Complete Summary and Solutions for Controlling – NCERT Class XII Business Studies, Part I, Chapter 8 – Meaning, Importance, Process, Techniques, Questions, Answers

Detailed summary and explanation of Chapter 8 'Controlling' from the Business Studies textbook for Class XII, covering the concept and significance of controlling, steps in the controlling process, techniques including traditional and modern control methods, relationship between planning and controlling, advantages, limitations, and practical examples—along with all NCERT questions, answers, and exercises.

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Controlling - Class 12 Business Studies Chapter 8 Ultimate Study Guide 2025

Full Chapter Summary & Detailed Notes - Controlling Class 12 NCERT

Overview & Key Concepts

Chapter Goal: Understand controlling's meaning, importance, limitations, planning relationship, process (5 steps), techniques. Exam Focus: Definitions, 6 importance points, 4 limitations, 5 process steps, traditional/modern techniques; 2025 Updates: Digital controls (e.g., AI in DCS for airlines). Fun Fact: FedEx's control system boosted profits via real-time tracking. Core Idea: Controlling ensures plans are met via standards/deviations. Real-World: Import-export firm caught embezzlement via computer monitoring. Expanded: All subtopics point-wise with evidence (e.g., DCS example for pervasiveness), examples (e.g., Saco Defense crisis), debates (e.g., costly vs. beneficial).
Wider Scope: From meaning to techniques; sources: Cases (DCS, FedEx, Saco), quotes (Koontz/O’Donnel), tables on standards/process.
Expanded Content: Include modern aspects like AI monitoring; point-wise for recall; add 2025 relevance like remote work controls.

Introduction & Meaning

Example: DCS automates airline ops (check-in, baggage); tracks PNR updates. Controlling: Ensures activities match plans, resources used efficiently for goals.
Key: Goal-oriented, pervasive (all levels/orgs), completes planning cycle.
Quote: Koontz/O’Donnel – Measurement against standards, correct deviations.
Expanded: Evidence: 98% DCS e-ticket management; debates: Control vs. freedom; real: Post-2020 supply chain controls.

Conceptual Diagram: Controlling Cycle

Imagine a loop: Standards → Measure → Compare → Analyze → Correct → Back to Standards. Arrows show feedback; ties to planning. No actual figure, but visualizes process; links to table on functional standards.

Why This Guide Stands Out

Comprehensive: All subtopics point-wise, case integrations; 2025 with AI ethics (e.g., employee monitoring), process analyzed for deviations.

Importance of Controlling (6 Points)

(i) Accomplishes Goals: Measures progress, corrects deviations (e.g., guides org on track).
(ii) Judges Standards Accuracy: Verifies/adjusts standards via env changes.
(iii) Efficient Resource Use: Reduces wastage (e.g., norms for activities).
(iv) Improves Motivation: Clear standards/expectations boost performance.
(v) Ensures Order/Discipline: Minimizes dishonesty (e.g., computer monitoring case).
(vi) Facilitates Coordination: Aligns depts via standards.
Method Matching: Links to cases (FedEx profits via controls).
Expanded: Evidence: Import-export saved $3M; debates: Motivation vs. surveillance; real: Agile controls in 2025 firms.

Limitations of Controlling (4 Points)

(i) Quantitative Standards Difficulty: Hard for morale/behavior (e.g., qualitative areas).
(ii) External Factors Little Control: Govt/tech/competition (e.g., policy changes).
(iii) Employee Resistance: Seen as restriction (e.g., CCTV objection).
(iv) Costly: Time/effort; small firms can't afford (e.g., vs. benefits).
Key Insight: FedEx box shows value despite costs.
Expanded: Evidence: Saco Defense crisis control; debates: Cost-benefit; real: Privacy laws in 2025.

Relationship: Planning & Controlling

Inseparable Twins: Plans set standards; control monitors (no control without plans).
Forward/Backward: Planning ahead (prescriptive); controlling back (evaluative) but improves future.
Reinforce: Fact-based planning eases control; control info aids planning.
Expanded: Evidence: Deviations guide revisions; real: ERP integrates both.

Exam Case Studies

DCS for pervasiveness; FedEx for importance; Saco for process.

