Important Questions Class 12 Business Studies Chapter 8

Important Questions for CBSE Class 12 Business Studies Chapter 8 – Controlling: 

Chapter 8 Class 12 Business Studies Important Questions outline that “Managerial Control entails measuring achievement against a standard and correcting discrepancies to ensure that objectives are met as planned.”

With these Business studies Class 12 Chapter 8 Important Questions, students will get to know that Controlling is the practice of comparing actual performance to the desired output in order to verify that objectives are met successfully. Setting standards, measuring actual performance, and taking remedial action in the event of deviations are all aspects of the controlling function’s managerial role.

Moreover, with these Class 12 Business studies Chapter 8 Important Questions, Extramarks will provide students with detailed and authentic solutions. These Important questions are prepared by subject experts at Extramarks who prepare concise, to-the-point answers which students can easily trust and enjoy the process of learning. It helps them  to speed up their revision and improve their academic performance,by making them aware of their mistakes just in time, helping them to get the best possible results.

CBSE Class 12 Business Studies Chapter-8 Important Questions

Study Important Question for Class 12 Business Studies Chapter 8 – Controlling: 

Very Short Answer Type Questions:

• Kothari Sweets has been a household name for high-quality confections since 2000. Adarsh, the proprietor of Kothari Sweets, was concerned since sales had dropped in the previous five months. When he spoke with the Sales Manager, he was informed that there had been some complaints regarding the quality of the sweets. As a result, Adarsh requested that sweet samples be checked. Determine Harsh’s action in relation to one of the managerial functions.

Harsh is assessing actual performance in the above scenario as part of the management’s controlling function.

• What exactly do you mean by Key Result Areas (KRAs)?

The acronym KRA stands for “Key result area.” These are the aspects that are crucial to an organization’s success. These are the areas that require the most attention from management.

• What should be done during the ‘corrective action’ phase of the control process when deviations exceed the permissible range, particularly in critical areas?

When variances in critical areas exceed acceptable limits, rapid managerial action is essential. In this regard, a manager can train, educate, and develop employees to control deviations. This will result in zero or very few deviations.

• Why is planning a pointless endeavour in the absence of a controlling function?

Without the function of controlling, planning is a pointless activity because the successful implementation and monitoring of plans are dependent on the level of control.

• You may wind up controlling nothing if you try to control everything. Explain? 

Controlling everything will end in controlling nothing; this demonstrates the principle of management by exception, which emphasizes that you cannot control everything effectively, so a few exceptions must be made.

Short Answer Type Questions:

• ‘Planning is looking ahead, whereas controlling is looking back.’ Comment? 

Planning It is the initial stage in determining what to do, how, where, and when a certain task must be completed. It is an activity in which a goal and how to achieve that objective are determined. Controlling, on the other hand, entails evaluating performance to ensure that it meets the organisation’s standards. It is the basic purpose and responsibility of any business management. Although planning is done for the future, the foundation of planning is based on past experiences and activities. Controlling, on the other hand, involves historical assessment but strives to improve future performance by implementing appropriate procedures and measures.

• ‘Controlling is forward-thinking.’ Explain? 

Controlling is forward-thinking since it requires attention to two things. Evaluating current performance and offering early information to produce results that are consistent with established standards and checking on operations should allow for the early detection of flaws before it is too late to correct them. Deviations, if any, should prompt a study into the variables responsible, which may have an impact on future operations. Remedial efforts should be taken to prevent the occurrence of problems in the future. In other words, control must ensure that deviations are detected in a timely manner and that they are not repeated in the future.

• Explain how regulating aids in 
• efficient resource utilisation 

• improved employee motivation.

Making good use of resources. A manager strives to decrease resource waste and spoilage by exerting control. Each action is carried out in compliance with established standards and rules. This guarantees that resources are utilised as effectively and efficiently as possible. 

Boosting employee motivation. A good control system ensures that employees understand what they are expected to do and the performance standards that will be used to evaluate them. As a result, it stimulates them and helps them perform better.

• ‘Controlling means looking back.’ Give an appropriate example to back up your answer.

Controlling is said to be a technique of looking back since real results are compared to previously established criteria. Following that, corrective action is taken. In other words, controlling is impossible if the criteria are not defined in advance. As a result, controlling is backwards looking. 

A salesman, for example, is expected to sell 50 units of a product per week. At the end of the week, real performance would be measured against this criterion. If he sells 35 units during the week, his superior will investigate the causes of the gap.

• How does controlling aid in the achievement of goals and the morale of employees?

Controlling aids in the achievement of goals and the morale of employees in the following ways: Controlling aids the achievement of goals. Continuously monitoring performance in relation to organisational goals identifies deviations and advises corrective actions to be implemented. As a result, controlling keeps the organisation on track. 

