Class 12 Business Studies - HARYANA
Controlling
The chapter 'Controlling' in Class 12 Business Studies for BSEH students explores the managerial function that ensures actual performance aligns with planned performance. Students will learn the meaning, importance, limitations, and the step-by-step controlling process—from setting standards to taking corrective action. The chapter also details the crucial relationship between planning and controlling, highlighting how planning is looking ahead and controlling is looking back, yet both are interdependent. Mastering this chapter is essential for board exams as it frequently features practical case studies and direct questions on the controlling process and techniques.
Start Learning FreeKey Concepts
Meaning of Controlling
Controlling refers to the process of monitoring actual organizational performance to ensure it conforms to set standards and taking corrective actions if deviations are found.
Relationship between Planning and Controlling
Planning and controlling are inseparable twins; planning is theoretical without controlling, and controlling is blind without planning.
Controlling Process
A systematic five-step procedure involving setting standards, measuring actual performance, comparing performance with standards, analyzing deviations, and taking corrective action.
Management by Exception (MBE)
A control technique where only significant deviations exceeding acceptable limits are brought to the attention of management, saving valuable executive time.
Critical Point Control (CPC)
A technique that focuses attention on Key Result Areas (KRAs) or bottlenecks that are critical to the success of the business organization.
Important Formulas
Board Exam Info
In the Haryana Board (BSEH) Class 12 Business Studies exam, this chapter typically carries around 5 to 7 marks. Questions usually include 1-mark objective questions, 3-mark short answer questions explaining steps or differences, and 4 to 6-mark case-study-based questions identifying deviations or controlling techniques.
Frequently Asked Questions
How are planning and controlling interrelated?
Planning provides the standards for controlling, while controlling provides information to improve future planning, making them mutually dependent.
What is the difference between Management by Exception and Critical Point Control?
MBE focuses on separating significant deviations from minor ones, whereas CPC focuses on monitoring vital operational areas that directly impact business success.
Why is controlling considered a backward-looking as well as forward-looking function?
It is backward-looking (post-mortem) because it measures past performance against standards, and forward-looking because corrective actions prevent future recurrence of mistakes.
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