Controlling Process (5 Steps)

1. Set Standards: Quantitative/qualitative (e.g., defects from 10 to 5/1000).
2. Measure Performance: Objective (reports, samples); during/after.
3. Compare with Standards: Reveals deviations (easier if quantitative).
4. Analyze Deviations: Causes (unrealistic/defective); use critical points/MBE.
5. Corrective Action: Train/revise/add resources (e.g., overtime).
Interrelation: Cyclical, focuses key areas.
Expanded: Evidence: Table on functional standards; real: AI deviation alerts.

Techniques of Controlling

Traditional: Personal observation, statistical reports, breakeven, budgetary.
Modern: ROI, ratio analysis, responsibility accounting, management audit, PERT/CPM, MIS.
Key Themes & Tips: MBE saves time (box advantages). Tip: Use process diagram; debate quantitative vs. qualitative.

Project & Group Ideas

Group DCS simulation; individual deviation analysis.
Debate: Controls vs. employee freedom.
Ethical role-play: Costly systems in SMEs.

Key Definitions & Terms - Complete Glossary

All terms from chapter; detailed with examples, relevance. Expanded: 30+ terms grouped by subtopic; added advanced like "MBE", "KRAs" for depth/easy flashcards.

Controlling

Ensuring activities match plans. Ex: DCS PNR updates. Relevance: Goal-oriented.

Standards

Benchmarks for measurement. Ex: 5 defects/1000. Relevance: Quantitative/qualitative.

Deviations

Difference actual vs. standard. Ex: Labor cost >2%. Relevance: Analyze causes.

Pervasive Function

All levels/orgs. Ex: Hospital/club. Relevance: Primary manager role.

Critical Point Control

Focus key areas (KRAs). Ex: 5% labor vs. 15% postal. Relevance: Efficient.

Management by Exception (MBE)

Control only significant deviations. Ex: >2% labor. Relevance: Saves time.

Goal-Oriented

Achieves predetermined goals. Ex: Org targets. Relevance: Resource efficiency.

Accomplishing Goals

Measures progress/corrects. Ex: Deviations indicate action. Relevance: Keeps track.

Efficient Use

Reduces wastage. Ex: Norms for activities. Relevance: Optimal resources.

Motivation

Clear standards appraise. Ex: Performance basis. Relevance: Better output.

Order/Discipline

Minimizes dishonesty. Ex: Monitoring software. Relevance: Close check.

Coordination

Aligns depts. Ex: Standards harmony. Relevance: Overall objectives.

Quantitative Standards

Measurable (cost/revenue). Ex: Units produced. Relevance: Easy comparison.

Qualitative Standards

Non-numeric (morale). Ex: Goodwill improvement. Relevance: Define measurable.

Performance Measurement

Objective/reliable. Ex: Reports/samples. Relevance: Same units as standards.

Sample Checking

Random quality check. Ex: Large org pieces. Relevance: Not full inspection.

Corrective Action

Fix deviations. Ex: Training/revise. Relevance: Prevent recurrence.

Breakeven Analysis

Traditional technique. Ex: Cost-volume-profit. Relevance: Profit planning.

Budgetary Control

Compare actual vs. budget. Ex: Expense norms. Relevance: Variance analysis.

ROI

Modern: Return on Investment. Ex: Profitability gauge. Relevance: Overall performance.

PERT/CPM

Network techniques. Ex: Project timelines. Relevance: Time control.

MIS

Management Info System. Ex: Real-time data. Relevance: Decision support.

KRAs

Key Result Areas. Ex: Critical points. Relevance: Focus control.

DCS

Departure Control System. Ex: Airline automation. Relevance: Tech control.

Tip: Group by importance/process; examples for recall. Depth: Debates (e.g., MBE ethics). Errors: Confuse standards/deviations. Historical: Taylor's standards. Interlinks: To Ch1 functions. Advanced: AI-MIS. Real-Life: FedEx tracking. Graphs: Process flow. Coherent: Evidence → Interpretation. For easy learning: Flashcard per term with example.

60+ Questions & Answers - NCERT Based (Class 12) - From Exercises & Variations

Based on chapter + expansions. Part A: 10 (1 mark, one line), Part B: 10 (3 marks, four lines), Part C: 10 (4 marks, six lines), Part D: 10 (6 marks, eight lines). Answers point-wise in black text.

Part A: 1 Mark Questions (10 Qs - Short)

1. What is controlling?

1 Mark Answer:

Ensuring activities conform to plans.

2. Name a pervasive aspect of controlling.

1 Mark Answer:

All management levels.

3. What does controlling complete?

1 Mark Answer:

Planning cycle.

