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 BUSINESS STUDIES Controlling

Controlling

Meaning & Definition:

Controlling involves comparison of actual performance with the planned performance. If there is
any difference or deviation, then finding the reasons for such difference and taking corrective
measures or action to stop those reasons so that they don’t re-occur in future and that

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organizational objectives are fulfilled efficiently.

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“Managerial Control implies the measurement of accomplishment against the standard and the
correction of deviations to assure attainment of objectives according to plans.”

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-Koontz and O'Donnell.

Importance Of Controlling:

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1. Controlling helps in achieving organizational goals: The controlling function tracks

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progress toward organizational objectives and flags any deviations so that remedial
action can be taken.

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2. Judging accuracy of standards: An effective control system allows management to

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determine if the standards set are accurate or not by closely monitoring changes in the
organization's environment.

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3. Making efficient use of resources: A manager can reduce resource waste by effectively

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utilizing resources through the controlling process.
4. Improving employees’ motivation: An effective control system guarantees that staff

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are aware of what they are expected to do as well as the performance requirements.
As a result, it inspires and assists them in delivering superior results.

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5. Ensuring order and discipline: By maintaining a careful eye on the activities of its

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employees, the controlling function generates an atmosphere of order and discipline in
the firm.
6. Facilitating Coordination in action: The last and most crucial role of controlling is to

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ensure that each department and employee is governed by predetermined standards
and goals that are well-understood and coordinated. This guarantees that the
organization's overall goals are met in a timely way.

Limitations Of Controlling:
1. Difficulty in setting quantitative standards: Control system loses some of its effectiveness
when standards cannot be quantified.

2. Little control on external factors: An organisation cannot control external factors such as
government policies, technological changes, competition etc.

3. Resistance from employees: Mostly employees resist controlling by managers.

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 BUSINESS STUDIES Controlling
4. Costly affair: Control is a costly process as it involves a lot of expenditure, time, and effort.

Nature of Controlling/ Features of Controlling:

1. Goal oriented: Controlling is directed towards accomplishment of organizational
goals in the best possible manner.

2. Pervasive: Controlling is an essential function of every manager and exercised at all

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levels of management.

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3. Continuous: It is not an activity to be pursued in the end only; it has to be done on a
continuous basis.

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4. Controlling is looking back: Controlling involves measurement of actual performance
and its comparison with the desired performance. It is the process of checking and

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verification.

5. Controlling is forward looking: It is related to future because it seeks to improve

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future results on the basis of experience gained in the past.

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6. Depends on planning: It presupposes existence of planning because without planning

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no control is possible.

7. Action oriented: Control has no meaning if no corrective action is taken; So timely

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action should be taken to prevent deviations.

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Relationship between Planning and Controlling:

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Planning and controlling are inseparable twins of management. Once a plan becomes
operational, controlling is necessary to monitor the progress and deviations. Thus, planning
without controlling is meaningless. Other hand controlling is blind without planning, if the

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predetermined standards are not set in advance, there is nothing to control.

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Planning is looking Ahead whereas Controlling is Looking Back.

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Plans are prepared for future and are based on forecasts about future conditions on the
contrary controlling is like a post-mortem of past activities to find out deviations from the
standards.

Controlling Process:
1. Setting Performance Standards: Standards are the criteria against which actual
performance would be measured. Thus, standards become basis for comparison and the
manager insists on following of standards.

2. Measurement of Actual Performance: Performance should be measured in an objective

and reliable manner which includes personal observation, sample checking. Performance
should be measured in same terms in which standards have been established, this will

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 BUSINESS STUDIES Controlling
facilitate comparison.

3. Comparing Actual Performance with Standard: This step involves comparison of actual
performance with the standard. Such comparison will reveal the deviation between actual
and desired performance. If the performance matches the standards, it may be assumed
that everything is under control.

4. Analysing Deviations: The deviations from the standards are assessed and analysed to

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identify the causes of deviations.

