Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Read the following passage and answer the question.

XYZ Ltd. is a large company engaged in assembly of room-heaters. Recently the company had conducted the various studies and concluded that on an average a worker can assemble 25 room heaters in a day. The target volume of the company in a day is assembling of 2,500 units of room-heaters. However, the assembly of room heaters per day is 2,000 units only. To find out the reason, the company compared actual performance of each worker and observed that some of the workers were busy in gossiping. The company decided to keep a close check on the activities of the workers to minimise the dishonest and unethical behaviour as the part of workers.

Which of the following is a limitation of controlling function?

Options:

Costly

Little control on govt policy

Resistance from employees

All of these

Correct Answer:

All of these

Explanation:

The correct answer is option 4- All of these.

All of these are limitation of controlling function of management.

Little control on external factors: Generally an enterprise cannot control external factors such as government policies, technological changes, competition etc.

Resistance from employees: 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).

Costly affair: 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.