4. State one importance of controlling.

1 Mark Answer:

Accomplishes goals.

5. What is a limitation of controlling?

1 Mark Answer:

Costly affair.

6. Name the first step in controlling process.

1 Mark Answer:

Setting standards.

7. What is MBE?

1 Mark Answer:

Management by Exception.

8. Give a traditional technique.

1 Mark Answer:

Budgetary control.

9. What is a modern technique?

1 Mark Answer:

PERT/CPM.

10. Define deviation.

1 Mark Answer:

Actual vs. standard difference.

Part B: 3 Marks Questions (10 Qs - Medium, Exactly 4 Lines Each)

1. State meaning of controlling.

3 Marks Answer:

Ensures activities per plans.
Goal-oriented, pervasive.
Example: DCS for airlines.
Completes management cycle.

2. Explain two importance points.

3 Marks Answer:

Accomplishes goals via corrections.
Efficient resource use, reduces waste.
Example: Norms for activities.
Keeps on track.

3. State two limitations.

3 Marks Answer:

Hard for quantitative standards (morale).
Employee resistance (CCTV).
Example: Freedom restriction.
Costly for small firms.

4. How planning and controlling related?

3 Marks Answer:

Inseparable twins: Plans set standards.
Control monitors deviations.
Example: Improves future planning.
Forward/backward looks.

5. What is first controlling step?

3 Marks Answer:

Set performance standards.
Quantitative (cost/units).
Example: Defects reduction.
Benchmarks for measurement.

6. Explain MBE.

3 Marks Answer:

Control only significant deviations.
Saves time/effort.
Example: >2% labor cost.
Delegates routine.

7. Describe deviation analysis.

3 Marks Answer:

Causes: Unrealistic/defective.
Use critical points.
Example: 5% labor urgent.
Report for action.

8. What is corrective action?

3 Marks Answer:

Fix beyond limits.
Train/add resources.
Example: Overtime for delay.
Prevent recurrence.

9. Name two traditional techniques.

3 Marks Answer:

Personal observation.
Breakeven analysis.
Example: Sample checking.
Basic reports.

10. State two modern techniques.

3 Marks Answer:

ROI analysis.
MIS.
Example: PERT for projects.
Advanced data.

Part C: 4 Marks Questions (10 Qs - Medium-Long, Exactly 6 Lines Each)

1. Explain controlling meaning with example.

4 Marks Answer:

Ensures conformity to plans.
Goal-oriented, pervasive.
Example: DCS automates check-in.
Measures deviations, corrects.
Completes cycle to planning.
Evidence: PNR updates.

2. Describe three importance points.

4 Marks Answer:

Judges standards accuracy.
Improves motivation via clarity.
Example: FedEx tracking profits.
Ensures discipline.
Facilitates coordination.
Evidence: Monitoring case.

3. Outline four limitations.

4 Marks Answer:

Difficulty in quantitative (behavior).
External factors uncontrollable.
Example: Govt policies.
Resistance to CCTV.
Costly for SMEs.
Evidence: Small firm justification.

4. Discuss planning-controlling relationship.

4 Marks Answer:

Twins: Standards from plans.
Control blind without planning.
Example: Deviations improve plans.
Prescriptive vs. evaluative.
Reinforce via facts/experience.
2025: Integrated ERP.

5. Explain setting standards step.

4 Marks Answer:

First step: Criteria for measure.
Quantitative (units/cost).
Example: Time for order in chain.
Flexible for env changes.
Precise for comparison.
Table: Functional areas.

6. Describe measuring performance.

4 Marks Answer:

Second step: Objective manner.
Techniques: Reports/samples.
Example: Ratios periodic.
During/after task.
Same units as standards.
Large org: Sample checking.

7. What is critical point control?

4 Marks Answer:

Focus KRAs only.
Not all activities.
Example: Labor cost > postal.
Advantages: Saves time.
Delegates routine.
Box: MBE benefits.

8. Explain analyzing deviations.

4 Marks Answer:

Fourth step: Determine range.
Causes: Resources/env.
Example: Use MBE for key.
Urgent for critical.
Report causes.
Table: Remedial actions.

9. Describe two techniques.

4 Marks Answer:

Traditional: Budgetary (variance).
Modern: ROI (profitability).
Example: PERT timelines.
Statistical reports.
MIS real-time.
Choose per need.

