Principles of Management

Unit-V
Controlling -Meaning and Definition - Need and Significance of
Control
Process of Controlling- Types of control -Managing-Productivity -
Cost Control - Purchase Control -Maintenance -Control Quality
Control -Co-ordination -Need Techniques - Reporting - Meaning &
Definition - Principles Techniques - Importance

INTRODUCTION
Controlling refers to the process of evaluation and assessment of the work
done. Under the process of controlling, standards are set for various tasks
and activities. Accordingly, the various tasks and activities are evaluated
against the set standards. Deviations from the set targets are identified, and
corrective actions to be taken are decided. Thus, controlling refers to the
process of ensuring that the various activities and tasks in the organisation
are carried out according to the pre-defined goals and objectives. It ensures
that deviations if any are identified and appropriate corrective action is
taken.
NATURE OF CONTROLLING
1) Goal-oriented function: It ensures that everyone follows the plan or the
work is accomplished as per the plan and tries to achieve the goals of the
organisation.
2) Pervasive function: It is an activity performed not only by top level
managers but also by managers working at all levels, i.e. top, middle and
operational levels.
3) Both backward and forward looking function: The work which is done is
assessed and deviations from the pre-determined standards are evaluated.
Based on the deviations, the controlling function seeks to take the required
corrective action. In this way, controlling evaluates the actual performance
(by comparing it with) and guides future actions.
4) Continuous function: Controlling is an ongoing process. This function is
carried out till the time an organisation survives
IMPORTANCE OF CONTROLLING IN AN ORGANISATION
1) Achieving goals: Controlling ensures that various activities are carried out
correctly according to the plans. It ensures that deviations if any are
identified and appropriate corrective action is taken. This helps the
organisation to be on track and achieve its goals.
2) Reviewing standards: An effective control system ensures that the
standards are set accurately. As the business environment changes, it
ensures that the standards are also reviewed so as to adapt to the changes
taking place.
3) Enables efficiency in resource utilisation: An effective control system
ensures that there is minimum wastage of resources. In other words, it
ensures that the resources are utilised optimally and in the most efficient
manner.
4) Better motivation: With controlling, employees know what is expected
from them and how their performance would be evaluated. This clarity
motivates employees to perform better.
5) Maintain order: Controlling helps to keep a close watch on the activities
and behaviour of employees. In this way, it helps in maintaining order and
discipline in the organisation.
6) Ensures coordination: With proper controlling, the efforts of the various
departments can be unified towards the common goals and objectives of the
organisation. The existence of predefined standards of evaluation ensures
coordination in the activities of various departments.
Limitations of Controlling Function
The controlling function has some limitations as well. Points highlighting the
problems faced in an effective control system:
1) Setting standards in quantitative terms: For an effective control system, it
is important that the standards are set in measurable or quantitative terms.
However, it may not be possible in every case. When the standards are not
set in quantitative terms, it becomes difficult to evaluate performance.
2) No control over external forces: An organisation cannot control external
forces such as government policies and technical changes. A change in such
forces changes the standards of evaluation and thereby the entire control
system.
3) Resistance: Close and continuous monitoring may receive resistance from
employees which would make controlling difficult.
4) Expensive: A controlling system involves cost in terms of money, time and
effort. A small organisation may not be able to afford the costs involved in
the control system.
PROCESS OF CONTROLLING
1) Setting standards
 The first step is setting standards against which the actual performance
is evaluated.
 The standards can be in both qualitative terms (such as improved
coordination, higher goodwill) and quantitative terms (such as sales
targets, production targets).
 It must be kept in mind that the set standards should facilitate easy
comparison.
 Set standards need to be flexible enough to cope with changes in the
business environment.
2) Measuring actual performance
The next step in the controlling process is to measure the performance of
the various activities. For this, various techniques can be used such as
personal observation and performance reports.
 As far as possible, performance needs to be measured in the same units
in which standards are set.
 This measurement should be exact and reliable such that it facilitates
easy comparison with the set standards.
 Moreover, the measurement of performance can be at various stages in
the activity or at the completion of the activity.
3) Comparing performance
 After the actual performance is measured, it is then compared with the
pre-defined standards.
 This helps in assessing whether there are any deviations/deficiencies in
performance.
 Accordingly, it helps in identifying the required corrective actions to be
taken
4) Analysing deviation
 With the comparison of the actual performance with the set standards,
the deviations in performance are identified. For analysing deviations, the
following methods can be used:
o Critical point control: According to this technique, rather than
controlling all the activities in the management, only the key result areas
(KRAs) which affect the entire organisation should be focused on.
o Management by exception: According to this technique, only significant
deviations which are above an acceptable range should be controlled. An
attempt must not be made to control everything.
 Deviations should not only be identified but their causes must also be
recognised. Some causes for deviations can be infeasible standards,
deficiencies in process or dynamic business environment
5) Corrective measures
 In case deviations are beyond the acceptable range, it becomes
necessary to take corrective action.
 It must be ensured that the deviations do not occur again.
 6) Feedback
 The controlling function does not end by taking corrective action as it is
a continuous process.
 After suggesting corrective measures, a feedback report is prepared.

