Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Identify which of the following is not the limitation of controlling from the given statements?

Options:

Resistance from employees

Little control on external factors

Costly affair

Ensuring order and discipline

Correct Answer:

Ensuring order and discipline

Explanation:

The correct answer is Option 4 - Ensuring order and discipline.

Ensuring order and discipline is not the limitation of controlling. It is the importance 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.

 

Controlling suffers from the following limitations-

(i) Difficulty in setting quantitative standards: Control system loses some of its effectiveness when standards cannot be defined in quantitative terms. This makes measurement of performance and their comparison with standards a difficult task. Employee morale, job satisfaction and human behaviour are such areas where this problem might arise.

(ii) Little control on external factors: Generally an enterprise cannot control external factors such as government policies, technological changes, competition etc.

(iii) Resistance from employees: Control is often resisted by employees. They see it as a restriction on their freedom. For instance, employees might object when they are kept under a strict watch with the help of Closed Circuit Televisions (CCTVs).

(iv) 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.