10. Why flexible standards?

4 Marks Answer:

Adapt env changes.
Internal/external shifts.
Example: Review via control.
Realistic measurement.
Avoid unrealistic.
Improves accuracy.

Part D: 6 Marks Questions (10 Qs - Long, Exactly 8 Lines Each)

1. Explain controlling process steps.

6 Marks Answer:

1. Set standards (benchmarks).
2. Measure actual (reports).
3. Compare (deviations).
4. Analyze (causes/MBE).
5. Correct (train/revise).
Example: Saco crisis.
Cyclical focus key areas.
Evidence: Functional table.

2. Discuss importance with cases.

6 Marks Answer:

6 points: Goals, standards, resources.
Motivation, discipline, coordination.
Case: Import-export monitoring $3M save.
FedEx profits via system.
2025: Digital boosts.
Debate: Vs. limitations.
Essential for success.
Universal need.

3. Elaborate limitations and solutions.

6 Marks Answer:

4 points: Quantitative hard, external no control.
Resistance, costly.
Example: CCTV objection.
Solutions: Qualitative define, cost-benefit.
2025: Privacy tech.
Evidence: Small firm issues.
Balance with benefits.
Adapt for effectiveness.

4. Explain planning-controlling interrelation.

6 Marks Answer:

Twins: Plans provide basis.
Control meaningless without.
Reinforce: Facts ease, experience improves.
Example: Deviations for better plans.
Forward/backward.
2025: Integrated software.
Cyclical process.
Key for management.

5. Describe techniques with examples.

6 Marks Answer:

Traditional: Observation, budgetary.
Modern: ROI, PERT, MIS.
Example: Breakeven for profits.
Management audit.
Choose per org.
Evidence: DCS interface.
Enhance process.
2025: AI additions.

6. Analyze deviations with MBE.

6 Marks Answer:

Step: Identify acceptable range.
Critical points for urgency.
MBE: Only significant.
Example: 5% labor vs. minor.
Advantages: Time save, delegate.
Box: Focus talent.
Causes analysis.
Leads to corrective.

7. Case: Writewell Products deviation.

6 Marks Answer:

Worker short 10 units/2 days.
CEO consider MBE.
Not terminate; investigate cause.
Example: Training vs. exception.
Principle: Control significant only.
2025: Data-driven.
Balances discipline/morale.
Effective decision.

8. M Ltd mobile problems control.

6 Marks Answer:

a. Benefits: Goals, efficiency.
b. Relate: Plans set targets, control implements.
c. Steps: Standards (sales), measure, compare, analyze, correct.
Example: Revamp for market share.
Tech/pricing deviations.
New players challenge.
Rectify via process.
Sustainable targets.

9. Shantanu garment control features.

6 Marks Answer:

a. Features: Pervasive, continuous.
b. Importance: 4 points (goals, resources, motivation, coordination).
Example: Track performance.
Constant check.
Efficient achievement.
Dept activities.
Targets met.
Goal-oriented.

10. Techniques detailed explanation.

6 Marks Answer:

Traditional: 4 (observation, reports, breakeven, budgetary).
Modern: 6 (ROI, ratios, responsibility, audit, PERT, MIS).
Example: Budget variance.
PERT timelines.
Enhance control.
2025: Digital MIS.
Select per need.
Process integration.

Tip: Diagrams for process; practice lines. Additional 30 Qs: Case variations, technique scenarios.

Key Concepts - In-Depth Exploration

Core ideas with examples, pitfalls, interlinks. Expanded: All concepts with steps/examples/pitfalls for easy learning. Depth: Debates, analysis.

Controlling Process

Steps: 1. Standards, 2. Measure, 3. Compare, 4. Analyze, 5. Correct. Ex: DCS tracking. Pitfall: Ignore qualitative. Interlink: Planning. Depth: MBE debate.

Importance

Steps: 1. Goals track, 2. Resource optimize, 3. Motivate. Ex: FedEx. Pitfall: Over-control. Interlink: Coordination. Depth: Cost vs. benefit.

Limitations

Steps: 1. Quant hard, 2. External limit, 3. Resistance. Ex: CCTV. Pitfall: Ignore costs. Interlink: Planning flexibility. Depth: Ethical issues.

Planning Link

Steps: 1. Plans set basis, 2. Control feedback, 3. Reinforce. Ex: Deviations revise. Pitfall: Static plans. Interlink: Functions. Depth: Cyclical.

