Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Which of the following is NOT a limitation of controlling?

Options:

Little control on external factors

Costly affair

Ensuring order & discipline

Difficulty in setting quantitative standards

Correct Answer:

Ensuring order & discipline

Explanation:

The correct answer is option 3- Ensuring order & discipline.

Ensuring order & discipline is a benefit of controlling.

Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities.

 

OTHER OPTIONS

  • Difficulty in setting quantitative standards: 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.
  • Little control on external factors: Generally an enterprise cannot control external factors such as government policies, technological changes, competition etc.
  • 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.