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NIOS Class 12 Business Studies Chapter 9 Co-ordination and Controlling
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Co-ordination and Controlling
Chapter: 9
Module – 2 Business Management and its Functions
INTEXT QUESTIONS 9.1
1. Define the term Coordination.
Ans: The function of management is to coordinate among different types of groups to achieve the goal of the organization called co-ordinations.
2. Correct the following statements, in case they are wrong.
(a) Co-ordination leads to diversity in action.
Ans: Coordination leads to unity in action.
(b) The importance of co-ordination is greater in small organisations.
Ans: The importance of co-ordination is lesser in small organisations.
(c) As work is divided and sub-divided, the necessity of co-ordination gets increased.
Ans: Correct.
(d) Co-ordination is the function of lower level managers only.
Ans: Coordination is the function of all levels of management.
(e) In the absence of co-ordination, organisational goals may be neglected by managers.
Ans: Correct.
INTEXT QUESTIONS 9.2
1. State the meaning of the term ‘controlling’ in your own words.
Ans: Controlling is one of the important functions of management. It pinpoints the deviations on the basis of which managers can take corrective steps. If no control is exercised, work may not be done as desired and inefficiencies may remain undetected.
2. Complete the following incomplete words with appropriate letters by using clues given at the bottom. Each blank represents one letter only.
(a) D __ V __ __ T __ ON.
Ans: DEVIATION.
(b) P __ __ V A __ __ V __.
Ans: PERVASIVE.
(c) F __ T __ __ I __ T I __.
Ans: FUTURISTIC.
(d) __ N __ __ I N __.
Ans: ONGOING.
Clues:
(a) When actual performance is different from planned performance.
(b) Control is needed at all levels, in every functional area.
(c) Control is forward looking.
(d) Control is a continuous process.
INTEXT QUESTIONS 9.3
1. Match the phrases in column (I) with those in column (II).
| Column (I) | Column (II) |
| (a) Fixation of standards. | (i) Actual work done. |
| (b) Measurement of performance the targets standards. | (ii) Comparison of actual performance with |
| (c) Appraisal of performance. | (iii) Establishing the desired level of performance. |
| (d) Determination of reasons for deviation. | (iv) Efforts to make the actual performance conform to the standards. |
| (e) Taking corrective action. | (v) difference between actual performance and standard performance. |
Ans:
| Column (I) | Column (II) |
| (a) Fixation of standards. | (iii) Establishing the desired level of performance. |
| (b) Measurement of performance the targets standards. | (i) Actual work done. |
| (c) Appraisal of performance. | (ii) Comparison of actual performance with. |
| (d) Determination of reasons for deviation. | (v) difference between actual performance and standard performance. |
| (e) Taking corrective action. | (iv) Efforts to make the actual performance conform to the standards. |
2. Following is the sequence of events in Gopal’s readymade dress factory during the month of April 2014. Arrange them in proper order keeping in mind the process of control.
(a) Gopal fixed a target of 500 shirts for the month of April 2014.
(b) Gopal changed defective machines and also the incompetent workers.
(c) On 30 April 2014 Gopal found only 400 shirts could be prepared.
(d) Gopal was upset to see the output as it was 100 shirts less than the target set for the month.
(e) Gopal found some machines were giving trouble and also some incompetent workers wasting their own and others’ time.
Ans: (a) Gopal fixed a target of 500 shirts for the month of April 2014.
(c) On 30 April 2014 Gopal found only 400 shirts could be prepared.
(d) Gopal was upset to see the output as it was 100 shirts less than the target set for the month.
(e) Gopal found some machines were giving trouble and also some incompetent workers wasting their own and others’ time.
(b) Gopal changed defective machines and also the incompetent workers.
| TERMINAL EXERCISE |
Very Short Answer Questions:
1. State any two advantages of coordination.
Ans: (i) It ensures unity of action among individuals.
(ii) Co – ordination is the orderly arrangement of individual and group efforts to provide unity of action in the pursuit of a common goal.
2. State any four characteristics of control.
Ans: The four characteristics of control:
(i) Planning is the Basis of Control: Control is said to be checking performance as per what has been planned.
(ii) Control is a Continuous Process: It is an ongoing and dynamic function of management.
(iii) Control is All Pervasive: Control is exercised at all levels of management, and is done in every functional area and in each unit or department.
(iv) Action is the Essence of Control: Control is an action-oriented process.