 List of reasons for deviation of plans or for inefficiency in the overall

working of an organisation and corrective measures are specified in the
feedback report.
 It acts as a base to establish the standard for the next year, and the
controlling process again starts from the initial step.
Techniques of Managerial Control
The techniques of managerial control can be classified in two categories as
Traditional Techniques and Modern Techniques
A. Traditional techniques have been in use by managers since long ago. The
following are traditional techniques of managerial control:
1) Personal observation: Under this technique, managers directly oversee the
work done. It ensures that managers get the right information, and prompts
workers to perform up to the mark. However, this technique proves to be
very time consuming and cannot be used in cases where a large number of
tasks or activities are to be performed.
2) Statistical reports: A statistical analysis of the performance is done in the
form of averages, ratios and percentages. Such statistical analysis helps in
easy comparison of actual performance with set standards and also with past
performance.
3) Breakeven analysis: It comprises a study of relationship between costs,
volume and profits. Under this technique, the costs and profits at various
levels of quantity are studied. Accordingly, the level of output where the
profit is maximised is identified. Breakeven is said to occur when there is
neither profit nor loss. That is the total revenue earned by the organisation
equals the total cost incurred.
4) Budgetary control: Under the technique of budgetary control, budgets are
prepared for each activity and operation in the organisation. Here, the term
budget refers to defining the goals and objectives which are to be achieved
in quantitative terms. Then the actual results of the activities are compared
with the budgetary standards. Accordingly, the work done is assessed and
evaluated. Deviations from the set standards are identified and corrective
actions are decided
B. Modern techniques
refer to techniques which are recent in origin. The following are modern
techniques of controlling:
1) Return on investment: Return on investment refers to the benefits from
investment. In other words, it is an assessment of whether the investment is
beneficial. In an organisation, managers use this technique for comparing
the performance of various departments or for comparing present actions
and past performance.
2) Ratio analysis: Various ratios are calculated to analyse financial
statements. The most commonly used ratios are as follows:
 Liquidity Ratio: Analyses the short-term solvency of a business
 Solvency Ratio: Evaluates the long-term solvency of a business
 Profitability Ratio: Determines the position of the business with regard to
profitability
 Turnover Ratio: Analyses whether the activities are carried out efficiently
3) Responsibility accounting: Under the system of responsibility accounting,
various divisions in the organisation are set up as responsibility centres. Each
division is given a target and it is the responsibility of the head of the
division to achieve the set target. Different types of responsibility centres in
an organisation can be cost centre, investment centre, profit centre and
revenue centre.
4) Management audit: Under this technique, a systematic assessment is
made of the overall work and activities of the management of the company.
The basic objective of this technique is to evaluate efficiency and
effectiveness in the tasks of the management. Accordingly, it helps in
identifying the areas which require corrective actions.
5) PERT and CPM: Programme Evaluation and Review Technique (PERT) and
Critical Path Method (CPM) are based on network analysis. Under these
techniques, the entire task is divided into various smaller activities. Each
activity is then accorded a timeline and a cost estimate. In this way, it helps
in effective execution of the tasks and activities.
6) Management and information system: Management Information System
(MIS) is a computerbased controlling technique wherein managers are
provided with timely data and information so as to help in the decision-
making process. MIS proves to be cost effective in terms of information
management.
Types of Control
1. Post-Action-Control/Feedback Control – This process involves
collecting information about a finished task, assessing that information and
improvising the same type of tasks in the future. The results of the
completed activity are compared with pre-determined standards and if there
are any deviations, corrective action can be taken for future activities. For
example, a restaurant manager may ask the customer about the quality and
