Managers at a New York City import-export company suspected that two employees were robbing it. Corporate Defense Strategies (CDS) of Maywood, New Jersey, advised the firm to install a software program that could secretly log every single stroke of the suspects’ computer keys and send an encrypted e-mail report to CDS. Investigators revealed that the two employees were deleting orders from the corporate books after processing them, pocketing the revenues, and building their own company from within. The programme picked up on their plan to return to the office late one night to steal a large shipment of electronics. Police hid in the rafters of the firm’s warehouse, and when the suspects entered, they were arrested. The pair was charged with embezzling $3 million over two and a half years, a sizable amount of revenue for a $25 million-a-year firm.

Although controlling is an important function of management, it suffers from various limitations. According to you, which of the following is NOT a limitation of "Controlling"?

1. Control system losses its effectiveness when standards cannot be defined in quantitative terms. 
2. Generally, an enterprise cannot control the internal factors such as government policies, technological changes, competition etc.
3. Control is often welcomed by the employees as it increases the efficiency of the organization.
4. Control is a costly affair as it involves a lot of expenditure, time and effort.

2 and 3

The correct answer is Option 2:  2 and 3 statements are wrong

Statement 1: Control system losses its effectiveness when standards cannot be defined in quantitative terms.This is correct. This makes measurement of performance and their comparison with standards a difficult task. Employee morale, job satisfaction and human behavior are such areas where this problem might arise.

Statement 2 :Generally, an enterprise cannot control the internal factors such as government policies, technological changes, competition etc. This is incorrect. Government policies, technological advancements, and market competition are examples of external factors (and NOT internal Factors as mentioned in the statement) that can significantly impact an organization's operations and outcomes. 

Statement 3: Control is often welcomed by the employees as it increases the efficiency of the organization. This is incorrect.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).

Statement 4: Control is a costly affair as it involves a lot of expenditure, time and effort. This is correct. This statement highlights one of the limitations of controlling, which is the cost associated with implementing control measures. Controlling requires investment in resources such as technology, personnel, training, and infrastructure to establish and maintain effective control systems. Additionally, monitoring and evaluating performance, gathering data, and taking corrective actions can be time-consuming and require significant effort from management and employees.

"Following are the limitations 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 behavior are such areas where this problem might arise. 
• Generally, an enterprise cannot control external factors such as government policies, technological changes competition etc.
• 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).
• 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."