Read the following statements carefully :
Statement – I : Control should focus on key result areas which are critical to the success of an organization.
Statement – II : Only significant deviations which go beyond the permissible limit should be brought to the notice of management.
With reference to the given statements, choose the correct alternative from the following :
Read the following statements carefully :
Statement – I : Control should focus on key result areas which are critical to the success of an organization.
Statement – II : Only significant deviations which go beyond the permissible limit should be brought to the notice of management.
With reference to the given statements, choose the correct alternative from the following :
Show Hint
- Both the statements are true.
- Both the statements are false.
- Statement I is true and Statement II is false.
- Statement I is false and Statement II is true.
The Correct Option is A
Solution and Explanation
Some areas of an organisation decide its success, such as sales, profit and quality. These are key result areas.
Control is most useful when it watches these areas closely, because a weak result here harms the whole business.
So Statement I is TRUE. This is the principle of critical point control.
Step 2: Statement II: Significant deviations:
A small deviation within the permissible limit does not need the attention of top managers.
Only the large deviations that cross the limit are reported to them. This saves their time and is called management by exception.
So Statement II is TRUE.
Step 3: Choose the option:
Both statements are true, so option (A) is correct.
(B) is wrong because both statements are true. (C) is wrong because Statement II is also true. (D) is wrong because Statement I is also true.
Final Answer:
Both the statements are true. The correct option is (A).
Top CBSE CLASS XII Business Studies Questions
What is the Planning Process?
- ................ is one of the most important attitudes of an entrepreneur, which is defined as the ability to continue to do something, even when it is difficult.
(A) Decisiveness
(B) Interpersonal skills
(C) Perseverance
(D) Taking initiative - Mention any four most common environmental barriers which an entrepreneur may face while running his/her venture.
- ____is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
‘Vishesh Constructions’, a construction company, decided to strictly implement ‘No Helmet, No Entry’ and put the following sign at their construction sites :
Identify the type of plan indicated by the above sign :
Top CBSE CLASS XII Controlling Questions
- Statement I : Controlling ensures that activities in an organization are performed as per the plans. Statement II : Controlling function of a manager is a pervasive function. Choose the correct option from the options given below :
Piyush is the Production Manager of a shoe company called . He has 1000 workers working under him in his department. Piyush booked a special order for 300 pairs of gents shoes at an estimated cost price of Comforty < 500 per pair plus 20 percent profit margin. The order is to be completed within 10 days. After completion of the order, Piyush found out that the production cost of one pair of shoes was 600 Rupees. He tried to find out the reason but couldn't. He reported it to the Chief Executive Officer. The Chief Executive Officer appointed Abhay to find out the cause. Abhay was not only a specialized Cost Accountant, but also a qualified Human Resource Manager. After two days, Abhay reported that the set targets could be completed with the help of only 800 workers, which revealed that there was overmanning in the organization. The organization was not utilizing the human resources optimally, which had led to higher labour cost. The above case highlights one of the points of importance of an important function of management.
(i) Identify the function of management.
(ii) State any two points of importance of the function of management identified in part (i), except the one discussed in the above case.- is the step in the controlling process where standards may have to be revised in case the deviation cannot be corrected through managerial action.
- ‘Planning and controlling are inseparable twins of management’. Explain with the help of any three points.
- Which of the following is not a protective function of Securities and Exchange Board of India?
Top CBSE CLASS XII Questions
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