Class 12 Business Studies - KARNATAKA
Controlling
The chapter 'Controlling' in Class 12 Business Studies for Karnataka (KSEEB) students explores the crucial managerial function of monitoring organizational performance against set standards. Students will learn about the controlling process, which involves setting performance standards, measuring actual performance, comparing them, analyzing deviations using management by exception, and taking corrective actions. The chapter also highlights the relationship between planning and controlling, noting how planning is prescriptive and controlling is evaluative. Mastery of this chapter is vital for board exams as it tests both theoretical knowledge and practical applications like critical point control.
Start Learning FreeKey Concepts
Meaning of Controlling
Controlling refers to the process of ensuring that actual activities conform to planned activities to achieve organizational goals efficiently.
Relationship between Planning and Controlling
Planning and controlling are inseparable twins; planning provides the base by setting standards, while controlling evaluates actual performance against those standards.
Controlling Process
A sequential procedure consisting of setting standards, measuring performance, comparing performance, 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.
Critical Point Control (CPC)
A technique focusing attention on Key Result Areas (KRAs) or bottlenecks that are critical to the success of the organization.
Important Formulas
Board Exam Info
In the Karnataka (KSEEB) Class 12 Business Studies board exam, the chapter 'Controlling' typically carries around 6 to 8 marks. Questions usually include 1-mark objective questions, 2-mark definitions or steps of the controlling process, 4-mark short answers on the relationship between planning and controlling, and occasionally a 5 or 8-mark descriptive question on the steps in the controlling process or techniques of controlling.
Frequently Asked Questions
How are planning and controlling interrelated?
Planning and controlling are interdependent. Planning is meaningless without controlling to check progress, and controlling is blind without plans to set the standard.
What is Management by Exception?
It is a control principle stating that if you try to control everything, you may end up controlling nothing. Managers should only investigate significant deviations.
What are the limitations of controlling?
Controlling has limitations such as difficulty in setting quantitative standards, little control over external factors, resistance from employees, and high costs.
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