CONTROLLING

PRACTICE QUESTIONS

Q1. Rekha is trying to apply a function of management in her department. First, she lets
his team perform according to their best potential. Then in a meeting she calls and asks
her team to check what they have performed. One day it was found that the total number
of units produced were 20 less than the set target. It was decided that no worker will go
home unless and until this gap of 20 units is overcome.

a) Which function of management is being performed by Rekha and her team?

b) What is ’20’ in the above case?

Q2. Arman is trying to reduce wastage of resources in his company. He is trying to do it in

the best possible manner. He has set standards for performance of different types of
activities and is doing his level best to perform according to these set standards to
minimise wastage of resources. Things are not going to be over for him as he will have to
look into other aspects too. He has set up a good monitoring system which helps him
know how to employees ate performing according to set standards as when the
employees meet these standards, they will be given incentives. He is hoping to pull out a
good performance from his team this year.

a) Which function of management has been referred to in the above case?

b) Which benefits of this function of management have been highlighted in the above
case?

Q3. Identify the step of controlling process applicable in the following cases:

a) Asha is keenly observing the quantity of capsules produced in a pharmaceutical

company. She realises that there is no need for any action to be taken as the
deviations are within the acceptable limits. A day later when she comes to
work, she finds the situation opposite to that of the previous day. This lime the
deviation was beyond the acceptable range and needed immediate action. She
called her subordinates and told them that this should not happen again.
b) Mahib who is the owner of a company has decided to focus only on a few
activities of his business. He considers that the rest of all activities are not
critical to the performance of his company. One such area he finds is of labour.
The labour cost recently went up by 4% sending signals of coming danger. Now
he will put his efforts to control this variation by arranging labour at a cheaper
rate.

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 c) In an organisation a manager is trying to find out the deviation between the
actual number of fans produced and the desired number. He already knows
about the standard as the company has assigned him a definite quantity of fans
to be produced.
d) Mikhil Kumar a senior experience manager is concerned about the 2% rise in
the raw materials. However, he knows that this is an acceptable range. He tells
his staff that if this rise goes beyond 2% it should be brought into the notice of
management. Then he sets a limit of 5% when the management should give it
the priority over other activities.
e) Vaibhav wants to run his company in a different manner. He wants to set
standards to be achieved in both qualitative as well as quantitative terms. He
wants to judge the motivation, skill levels and satisfaction of the employees. All
these things will require qualitative standards. On the other hand, the company
will have to set quantitative standards for the number of units produced.
f) Some employees have been assigned the job of judging the output of
production in a neutral and reliable way. They are applying different
techniques for achieving this aim. Some of these are personal observation,
sample checking, etc. They are also keeping the units of measurement same to
that of the units of set standards.

1. Puneet is a production manager in a tyre manufacturing company. Recently he

noticed that his team could not achieve the target production of 80 units per day.
Instead on an average the production touched the target of only 65 units. On
thorough analysis he found out that the deviation between standard production
and actual production is far beyond acceptable range, on overall analysis he also
found out that there has been a marginal increase in office stationery expenses.
Moreover, he detected that the machine installed for the purpose of
manufacturing was not able to perform at its best.
Being a management expert suggest Puneet how he should deal with the existing
problem.

Q4. Hina Sweets is a renowned name for quality sweets since 1935. Harsh the owner of
Hina Sweets was worried as the sales had declined during the last three months. When he
enquired from the Sales Manager, the Sales Manager reported that there were some
complaints about the quality of sweets. Therefore Harsh ordered for sample checking of
sweets.
Identify the step taken by Harsh that is related to one of the functions of management.

Q5. State the steps in the process of controlling. (CBSE, Delhi 2017)

Q6. Describe briefly the relationship between controlling and planning. (CBSE, Delhi 2017)

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Q7. State any five points that highlight the importance of ‘controlling’ function of
management. (CBSE, Delhi 2017)

Q8. How does controlling help in “Judging accuracy of standards” and “Ensuring order and
discipline”? (CBSE, Sample Paper, 2017)

Q9. ‘If anything goes wrong with the performance of key activities, the entire organisation
suffers. Therefore, the organisation should focus on them.’ Explain the statement with a
suitable example. (CBSE, Sample Paper 2015-16)

Q10. Mr. Nath, a recently appointed production manager of Suntech Ltd., has decided to
produce jute bags instead of plastic bags as these are banned by the government. He set a
target of producing 1000 jute bags a day. It was reported that the employees were not
able to achieve the target. After analysis, he found that employees were demotivated and
not putting in their best for achieving the target. Mr. Nath’s behaviour is good towards
the employees. His attitude is always positive. So, he announced various incentive
schemes for the employees like:

1. Installing awards or certificates for best performance

2. Rewarding an employee for giving valuable suggestions
3. Congratulating the employees for good performance
• Identify the functions of management highlighted in the above paragraph.
• State the incentive under which the employee are motivated.
• State any two values which the production manager wants to communicate to
society by his work and behaviour. (CBSE, Sample Paper 2015)