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5. Taking Corrective Action: The final step in the controlling process is taking corrective
action. No corrective action is required when the deviation are within the acceptable limits.

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But where significant deviations occur corrective action is taken.

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Techniques of Managerial Control:

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Managerial control classified into two categories:

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● Traditional Techniques.

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● Modern Techniques.

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Traditional Techniques:

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1. Traditional techniques have been in use by managers since long ago. The following are
traditional techniques of managerial control:

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2. Personal Observation: It enables the manager to collect first-hand information, but it is

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very time consuming and cannot be used in all kinds of job.

3. Statistical Reports: Statistical analysis in the form of averages, percentages, ratios,

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correlation, etc., present useful information to the managers regarding performance of the

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organisation.

4. Breakeven analysis: is a technique to study the relationship between costs, volume, and

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profits.

5. Budgetary Control: is a technique of managerial control in which all activities are planned
in the form of budgets and actual results are compared with budgetary standards.

Modern Techniques:

1. Return on Investment: Return on Investment (ROI) is a technique which provides the

basic yardstick for measuring whether invested capital has been used effectively for
generating reasonable amount of return.

𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 𝑆𝑎𝑙𝑒𝑠

𝑅𝑂𝐼 = ×
𝑆𝑎𝑙𝑒𝑠 𝑇𝑜𝑡𝑎𝑙 𝑖𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡𝑠
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 BUSINESS STUDIES Controlling
2. Ratio Analysis: Ratio Analysis refers to analysis of financial statements by computation of
various ratios.

● Liquidity Ratios
● Solvency Ratios
● Profitability Ratios
● Turnover Ratios

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3. Zero Based Budgeting: It refers to a controlling technique where the budget is formed from

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scratch, and not referring to the previous budgets. Hence, in this budget is prepared as per
the current conditions.

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4. Management Audit: The term "management audit" refers to a systematic assessment of an

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organization's management performance.

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5. Management Information System: A management information system (MIS) is a computer-
based information system that provides data and support to help managers make better

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decisions. It's a crucial control strategy.

Managers benefit from MIS in the following ways:

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● It makes information collection, management, and dissemination easier.
● It facilitates all levels of planning and control.

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● It enhances the information quality.
● It ensures value for money.

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● It helps to alleviate information overload.

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 BUSINESS STUDIES Controlling

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SCIENCE CONTROLLING

Important Questions
Multiple Choice questions-
Question 1. Which of the following is not applicable to responsibility accounting
(a) Accounting centre
(b) Cost centre

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(c) Profit centre

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(d) Investment centre
Question 2. Management control is done by the __________________

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(a) Managers at Top Level

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(b) Managers at Middle Level
(c) Managers at Lower Level

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(d) All of the above

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Question 3. What will be the corrective action for defective machinery?
(a) Sell at the book value

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(b) Sell at a loss

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(c) Sell at a profit
(d) Repair or Replace the machine

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Question 4. Which of the following is not a technique of controlling?

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(a) Break-even analysis
(b) Budget

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(c) Managerial Audit
(d) Cash Flow Statement

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Question 5. Technological up-gradation is the best corrective action in case of _________

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(a) Defective machinery
(b) Defective material

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(c) Obsolete Machinery
(d) None of the above
Question 6. What will be the corrective action for defective material?
(a) Change in Quantity
(b) Change in Price
(c) Change in Quality Specifications for the material used
(d) None of the above
Question 7. An efficient control system helps to
(a) Judges accuracy of standards
(b) Accomplishes organisational objectives

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SCIENCE CONTROLLING

(c) Boosts employee morale

(d) All of the above
Question 8. Controlling is __________ aspect of management.
(a) Physical
(b) Practical
(c) Mental

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(d) Theoretical

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Question 9. What is the last step in the controlling process?
(a) Setting Performance Standards

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(b) Taking corrective action

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(c) Comparing actual performance with standards
(d) Measurement of actual performance

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Question 10. Why actual performance is compared with standards?

