1. Which of the following best defines 'Controlling' in management?
A. Planning future activities
B. Motivating employees to achieve targets
C. Ensuring actual performance matches planned performance
D. Delegating authority to subordinates
Controlling in management is the process of comparing actual performance with planned performance and taking corrective actions when required.
2. Which of the following is NOT a characteristic of controlling?
A. It is a one-time activity
B. It is a continuous process
C. It is forward-looking
D. It helps in achieving organizational goals
Controlling is not a one-time activity; it is a continuous and forward-looking process that ensures goals are met efficiently.
3. Which of the following is an advantage of controlling?
A. Creates duplication of work
B. Discourages initiative
C. Increases cost of operations
D. Helps in coordination of activities
One of the key advantages of controlling is that it ensures proper coordination of various activities in the organization.
4. Case Study: A branch manager finds that the actual loan disbursement target achieved is only 70% of the planned target. He initiates steps to improve staff productivity. This action is an example of which function of management?
A. Planning
B. Controlling
C. Staffing
D. Directing
The branch manager compared actual performance with planned performance and took corrective steps. This is a classic example of the controlling function of management.
5. Which of the following statements about controlling is correct?
A. Controlling helps in identifying deviations and taking corrective action
B. Controlling is independent of planning
C. Controlling applies only to financial matters
D. Controlling has no role in achieving objectives
Controlling helps in identifying deviations from standards and enables corrective actions. It is closely linked with planning and applies to all areas of management.
6. Which of the following is a limitation of controlling?
A. It ensures zero deviations in performance
B. It can be costly and time-consuming
C. It works independently of other management functions
D. It completely eliminates uncertainty
Controlling requires data collection, monitoring, and evaluation, which may be costly and time-consuming. It cannot completely eliminate deviations or uncertainty.
7. Which of the following is NOT considered a limitation of controlling?
A. Resistance from employees
B. Influence of external factors
C. Costly process
D. Encourages coordination and discipline
Controlling may face limitations such as employee resistance, high costs, and external environmental influences. However, it actually helps in coordination and discipline, which is an advantage.
8. Which of the following is a type of control that is exercised before the actual work begins?
A. Feedforward control
B. Concurrent control
C. Feedback control
D. Corrective control
Feedforward control is preventive in nature and applied before work starts to ensure standards are met, e.g., proper training before operations.
9. A supervisor monitors the work of employees in real-time and makes corrections immediately. This is an example of:
A. Feedforward control
B. Strategic control
C. Concurrent control
D. Feedback control
Concurrent control is exercised during the process of work itself, allowing immediate corrective actions.
10. In which type of control is the analysis done after the task is completed?
A. Concurrent control
B. Feedforward control
C. Preventive control
D. Feedback control
Feedback control measures results after the activity is completed and uses that information for future improvements.
11. What is the first step in the control process?
A. Measurement of actual performance
B. Comparing performance with standards
C. Setting performance standards
D. Taking corrective action
The first step in the control process is setting performance standards, as these serve as benchmarks against which actual performance is measured.
12. After measuring actual performance, the next step in the control process is:
A. Comparing performance with standards
B. Setting objectives
C. Delegating responsibilities
D. Preparing budgets
Once actual performance is measured, it must be compared with the standards to identify any deviations.
13. Which of the following is the last step in the control process?
A. Setting standards
B. Measuring performance
C. Comparing results
D. Taking corrective action
The control process ends with taking corrective action to address deviations and ensure objectives are achieved.
14. Which of the following best describes the relationship between planning and controlling?
A. They are independent of each other
B. Planning is meaningless without controlling, and controlling is blind without planning
C. Planning always comes after controlling
D. Controlling can replace planning
Planning provides standards for controlling, while controlling ensures that plans are implemented effectively. They are interdependent: planning is meaningless without controlling, and controlling is blind without planning.
15. Case Study: A bank sets an annual target of ₹100 crore in priority sector lending. Quarterly reviews are conducted to check progress against the plan. This situation highlights:
A. The close relationship between planning and controlling
B. Delegation of authority
C. Importance of staffing
D. Limitation of directing
The case demonstrates how controlling (quarterly review) ensures that the planned targets (priority sector lending) are achieved. This shows the interdependence of planning and controlling.
16. Which of the following is a traditional control technique?
A. Balanced Scorecard
B. Budgetary Control
C. Management Information System (MIS)
D. ERP Systems
Budgetary control is a traditional technique of control, focusing on comparing actual financial performance with budgeted figures.
17. Ratio analysis, internal audit, and break-even analysis are examples of:
A. Traditional control techniques
B. Modern control techniques
C. Non-financial techniques
D. Concurrent control methods
Ratio analysis, internal audit, and break-even analysis are traditional financial control techniques used widely in management.
18. Which of the following is a modern control technique focusing on performance measurement across financial and non-financial parameters?
A. Break-even analysis
B. Budgetary control
C. Balanced Scorecard
D. Internal audit
The Balanced Scorecard is a modern control technique that evaluates performance not only on financial measures but also customer, internal process, and learning perspectives.
19. How has Information Technology enhanced control techniques in modern organizations?
A. By eliminating the need for planning
B. By making traditional controls obsolete
C. By discouraging real-time monitoring
D. By enabling real-time data analysis and decision-making
IT-based systems like MIS, ERP, and dashboards provide real-time data and analytics, improving monitoring and timely corrective action.
20. Case Study: A bank uses an ERP system to track daily branch performance, monitor NPAs, and generate compliance reports instantly. This is an example of:
A. Traditional control technique
B. Modern IT-enabled control technique
C. Informal control method
D. Non-financial manual control
ERP systems are modern IT-enabled control techniques that integrate data, automate monitoring, and ensure compliance effectively.