taste of food ordered by him/her and take suggestions to improve the meals.
2. Concurrent Control – It is also called real-time control. It checks any
problem and examines it to take action, before any loss is incurred.
3. Steering Control – The key feature of this control is the capability to
take corrective action, when the deviation has already taken place, but the
task has not been completed. The big advantage of steering control is that
corrective actions can be taken early.
4. Yes/No Control – This control is designed to check at each check point,
whether the allow activity to proceed further or not. These controls are
necessary and useful where a product passes sequentially from one point to
another, with improvements added at each step along the way. These
controls stop errors from being compounded. Safety checks and legal
approvals of contracts, prior to approval are examples of yes/no controls.
5. Predictive/ Feed Forward Control – This type of control helps to
foresee problem ahead of occurrence. Therefore, action can be taken before
such a circumstance arises.
COORDINATING
INTRODUCTION
Coordination is the function of management which ensures that different
departments and groups work in sync. Therefore, there is unity of action
among the employees, groups, and departments. It also brings harmony in
carrying out the different tasks and activities to achieve the organization’s
objectives efficiently. Coordination is an important aspect of any group effort.
When an individual is working, there is no need for coordination. Therefore,
we can say that the coordination function is an orderly arrangement of
efforts providing unity of action in pursuance of a common goal. In an
organization, all the departments must operate a part of a cohesive unit to
optimize performance. Coordination implies synchronization of various
efforts of different departments to reduce conflict. Multiple departments
usually perform the work for which an organization exists
DEFINITION
Mooney and Reiley defines Coordination is an orderly arrangement of group
efforts to provide unity of action in the pursuit of common goals.
Charles Worth defines Coordination is the integration of several parts into an
orderly hole to achieve the purpose of understanding. Brech defines
Coordination is balancing and keeping together the team by ensuring
suitable allocation of tasks to the various members and seeing that the tasks
are performed with the harmony among the members themselves.
CHARACTERISTICS OF COORDINATION
A good system of co-ordination should satisfy the following characteristics:
(1) Co-Ordination is a continuous process carried on by the managers. In
involves an orderly arrangement of group efforts. Its purpose is to secure
unity of action towards common objectives.
(2) Co-Ordination should not be made through orders. It should not come
from the above. Instead it should come through co-operation and willingness.
Coordination through cooperation and willingness ensures better results.
(3) Co-Ordinating activities must respond to time, policies, programmes and
objectives. They should always be in tune.
(4) Co-Ordinating approach should be balanced and as far as possible it
should be of both the types – vertical as well as horizontal.
(5) It should be based on personal contact, Mumbai co-operation, mutual
confidence, good human relations and above all on the continuity principles.
(6) It should aim at morale boosting of the workers.
FEATURES OF COORDINATION
Coordination is the integration, unification, synchronization of the efforts of
the departments to provide unity of action for pursuing common goals. A
force that binds all the other functions of management.
 It is relevant for group efforts and not for individual efforts. Coordination
involves an orderly pattern of group efforts. In the case of individual efforts,
since the performance of the individual does not affect the functioning of
others, the need for coordination does not arise.
 It is a continuous and dynamic process. Continuous because it is achieved
through the performance of different functions. Also, it is dynamic since
functions can change according to the stage of work.
 Most organizations have some sort of coordination in place. However, the
management can always make special efforts to improve it.
 Coordination emphasizes the unity of efforts. This involves fixing the time
and manner in which the various functions are performed in the organization.
This allows individuals to integrate with the overall process.
 A higher degree of coordination happens when the degree of integration in
the performance of various functions increases.
 It is the responsibility of every manager in the organization. In fact, this is
integral to the role of a manager because he synchronizes the efforts of his