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(a) To take corrective action
(b) To improve the quality of material

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(c) To change the machinery

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(d) None of the above

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Question 11. Controlling is _______________
(a) Economical

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(b) Costly
(c) Free

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(d) Very Cheap
Question 12. Which of the following is a limitation of controlling?

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(a) Controlling improves employee motivation

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(b) Controlling is goal-oriented
(c) Controlling is expensive

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(d) Controlling ensures order and discipline
Question 13. The main focus of controlling is on ________________
(a) Competition
(b) External Forces
(c) Results
(d) Business Environment
Question 14. Management audit is a technique to keep a check on the performance of
(a) Company
(b) Management of the company
(c) Shareholders

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SCIENCE CONTROLLING

(d) Customers
Question 15. When actual performance is better than the standard performance it is called
_____
(a) Negative Deviation
(b) Poor Deviation
(c) Positive Deviation

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(d) None of the above

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Very Short-

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1. If you want to control everything you may end up controlling.

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2. Define Management Audit.
3. Why is controlling considered to be a backward looking?

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4. Name two types of profitability ratios?

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5. What do you call the sales volume at which there is no profit, No loss?
6. Give 2 examples of Corrective Action.

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7. Give two examples of responsibility centers.
8. Marketing department comes under which type of responsibility center.

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9. Give the formula of Return on Investment.

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10. What do you understand by key KRAs result areas?
Short Question-

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Question 1. Mention the important features of the control function of management.

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Question 2. Explain the term Management by Exception.

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Question 3. Explain in brief the term Responsibility Accounting.
Question 4. Explain in brief the term Zero base budgeting.

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Question 5. Explain the Modern technique of control by the management information system
(MIS) a computer-based technique.
Question 6. Distinguish between Planning and Control.
Question 7. What are the advantages of Management audit?
Long Questions-
Question 1. Explain the essential features of a sound control system.
Question 2. Explain the relationship of the controlling the function of management with other
functions of management.

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SCIENCE CONTROLLING

Case Study based Question-

1. Mr. Nath, a recently appointed production manager of Suntech Ltd., has decided to produce
jute bags instead of plastic bags as these are banned by the government. He set a target of
producing 1000 jute bags a day. It was reported that the employees were not able to
achieve the target. After analysis, he found that employees were demotivated and not
putting in their best for achieving the target. Mr. Nath’s behaviour is good towards the

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employees. His attitude is always positive. So, he announced various incentive schemes for

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the employees like:
a. Installing awards or certificates for best performance

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b. Rewarding an employee for giving valuable suggestions

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c. Congratulating the employees for good performance

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 Identify the functions of management highlighted in the above paragraph.
 State the incentive under which the employee are motivated.

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 State any two values which the production manager wants to communicate to society

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by his work and behaviour. (CBSE, Sample Paper 2015)

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2. A company was manufacturing LED bulbs which were in great demand. It was found that
the target of producing 300 bulbs a day was not met by the employees. On analysis, it was

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found that the workers were not at fault. Due to electricity failure and shortage of workers,
the company was not able to achieve the set targets and alternative arrangements were

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needed.

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To meet the increased demand, the company assessed that approximately 88 additional
workers were required out of which 8 would work as heads of different departments and 10

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would work as subordinates under each head. The required qualifications and job
specifications were also enlisted. It was also decided that necessary relaxations should be

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given to encourage women, people from backward and rural areas and people with special
abilities to assume responsible positions in the organisations. All efforts were made to

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match the ability of the applicants with the nature of work.
a. Identify the functions of management discussed above.
b. State the two steps in the process of each function discussed in the above paragraph.
c. List any two values which the company wants to communicate to the society. (CBSE,
Delhi 2015)
Assertion Reason Question-
1. In these questions, a statement of assertion followed by a statement of reason is given.
Choose the correct answer out of the following choices.
a. Assertion and reason both are correct statements and reason is correct explanation for

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SCIENCE CONTROLLING

assertion.
b. Assertion and reason both are correct statements but reason is not correct explanation
for assertion.
c. Assertion is correct statement but reason is wrong statement.
d. Assertion is wrong statement but reason is correct statement.
Assertion (A): Controlling can prevent deviations

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Reason (R): Controlling helps to minimize deviations by taking actions and decisions that
reduce their recurrence.

