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Home/Practice questions/Business Studies
Business StudiesControlling

Which of the following is NOT an importance of controlling function?

Which of the following is NOT an importance of controlling function?

Answer & explanation+

Correct answer: option 2

The correct answer is Option (2) → It initiates the process of management

Option (1) It ensures order and discipline — An importance of controlling. A close check on employees’ activities cuts down dishonest behaviour.

Option (2) It initiates the process of management — Not an importance of controlling. Planning starts the process of management, and controlling completes it. Its corrective action feeds into the next plans, so it brings the cycle back to planning.

Option (3) It helps in judging accuracy of standards — An importance of controlling. Control checks whether the standards set are accurate and objective.

Option (4) It improves employee motivation — An importance of controlling. Employees know in advance what is expected of them, which motivates them.

NCERT (2026-27 Edition): “Meaning of Controlling … Controlling should not be misunderstood as the last function of management. It is a function that brings back the management cycle back to the planning function. The controlling function finds out how far actual performance deviates from standards, analyses the causes of such deviations and attempts to take corrective actions based on the same. This process helps in formulation of future plans in the light of the problems that were identified and, thus, helps in better planning in the future periods. Thus, controlling only completes one cycle of management process and improves planning in the next cycle.”

“Summary … • Planning and controlling are inseparable twins of management. Planning initiates the process of management and controlling completes the process. Plans are the basis of control and without control the best laid plans may go astray.”

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