3. What is ‘deviation’ in the context of control?
Ans: While comparing the performance of the other workers he finds that the two workers have produced less than the standard. When the supervisor tries to ascertain the reasons for the poor performance, he finds that machines on which the other two workers were working had developed some fault. This is the fourth step in controlling and is known as “ascertaining reasons for deviation”.
4. State any two reasons so as to why we need control?
Ans: The two reasons so as to why we need control:
(a) Helps in achieving the targets.
(b) Helps in taking corrective action on time.
5. What do you mean by controlling?
Ans: Control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued and principles established.” Planning and controlling are closely related and depend on each other. Controlling depends on planning because planning provides the targets or standards against which actual performance can be compared.
| Short Answer Questions |
1. What is meant by control?
Ans: Managerial planning results in the framing of objectives and laying down of targets. To achieve the objectives, a proper organisational structure is designed; people are assigned various tasks and are directed to perform their respective jobs. The actual performance is then assessed from time to time to ensure that what is achieved is in conformity with the plans and targets. Controlling, on the other hand, appraises planning. It brings out the shortcomings of planning and helps to improve upon the plans. For example, in a factory, 10 workers are required to cut steel sheets into small round pieces.
2. List the steps in the process of control.
Ans: The process of control consists of various steps:
(i) Establishment of Standards: Setting standards is the first requirement of control. Standards arise out of plans and provide the basis of comparison. There can be different types of standards, e.g., number of units to be produced per hour, cost of production per unit, permissible quantity of scrap and wastage per day, quality of the products and so on.
(ii) Measurement of Performance: When standards are established, the next step is to measure the performance at regular intervals. Measurement is not difficult in case of physical operations, e.g., units produced, cost incurred, time spent, etc., as these can be easily measured.
(iii) Comparison of Performance with Standards: The next step in the control process is comparison of actual performance against the standards.
(iv) Detecting the Reasons for Deviations: Before taking any corrective action, managers should try to ascertain the reasons for the occurrence of deviations. The fault may be that standards fixed were unattainable rather than the subordinate’s inefficiency.
(v) Taking Corrective Action: Once the causes for deviations become known, the next step is to go in for a corrective action which may involve revision of standards, changing the methods of selection and training of workers or providing better motivation.
3. Explain briefly why coordination is called the essence of management?
Ans: In view of the importance of co-ordination in an organisation, it is called the ‘essence’ of management. It is a function of managers in all departments and branches of an organisation, and applies at all the levels of management. It ultimately helps in reconciliation of goals, total accomplishment of business objectives, and maintenance of harmonious relationship between different groups and ensuring economy and efficiency in the organisation.
4. Planning and control are inseparable. Discuss in brief.
Ans: Planning and controlling are closely related and depend on each other. Controlling depends on planning because planning provides the targets or standards against which actual performance can be compared. Controlling, on the other hand, appraises planning. It brings out the shortcomings of planning and helps to improve upon the plans.
5. What should a manager do when there is a difference between actual and standard performance?
Ans: Comparison of actual and standard performance may lead to three possible outcomes: actual performance may be (a) equal to, (b) more than, or (c) less than the standard. If actual performance is equal to the standard, managers need not take any action but where deviations are noticed, corrective action becomes necessary. The managers should ascertain whether these deviations are within the permissible range or outside it. Corrective action becomes necessary only for deviations which fall outside the permissible range.
6. ‘There is a close and reciprocal relationship between planning and controlling’. Comment.
Ans: Managerial planning results in the framing of objectives and laying down of targets. To achieve the objectives, a proper organisational structure is designed; people are assigned various tasks and are directed to perform their respective jobs. The actual performance is then assessed from time to time to ensure that what is achieved is in conformity with the plans and targets. This exactly is the controlling function. Thus, controlling as a function of management refers to the evaluation of actual performance of work against planned or standard performance and taking corrective action, if necessary.
| Long Answer Questions |
1. Explain various steps of the process of control.
Ans: The process of control consists of various steps:
(i) Establishment of Standards: Setting standards is the first requirement of control. Standards arise out of plans and provide the basis of comparison. There can be different types of standards, e.g., number of units to be produced per hour, cost of production per unit, permissible quantity of scrap and wastage per day, quality of the products and so on. As far as possible, the standards should be laid down in quantitative terms. A quantitative standard provides a concrete measure and helps in comparison. It is equally important that the standards fixed are realistic and attainable, neither too high nor too low. If these are too high, employees will be discouraged.