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2. In these questions, a statement of assertion followed by a statement of reason is given.

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Choose the correct answer out of the following choices.
a. Assertion and reason both are correct statements and reason is correct explanation for

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assertion.

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b. Assertion and reason both are correct statements but reason is not correct explanation
for assertion.

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c. Assertion is correct statement but reason is wrong statement.

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d. Assertion is wrong statement but reason is correct statement.

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Assertion (A): Control is exercised at all levels of management.
Reason (R): Controlling is a pervasive Function.

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MCQ Answers-

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1. Answer: (a) Accounting centre

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2. Answer: (d) All of the above

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3. Answer: (d) Repair or Replace the machine
4. Answer: (d) Cash Flow Statement

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5. Answer: (c) Obsolete Machinery
6. Answer: (c) Change in Quality Specifications for the material used
7. Answer: (d) All of the above
8. Answer: (b) Practical
9. Answer: (b) Taking corrective action
10.Answer: (a) To take corrective action
11.Answer: (b) Costly
12.Answer: (c) Controlling is expensive
13.Answer: (c) Results

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SCIENCE CONTROLLING

14.Answer: (b) Management of the company

15.Answer: (c) Positive Deviation
Very Short Answer-
Ans1. Management By Exception.
Ans2. Systematic appraisal of the overall performance of the management of an organization.

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Ans3. Controlling involves evaluation of past activities to find out deviations from standards so

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it is a backward looking function.
Ans 4. a) Gross Profit Ratio

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b)Net Profit Ratio.
Ans5. Breakeven Point (BEP).

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Ans 6. a) Provide training

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b)Revive standards.
Ans7. Cost Centre, revenue center etc.

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Ans8. Revenue Centre.

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Ans 9. Net Profit

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Total investment

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Ans10. The areas which are critical to the success of an organization.
Short Answers-

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Answer 1: Characteristics of Control: The Control function of management has the following

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features:

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1. Controlling is a continuous Process: It involves continuous measurement and review of actual
performance and results in corrective action based on this review. It may lead to changes in
planning, staffing, organizing, etc.

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2. Controlling is looking Back: Control leads to the appraisal of past activities. Thus, it is looking
back. The shortcomings in the performance of various individuals and departments are
revealed by the control process. This is known as feedback information. It will help in knowing
the reasons for poor performance. Corrective action can be initiated on the basis of feedback
information.
3. Control is forward-looking: Control is said to be forward-looking. It is related to the future as
the past cannot be controlled. It is usually preventive as the preserve of the control system
leads to minimizing wastages, losses, and deviations from standards. It should be noted that
control does not curtail the rights of individuals. It simply keeps a check on the Performance of
individuals.

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SCIENCE CONTROLLING

4. Control is Action-Oriented: Control implies taking corrective measures, whenever required.

Action is the essence of control. The purpose of control is achieved only when corrective action
is taken on the basis of feedback information. If the control does not lead to any action, then a
manager can’t ensure actual performance as per standards. A good system of control facilities
timely action so that there is minimum wastage of resources, time, and energy.
5. Control is a Pervasive function: It is a basic function of every manger irrespective of his level
of authority. It is a follow-up action to the other function of management. Every manager is

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responsible for controlling the activities of those working under him and taking necessary

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action whenever necessary.