subordinates with others.
PRINCIPLES OF COORDINATION
1. Early Beginning: The first principle is that coordination must be attempted
and arranged in the early stage of the management process and policy
making. It may be impossible to secure co – ordination in an enterprise if not
started at the planning stage. Early coordination improves the quality of
plans and influences timely decisions on matters of policy.
2. Direct Personal Contact: Direct personal contact removes
misunderstanding and conflict between departments or between personnel.
It involves direct face to face communication, personal discussion,
settlement of differences, exchanges of ideas between the personnel.
3. Reciprocal Relationship of Factors: No department can work in isolation
from the other departments. That is, when purchase department works with
sales department, which in turn works with finance department and
personnel department, each of the four departments finds itself influenced
by the other department in the total situation. Similarly, in a group every
person influences all others and is in turn influenced by others. When
reciprocal relationships are maintained cordially, adequate coordination can
be secured in an enterprise.
4. Continuous Process: Coordination is a continuous process and must go on
all the time. In contrast to the principle of continuity, difference of opinions
and information gap may appear and misunderstanding in inter
departmental operations may crop up in the absence of coordination. By
keeping the process of coordination as a continuous flow of information,
sound coordination can be ensured in an enterprise.
5. Action Plan is the Fundamental Element of All Coordination Activities:
Most individual human interactions are modeled by an action plan in which a
performer delivers a condition satisfying a customer. The action plan has a
requester, performer and four time segments culminating in request,
promise, delivery, and acceptance. Each of the four segments can be linked
to further action plans that respond to requests from components of the
segment. The resulting network of action plan is called an action process or
workflow.
6. Coordination Tasks Can Be Delegated to Computational Processes:
Humans delegate tasks to agents by designing computational processes to
perform the task There are three categories of coordination systems
according to the amount of task delegation:
i. Human-human with computer assistance- all interaction is between
humans, but computational processes track their joint progress states to
assist them to complete tasks. (Known as Computer Supported Cooperative
Work, CSCW.)
ii. Human-computer- the performer role is delegated to a computational
system. Humans interact with the system through an interaction language
and interaction interface
7. Coordination is a Solution to the Concurrency Control Problems of
Arbitration, Synchronization, Serialization, Determinacy, and Deadlock:
Concurrency means that tasks can be executed in parallel. A concurrent
system is a set of tasks, some of which are- ordered and the rest concurrent
(unordered). Ordered tasks can never be executed at the same time;
concurrent tasks can. Arbitration arises when a task is required to select only
one of two (or more) potentially simultaneous activities, deferring action on
the unselected ones without losing them
TECHNIQUES OF COORDINATION
Every manager must remove the obstacles that determines coordination by
adopting the following specific techniques:
1. Chain of Command: This technique also emphasizes that an employee
should receive orders form one superior only because dual command is a
continuous source of conflict. Management has to exercise authority to
regulate the performance of different departments because clear cut
authority relationship help in reducing conflicts among different
departments.
2. Leadership: Co-ordination becomes possible through leadership as it
provides individual motivation and persuades the group to have an identity
of interests and outlook in group efforts. To achieve the common objectives
of an enterprise, the manager must guide and co-ordinate the activities of
his subordinates.
3. Committees: This Technique of achieving co-ordination is used in most
organisations by forming a committee. Which helps to promote unity of
purpose and uniformity of action among different departments. A committee
is a group of persons and the decisions of the committee are group decisions
which provide co-ordination among various activities and persons through
information, advice interchange of ideas etc., while forming the committee
utmost care must be taken by the management, otherwise, the decisions
taken by the group may not be effective to achieve co-ordination in an
enterprise.
