An efficient control system helps to. Controlling function of an organisation is. Management audit is a technique to keep a check on the performance of. Budgetary control requires the preparation of. Which of the following is not applicable to restorability a courting.
Short Answer Type. Explain the meaning of controlling. Write a short note on budgetary control as a technique of managerial control. Explain how management audit serves as an effective technique of controlling. Long Answer Type. Explain the various steps involved in the process of control. Explain the techniques of managerial control. Explain the importance of controlling in an organisation.
What are the problems faced by the organisation in implementing an effective control system? Discuss the relationship between planning and controlling. Application Type. Following are some behaviours that you and others might engage in on the job. For each item, choose the behaviour that management must keep a check to ensure an efficient control system. Biased performance appraisals. Calling office to take a day off when one is sick. Reporting a violation on noticing it. Falsifying quality reports.
For example, a manufacturing unit's production department. Through operational excellence, customer service, and increased product value, a cost centre indirectly contributes to a company's profit. Revenue Centre: It is a division of a company that is largely responsible for revenue generation.
Gross income is calculated at the end of each reporting cycle, which might be monthly or annual. The overall sales created during a given month are referred to as monthly gross revenue, whilst the entire sales generated over the course of a year are referred to as annual gross revenue. Profit Centre: It is a part of a company whose manager is responsible for both revenue and expenses. A profit centre is judged on how much profit it generates, and it tries to boost profits by boosting sales or cutting costs.
Manufacturing and sales are two departments that fall under the profit centrE. Investment Centre: It is responsible for not only profits, but also all the center's investments. Human resource and marketing departments are examples of departments that make up the cost centre. Management Audit:. The term "management audit" refers to a systematic assessment of an organization's management performance.
These strategies are particularly beneficial for planning, scheduling, and implementing time-bound projects that require the execution of a range of complicated, diversified, and linked tasks. Management Information System. A management information system MIS is a computer-based information system that provides data and support to help managers make better decisions.
It's a crucial control strategy. Managers benefit from MIS in the following ways:. It makes information collection, management, and dissemination easier. It facilitates all levels of planning and control. It enhances the information quality. It ensures value for money. It helps to alleviate information overload. In a basic sense, controlling consists of the comparison that exists between the actual performance and the planned performance. As you might have guessed, this practice of controlling helps an organization to achieve the objectives efficiently and effectively.
There are also many other reasons why the practice of controlling is important. And some of those reasons are:. Judging the Accuracy of Standards. According to various class 12 notes controlling, a good control system works by enabling the management to check whether the standards set by the organization are correct or not.
Achieve Organizational Goals. The controlling measures help an organization achieve its various goals. This helps in bringing out methods or techniques that can be followed to help an organization achieve more success. Effectively Using Resources. With the help of process control, a manager can actively reduce the amount of wastage of resources that might be happening regularly in an organization.
Enhancing the Motivation of Employees. There are many NCERT class 12 revision notes business studies chapter 8 solution that highlights the importance of employees staying motivated. This is exactly what a good control system can help an organization to achieve. Following Discipline and Order. With the help of controlling, one can create a workplace environment in which all employees will follow the correct order and discipline.
Facilitating Coordination in Action. According to various business studies class 12 chapter 8 revision notes, another reason why controlling is important is because it helps each and every department and employee to be governed by a set of predetermined standards. Till now, in this class 12 revision notes chapter 8, we have looked at what controlling is and why it is important.
In this section, we will move towards the various features of controlling. To help readers grasp this concept quickly, we have created a list of those features.
And that list is mentioned below. Controlling is goal-oriented. Controlling is pervasive. It can be said without a doubt that controlling is essential for every manager. Controlling is continuous. Controlling involves looking back. When it comes to controlling, it involves the measurement of the actual performance and its comparison with the desired performance.
According to NCERT solutions chapter 8 class 12 business studies revision notes, controlling consists of looking forward. The main objective of controlling is to achieve future results. Controlling is dependent on planning. Controlling is action-oriented. It is the primary function of management as it is performed in all organizations and at all levels of management.
Controlling is not the last function. Instead, it brings back the management cycle to planning. All of these features are also depicted visually in the image that is attached below.
It is suggested that all readers should go through this image carefully. Image to be added soon. Did you know that according to various controlling class 12 business studies revision notes, there are also many limitations of controlling?
Performance should be measured in same terms in which standards have been established, this will facilitate comparison. Comparing Actual Performance with Standard: This step involves comparison of actual performance with the standard.
Such comparison will reveal the deviation between actual and desired performance. If the performance matches the standards it may be assumed that everything is under control. Analysing Deviations: The deviations from the standards are assessed and analysed to identify the causes of deviations.
Taking Corrective Action: The final step in the controlling process is taking corrective action. No corrective action is required when the deviation are within the acceptable limits. But where significant deviations occur corrective action is taken. Control system loses its effectiveness when standards of performance cannot be defined in quantitative terms. This makes comparison with standards a difficult task. An enterprise cannot control external factors like government policies, technological changes, competition.
Control is resisted by the employees as they feel that their freedom is restricted. Control involves a lot of expenditure, time and effort. A small enterprise cannot afford to install an expensive control system. Managers must ensure that the cost of installing and operating a control system should not exceed the benefits derived from it.
Controlling class 12 Notes Business Studies. The revision notes covers all important formulas and concepts given in the chapter. Even if you wish to have an overview of a chapter, quick revision notes are here to do if for you. These notes will certainly save your time during stressful exam days. Save my name, email, and website in this browser for the next time I comment. Install Now.
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