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CONTROLLING — OCM STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceOCMCONTROLLING3 Marks
Question
What changes can organizations face due to internal and external factors? How does controlling works as a shield against these changes?
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Answer

Protection against change:
  • How well will the programmes of a plan executed depends on internal as well as external factors. Internal factors are factors related to organization work procedures, policy, human resource, etc. External factors include government policy, competition, inflation, depression, scarcity of raw materials, change in the choices of people, change in fashion, etc.
  • Taking into consideration the effect of external factors, controlling decides whether activities are being carried out according to plan or not. If not, it suggests the organization to modify the plan and processes.
  • Thus, planning and controlling give protection against changes.

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