Class Test – Chapter: Controlling

Time Allowed: 1 Hour

Maximum Marks: 25

Self-Assessment Test 1

Q.1 The principle of management control which a manager should consider while dealing
with deviations effectively is referred to as _____________. (Fill up the blank with correct
answer) (1 mark)

Q.2 Match the columns: (1 mark)

Q.3 Which term is used to indicate the difference between standard performance and actual
performance? (1 mark)

Q.4 An important project at AMB consultants is running behind schedule by a month. This
has upset their clients and might affect the reputation of the company in the long run. No
managerial action like assigning more workers, equipment or giving overtime has been able
to solve the problem. What managerial action may now be taken by the company to avoid
such a situation from arising in the future?
(a) Revise the schedule
(b) Assigning additional workers and equipment to the project
(c) Get permission for further overtime work
(d) Both B&C

Q.5 Mr. Arfaaz had been heading the production department of Wiretwell Products Ltd., a
firm manufacturing stationery 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 Ms. Vasundhara, the CEO of the
Company, to file a complaint against Mr. Bhanu Prasad and requested her to terminate his
services.
Explain the principle of management control that Ms. Vasundhara should consider while
taking her decision. (3 marks)

Q.6 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.
Explain three features of Controlling highlighted in the above situation. (3 marks)

Q.7 Viner Ltd. set up a manufacturing unit at Bhiwadi at Himachal Pradesh to manufacture
electric geysers and supply them to dealers all over the country. Their production target
was 500 geysers per week. It was decided by the management that variation in production
upto 10 units would be acceptable. At the end of the first week, the production was 450
geysers. The next week, production increased to 470 geysers. A week later, production was
460 geysers. On investigation, it was found out that fluctuation in production was due to
irregular supply of electricity.
(a) The above para discusses some of the steps of one of the functions of management.
Explain the steps. (4 marks)
(b) Also, state the step(s) not discussed in the above para. (1 mark)

Q.8 ‘Planning is looking ahead and controlling is looking back.’ Comment. (5 marks)

Q.9 Banwari Lal is a cloth merchant in Karol Bagh. His grandsons are requesting him to let
them diversify the business into bridal wear. Banwari Lal has agreed but on the condition
that they will follow the function of management he has always followed, which helps an
organisation in keeping track of the progress of activities and ensures that the activities
conform to the standards set in advance so that the organisational goals are achieved.
Name the function of management which Banwari Lal is asking his grandsons to follow. List
any five reasons why it is considered an indispensable function of management. (6 marks)
Self Assessment Test 2

Q.1 Mahima Jain is the Senior Manager in the Advisory Services Department of Kodes Ltd.
She regularly prepares performance reports of her subordinates as a part of the appraisal.
The step of the controlling process performed by her is ___________. (Fill up the blank with
correct answer) (1 mark)

Q.2 A control technique should keep a check on each and every activity in an organisation.
(True/False; Give reason) (1 mark)

Q.3 The term used to indicate the difference between standard performance and actual
performance is called ___________. (Fill up the blank with correct answer) (1 mark)

Q.4 Give any two standards that can be used by a company to evaluate the performance of
its Finance & Accounting department. (1 mark)

Q.5 Explain the concept of ‘Controlling’. Is controlling the last function of management?
Explain. (3 marks)

Q.6 “A control technique should check each and every activity in an organisation.” Do you
agree? Give reasons. (3 marks)

Q.7 “Planning is looking ahead while controlling is looking back.” Comment. (4 marks)

Q.8 Each Employee of ‘Bhoomika Ltd.’ should manufacture 10 tables per day as per day as
per the terms of employment. All the employees met the said target except a few who
manufactured between 4 – 6 tables per day. On investigation, it was found that these
employees wasted time in gossiping and sitting idle. The management took a decision to
install Closed Circuit Television (CCTV’s) in the factory for monitoring the activities of the
employees.
Identify by quoting lines the steps in the controlling function discussed above and explain
these steps. (5 marks)

Q.9 Vikas was the Chief Operating Officer of ‘Yalet Ltd.’, a company providing advanced
software solutions to Indian Defence Services. They had been carrying on business
successfully for the last twelve years and earning enough profits. But from the last one year,
they realised that though the business is getting big orders which are being fulfilled in time,
even then the revenues kept on decreasing. Vikas was not able to find out where the
problem was. He started keeping a close check on the progress of activities as he could
sense that something was wrong. He wanted to take some action before any major damage
could be done to the business. Vikas appointed a cyber security expert who monitored the
company’s processes and found out that the computer operator was deleting the entries
from the computers and pocketing the revenues. He was caught and handed over to the
police. This created an atmosphere of order and discipline in the organisation and helped in
minimising dishonest behaviour on the part of the employees.
Explain the importance of the function of management highlighted in the above paragraph
by giving any six points. (6 marks)