21 Questions
What is the main principle of management by exception?
Focusing on significant deviations
Critical point control is used to identify minor deviations.
False
What is the advantage of setting critical points in an organisation?
It saves time and effort of managers as they deal with only significant deviations.
Management by exception is often referred to as ________________________ by exception.
control
What is the importance of controlling in an organisation?
To identify and correct deviations
Match the following reasons for deviations with their causes:
Unrealistic standards = Causes of deviations Defective process = Causes of deviations Inadequacy of resources = Causes of deviations Structural drawbacks = Causes of deviations
Critical point control focuses on all deviations, regardless of their significance.
False
What is the primary purpose of controlling in an organization?
All of the above
What is the next step after identifying deviations that require managerial attention?
Analyzing the deviations for their causes
An organization has complete control over external factors.
False
What is the importance of managerial control in an organization?
Helps in accomplishing organizational goals
The process of controlling involves ensuring that actual ______ conform to planned ______
activities
Which of the following is a feature of controlling?
All of the above
What is the primary function of controlling in management?
Measuring progress towards organizational goals
Controlling is a function that is only required at the top level of management.
False
What is the purpose of controlling in an organization?
To ensure that resources are being used effectively and efficiently for the achievement of predetermined goals.
A good control system helps an organization in ______________ its organizational goals.
accomplishing
What is the outcome of a good control system?
It guides the organization to achieve its goals
Match the following benefits of controlling with their descriptions:
Accomplishing organizational goals = Measures progress towards organizational goals Judging accuracy of standards = Verifies whether standards set are accurate and objective Guiding the organization = Keeps the organization on the right track to achieve its goals
Controlling is the last function of management.
False
What is the relationship between controlling and planning?
Controlling finds out how far actual performance deviates from standards, and brings back the management cycle to the planning function.
Study Notes
Controlling Function
- Controlling is the process of ensuring that actual activities conform to planned activities.
- The importance of managerial control lies in accomplishing organisational goals.
- Controlling helps in judging accuracy of standards, ensuring efficient utilization of resources, boosting employee morale, creating an atmosphere of order and discipline, and coordinating different activities.
Importance of Controlling
- Control is an indispensable function of management.
- Without control, the best of plans can go awry.
- A good control system helps an organisation in:
- Accomplishing organisational goals.
- Judging accuracy of standards.
- Ensuring efficient utilization of resources.
- Boosting employee morale.
- Creating an atmosphere of order and discipline.
- Coordinating different activities.
Critical Point Control and Management by Exception
- Critical point control identifies critical points where deviations can have a significant impact on the organisation.
- Management by exception focuses on significant deviations that require managerial attention.
- Advantages of critical point control and management by exception:
- Saves time and efforts of managers.
- Focuses managerial attention on important areas.
- Demands immediate managerial attention to deviations that go beyond the acceptable range.
Controlling as a Function of Management
- Controlling is a goal-oriented function.
- Controlling is a pervasive function that is required at all levels of management.
- Managers at all levels need to perform controlling functions to keep a control over activities in their areas.
Limitations of Controlling
- Controlling suffers from certain limitations, including lack of control over external factors.
- An organisation has no control over external factors.
This quiz is about the critical points in management that can have a significant impact on the entire organisation. It highlights the importance of addressing deviations from the standard promptly.
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