Question

What is the primary purpose of 'Controlling' in an organization?

• A. To hire new employees
• B. To compare actual performance with standards
• C. To market products to consumers
• D. To formulate corporate strategy

Hint:

Controlling Process: \[ \text{Set Standards} \] \[ \text{Measure Performance} \] \[ \text{Compare} \] \[ \text{Correct Deviations} \]

Answer 1

The Correct Option is B

Concept: Controlling is the managerial function that ensures organizational activities are proceeding according to plan. It helps management identify deviations and take corrective actions whenever necessary.

Step 1: Understand the meaning of controlling.
Controlling involves:
• Setting performance standards
• Measuring actual performance
• Comparing actual performance with standards
• Taking corrective action

Step 2: Understand its importance.
Without controlling:
• Managers cannot know whether goals are being achieved.
• Errors may remain undetected.
• Resources may be wasted.
• Organizational efficiency may decline. Controlling ensures that plans are effectively implemented.

Step 3: Identify the primary purpose.
The central activity of controlling is the comparison between actual results and predetermined standards. If differences are found, corrective measures are taken. Therefore: \[ \boxed{\text{Actual Performance} \leftrightarrow \text{Standards}} \] is the essence of controlling.

Step 4: Write the conclusion.
The primary purpose of controlling is: \[ \boxed{\text{To compare actual performance with standards}} \] Hence, the correct answer is: \[ \boxed{\text{Option (B)}} \]