(ii) Measurement of Performance: When standards are established, the next step is to measure the performance at regular intervals. Measurement is not difficult in case of physical operations, e.g., units produced, cost incurred, time spent, etc., as these can be easily measured. Performance can be measured by observations, inspection and reporting. Generally, at lower levels, a detailed control is exercised at frequent intervals on the basis of observation and inspection.
(iii) Comparison of Performance with Standards: The next step in the control process is comparison of actual performance against the standards. In case the standards set are well defined and can be measured objectively, comparison becomes very simple. But, in case of activities where, it is difficult to develop measurable quantitative standards, the measurement and appraisal of performance becomes difficult.
(iv) Detecting the Reasons for Deviations: Before taking any corrective action, managers should try to ascertain the reasons for the occurrence of deviations. The fault may be that standards fixed were unattainable rather than the subordinate’s inefficiency. Again, the deviations might have been caused by the nature of instructions issued by the manager rather than due to the subordinate’s mistake.
(v) Taking Corrective Action: Once the causes for deviations become known, the next step is to go in for a corrective action which may involve revision of standards, changing the methods of selection and training of workers or providing better motivation. As stated earlier, managers should concentrate only on major deviations. The minor deviations, i.e., deviations within permissible range, should not be a cause of anxiety.
2. Co-ordination is needed at all levels and in all functional areas of management. Comment.
Ans: In every organisation, different types of work are performed by various groups and no single group can be expected to achieve the goals of the organisation as a whole. Hence, it becomes essential that the activities of different work groups and departments should be harmonised. This function of management is known as ‘co-ordination’. It ensures unity of action among individuals, work groups and departments, and brings harmony in carrying out the different activities and functions so as to achieve the organisational goals efficiently. In other words, co-ordination is the orderly arrangement of individual and group efforts to provide unity of action in the pursuit of a common goal. The significance of co-ordination as a function of management mainly arises from the fact that work performed by different groups, units or departments forms integral part of the total work for which an organisation is established. Without harmonised efforts or unity of action, achievement of goals in some departments may run counter to that of the other departments, or the timing of achievements may not fit in properly.
3. Describe the characteristics of control.
Ans: The following are the basic characteristics of control:
(i) Planning is the Basis of Control: Control is said to be checking performance as per what has been planned. So planning precedes controlling and sets the standards and targets of performance.
(ii) Control is a Continuous Process: It is an ongoing and dynamic function of management. It involves a continuous review of performance and is not a onetime exercise. The period of control normally depends upon the nature of work, the amount of work and the policies of management.
(iii) Control is All Pervasive: Control is exercised at all levels of management, and is done in every functional area and in each unit or department. Thus, control is all pervasive.
(iv) Action is the Essence of Control: Control is an action-oriented process. The very purpose of control is defeated if corrective action is not taken for improvement of performance or the revision of plans.
(v) Control is Forward Looking: Control is futuristic in nature. It measures current performance and provides guidelines for the corrective action. This ensures future performance as per plans. Thus, it is forward looking.
4. State the meaning of controlling. Why is it required that every organisation must follow a certain control system in its activities.
Ans: Controlling as a function of management refers to the evaluation of actual performance of work against planned or standard performance and taking corrective action, if necessary. Controlling, appraises planning. It brings out the shortcomings of planning and helps to improve upon the plans. controlling does not simply involve checking the quantity of work done but also includes checking the quality of performance, the time taken and the cost incurred. In the above example, suppose each worker could cut 240 pieces per week but most of the pieces were not of the specified size or there was an excessive wastage of steel sheets. This would result in unnecessary loss to the organisation. Hence, the managers have to take steps so that the quality of work is improved and the wastage is reduced.
Thus, controlling involves:
(a) knowing the nature, quantum and time frame of the work.
(b) comparing the performance with the plan.
(c) analysing deviation, if any.
(d) taking corrective steps, and.
(e) suggesting revision of plans, if necessary.
5. Describe in detail the relation between controlling and planning.
Ans: Planning and controlling are closely related and depend on each other. Controlling depends on planning because planning provides the targets or standards against which actual performance can be compared. Controlling, on the other hand, appraises planning. It brings out the shortcomings of planning and helps to improve upon the plans.
The actual performance is then assessed from time to time to ensure that what is achieved is in conformity with the plans and targets. This exactly is the controlling function. Thus, controlling as a function of management refers to the evaluation of actual performance of work against planned or standard performance and taking corrective action, if necessary.
