Explore topic-wise InterviewSolutions in .

(i) Staffing and Controlling.

(ii) The two steps which must be followed by the company to solve this problem are;

(a) Analysing deviations.

(b) Taking corrective action

(iii) Value which the company wants to communicate to the society:

(a) Serving the society by providing quality products.

(b) Growth and development.

(a) Staffing and Controlling

(b) Steps in staffing

(i) Estimating manpower requirements which involves knowing how many Persons are needed and of what types.

'To meet the increased demand the company assessed that... subordinates under each head.'

(ii) Recruitment which involves searching for prospective employees and stimulating them to apply for jobs in the organisation.

Steps in controlling:

(i) Comparison of actual performance with the standards which would reveal the deviation between actual and desired results.

It was found that the target of producing 300 bulbs a day was not met by the employees.

(ii) Analysing deviations which would help to find out the causes of deviation.

On analysis, it was found that the workers were not at fault... alternative arrangements were needed.

(iii) Taking corrective action if required.

To meet the increased demand, the company assessed that approximately .....as subordinates under each head.

(c) Values which the company wants to communicate to the society:

(i) Using environment friendly methods of production.

(ii) Women empowerment

(iii) Upliftment of underprivileged sections of the society.

Below given points will clarify the relation between the two:

1. Planning and controlling are two sides of the same coin:

• Planning and controlling are two very important and interdependent functions of the management process. The success of planning depends on Controlling.
• The function of controlling identifies deviations, takes necessary corrective action and hence keeps the business activities on the decided direction.
• Looking from other perspective, the role of controlling comes only when something is planned. So, if there is no planning, there is no controlling.
• Thus, planning and controlling are two sides of the same coin.

2. Protection against change:

• How well will the programmes of a plan executed depends on internal as well as external factors. Internal factors are factors related to organization work procedures, policy, human resource, etc. External factors include government policy, competition, inflation, depression, scarcity of raw materials, change in the choices of people, change in fashion, etc.
• Taking into consideration the effect of external factors, controlling decides whether activities are being carried out according to plan or not. If not, it suggests the organization to modify the plan and processes.
• Thus, planning and controlling give protection against changes.

3. Planning is a pre-condition for controlling:

• The function of planning is to make programmes to achieve the objectives of the business enterprise. On the other hand, the function of controlling is to see whether the activities are performed according to the plan or not.
• Additionally, controlling also compares the actual performance with the set standards. If deviations are found, corrective action is taken.
• Thus, controlling begins only after planning is done or say planning is the pre-condition of controlling.

4. Planning is the father of controlling:

• Controlling exists because of planning. Controlling keeps a check on activities decided in planning.
• In short, controlling does not exist without planning.
• Hence, it can be said that planning is the father of controlling.

Because under it corrective action is taken for future.

Planning and controlling are two sides of the same coin:

• Planning and controlling are two very important and interdependent functions of the management process. The success of planning depends on Controlling.
• The function of controlling identifies deviations, takes necessary corrective action and hence keeps the business activities on the decided direction.
• Looking from other perspective, the role of controlling comes only when something is planned. So, if there is no planning, there is no controlling.
• Thus, planning and controlling are two sides of the same coin.

Planning is a systematic and intellectual method to achieve objectives. Planning clarifies the reason as to why specific activities will be needed to be done in the future.

• Planning also outlines when and in how much time will the decided activities be completed and for that what resources will be needed so that goals can be achieved.
• On the other hand, control is a process to monitor whether business activities are carried out according to the plan, set standards and given instructions. If deviations are found, then corrective actions are taken.
• Whenever there is planning there is controlling and conversely whenever there is controlling planning pre-exists.Thus planning and controlling are interrelated.

Meaning:

• In layman language, controlling means deciding the activities to be carried out, evaluate, the same and if required, take corrective measures so that they are done in conformity with plan developed by the organization.
• Controlling is the last step of management process.
• Although controlling is considered as the last step, function of controlling starts as soon as the activities are assigned right in the first stage i.e. the stage of planning.
• According to Peter F. Drucker, “Controlling is to maintain a balance between efforts and results and between resources and objectives.”