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Answer 2: Management by exception: Effective control can be achieved if critical or key points

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are identified and close attention is directed to adjustment at these points. This is known as
‘control by exception’. According to this principle, only significant deviations from the standards

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require management’s attention as they constitute exceptions. An attempt to go through all
deviations tends to increase the workload of the Manager and decrease attention on important

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problems.
For instance, if postal expenses mqt&ase by twenty percent, the deviation is too insignificant to

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require managerial attention. On the other hand, if labor costs rise by twenty percent, they

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should receive immediate managerial attention.
The Principle of Management by exception implies that minor deviations from the standards

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may be ignored or given less attention. This would conserve managerial time, effort, and
energy which could be utilized on important matters. But whenever deviations from standards

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are higher than the accepted level, management must take corrective measures to deal with
the situation.

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Answer 3: Responsibility Accounting is a system of control where responsibility is assigned for

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the control of costs. The persons are made responsible for the control of costs. Proper

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authority is given to the persons so that they are able to keep up their performance. In case the
performance is not according to the predetermined standards then the persons who are
assigned this duty will be personally responsible for it.

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In responsibility accounting, the emphasis is on men rather than on systems e.g. if Mr. A, the
manager of a department, prepares the cost budget of his department then he will be made
responsible for keeping the budget under control. A will be supplied with full information of
cost incurred by this department. In case the cost incurred is more than the budgeted costs,
then A will try to find out reasons and take necessary corrective measures. A will be personally
responsible for the performance of his department.
Answer 4: Zero Based Budgeting Whenever a budget is prepared, past records and experience
are taken into consideration. The new budget is prepared on the basis of budgets of the
previous period. This method is known as ‘Based Budgeting’. On the contrary, the concept of
zero-base budgeting considers the future not a mere projection of the past. As the environment
is changing fast, the need to forecast systematically future events arise. For the growth and

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SCIENCE CONTROLLING

survival of any business organization, these changes need to be adopted.

Zero-base budgeting is the latest technique and it is meant for a particular period of time. It
doesn’t prepare an altogether new budget. Normally, the previous year’s performance is taken
as a base for the current year’s budget in budgeting techniques. But in zero-base budgeting,
every year is taken as a new year, and the previous year is not taken as a base.
Zero is taken as a base and all budget proposals are considered in the light of present

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conditions. In zero-based budgeting, the amount to be spent on various activities will depend

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upon justification given by the manager.
Hence, zero-based budgeting provides flexibility and freedom in allocating the resources and

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the chances of repletion of weaknesses of the previous year are reduced.

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Answer 5: Management information system: A management information system (MIS) is a
computer-based information system that provides information and support for effective

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managerial decision-making. A decision-maker requires up to date, accurate and timely
information. MIS provides the required information to the managers by systematically

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Processing massive data generated in an organization. Thus, MIS is an important
communication tool for managers.

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MIS also serves as an important control technique. It provides data and information to the
managers at the right time so that appropriate corrective action may be taken in case of

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deviations from standards.
MIS offers the following advantages to Managers:

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1. It facilitates the collection, management, and dissemination of information at different

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levels of Management and across different departments of the Organisation.
2. It supports planning, decision making, and controlling at all levels.

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3. It improves the quality of information with which a manager works.

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4. It ensures cost-effectiveness in managing information.
5. It reduces information overload on the managers as only relevant information is

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provided to them.
Answer 6: A comparison of Planning and Control:
Planning Control
1. Planning emphasizes more on non- 1. Control emphasizes more and long-range
personal, abstract long-range problems. problems.
2. Planning is based on estimates 2. Control is based on estimates.
3. Planning is done by top-level executives. 3. Control is done by top-level executives.
4. Under Planning, the evaluation of results 4. Under Control, the evaluation of results is
is very difficult. very difficult.

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SCIENCE CONTROLLING

5. Determination of results takes a very long 5. Determination of results takes a very long
time. time.

Answer 7: The main advantages of Management audit are as follows.

1. It helps to locate present and potential deficiencies in the performance of
management functions.

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2. It helps to Improve the Control system to an Organisation by continuously monitoring

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the performance of Management.
3. It Improves Coordination in the functioning of various departments so that they work

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together effectively towards the achievement of organizational objectives.

