Class 12 Business Studies - BIHAR
Controlling
The chapter 'Controlling' in Business Studies for Class 12 Bihar Board (BSEB) explores the final crucial function of management, which involves monitoring actual organizational performance against predetermined standards. Students will learn the step-by-step controlling process, the relationship between planning and controlling, and traditional versus modern techniques of managerial control. Mastering this chapter is essential for board exams as it frequently features direct 4-mark and 6-mark descriptive questions, as well as case studies testing the application of corrective actions.
Start Learning FreeKey Concepts
Meaning of Controlling
Controlling refers to the process of ensuring that actual activities conform to planned activities, helping management identify deviations and take corrective actions.
Relationship between Planning and Controlling
Planning and controlling are inseparable twins; planning provides the base by setting goals, while controlling measures progress against those goals and ensures they are met.
Controlling Process
A systematic five-step procedure comprising setting standards, measuring actual performance, comparing 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, ignoring minor fluctuations to save time and energy.
Critical Point Control (CPC)
A technique focusing attention on Key Result Areas (KRAs) or critical bottlenecks that are vital for the success of the business.
Important Formulas
Board Exam Info
In the Bihar Board (BSEB) Class 12 Business Studies exam, 'Controlling' generally carries around 6 to 8 marks. Questions usually include objective type (MCQs), short-answer questions (2 marks) about the definition or techniques, and long-answer/case-based questions (4 or 5 marks) detailing the controlling process or the relationship between planning and controlling.
Frequently Asked Questions
Why is controlling called a backward-looking as well as forward-looking function?
It is backward-looking (post-mortem) because it measures past performance against standards, and it is forward-looking because corrective actions help improve future planning and performance.
What is the difference between Management by Exception and Critical Point Control?
MBE focuses on filtering out insignificant deviations to address only major issues, whereas CPC focuses specifically on monitoring vital activities or key result areas that impact the entire organization.
Can controlling be effective without planning?
No, controlling cannot exist without planning because standards (the benchmark for control) are established during the planning process.
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