Class 12 Business Studies - ANDHRA-PRADESH
Controlling
The chapter 'Controlling' in Class 12 Business Studies for Andhra Pradesh (BSEAP) students explores the managerial function of monitoring organizational performance to ensure plans are being executed as intended. Controlling involves setting performance standards, measuring actual performance, comparing them, identifying deviations, and taking corrective actions. It bridges the gap between planning and execution, ensuring that organizational goals are achieved efficiently. For the board exams, understanding the relationship between planning and controlling, the detailed controlling process, and the techniques of managerial control is crucial for scoring high marks in both short and long-answer questions.
Start Learning FreeKey Concepts
Meaning of Controlling
Controlling is the process of monitoring actual organizational performance and comparing it with established standards to ensure that activities are going according to plans and taking corrective action if there are any deviations.
Relationship between Planning and Controlling
Planning and controlling are inseparable twins; planning provides the base by setting goals, while controlling checks if those goals are being met and provides learning for future plans.
Controlling Process
A systematic five-step procedure consisting of setting performance standards, measuring actual performance, comparing actual performance with standards, analyzing deviations, and taking corrective action.
Management by Exception (MBE)
A control technique where managers focus only on significant deviations that exceed permissible limits, letting minor deviations pass, thereby saving time and managerial attention.
Critical Point Control (CPC)
A technique focused on monitoring Key Result Areas (KRAs) or critical bottlenecks in a business operation where failure could ruin the entire project.
Important Formulas
Board Exam Info
In the Andhra Pradesh (BSEAP) Class 12 Business Studies board exams, the Controlling chapter typically carries around 6 to 8 marks. Questions often include 1 or 2-mark very short answer questions (VSAQs) defining controlling or its techniques, and a 4 or 8-mark essay question detailing the Controlling Process or the relationship between Planning and Controlling.
Frequently Asked Questions
How are planning and controlling interrelated?
Planning is looking ahead (forward-looking) and controlling is looking back (backward-looking) as it evaluates past performance. However, controlling is also forward-looking because corrective actions improve future plans.
What is Management by Exception?
It is a principle of control where a manager only steps in when major deviations from the standard occur, filtering out minor, acceptable variations to focus resources efficiently.
What are the limitations of controlling?
Controlling has limitations such as difficulty in setting quantitative standards, little control over external factors, employee resistance to strict monitoring, and high costs involved in implementation.
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