Class 12 Business Studies - KERALA
Controlling
The chapter 'Controlling' in Class 12 Business Studies (Kerala SCERT) explores the managerial function that ensures actual performance aligns with planned performance. Students learn that controlling is both a backward-looking and forward-looking process, involving the setting of standards, measurement of performance, comparison, and taking corrective actions. The chapter highlights the relationship between planning and controlling, noting that planning is looking ahead while controlling is looking back. Mastering this chapter is crucial for board exams as it tests students' understanding of the controlling process, management by exception, and techniques like PERT and CPM.
Start Learning FreeKey Concepts
Controlling
The process of monitoring organizational performance to ensure that actual results conform to set standards and taking corrective action if deviations occur.
Controlling Process
A systematic five-step procedure: setting performance standards, measuring actual performance, comparing actual 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, saving time and energy.
Critical Point Control (CPC)
Focusing control attention on Key Result Areas (KRAs) or bottlenecks that are critical to the success of the business rather than minor deviations.
Relationship between Planning and Controlling
Planning provides the standards for controlling, while controlling provides the feedback needed to improve future planning. They are inseparable twins of management.
Important Formulas
Board Exam Info
In the Kerala SCERT Class 12 Business Studies examination, Controlling typically carries around 6 to 8 marks. Questions often include direct theory questions about the controlling process, the relationship between planning and controlling, distinguishing between traditional and modern controlling techniques, and short case studies analyzing deviations.
Frequently Asked Questions
How are planning and controlling interrelated?
Planning and controlling are interdependent. Planning provides the goals and standards against which actual performance is measured in controlling, while controlling supplies feedback that helps in formulating better plans for the future.
What is the difference between Management by Exception and Critical Point Control?
Management by Exception means checking only significant deviations that go beyond acceptable limits, whereas Critical Point Control focuses on monitoring key result areas (KRAs) that critically impact business success.
Is controlling backward-looking or forward-looking?
Controlling is both. It is backward-looking (post-mortem) because it measures past performance against established standards, and it is forward-looking because corrective actions are taken to improve future performance.
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