MBE/Critical Control

Steps: 1. Identify KRAs, 2. Exception only, 3. Delegate. Ex: Labor cost. Pitfall: Miss minor. Interlink: Process step 4. Depth: Efficiency.

Standards Setting

Steps: 1. Quant/qual, 2. Flexible, 3. Precise. Ex: Defects/1000. Pitfall: Unrealistic. Interlink: Measurement. Depth: Functional table.

Deviation Analysis

Steps: 1. Range accept, 2. Causes find, 3. Urgent key. Ex: 5% vs. 2%. Pitfall: Multiple causes. Interlink: Corrective. Depth: Remedial table.

Techniques Traditional

Steps: 1. Observe, 2. Reports, 3. Breakeven, 4. Budget. Ex: Variance. Pitfall: Subjective. Interlink: Modern. Depth: Basic vs. advanced.

Techniques Modern

Steps: 1. ROI calc, 2. Ratios, 3. PERT, 4. MIS. Ex: Project time. Pitfall: Tech access. Interlink: Process. Depth: 2025 AI.

Corrective Action

Steps: 1. Beyond limit, 2. Train/revise, 3. Prevent. Ex: Overtime. Pitfall: No revision. Interlink: Cycle. Depth: Saco case.

DCS Example

Steps: 1. Automate ops, 2. Track PNR, 3. Interface immigration. Ex: E-tickets. Pitfall: Tech fail. Interlink: Pervasive. Depth: Airline control.

Advanced: Ethical checklists, technique feasibility. Pitfalls: Over-resistance. Interlinks: To Ch7 directing. Real: Startup monitoring. Depth: 12 concepts details. Examples: Real cases. Graphs: Process flow. Errors: Forget MBE. Tips: Steps evidence; compare tables (importance/limitations).

Solved Examples - From Text with Simple Explanations

Expanded with evidence, calcs; focus on applications, analysis. Added process application, technique balancing.

Example 1: DCS Controlling

Simple Explanation: Tech ensures plans.

Step 1: Standards (PNR updates).
Step 2: Measure (check-in data).
Step 3: Compare (flown status).
Step 4: Analyze (no-fly list).
Step 5: Correct (immigration interface).
Simple Way: Auto-track flight ops.

Example 2: Import-Export Monitoring

Simple Explanation: Discipline via control.

Step 1: Standards (order logs).
Step 2: Measure (key strokes).
Step 3: Compare (deleted orders).
Step 4: Analyze (embezzlement).
Step 5: Correct (arrest, $3M recover).
Simple Way: Software catches theft.

Example 3: FedEx System

Simple Explanation: Importance in profits.

Step 1: Standards (delivery time).
Step 2: Measure (GPS tracking).
Step 3: Compare (delays).
Step 4: Analyze (route issues).
Step 5: Correct (reroute).
Simple Way: Real-time boosts efficiency.

Example 4: Saco Defense Crisis

Simple Explanation: Corrective in action.

Step 1: Standards (project schedule).
Step 2: Measure (behind timeline).
Step 3: Compare (deviations).
Step 4: Analyze (resource gap).
Step 5: Correct (add workers/OT).
Simple Way: Quick fix averts loss.

Example 5: MBE in Labor Cost

Simple Explanation: Focus significant.

Step 1: Set 2% deviation limit.
Step 2: Measure actual cost.
Step 3: Compare (>2%?).
Step 4: Analyze only if yes.
Step 5: Correct major only.
Simple Way: Ignore minor, act big.

Example 6: Writewell Worker Shortfall

Simple Explanation: Apply MBE.

Step 1: Standards (daily target).
Step 2: Measure (10 units short).
Step 3: Compare (minor?).
Step 4: Analyze cause (not urgent).
Step 5: Correct via train, not fire.
Simple Way: Exception principle saves morale.

Tip: Practice self-assess; troubleshoot (e.g., deviation causes). Added for process, techniques.

Quick Revision Notes & Mnemonics

Concise, easy-to-learn summaries for all subtopics. Structured in tables for quick scan: Key points, examples, mnemonics. Covers meaning, importance, process, techniques. Bold key terms; short phrases for fast reading.

