Class 12 Business Studies - MAHARASHTRA
Controlling
The chapter 'Controlling' in Class 12 Business Studies for MSBSHSE focuses on the final and crucial managerial function that ensures actual performance aligns with planned performance. Students will learn about the meaning, importance, and limitations of controlling, as well as the step-by-step controlling process from setting standards to taking corrective action. The chapter also details the two main control techniques: traditional methods and modern methods. Mastering this chapter is essential for board exams as it frequently features in distinguishing questions, case studies, and structured long-answer questions testing the interrelationship between planning and controlling.
Start Learning FreeKey Concepts
Meaning of Controlling
Controlling is the management function of monitoring organizational performance, comparing it with established standards, and taking corrective actions if deviations are found to ensure goals are met.
Controlling Process
A systematic five-step procedure involving setting performance standards, measuring actual performance, comparing performance against standards, analyzing deviations, and taking corrective action.
Management by Exception (MBE)
A key principle of controlling where managers focus only on significant deviations that exceed permissible limits, saving time and preventing micromanagement.
Traditional vs Modern Techniques
Traditional techniques include personal observation and budgetary control, while modern techniques include Return on Investment (ROI), PERT/CPM, and Management Information Systems (MIS).
Relationship between Planning and Controlling
Planning and controlling are interdependent; planning provides the base standards for controlling, while controlling makes planning meaningful by pointing out flaws for future improvements.
Important Formulas
Board Exam Info
In the Maharashtra State Board (MSBSHSE) Class 12 Business Studies exam, 'Controlling' typically carries around 7 to 10 marks with options. Common question types include objective questions (MCQs, match the columns), distinguishing between planning and controlling, explaining the controlling process step-by-step, and application-based case studies on corrective actions.
Frequently Asked Questions
How are planning and controlling interrelated?
Planning and controlling are inseparable twins. Planning is looking ahead (forward-looking) while controlling is looking back (backward-looking). Without planning, a manager has no standards to control, and without controlling, planning is a wasteful exercise.
What is the primary objective of the controlling function?
The primary objective is to ensure that activities in an organization are performed according to plans and to detect any deviations early so that timely corrective measures can be implemented.
What does 'Management by Exception' mean in controlling?
It means 'an attempt to control everything results in controlling nothing.' Managers should only intervene and take corrective action when deviations exceed acceptable and predetermined tolerance limits.
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