4. Communication: Effective communication conveys ideas, opinions or
decisions of managers to subordinate at different levels of the organization
and carries back information, suggestions’ and responses from subordinates.
It regulates the flow of work, co-ordinates the efforts of the subordinates of
an enterprise. To be effective, communication must be as direct as possible
so as to minimize the chances of misinterpretation. To ensure proper co-
ordination, various kinds of communication channels may be used, such as
verbal relay of information, written reports memos or other forms of
documents, mechanical devices such as teletypes, intercommunication
system, etc.
5. Voluntarily Coordination: Self-co-ordination or voluntary co-ordination is
possible in a climate of mutual co-operation, when two or more persons
working within the same or different departments, mutually discuss their
problems and arrive at a coordinated action. This can be easily achieved in
any organization, when the supervisor gives his consent without any
hesitation for such a mutual consultation among subordinates.
6. Sound Planning and Clear-Cut Objectives: The objectives of the
organization and policies must be clearly defined by the management. A
well-conceived plan must clearly define the goals of the organization so that
interdepartmental objectives can be accomplished. Thus to ensure co-
ordination, clear formulation of policies in the field of production, sales,
finance, personnel, etc., must be correlated.
7. Incentives: Incentives have a tendency to ignite action and bring about co-
ordination. In order to infuse enthusiasm in a worker for greater and better
work, incentives have a distinct and significant role. Financial incentives
which include wage, bonus, salary, etc., and no-financial incentives which
include job security of interest, to achieve co-ordination and to reduce
conflicts.
TYPES OF COORDINATION
1. Vertical Coordination: Vertical coordination is the coordination between
different levels of the organization to ensure that all levels of organization
are in harmony with the organizational policies and programmes. This is
achieved through delegation of authority by directing and by controlling.
2. Horizontal Coordination: Horizontal coordination is the coordination
between departments on the same level of managerial hierarchy.
Coordination between production and marketing departments at the same
level or organizational hierarchy is an example of horizontal coordination.
This is achieved by forming cross-functional teams and self-managed teams.
3. Internal Coordination: Vertical and horizontal types of coordination, if
carried out within an organization, are called internal coordination. Internal
coordination is achieved through following techniques:
4. External Coordination: Success or failure of an organization also depends
on number of external forces. No organization can operate in isolation, it has
to continuously interact with dynamic environmental forces and devise its
strategies to respond to such forces to survive
PROBLEMS OF COORDINATION
In practice, coordination in the organisation faces certain problems listed
below:
1. Natural hindrance: Due to lack of knowledge, the superior and subordinate
communication gap will be raised. Therefore, it prevents effective
coordination in the organisation.
2. Lack of administrative talent: Lack of administrative talent is widely
applicable for the superiors in the organisation such as autocratic attitudes
and non-acceptance of feedback from the subordinates.
3. Lack of techniques of coordination: Without mutual respect among the
subordinates, the coordination may not survive. Moreover, the managers
must respect the feelings and emotions of the employees.
4. Ideas and objectives: Every manager in an organisation must know the
objectives very clearly. If he cannot understand the objectives, then the
coordination will not be successful and effective
REPORTING
Management reporting is that part of management control system which
provides the various information to the management in the form of report
and statement at regular interval. Management reporting is the instrument
for making control and decision effective.
According to Kohler reporting refers to “A body of information organized for
presentation or transmission to others. It often includes interpretations,
recommendations and findings with supporting evidence in the form of other
reports”
Management reporting may be defined as “A system of communication,
normally in the written form, of facts which should be brought to the
attention of various levels of management who use them to take suitable
action.” In other words the process of providing information to the
management is known as management reporting.