Q11. A company was manufacturing LED bulbs which were in great demand. It was found
that the target of producing 300 bulbs a day was not met by the employees. On analysis, it
was found that the workers were not at fault. Due to electricity failure and shortage of
workers, the company was not able to achieve the set targets and alternative
arrangements were needed.
To meet the increased demand, the company assessed that approximately 88 additional
workers were required out of which 8 would work as heads of different departments and
10 would work as subordinates under each head. The required qualifications and job
specifications were also enlisted. It was also decided that necessary relaxations should be
given to encourage women, people from backward and rural areas and people with
special abilities to assume responsible positions in the organisations. All efforts were
made to match the ability of the applicants with the nature of work.
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 1. Identify the functions of management discussed above.
2. State the two steps in the process of each function discussed in the above
paragraph.
3. List any two values which the company wants to communicate to the society.
(CBSE, Delhi 2015)

Q12. ‘AS Ltd.’ is a large company engaged in assembling of air-conditioners. Recently the
company had conducted the ‘Time’ and ‘Motion’ study and concluded that on an average,
a worker can assemble ten air-conditioners in a day. The target volume of the company in
a day is assembling of 1,000 units of air-conditioners. The company is providing attractive
allowances to reduce labour turnover and absenteeism. All the workers are happy. Even
then the assembling of air-conditioners per day is 800 units only. To find out the reason,
the company compared actual performance of each worker and observed through CCTV
that some of the workers were busy in gossiping.

1. Identify the function of management discussed above.

2. State the steps in the process of the function identified which are discussed in the
above paragraph. (CBSE, 2015)
Q13. PQR Ltd. is engaged in manufacturing machine components. The target production is
200 units per day. The company had been successfully attaining this target until two
months ago. Over the last two months, it has been observed that daily production varies
between 150-170 units.

1. Identify the management function to rectify the above situation.

2. Briefly state the procedure to be followed so that the actual production may come
up to the target production. (CBSE, Delhi 2010)

Q14. Rajeev and Sanjeev are managers in the same organisation heading different units.
While discussing about the functions of management, Rajeev says that ‘Planning is looking
ahead whereas controlling is looking back.’ But Sanjeev says, ‘You are wrong because
planning is looking back whereas controlling is looking ahead.’ Both are giving reasons in
favour of their statements. Explain the possible reasons given by both and justify who is
correct. (CBSE, 2009)

Q15. Kapil & Co. is a large manufacturing unit. Recently the company had conducted time
and motion studies and concluded that on an average, a worker could produce 300 units

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per day. However, it has been noticed that the average daily production per worker is in
the range of 200-225 units.

1. Name the function of management and identify the steps in the process of this
function which helped in finding out that the actual production of a worker is less
than the set target.
2. To complete the process of the function identified in (1) and to ensure the
performance as per time and motion studies, explain what further steps a manager
has to take? (CBSE, 2010)

Q16. K&K Co. Ltd. is engaged in manufacturing of machine components. The target of
production is 200 units daily. The company had been successfully attaining this target until
two months ago. Over the last two months it has been observed that daily production
varies between 150-170 units. Identify the possible causes for the decline in production
and the steps to be taken to achieve the desire targets. (CBSE, 2008)
Answer:
The possible causes for decline in production are listed below:

• The workers are not well versed with the production process.
• The working environment is not conducive to efficient working.
• The raw materials and other equipment are not available on time.
• The machinery is defective or has become obsolete.
The deviations require immediate management attention so that- they do not reoccur in
future. Therefore, the manager should take appropriate corrective action after analyzing
the situation like providing training to workers, improving the work environment,
ensuring timely availability of the raw materials and other equipment or replacing the
machinery.

ADDITIONAL QUESTIONS
Q17. ‘Taste Buds Ltd.’ is a company known for manufacturing good quality confectionery
products. The automated system of production ensures uniformity in production and
quality maintenance. The quality assurance team conducts stringent checks at all stages,
records and analyses the deviations and takes the necessary corrective actions right from
the procurement of raw material to its processing, production and packaging. The
company has a well-equipped in¬house quality inspection cell where confectionery
products are tested on various parameters of quality by the team of experienced quality
staff.
In context of the above case:

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 Identify and explain the function of management being performed by the quality
assurance team of ‘Taste Buds Ltd.’