Characteristics of controlling:

1. Controlling is related to planning:

• Planning and controlling are the two sides of the same coin.
• Planning function makes the plan whereas controlling ensures that activities are carried out according to the plan.
• It is said that planning and controlling are like twins. If there is no planning, there is no scope of controlling.

2. Functions at every level of management:

• Controlling is performed at every level of management. It is not confined to one department or section.
• Managers of each level control their subordinates at their respective levels.
• Controlling is done quite systematically even at the lowest level of workers by their supervisors.

3. Continuous process:

• Controlling is an ongoing process. It never ends.
• It is wrong to believe that once control is exercised on the activities of the enterprise, work will always be done according to the plan.
• Deviations from the set plan can occur at any level and at any time. Hence the organization constantly needs to supervise and control the activities done at various levels.
• In the controlling function, quality control and cost control are important activities that need to be constantly controlled.

4. It is an end activity of management:

• In the management process, the planning function decides organizational objectives, organizing function implements them and directing gives direction. After these functions, the actual role of controlling begins.
• Thus, it is very important that all managerial functions are performed before control is exercised. As a result, control is the end activity of management.

5. Related to future:

• Although controlling is done at every stage on day-to-day basis, its core objective is to minimize deviations and errors in processes so that end product or service comes out as planned. In this sense, it can be said that control is related to future.
• Controlling also helps the manager to examine past activities and analyse them so that he can learn from past mistakes and prevent them in future.
• The objective of control is to see that errors, wastage and losses which occurred in the past are not repeated or if repeated their frequency decreases.

6. It is a constructive activity:

• A general perception towards controlling is that under it a person is always monitored and hence his freedom is lost however, this belief in incorrect.
• In fact, the real objective of control is to see that workers work as per the plan and that they are guided properly to overcome mistakes and deviations.
• Thus, controlling is not a negative, but a positive as well as constructive activity.

7. Internal process:

• Controlling is an internal process for the organization.
• Control system plays an integral role in all the important activities of the organization such as production, sales, purchase, financial matters, financial accounts and working method of employees, etc.
• Since all these activities are part of business, they can be controlled. On the other hand, change in government policy, depression, inflation, changes in the psychology of people, etc. are external factors and hence cannot be controlled.

8. Dynamic process:

• Although what to control and how to control is pre-decided in the planning and controlling functions, it is quite likely that the parameters of control may change continuously depending upon situations.
• If the organization identifies deviations in its processes, it takes quick decision in its control methods to normalize these processes. Hence, it is said that although controlling is a planned function, it is a dynamic process.

9. Controlling is a person-oriented or subjective activity:

• Controlling is done for the improvement of the activities of workers, by the workers and for the workers. Thus, ‘person’ is at the center of controlling.
• Hence, it is said that control is majorly person-oriented i.e. is subjective.

10. Controlling can be formal or informal:

• Controlling is an extremely important function.
• In an organization, what to control, how to control and who will control what is defined very systematically and scientifically.
• During the actual processes, it is quite likely that the format of control might need on-site change. So, many a times, the format of controlling becomes informal and the changes are brought stepping aside from the format.

Because plans are always made for future.

Because the planning is done on the basis of the happening of the past.

A general perception towards controlling is that under it a person is always monitored and hence his freedom is lost.

• This perception has been developed from older management system where in the business owners used to keep a very strict supervision on their organizations.
• Such supervision created a fear of making mistakes and a negative environment.
• The real objective of controlling is not to spread fear but to encourage innovation and quality production. Systematic controlling leads to lesser mistakes, higher quality and production and improved productivity.
• This also creates opportunity for employees to improve upon their mistakes and personal efficiency.
• Thus, controlling is not a negative but a positive function.

It is an end activity of management:

• In the management process, the planning function decides organizational objectives, organizing function implements them and directing gives direction. After these functions, the actual role of controlling begins.
• Thus, it is very important that all managerial functions are performed before control is exercised. As a result, control is the end activity of management.

