The correct answer is option (3)- B and D only.
The limitations of controlling from the given statements are B. More cost is involved and D. No control on external factors.
- Costly affair: Control is a costly affair as it involves a lot of expenditure, time and effort. A small enterprise cannot afford to install an expensive control system. It cannot justify the expenses involved. Managers must ensure that the costs of installing and operating a control system should not exceed the benefits derived from it.
- Little control on external factors: Generally an enterprise cannot control external factors such as government policies, technological changes, competition etc.
OTHER OPTIONS
A. Ensuring order and discipline, C. Organisational goals can be acquired and E. Improves employee motivation are the advantages of controlling.
- Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities.
- 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 give better performance.
- 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 organisation and keeps it on the right track so that organisational goals might be achieved.
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