Class 12 Business Studies - TELANGANA
Controlling
The chapter 'Controlling' in Class 12 Business Studies for Telangana (TSBSE) students focuses on the managerial function of monitoring organizational performance to ensure actual results align with set plans. You will learn about the controlling process, setting standards, measuring performance, analyzing deviations, and taking corrective actions. The chapter also emphasizes the relationship between planning and controlling as twin sisters of management. Mastering this chapter is crucial for board exams as it features frequently in both short-answer and long-answer descriptive questions, helping you score high by understanding how businesses maintain efficiency and achieve goals.
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 met.
Controlling Process
A sequential five-step procedure: setting standards, measuring actual performance, comparing performance against standards, analyzing deviations, and taking corrective action.
Management by Exception (MBE)
A control technique where only significant deviations exceeding a prescribed limit are brought to the attention of management, saving valuable time.
Critical Point Control (CPC)
A principle focusing attention on Key Result Areas (KRAs) or bottlenecks that are critical to the success of an organization.
Relationship between Planning and Controlling
Planning is looking ahead while controlling is looking back; together, they are interdependent, as planning provides the base for controlling and controlling improves future planning.
Important Formulas
Board Exam Info
In the Telangana (TSBSE) Class 12 Business Studies board examinations, the chapter 'Controlling' generally carries around 6 to 8 marks. Questions typically include a 2-mark or 4-mark question on the steps in the controlling process, management by exception, or the relationship between planning and controlling, along with occasional objective-type questions.
Frequently Asked Questions
How are planning and controlling interrelated?
Planning and controlling are inseparable twins; planning provides the targets for controlling, and controlling evaluates how well those plans were executed while laying the groundwork for future plans.
What is the difference between Management by Exception and Critical Point Control?
Management by Exception focuses on filtering out minor deviations and handling only major ones, whereas Critical Point Control focuses on monitoring specific key areas that directly impact organizational success.
Why is controlling considered a backward-looking function?
It is backward-looking because managers measure and analyze past performance against previously set standards to identify where things went wrong.
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