12 BSt – Controlling Test 1
The number of attempts remaining is 3
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1. What is the key financial constraint associated with implementing sophisticated control systems?
Controlling can be a costly affair, involving significant expenditure, time, and effort, and the costs must not exceed the benefits derived.
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2. Which characteristic defines controlling as being essential at top, middle, and lower levels, and in all types of organizations, such as hospitals or the military?
Controlling is described as a pervasive function, meaning it is required at all levels of management and in all types of organizations.
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3. A limitation of controlling is the difficulty in setting quantitative standards for:
Effectiveness is reduced when standards cannot be defined quantitatively for things like employee morale or human behaviour.
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4. Which external factor is cited as being generally outside the control of an enterprise, thus limiting the controlling function?
External forces such as government policies, technological changes, and competition generally cannot be controlled by an enterprise.
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5. Standards established in the controlling process must be precise, measurable, and also:
Standards should be precise, measurable, and flexible enough to be modified if the environment changes.
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6. The Departure Control System (DCS), used by airlines to automate operations like check-in and baggage acceptance, is provided as a case study example of controlling that allows management to:
The DCS is cited as an example of taking corrective action before damage is done.
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7. When does the management verify if the standards established are accurate and objective, and determines if they need revision due to environmental changes?
Controlling enables management to verify the accuracy of standards and helps review/revise them in light of environmental changes.
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8. How does controlling facilitate coordination in action within an organization?
Controlling facilitates coordination because each department is governed by pre-determined, coordinated standards.
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9. Which step is the first and prerequisite step in the controlling process?
Setting Performance Standards is the initial step in the controlling process, providing the criteria for measurement.
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10. Which technique for measuring actual performance is specifically suitable for checking components or inputs before they are combined into a final product?
Measurement should occur during the performance where possible, such as checking parts before assembly.
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11. Which of the following is an indispensable benefit of controlling that involves measuring progress, highlighting deviations, and initiating action to keep the organization on the correct path?
Measuring progress, highlighting deviations, and initiating corrective action aligns directly with Accomplishing organisational goals.
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12. Controlling helps ensure order and discipline in the organization by:
Controlling helps minimize dishonest behaviour by keeping a close check on activities.
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13. By ensuring that activities conform to predetermined standards and norms, controlling achieves which specific benefit?
Ensuring conformity to standards reduces wastage and spoilage, thereby making efficient use of resources.
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14. Controlling is considered backward-looking because it involves:
Controlling is defined as backward-looking because it is a post-mortem of past activities designed to find deviations from standards.
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15. Which management function is considered “blind without planning”?
Planning provides the standards/benchmarks necessary for controlling; hence, controlling is “blind without planning”.
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16. Which characteristic highlights controlling’s role in concluding one cycle of management and providing necessary information for the subsequent cycle?
Controlling brings the management cycle back to the planning function.
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17. What is the relationship between planning and controlling often referred to as?
Planning and controlling are closely linked functions, often referred to as Inseparable Twins.
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18. When performing the second step of the controlling process, actual performance should ideally be measured using the same units as the:
Measurement must be done objectively and reliably, preferably using the same units as the standards.
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19. The criteria or benchmarks against which actual performance is measured are known as:
Standards are the defined criteria/benchmarks used for measuring performance.
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20. What is the primary definition of the management function of controlling?
Controlling ensures that activities in an organisation are performed according to the pre-established plans.
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21. Why do employees often resist the controlling function?
Employees often see control, such as strict watch via CCTVs, as a restriction on their freedom.
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22. Personal observation and performance reports are common techniques used in which step of the controlling process?
Personal observation, sample checking, and performance reports are listed as techniques for the Measurement of Actual Performance.
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23. Although controlling is primarily backward-looking (analyzing past results), it is also forward-looking because:
Controlling is forward-looking because the corrective action taken aims to improve future performance.
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24. When employees are aware of the expectations and performance standards in advance, controlling aids their appraisal and helps achieve which benefit?
Knowing performance standards in advance and aiding appraisal leads to improving employee motivation.
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25. Planning initiates the management process. Which function completes the cycle by monitoring progress and initiating corrective measures?
Planning initiates the process, and controlling completes it by monitoring progress and discovering deviations.
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