Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Identify which is not the importance of controlling?

Options:

Improving employee motivation

Judging accuracy of standards

Difficulty in setting standards

Making efficient use of resources

Correct Answer:

Difficulty in setting standards

Explanation:

The correct answer is option (3)- Difficulty in setting standards.

Difficulty in setting standards is  limitation of controlling.

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.

 

OTHER OPTIONS

  • 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.
  • Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes.
  • Making efficient use of resources: By exercising control, a manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with predetermined standards and norms. This ensures that resources are used in the most effective and efficient manner.