Helps in decentralizing authority
ii. increases managerial ability
iii. ensures efficient use of scarce and valuable resources
Q8: List any two limitations of controlling.
i. Difficulty in setting quantitative standards
ii. Little control on external factors.
Q9: Why it is said that planning is meaningless without controlling?
Answer: In the absence of controlling, actual performance cannot not be measured and compared.
Q10: One manager in a company says "Controlling is forward looking" while another manager in the same company comments "controlling is looking back". Who is correct? Justify.
Q11: Why it is said "Controlling is looking back but works forward"?
Answer: A manager cannot control past. However under it, a manager tries to find out whether the work has been done according to the standards set and take corrective actions in future operations.
Q12: “Comparing the actual performance with the laid standards, finding out the deviations and taking corrective action is an important function of a function of management”. Name the function and explain the process.
Q13: Control can work irrespective of any plans to set objectives and specify activities. State true or false.
Q14: What do you mean by 'deviation' in controlling process?
Answer: Deviation refers to the difference (or delta) between actual performance and standard work.
Deviation = Actual Performance - Standard Work.
Q15: List any two essentials of a good control system.
Answer: i. Feedback
iii. Control should be objective.
Q16: Name the two situations in which corrective action is not required.
Answer: i. Zero Deviation
ii. Positive Deviation
Q17: Increase in 10% of postal charges may be an insignificant deviation while 5% increase in labour charges requires immediate attention of the management. Which element of controlling is reflected here?
Answer: Strategic/Critical Point Control.
Q18: Which concept suggests that only significant deviations go beyond permissible limits should be brought to the notice of management?
Answer: Management by exception.
Q19: List any three traditional control devices.
i. Budgetary Control
ii. Standard Costing
iii. Break Even Analysis
Q20: Which technique of control is concerned with the contribution of actual and planed expenditure?
Answer: Budgetary control.
Q21: List any two modern (non-traditional) control devices.
i. Zero base budgeting
ii. Network Analysis (CPM and PERT)