Internal process:

• Controlling is an internal process for the organization.
• Control system plays an integral role in all the important activities of the organization such as production, sales, purchase, financial matters, financial accounts and working method of employees, etc.
• Since all these activities are part of business, they can be controlled. On the other hand, change in government policy, depression, inflation, changes in the psychology of people, etc. are external factors and hence cannot be controlled.

Dynamic process:

• Although what to control and how to control is pre-decided in the planning and controlling functions, it is quite likely that the parameters of control may change continuously depending upon situations.
• If the organization identifies deviations in its processes, it takes quick decision in its control methods to normalize these processes. Hence, it is said that although controlling is a planned function, it is a dynamic process.

Because under it, a manager tries to find out whether the work has been done according to the standards or not.

1. To avoid biased appraisal, a performance appraisal should be taken by a committee of experts. 

2. If the stationaries are not very expensive, it can be ignored with stricter control. 

3. Strict and immediate disciplinary action should be taken. 

4. Mass bunking should not be allowed, – 

5. Secret suggestion box can be used to collect feedback about the boss for appraisal. 

6. Performance records of employees to be maintained. 

7. If minor can be overlooked 

8. Strict quality control techniques should be used. 

9. Time and motion studies should be used to fix a standard. 

10. The use of scientific techniques can help in fixing the most feasible and optimum standards.

Controlling is looking back as it is like postmortem of past activities to find out deviations in the performance from the predetermined standards. 

Characteristics of Controlling:

• Related to planning
• Functions at every level of management
• Continuous process
• It is an end activity of management
• Related to future
• It is constructive activity
• Internal process
• Dynamic process
• Controlling is a person-oriented or Subjective activity and
• Controlling can be formal or informal.

No, controlling is not the end of management function cycle because it brings back the management cycle to planning function.

Continuous process:

• Controlling is an ongoing process. It never ends.
• It is wrong to believe that once control is exercised on the activities of the enterprise, work will always be done according to the plan.
• Deviations from the set plan can occur at any level and at any time. Hence the organization constantly needs to supervise and control the activities done at various levels.
• In the controlling function, quality control and cost control are important activities that need to be constantly controlled.

Importance of Controlling:

(i) Accomplishing organisational goals.

(ii) Making efficient use of resources.

(iii) Ensuring order and discipline.

(iv) Improving employee motivation.

(v) Judging accuracy of standards.

(vi) Facilitating co-ordination in action.

Importance of Controlling:

(i) Accomplishing organisational goals: The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action. It, thus, guides the organization and keeps it on the right track so that organisational goals might be achieved.

(ii) Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes.

(iii) Making efficient use of resources: By exercising control, a manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with the predetermined standards and norms. This ensures that resources are used in the most effective and efficient manner.

(iv) Improving employee motivation: A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised. It, thus, motivates them and helps them to deliver better performance.

(v) Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimize dishonest behaviour on the part of the employees by keeping a close check on their activities.

(vi) Facilitating co-ordination in action: Controlling provides direction to all activities and efforts for achieving organisational goals. Each department and employee is governed by the predetermined standards which are well co-ordinated with one another. This ensures that overall organisational objectives are accomplished.

Importance of Controlling:

(i) Accomplishing organisational goals.

(ii) Making efficient use of resources.

(iii) Ensuring order and discipline.

(iv) Improving employee motivation.

(v) Judging accuracy of standards.

(vi) Facilitating co-ordination in action.

Importance of Controlling:

(i) Accomplishing organisational goals: The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action. It, thus, guides the organization and keeps it on the right track so that organisational goals might be achieved.

(ii) Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes.

(iii) Making efficient use of resources: By exercising control, a manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with the predetermined standards and norms. This ensures that resources are used in the most effective and efficient manner.

(iv) Improving employee motivation: A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised. It, thus, motivates them and helps them to deliver better performance.

(v) Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimize dishonest behaviour on the part of the employees by keeping a close check on their activities.

(vi) Facilitating co-ordination in action: Controlling provides direction to all activities and efforts for achieving organisational goals. Each department and employee is governed by the predetermined standards which are well co-ordinated with one another. This ensures that overall organisational objectives are accomplished.

(a) Critical Path Method (CPM)

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