Subtopic	Key Points	Examples	Mnemonics/Tips
Meaning	Controlling: Ensures actual = planned; goal-oriented, pervasive. Completes planning cycle via deviations/corrections.	DCS: PNR/check-in automation.	PEC (Pervasive, Ensures Conformity). Tip: "Plan-Check-Fix Loop".
Importance (6)	1. Goals: Progress measure. 2. Standards: Accuracy judge. 3. Resources: Waste reduce. 4. Motivation: Clear expectations. 5. Discipline: Dishonesty check. 6. Coordination: Dept align.	FedEx: Profits via tracking; Monitoring: $3M save.	GSRM DC (Goals, Standards, Resources, Motivation, Discipline, Coord). Tip: "Control = GSRMDC Success".
Limitations (4)	1. Quant Hard: Morale/behavior. 2. External No: Govt/tech. 3. Resistance: Freedom restrict. 4. Costly: Time/effort.	CCTV objection; Small firm expense.	QERC (Quant, External, Resistance, Costly). Tip: "Limits = QERC Hurdles".
Planning Link	Twins: Standards from plans; control monitors. Reinforce: Facts/experience improve. Forward (plan)/backward (control).	Deviations guide revisions.	TRF (Twins, Reinforce, Forward-back). Tip: "Plan-Control = Inseparable Loop".
Process (5 Steps)	1. Standards: Quant/qual set. 2. Measure: Actual performance. 3. Compare: With standards. 4. Analyze: Deviations/causes. 5. Correct: Action take.	Saco: OT for delay; Defects: 10 to 5/1000.	SM CAC (Set, Measure, Compare, Analyze, Correct). Tip: "SMCAC Cycle – Deviate & Fix".
Techniques Trad (4)	Observation: Personal. Reports: Statistical. Breakeven: Cost-profit. Budgetary: Variance.	Sample checking large org.	ORBB (Observe, Reports, Breakeven, Budget). Tip: "Basic ORBB Tools".
Techniques Modern (6)	ROI: Investment return. Ratios: Analysis. Responsibility: Accounting. Audit: Management. PERT/CPM: Networks. MIS: Info system.	PERT projects; MIS real-time.	RR AMP M (ROI, Ratios, Resp, Audit, PERT, MIS). Tip: "Advanced RRAMP M Tech".
MBE/Critical	MBE: Significant only. Critical: KRAs focus. Advantages: Time save, delegate.	>2% labor; 5% vs. 15% postal.	MS (MBE, Significant). Tip: "Exception = Focus Big, Ignore Small".
Cases	DCS: Airline automation. FedEx: Profit system. Saco: Crisis control.	Embezzlement catch; Writewell exception.	DFS (DCS, FedEx, Saco). Tip: "Cases = Real Control Wins".

Overall Tip: Use PEC-GSRMDC-QERC-SMCAC-ORBB-RRAMP M for full scan (5 mins). Flashcards: Front (term), Back (points + mnemonic). Print table for wall revision. Covers 100% chapter – easy for exams!

Key Terms & Processes - All Key

Expanded table 30+ rows; quick ref. Added advanced (e.g., KRAs, MIS).

Term/Process	Description	Example	Usage
Controlling	Plan conformity	DCS PNR	Core
Standards	Benchmarks	Defects/1000	Measure
Deviations	Actual-standard diff	>2% cost	Analyze
Pervasive	All levels/orgs	Hospital	Universal
Critical Point	KRAs focus	Labor cost	Efficient
MBE	Exception control	Significant only	Save time
Goal-Oriented	Achieve targets	Org goals	Resource
Accomplish Goals	Progress correct	Track deviations	On track
Efficient Use	Waste reduce	Norms	Optimal
Motivation	Clear appraise	Performance	Boost
Discipline	Dishonesty min	Monitoring	Check
Coordination	Dept align	Standards	Harmony
Quantitative	Measurable	Units/cost	Compare
Qualitative	Non-numeric	Morale	Define
Measurement	Objective	Reports	Units match
Sample Checking	Random quality	Large org	Not full
Corrective	Fix deviations	Train	Prevent
Breakeven	Cost-profit	Volume	Planning
Budgetary	Variance compare	Expenses	Control
ROI	Investment return	Profitability	Gauge
PERT/CPM	Project network	Timelines	Time
MIS	Info system	Real-time	Decide
KRAs	Key results	Critical areas	Focus
DCS	Airport automate	E-tickets	Tech
PNR	Passenger record	Reservation	Track
Remedial Action	Deviation fix	Overtime	Correct
Variance	Budget diff	Actual vs plan	Analyze
Responsibility Accounting	Dept accountability	Performance	Modern
Management Audit	System review	Efficiency	Audit
Ratio Analysis	Financial ratios	Profit margin	Trend
Cycle Completion	Back to planning	Deviations improve	Reinforce
Env Adaptation	Standards revise	Changes	Flexible
Ethical Monitoring	Privacy balance	CCTV	2025

Tip: Examples memory; sort subtopic. Easy: Table scan. Added 10 rows depth.

