Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Read the following passage and answer the question.

Raj is working on the post of manager in a big company of Pune. He has fixed standards for all the workers in his department. All the workers know the basis on which their future promotion will be done. For higher chances of promotion, they continue make efforts to give better performance. Raj personally observe the subordinates to evaluate the performance. When Raj was controlling his department, he was aware that controlling all the activities was neither easy nor economical. So, he focussed his attention only on the key result areas. After measurement of performance of all departments, his department performance turned out to be the best of all. The company honoured Raj for his good performance.

He was aware that controlling all the activities was neither easy nor economical. So, he focussed his attention only on the key result areas.

Which aspect is indicated in the given lines?

Options:

Management by Exception

Critical Point control

Critical Path method

Personal observation

Correct Answer:

Critical Point control

Explanation:

The correct answer is option 2- Critical Point control.

Critical Point control is indicated in the given lines.

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.