Match List-I with List-II:
| List-I (Concept) | List-II (Example) | ||
|---|---|---|---|
| (A) | Critical point control | (I) | In large organisations, certain pieces are checked at random for quality. |
| (B) | Management by exception | (II) | An increase of 5 per cent in labour cost may be more troublesome than a 15 per cent increase in postal charges. |
| (C) | Measurement of work during the performance | (III) | In an assembling task, each part produced is checked before assembling. |
| (D) | Sample checking | (IV) | If plans allow a 2 per cent rise in labour cost, only a rise beyond 2 per cent is brought to the notice of management. |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(II), (B)-(IV), (C)-(III), (D)-(I)
| List-I | List-II | Reason |
|---|---|---|
| (A) Critical point control | (II) An increase of 5 per cent in labour cost may be more troublesome than a 15 per cent increase in postal charges. | Labour cost is a key result area in a factory. So even a small rise there hurts the firm more than a large rise in a minor cost. |
| (B) Management by exception | (IV) If plans allow a 2 per cent rise in labour cost, only a rise beyond 2 per cent is brought to the notice of management. | Only deviations beyond the acceptable limit go to management. Small ones within the limit are left alone. |
| (C) Measurement of work during the performance | (III) In an assembling task, each part produced is checked before assembling. | The work is measured while it is going on, not after the task is complete. A faulty part is caught before it goes into the product. |
| (D) Sample checking | (I) In large organisations, certain pieces are checked at random for quality. | A large organisation cannot check every piece. So it checks some pieces picked at random. |
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. For instance, in a manufacturing organisation, an increase of 5 per cent in the labour cost may be more troublesome than a 15 per cent increase in postal charges.” “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. Thus, if the plans lay down 2 per cent increase in labour cost as an acceptable range of deviation in a manufacturing organisation, only increase in labour cost beyond 2 per cent should be brought to the notice of the management. …” “Step 2: Measurement of Actual Performance: … It is generally believed that measurement should be done after the task is completed. However, wherever possible, measurement of work should be done during the performance. For instance, in case of assembling task, each part produced should be checked before assembling. Similarly, in a manufacturing plant, levels of gas particles in the air could be continuously monitored for safety. Measurement of performance of an employee may require preparation of performance report by his superior. Measurement of a company’s performance may involve calculation of certain ratios like gross profit ratio, net profit ratio, return on investment, etc., at periodic intervals. Progress of work in certain operating areas like marketing may be measured by considering the number of units sold, increase in market share, etc., whereas, efficiency of production may be measured by counting the number of pieces produced and number of defective pieces in a batch. In small organisations, each piece produced may be checked to ensure that it conforms to quality specifications laid down for the product. However, this might not be possible in a large organisation. Thus, in large organisations, certain pieces are checked at random for quality. This is known as sample checking.” |