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4. It ensures updating of existing managerial .policies and strategies in the light of

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environmental changes.
Conducting a management audit may sometimes pose a problem as there are no standard

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techniques of management audit. Also, management audit is not compulsory under any law.
Enlightened managers, however, understand its usefulness in improving the overall

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performance of the organization.

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Long Answers-

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Answer 1: Essential features of a sound control system:
A good control system has the following essential features:

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1. Clear out objectives: Before Planning a control system, it is essential to know clearly the

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objectives it will tend to achieve. The standards of performance should be based on these
objectives. Thus, the control system should be directed towards the detection of early

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deviations from the standards to permit effective corrective action. If the standards are
arbitrary or subjective in nature, they will not be able to measure deviations properly. Thus, the

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purpose of control will be lost.
2. Suitability: Control techniques should be appropriately designed to suit the nature of the

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activities being controlled. This means that different types of activities need different types of
control techniques. The control technique should be tailored to reflect the performance of all
types of operations, say, production or sales.
It is also essential that the overall control system should be appropriate for the organization. A
control system that is good for a small organization may be inadequate for a big organization.
3. Simplicity: A good system of control should be simple and easy to understand. The
employees must know what is expected of them and how their performance will be evaluated.
If the employees don’t understand the standards of performance properly, the actual
performance might turn out to be very poor.
4. Economy: The system of control must be worth its costs. It must justify the expenses

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SCIENCE CONTROLLING

involved. A control system is justifiable if the savings anticipated from it exceed the costs of its
working. Small enterprises cannot afford elaborate control systems which are very costly. As far
as possible, unnecessary paperwork and reports should be avoided.
5. Flexibility: A good control system must keep pace with the continuously changing
environment. It must be responsive to changing conditions. It should be adaptable to new
developments such as the introduction of new methods, materials, and changes in the
requirements of the customers. If there is a change in any plan, the control system should be

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capable of absorbing such change.

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6. Forward-looking: The system of control should be forward-looking in the sense that it should

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detect and report deviations promptly. Timeless is the essence of control. Ideally, deviations

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should be anticipated and preventive action should be taken. More realistically information on
deviations should be monitored and feedback to the system immediately so that corrections

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are effected with minimum cost and inconvenience.
7. Suggesting Corrective Action: Merely pointing out deviations is not sufficient in a good

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control system. It must lead to taking corrective action to achieve the desired objectives. It may
result in taking suitable action against the employees, giving them training, ensuring effective

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supervision, improving communication, revising standards, etc.

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8. Concentration on exceptions: This is also known as ‘Control significant deviations from
standards require management’s attention as they constitute exceptions. An attempt.to go

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through all deviation tends to increase unnecessary efforts and to decrease attention on
important problems.

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9. Strategic Point Control: Small deviations in certain cases may have greater significance than

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larger ones in other cases, for example, deviation of ten percent in budgeted labor cost may be
more troublesome to a manager than a deviation of twenty-five percent in budgeted postal

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charges. The Principle of strategic point control states that effective control can be achieved if

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critical, key, or strategic points can be identified and close attention directed to adjustment at
those points. In fact, strategic point control is an extension of control by exception.
Answer 2: Relationship of control with other Function of Management: We know that control is

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the last function of management because its need arises only after performing the functioning
of planning, organizing, and directing. But being the last function does not lower down its
importance as compared to other functions. Control is very must linked to other functions of
management. In fact, the success of all other functions depends upon effective control,
The relation of Control with other managerial functions is explained below:
1. Relationship of Control with Planning: There is a close relationship between the Control and
Planning functions of Management. Planning is the basis of Control, The control process
involves determining the standards, comparison of the deviations, and taking corrective action
to remove such deviations. In this process, planning provides such standards against which the
progress of the actual performance is compared.

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SCIENCE CONTROLLING

Thus where there is no plan there can be no basis for control. HG Hick has rightly said that
“Planning is clearly a prerequisite for controlling. It is utterly foolish to think that controlling
could be accomplished without planning there is no predetermined understanding of the
desired performance.
On the other hand, plans will also prove mere imaginations in the absence of control. Because
in such a case there will be no one to check whether or not everything is being done according
to plans. Also in the absence of control, there will be no corrective action to direct the actual

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progress towards the accomplishment of plans.

