Match List-I with List-II
| List-I | List-II |
| (Controlling concepts) | (Explanation) |
| (A) Critical Point Control | (I) Significant deviations should only be brought to the notice of management |
| (B) Controlling | (II) Comparing Actual Performance with Standards. |
| (C) Management by Exception | (III) Focus on key result areas (KRAs) |
| (D) Deviation | (IV) Is a backward looking function as well as a forward looking function. |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
(A) Critical Point Control — this matches (III) Focus on key result areas (KRAs). A manager cannot watch everything, so he watches the few critical points, the key result areas, where a problem would hurt the whole organisation.
(B) Controlling — this matches (IV) Is a backward looking function as well as a forward looking function. It looks back to check past performance, and it looks forward, because what it finds is used to improve future plans.
(C) Management by Exception — this matches (I) Significant deviations should only be brought to the notice of management. Small deviations within the allowed range are left to subordinates, so managers deal only with the exceptions.
(D) Deviation — this matches (II) Comparing Actual Performance with Standards. A deviation is the gap that shows up when actual performance is compared with the standard.
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. …” “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. …” “Step 3: Comparing Actual Performance with Standards: … This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results. …” “Relationship between Planning and Controlling … Therefore, planning involves looking ahead and is called a forward-looking function. On the contrary, controlling is like a postmortem of past activities to find out deviations from the standards. In that sense, controlling is a backward-looking function. However, it should be understood that planning is guided by past experiences and the corrective action initiated by control function aims to improve future performance. Thus, planning and controlling are both backward-looking as well as a forward-looking function.” |