1. Explain the statement, “records and analyses the deviations and takes the necessary
corrective actions”.
Q18. Anubhav has set up an export house after completing his masters in fashion
designing. As the quality of the garment depends on the quality of raw material used, he
assures that the fabric meets the requirements by conducting a series of tests for the
fabrics like shrinkage test, testing colour fastness to washing, colour fastness to light,
colour fastness to perspiration etc through laboratory tests. Later on, at the production
areas, fabric inspection is also conducted by stopping the production process. The tests
help to detect the deviations and also take corrective action. Moreover, he ensures that
complete training about production work was given to every worker at the time of joining
his export house.
In context of the above case:

1. Identify the function of management being performed by Anubhav by conducting

tests to assure for the quality of the garments manufactured in his export house.
2. Briefly explain the term ‘deviations.’
3. Give any three advantages of giving training to the employees.
Answer:

1. Controlling is the function of management being performed by Anubhav by

conducting tests to assure for the quality of the garments manufactured in his
export house.
2. The term ‘deviations’ refers to the difference between the actual performance and
planned performance. If the actual performance is more than the planned
performance, it may be said to be positive in nature or vice-versa.
3. The benefits of training and development to an organisation are as follows:
1. Training imparts systematic learning to the employees thereby helping to
avoid wastage of efforts and money and is considered better than the hit and
trial method.
2. It increases the employees’ productivity both in terms of quantity and quality,
leading to higher profits.
3. Training increases the morale of the employees and reduces absenteeism and
employee turnover.
Q19. Raghav started a take away eating joint in a nearby market. His business was doing
well. He ensured that the food was properly cooked, a standard taste was maintained,
packing of food was done effectively and the orders were executed on time. But

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unfortunately, he met with an accident and was advised three months bed rest. In his
absence, his cousin Rohit took charge of his business. When he resumed his work after
three months, he realised that his clientele had dropped. The people were not happy with
the services as the quality of food had deteriorated and the delivery time for orders had
increased considerably. All this was happening because most of his previous staff had left
as Rohit used to adopt a very strict and authoritative approach towards them.
In context of the above case:

1. List any two aspects about his business that Raghav was controlling in order to
make it successful.
2. Explain briefly any two points to highlight the importance of the controlling
function.
3. Name and explain the style of leadership adopted by Rohit.
Q20.
‘Saurashtra’ is a company involved in the export of indigenous food products like chutneys
and pickles. It has tied up with the small farmers in various states for sourcing of fruits and
vegetables. In this way it helps the small farmers to sell their produce at reasonable rates.
The company follows a practice where only significant deviations from a budget or plan
are brought to the attention of management. The degree of deviations allowed in
different categories in the budget are well defined in advance, along with the appropriate
levels of management who will respond to the deviations in question. For example, a
deviation of Rs. 20,000 or more in purchase costs will be reported to the concerned
department manager.
In context of the above case:

1. Identify the principle of management control adopted by the company. State the
belief underlying this principle.
2. List any two values that the company wants to communicate to the society.

Q21. Shruti has established a small scale factory after completing a course in textile
designing. She has tied up with the big home furnishing retail outlets in the city for
supplying to them good quality designer home furnishing products like bed covers,
cushions etc. She believes that controlling without planning is blind. So, every time she
gets an order, she sets the standards in terms of the number of personnel required, the
estimated requirements in man-hours per product, the requirements of direct materials
for the projected production and the amount of normal overhead expenses required at
the projected work-load. She also keeps a close watch on the activities so as to ensure

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that they conform to plans. Whenever the order size is too large, she hires extra workers
by placing a notice on the notice-board of the factory specifying the details of the jobs
available.
In context of the above case:

1. Identify the functions of management being performed by Shruti.

2. Do you think Shruti is right in her thinking that, “controlling without planning is
blind.” Explain by bringing out the relationship between planning and controlling.
3. Name the source of recruitment adopted by Shruti. Also, mention its type.

Q22. Vishesh works as an interior designer. He gets a contract to redesign a play school.
He employs three painters on the site assuming that an average painter will be able to
paint 10 desks in a day. At the end of the first day of their work, Vishesh finds that the
painter A, painter B and painter C have painted 12, 14 and 15 desks respectively. On
comparing the actual performance with the planned performance, he realises that the
standard set by him is too low. Consequently, he decides to review and revise the
standard and raise it.
In context of the above case:

1. Identify the function of management being performed by Vishesh.

2. “Planning and controlling are both backward looking as well as forward looking
functions.” Explain the statement with reference to the above paragraph.

Q23. A critical point control (CPC) approach is followed by McDonald in the cooking and
handling process so that any food safety threat can be prevented, eliminated, or reduced
to an acceptable level. Hence, continuous monitoring of activities are undertaken to
ensure that the process is right at each critical point control. The main principle followed
for cooking at McDonald is “less amount many time” which can ensure the high quality
and high fresh level of the food. For instance, if four hamburgers have to be made, a
worker cannot cook all the four hamburgers at one time. The time figured out for making
one hamburger is one hundred and forty-five seconds. Moreover, nearly all foods in the
McDonald have the specific holding time, the holding time for hamburgers is ten minutes
and for french fries is seven minutes. If it is not sold within that time it is thrown away.
Also, the temperature of the milk sent by the supplier must be under 4° C, otherwise, it
will be returned.

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In context of the above case:

1. Name the steps involved in the controlling process which is being discussed in the
above lines.
2. What do you understand by ‘critical point control’? Explain.
3. How does the controlling function of management help in accomplishing
organisational. goals and ensure efficient use of resources?