24 Questions
Controlling is a primary role of management.
False
The control process is only necessary if there are problems in the planning or actual performance.
True
The control process involves the collection of information about a system, process, person, or group of people.
True
The management control function is not essential for the success of an organization.
False
Measuring performance against standards should be done on a backward-looking basis.
False
The control process is only applicable to a limited number of areas, such as product quality and sales.
False
The control process involves setting up control systems that consist of a single key step.
False
The actual performance of an employee is measured against the set standards at the end of the project.
False
Financial controls refer to the management of a company's costs and expenses to stay within budgetary constraints.
True
Non-financial controls are used to judge the accuracy of standards.
False
The controlling process helps in achieving organizational goals.
True
The controlling process only focuses on minimizing errors.
False
The controlling process is only beneficial for small companies.
False
The controlling process sets discipline and order in an organization.
True
Behavioral control sets incentives for a narrow range of criteria in a balanced scorecard.
False
The controlling process helps in future planning by revising set standards.
True
Determining if performance meets the standard is a complex step in the control process.
False
Concurrent control is also known as real-time control.
True
Predictive control corrects problems after they have occurred.
False
Feedback control involves collecting information on how a task is being finished and assessing that information for future improvement.
True
Behavioral control involves assessing the consequences of managerial and staff decisions.
False
The control process involves only two phases: determining if performance meets the standard and developing a corrective action plan.
False
There are four different types of control: feedback control, concurrent control, predictive control, and behavioral control.
False
Developing a corrective action plan is only necessary if performance exceeds expectations.
False
Study Notes
Controlling in Management
- Controlling is the process of assessing and modifying performance to ensure that a company's objectives and plans are met.
- Controlling is the final role of management, and it becomes obsolete if other management functions are properly carried out.
- Controlling ensures that the proper actions are taken at the appropriate times.
Features of Controlling
- Controlling helps in achieving organizational goals.
- It facilitates the optimum use of resources.
- It judges the accuracy of the standard.
- It sets discipline and order.
- It motivates employees and boosts their morale.
- It ensures future planning by revising set standards.
- It minimizes the commission of errors.
Advantages of Controlling
- The controlling process saves time and energy.
- It allows managers to concentrate on important tasks and better utilize managerial resources.
- It assures timely and corrective action to be taken by the manager.
Disadvantages of Controlling
- Controlling suffers from the disadvantage that the organization has no control over external factors that affect the organization.
- The controlling process becomes a costly affair, especially for small companies.
Determining Performance
- Determining if performance meets the standard is a crucial step in the control process.
- It entails comparing the measured results to previously established norms.
Corrective Action
- Corrective action is required if performance falls short of expectations.
- The remedial measure could include a change in one or more of the organization's functions.
Types of Control
- Feedback Control: Collecting information on task completion and assessing it to improve future tasks.
- Concurrent Control: Investigates and corrects problems in real-time to prevent losses.
- Predictive/Feedforward Control: Early detection of problems to avoid them in the future.
- Behavioral Control: Direct assessment of managerial and staff decision-making.
This quiz assesses knowledge on controlling as a management function, including its importance, role, and relationship with planning and performance.
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