Controlling boosts the morale of employers. Controlling implementation causes all workers to work with complete dedication because they are aware that their performance will be reviewed and they will have the opportunity to build their reputation inside the organisation. Employees that do well are rewarded with promotions, cash rewards, and other benefits.

• “Planning and Controlling are inseparable twins of management.” How?

Planning and managing are two closely related managerial responsibilities. Planning is a mental exercise that aids in deciding what should be done and how it should be done. In other words, planning sets the goals to be achieved and the course of action to be taken, whereas controlling refers to the process of managing and evaluating the work done in accordance with the standards and taking remedial steps if any inadequacies exist. Planning provides these criteria that serve as the foundation for control. Controlling cannot be accomplished without planning. Planning is therefore a prerequisite for controlling.

Long Answer Type Questions

• Explain any four points that emphasize the significance of controlling

The importance of controlling is listed as follows;

• Accomplishing organisational goals: The controlling function measures the performance against the pre-determined standards and corrects deviations. This helps in ensuring that the organisation is moving on the right track to achieve the organisational goals. In other words, by controlling, the manager ensures that resources are obtained and used economically and efficiently for the achievement of organisational objectives.
• Judging accuracy of standards: A sound controlling system helps the management to verify whether the standards set are accurate and objective. It keeps a careful check on the changes, which are taking place in the organisation and helps in revising standards as and when required.
• Making effective use of resources: The manager seeks to reduce wastage and spoilage by exerting control. Each activity is carried out in compliance with previously established standards and rules. This guarantees that resources are utilised as effectively and efficiently as possible. 
• Enhancing employee morale: Controlling implementation causes all employees to work with complete dedication because they are aware that their performance will be reviewed and they will have the opportunity to build their reputation in the organisation. Employees that do well are rewarded with promotions, cash rewards, and other benefits. 
• Facilitating action-based coordination: It provides direction to all activities and contributes to improved performance. Controlling is the true test of planning, thus the two are inextricably linked. Control identifies flaws and deviations and proposes 
• Controlling is an essential management role.’ Do you concur? Give four reasons to back up your answer.

Yes, controlling is an essential function of management; it is a force that assists management in meeting predetermined or planned performance goals. Reasons for a strong control system in:

Achieving Organisational Goals: The regulating function compares performance to predetermined standards and corrects deviations. This helps to ensure that the organisational pace meets its objectives. In other words, by controlling, the manager guarantees that resources are procured and used cheaply and efficiently to meet organisational goals. 

Assessing the accuracy of standards: A solid controlling system assists management in determining if the criteria set are accurate and objective. It keeps a close eye on developments in the organisation and aids in revision. Why is planning a pointless endeavour in the absence of a controlling function?

Without the function of controlling, planning is a pointless activity because the successful implementation and monitoring of plans are dependent on the level of control.

• You may wind up controlling nothing if you try to control everything. Explain? 

Controlling everything will end in controlling nothing; this demonstrates the principle of management by exception, which emphasizes that you cannot control everything effectively, so a few exceptions must be made.

• Explain the various steps involved in the process of control. 

Controlling is the process of evaluating and assessing completed work. Controlling involves the establishment of standards for numerous jobs and activities. 

The steps involved in the controlling process are as follows: 

• Establishing Standards: The first stage is to establish standards. The benchmarks against which real or actual performance is measured are known as standards. 
• Standards can be qualitative as well as quantitative. It is critical to note that the criteria chosen should allow for easy comparison. 
• Measuring Actual Performance: The next phase in the control process is to assess the effectiveness of various actions. 
• This measurement should be precise and dependable enough to allow for easy comparison with the established criteria.
• Controlling is the process of evaluating and assessing completed work. Controlling involves the establishment of standards for numerous jobs and activities. 

The steps involved in the controlling process are as follows: 

• Establishing Standards: The first stage is to establish standards. The benchmarks against which real or actual performance is measured are known as standards. 
• Standards can be qualitative as well as quantitative. It is critical to note that the criteria chosen should allow for easy comparison. 
• Measuring Actual Performance: The next phase in the control process is to assess the effectiveness of various actions. 
• This measurement should be precise and dependable enough to allow for easy comparison with the established criteria.
• Management by exception, often known as control by exception, is a fundamental idea of management control based on the belief that attempting to control everything results in controlling nothing. To summarise, nothing can be controlled simultaneously. . 
• Deviations must be discovered, as well as their causes. Infeasible requirements, flaws in the process, and a dynamic corporate environment can all be sources of deviations. 
• Taking Remedial Action: If deviations exceed the permissible range, corrective action must be taken. These corrective steps may include updating standards, offering training, resolving raw material and machinery concerns, and so on.

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