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Thus planning is meaningless without control, and control is aimless without planning.

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2. Relationship of control with the organization: Control can be meaningful only when the

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person responsible for deviations is identified and is held responsible. This is possible only
because of the organization because it is only in an organization that the authority and

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responsibility of each one are defined. In the absence of organization, neither the person
responsible for committing the mistakes will be identified nor any action can be taken against

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him. Hence, the same mistakes will be repeated time and again. As such, effective organization
is essential for effective control.

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Similarly, Organisation is also dependent upon control because organizing is to assign work to

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individuals and give them authority and fix responsibility in case of mistakes. Since fixing of
responsibility’ is possible only through Control, therefore effective control is essential for

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effective organization.

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3. Relationship of control with Direction: Direction removes the difficulties in the way of various
functions even before they are reviewed in order to control their progress. Direction makes the

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employee more capable and enthusiastic towards their work and provides them with adequate
guidance training and supervision. Thus direction and control are interlinked with each other.

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4. Relationship of control with other functions of Management: Control has deep relations with

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other functions of management as well. Communication helps in comparison of actual results
with the standards by providing timely information of actual results with the standards by
providing timely information of actual progress. Decision-making helps in determining the way

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to remove the deviations and the type of corrective actions to be undertaken.
Motivation helps in encouraging people to work towards the achievement of organizational
objectives. Under control performance of each person is evaluated and efficient persons are
motivated by providing them financial and non-financial incentives whereas inefficient
employees are provided training to remove their deficiencies. Thus, it is clear that all the
functions of management are inter-linked.
The relationship of various managerial functions is depicted through the following diagram:

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SCIENCE CONTROLLING

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From the above diagram, it is clear that the relationship between control and other managerial
function is so deep that it is impossible to think of them separately. Every function affects the

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control and gets affected by it.
Case Study Answer-

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1. Answer:

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a. The functions of management highlighted in the above paragraph are Controlling and

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Directing.
b. The employees are motivated under Employee recognition programmes which is a non-

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financial incentive. Employee recognition programmes helps to fulfill the need of due
consideration and appreciation of the people working in an organisation. It boosts their

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self-esteem and motivates them to work with greater zeal and enthusiasm.

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c. The two values that the manager wants to communicate to the society through his work
and behaviour are:

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 Respect for employees

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 Concern for environment
2. Answer:

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a. The functions of management discussed above are Staffing and Controlling.
b. The two steps involved in staffing function are as follows:
 Estimating manpower requirements: The manpower requirements of an organisation
are estimated through workload analysis and workforce analysis. The workload
analysis helps to determine the number and type of human resource required in the
organisation to meet its present and future needs. Whereas workforce analysis seeks
to determine the number and type of human resource available within the
organisation.
 Recruitment: The process of recruitment involves searching for the prospective
candidates and stimulating them to apply for jobs in the organisation. There are two
sources of recruitment namely, internal and external.

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SCIENCE CONTROLLING

The two steps involved in controlling function are as follows:

 Comparing actual performance with standards to identify deviations if any.
“It was found that the target of producing 300 bulbs a day was not met by the
employees.”
 Analysing deviations through critical point control and management by exception
approach to identify the causes for their occurrence. “On analysis, it was found that

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the workers were not at fault. Due to electricity failure and shortage of workers, the

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company was not able to achieve the set targets and alternative arrangements were
needed.”

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 Taking corrective action, if required “To meet the increased demand, the company

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assessed that approximately … as subordinate under each head.”
c. The two values that the company wants to communicate to the society are:

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 Women empowerment

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 Kindness.
Assertion Reason Answer-

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1. d. Assertion is wrong statement but reason is correct statement.
2. a. Assertion and reason both are correct statements and reason is correct explanation for

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assertion.

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