OBJECTIVES OF REPORTING
To obtain the required information relating to the business to discharge its
managerial functions of planning, organizing, controlling, directing, and
decision making etc., efficiently and effectively.
To ensure the operational efficiency of the concern.
To facilitate the maximum utilization of resources.
To secure industrial understanding among people who are engaged in
various aspects of work of enterprise.
To enable to motivating improving discipline and morale
To help the management for effective decision making
ESSENTIALS OF GOOD REPORTING SYSTEM/PRINCIPLES
This following are the essentials of a good management reporting system:
Proper form: A good report should have a comprehensive form with
suggestive title, heading, sub heading and number of paragraphs as and
where necessary for easy and quick reference
Contents: Simplicity is one of the requisites of reporting in relation to the
contents of a report. Further the contents should follow a logical sequence.
Wherever necessary the contents should be represented in the form of visual
aids such as charts and diagrams etc.
Promptness: It means that the system should ensure the preparation and
submission of report at the proper time. It facilitates business executives to
make suitable decisions based on quick reports without delay.
Accuracy: Information conveyed should be accurate. This means that the
person responsible for reporting should have sufficient care in preparing the
report as correctly as possible
Comparability: In order to ensure that the furnished information is useful, it is
essential that reports are also meant for comparison. The report should
provide information about both the actual and the budgeted performance of
the budget period. So that meaningful comparison can be made to find out
the deviations and to initiate appropriate action.
Consistency: In order to make a meaningful and useful comparison, uniform
accounting principles and procedures should be followed on consistent basis
over a period of time for collection, classification and presentation of
accounting information
Relevancy: The report should be presented with relevant data to disclose the
fact in unambiguous terms. Because, inclusion of both the relevant and the
irrelevant data in the management reports may result in faulty decision.
Simplicity: The report should be as far as possible in simple form. In other
words, report should avoid technical jargons, duplication of work and
presented in a simple style.
Cost-Benefit Analysis: Cost- Benefit Analysis should be made and the cost of
reporting should commensurate with the expenditure involved.
Principle of Exception: Since the time and effort of managerial personnel are
precious, the principle of management by exception has become the rule of
the day instead of exception. It is necessary therefore to draw the attention
of management, through reports, only towards exceptional matters.
Flexibility: The system should be capable of being adjusted according to the
requirement of the users.
Controllability: It is necessary that every report should be addressed to a
responsibility centre and analyzed the factors into controllable and
uncontrollable separately. So that the head of the responsibility centre can
be held responsible only for controllable variance but not for variances which
are beyond his control
TYPES OF REPORTS
 Long Reports and Short Reports: Their name justifies it all. A short
report is also called a memorandum. It can be one or two pages long.
However, a long report can even be a hundred or five hundred pages
long, depending on the topic. While writing both these reports, one
needs to follow a formal and structured format. The long reports
mainly begin from a table of contents and end with an appendix.
 Internal Reports: These kinds of reports stay in the organization
itself and are mainly used by the employees, and people who have
access to it. Not all are allowed to use their data and content.
  External Reports: These reports are also called public reports.
External reports serve the purpose of providing information to a mass
group. This may also include sending out reports in the newspaper,
and a company’s annual report, etc.
 Lateral and Vertical Reports: These vary depending on the
hierarchy. The reports which move upward and downward in an
organization are called vertical reports. They help in managing the
tasks across various levels in a company. Whereas, lateral reports are
the ones that travel at the same organizational level. It helps in the
coordination of a unit.
 Periodic Reports: These reports are prepared based on pre-scheduled
dates and sent out accordingly. They usually help in management
control. The periodic reports are prepared using computer-generated
data.