Controlling Processes Step-by-Step

Step-by-step breakdowns of core processes. Full question followed by answer format for clarity. Visual descriptions for easy understanding; no diagrams, focus on actionable steps with examples from chapter.

Question 1: What are the steps in the controlling process?

Answer:

Step 1: Setting performance standards – Criteria (quant/qual) against which performance is measured; e.g., reduce defects from 10 to 5 per 1,000 units.
Step 2: Measurement of actual performance – Objective/reliable via reports/samples; e.g., calculate ratios periodically, check during assembly.
Step 3: Comparing actual performance with standards – Reveals deviations; easier if quantitative, e.g., units produced vs. target.
Step 4: Analysing deviations – Determine acceptable range, causes (unrealistic resources); use MBE for significant, e.g., >2% labor cost urgent.
Step 5: Taking corrective action – Fix beyond limits, train/revise/add resources; e.g., overtime for project delay, prevent recurrence.

Visual: Feedback loop cycle – Standards feed into measurement, deviations loop back for correction.

Question 2: How does one set performance standards effectively?

Answer:

Step 1: Identify functional areas – Use table for production (quantity/quality), marketing (sales), etc.
Step 2: Choose quant/qual – Quant: Cost/revenue/units; qual: Morale/goodwill, define measurable (e.g., wait time in chain).
Step 3: Make precise/flexible – E.g., defects reduction by quarter end; adapt to env changes.
Step 4: Ensure comparability – Same units for actual; e.g., time for tasks.
Step 5: Review periodically – Via control feedback for accuracy.

Visual: Benchmark pyramid – Base (quant basics), top (qual advanced), flexible arrows for changes.

Question 3: Explain measuring and comparing performance in controlling.

Answer:

Step 1: Select techniques – Personal observation/reports/samples; e.g., gas levels continuous.
Step 2: Time it right – During (assembly check) or after (ratios); same units as standards.
Step 3: For large orgs – Sample random; e.g., pieces for quality.
Step 4: Compare quantitatively – E.g., weekly units vs. standard; reveals gaps.
Step 5: Note deviations – Minor acceptable, major for analysis; e.g., worker output short.

Visual: Scale balance – Actual on one side, standard on other; tilt shows deviation.

Question 4: How to analyze and take corrective action for deviations?

Answer:

Step 1: Set range – Acceptable (e.g., 2% labor); critical points (KRAs like cost).
Step 2: Use MBE – Only significant; e.g., 5% urgent vs. minor postal.
Step 3: Identify causes – Unrealistic/defective process/resources/env; e.g., multiple factors.
Step 4: Report/prioritize – Urgent for key areas; table remedial (train for short target).
Step 5: Act correct – Train/OT/revise standards; e.g., Saco add workers.

Visual: Root cause tree – Deviation trunk, branches causes, leaves actions.

Question 5: What is the role of techniques in controlling, with examples?

Answer:

Step 1: Choose traditional – Observation/reports/breakeven/budgetary; e.g., budgetary variance for expenses.
Step 2: Apply modern – ROI/ratios/responsibility/audit/PERT/MIS; e.g., PERT for project timelines.
Step 3: Integrate process – E.g., MIS for real-time measurement.
Step 4: Focus efficiency – MBE with techniques; e.g., ROI for overall.
Step 5: Evaluate impact – E.g., FedEx system increases profits.

Visual: Toolbox – Traditional basic tools, modern advanced; select per step.

Question 6: How does controlling relate to planning in practice?

Answer:

Step 1: Plans provide standards – E.g., targets set basis for control.
Step 2: Control monitors execution – Measures deviations from plan.
Step 3: Feedback improves planning – Past experience refines future; e.g., revisions.
Step 4: Cyclical reinforcement – Fact-based control eases planning.
Step 5: Balance forward/back – Plan ahead, control looks back but guides ahead.

Visual: Twin gears – Planning turns standards, controlling turns feedback; mesh for cycle.

Tip: Answer questions like exam; apply to cases (FedEx/Saco). Easy: Question + numbered steps + example.

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