Standards can be set in both quantitative as well as qualitative terms. Show through examples.
Answer
Examples of standards in quantitative terms (or quantitative standards). Standards in terms of cost to be incurred, revenue to be earned, product units to be produced and sold, time to be spent in performing a task. Examples of standards in qualitative terms (or qualitative standards). Improving goodwill and motivation level of employees.
Controlling is looking back because in controlling, a manager tries to find out whether the work has been done according to the plans or standards set or not.
"Controlling is a continuous activity in an organisation". Explain.
Answer
Like all other functions of management, control is a continuous activity in an organisation. As control means taking corrective action to improve performance, it has to be a continuous effort to be meaningful. Control cannot be an ad hoc effort. Actual performance has to be compared with predetermined performance on a continuous basis so that any shortcoming can be overcome. The manager should not wait for the year end results but should take action as and when any deviation arises from the target performance.
It implies the measurement of accomplishment against the standard and the correction deviations to assure attainment of objectives according to plans. Mention the concept implied here.
Answer
Managerial control (according to Koontz and O'Donnel).
What should be done while taking corrective action in the process of controlling when especially in the important areas deviations go beyond the acceptable range?
Answer
Immediate managerial attention is required so that deviations do not occur again and standards are achieved.
Mr. Anil has been appointed by Suntech Ltd. to ensure that the performance of employees is going as per the plans made. In the report which he submitted to the management, he mentioned that carriage charges had risen by 8% however labour absenteeism had increased from the previous year from 5% to 15%. He felt that this increase in absenteeism required immediate action of management on priority basis.
Identify the step of one of the management functions referred above.
Identify the principle due to which increase in absenteeism required immediate action of management.
In controlling process, standards were set according to the efficiency of the average employee. Which value has been kept in mind while setting the standards?
Control is resisted by employees because in general, employees feel that imposition of control is like an unwanted interference, restriction and burden on them.
How does controlling improve employee's motivation?
Answer
Controlling ensures that employees know what is expected from them and the basis on which they will be appraised, well in advance. This motivates them to give better performance.
Employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised, which in turn helps them to give better performance. Which importance of controlling is highlighted here?
'Planning is meaningless without controlling'. How?
Answer
Planning is meaningless without controlling because in absence of controlling, no one will take it seriously or work according to the plans and hence plans will fail.
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.
Identify the step of the controlling process performed by her.
Answer
Mahima Jain is performing the step 'measurement of actual performance' of controlling.