 Formal and Informal Reports: A formal report is usually made for a

bigger group. It has a meticulous structure with proper organization.
These reports eliminate any personal data and information, including
opinions. They provide deep insight and are written in a specific style.
Informal reports are used less in comparison to the formal ones. They
are usually short messages with a casual language. Informal reports are
mostly used between a team, college peers, etc.

 Informational Reports: These reports contain all the data, statistics,

analyses, and facts related to a certain topic. They aim at solving actual
problems with these reports.

 Proposal Reports: These reports are like a pitch, and are solution-
oriented. They aim at problem-solving for a company, helping them deal
with the issues better.
 Functional Reports: These kinds of reports have a specific function.
Almost all reports like the financial report, marketing reports, etc. are
included in this type of report.

MCQ

[Link] in management is the process of:

a) Planning future goals
b) Measuring performance & correcting deviations ✅
c) Assigning work to staff
d) Motivating employees

2. The main purpose of control is:

a) To create competition
b) To ensure achievement of objectives ✅
c) To delay decision making
d) To avoid planning

[Link] for control arises because:

a) Standards are unnecessary
b) Performance may deviate from plans ✅
c) Managers avoid supervision
d) Workers are always perfect

[Link] step in controlling is:

a) Taking corrective action
b) Setting standards ✅
c) Comparing results
d) Measuring performance

[Link] final step of control process is:

a) Setting standards
b) Measuring performance
c) Taking corrective action ✅
d) Co-ordination

[Link] actual performance with standards is called:

a) Decision making
b) Performance appraisal
c) Performance evaluation ✅
d) Responsibility accounting

7. Control exercised before actual work begins is:

a) Feedforward control ✅
b) Concurrent control
c) Feedback control
d) Statistical control
8. Control exercised during the operation is:
a) Feedback
b) Concurrent ✅
c) Feedforward
d) Historical
9. Control exercised after completion of activity is:
a) Feedforward
b) Concurrent
c) Feedback ✅
d) Preventive
10. Productivity is measured as:
a) Input ÷ Output
b) Output ÷ Input ✅
c) Wages ÷ Labour
d) Cost ÷ Profit
11. Cost control mainly aims at:
a) Eliminating budgetary control
b) Minimizing wastage ✅
c) Increasing expenditure
d) Avoiding responsibility
12. Purchase control ensures:
a) Buying cheapest quality
b) Procuring right material at right cost ✅
c) Buying from random suppliers
d) Ignoring quotations
13. Maintenance control focuses on:
a) Reducing efficiency
b) Preventing breakdowns ✅
c) Encouraging downtime
d) Cutting workforce
14. Quality control ensures:
a) Maximum wastage
b) Standardized output ✅
c) Lower customer satisfaction
d) Increase in defects
15. Coordination is required in management to:
a) Create conflict
b) Harmonize group efforts ✅
c) Reduce cooperation
d) Increase internal rivalry
16. Which of the following is a traditional technique of control?
a) Budgetary Control ✅
b) PERT/CPM
c) Responsibility Accounting
d) Management Audit
17. A modern control technique is:
a) Standard Costing
b) Break-even Analysis
c) PERT and CPM ✅
d) Internal Check
18. Reporting in management refers to:
a) Complaint filing
b) Informing about progress & results ✅
c) Advertising products
d) Preparing payrolls
19. A key principle of effective reporting is:
a) Delay in communication
b) Accuracy and clarity ✅
c) Confusion in data
d) Irregular submission
20. Reporting is important in control because it:
a) Hides information from managers
b) Provides timely feedback for decisions ✅
c) Creates obstacles in planning
d) Reduces accountability

5 Mark Questions

21. Define controlling and explain its meaning in management.

22. Discuss the need and significance of control in an organization.
 23. Explain the steps involved in the process of controlling with
examples.
24. Differentiate between feedforward, concurrent, and feedback
control with suitable examples.
25. Explain the relationship between controlling and productivity
management.
26. Write short notes on cost control and its importance in business.
27. What is purchase control? Explain its objectives and significance.
28. Discuss the importance of maintenance control in ensuring
efficiency.
29. Explain the concept of quality control and its role in management.
30. Define coordination. Why is coordination needed in controlling?
31. Describe the traditional techniques of control with examples.
32. Write notes on modern techniques of control (PERT, CPM,
Responsibility Accounting).
33. What do you mean by reporting? State its principles.
34. Explain the importance of reporting as a tool of control in
management.
35. How does control contribute to achieving organizational goals?
Illustrate with examples.

8 Mark Questions

1. Define controlling. Explain its meaning and importance in management.

2. Discuss the need and significance of control in achieving organizational
objectives.
3. Explain in detail the process of controlling with suitable examples.
4. Describe the different types of control (Feedforward, Concurrent, and
Feedback) and their managerial relevance.
5. How does controlling help in managing productivity? Explain with suitable
techniques.
6. What is cost control? Explain the methods and importance of cost control in
management.
7. Define purchase control. Explain its objectives, steps, and significance.
8. Discuss the role of maintenance control in ensuring efficiency of business
operations.
9. What is quality control? Explain its importance and techniques used in
management.
10. Define coordination. Discuss its need and role in the process of
controlling.
11. Explain the traditional and modern techniques of control with
examples.
12. What do you mean by reporting? Discuss its meaning, definition,
principles, and importance.