Class 12 Business Studies - ODISHA
Controlling
The chapter 'Controlling' in Business Studies for Class 12 Odisha (BSE) students explores the managerial function of monitoring organizational performance to ensure it aligns with pre-set plans. Controlling is crucial because it helps detect deviations, take corrective actions, and ensure efficient utilization of resources. Students will learn the meaning, importance, limitations, and the step-by-step controlling process. This chapter carries significant weight in the board exams, often featuring direct conceptual questions, case studies on the controlling process, and the relationship between planning and controlling, making it essential for scoring high marks.
Start Learning FreeKey Concepts
Meaning of Controlling
Controlling involves comparing actual performance with established standards to find deviations and taking corrective measures to ensure goals are achieved.
Relationship between Planning and Controlling
Planning and controlling are inseparable twins; planning provides the base by setting goals, while controlling checks if performance matches those plans.
Controlling Process
A systematic five-step procedure starting from setting performance standards, measuring actual performance, comparing them, analyzing deviations, to 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 control approach where managers focus attention on Key Result Areas (KRAs) or critical points that directly affect business success, rather than checking every minor activity.
Important Formulas
Board Exam Info
In the Odisha (BSE) Class 12 Business Studies board exams, this chapter typically carries around 6 to 8 marks. Questions usually include very short answer questions (1 mark), short answers (2-3 marks), and long-answer descriptive questions or case studies (4-6 marks) focusing on the steps in the controlling process or the relationship between planning and controlling.
Frequently Asked Questions
How are planning and controlling interrelated?
Planning is looking ahead (forward-looking) while controlling is looking back (backward-looking). However, planning provides the standards for controlling, and controlling improves future planning, making them completely interdependent.
What is the correct sequence of steps in the controlling process?
The five steps are: 1) Setting performance standards, 2) Measurement of actual performance, 3) Comparison of actual performance with standards, 4) Analyzing deviations, and 5) Taking corrective action.
Why is controlling considered a backward-looking function?
Controlling is considered backward-looking because a manager measures and analyzes past performance against standards that were set earlier to find out where mistakes occurred.
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