“It is neither economical nor easy to keep a check on each and every activity in an organisation”. Thus control should focus on key result areas that are vital for the success of an organisation.
The above para indicates towards:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Critical Point Control
Option (1) Management by exception — Incorrect. It says that only big deviations from the standard should be reported to the manager. It is about the size of the deviation, not about key result areas.
Option (2) Critical Point Control — Correct. A manager cannot check every activity; it costs too much and is not easy. So control should focus on key result areas (KRAs), which are vital for the success of the organisation. These KRAs are the critical points. If anything goes wrong there, the whole organisation suffers.
Option (3) PERT — Incorrect. PERT is a technique for planning and scheduling the activities of a project. It is not the idea in the para.
Option (4) Taking corrective action — Incorrect. This is the last step of controlling, where the causes of deviations are removed.
NCERT (2026-27 Edition): “1. Critical Point Control: It is neither economical nor easy to keep a check on each and every activity in an organisation. Control should, therefore, focus on key result areas (KRAs) which are critical to the success of an organisation. These KRAs are set as the critical points. If anything goes wrong at the critical points, the entire organisation suffers. …” “2. Management by Exception: Management by exception, which is often referred to as control by exception, is an important principle of management control based on the belief that an attempt to control everything results in controlling nothing. Thus, only significant deviations which go beyond the permissible limit should be brought to the notice of management. …” |