Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Passage:

Read the case given below and attempt the following questions

Anukriti, a III year B. Com student is very fond of home cooked food as her mother keeps experimenting with new tastes and varieties every now and then. Although the family is well off and reputed in society. her mother feels lack of recognition and self-respect for herself. The mother daughter duo decided to go ahead with their own start up and cater to various occasions like birthday parties, office events, festivities, food for elderly and patients and so on.

They assessed the number and type of human resources required and accordingly hired the calculated man-power for help from those introduced by their domestic help and some relatives. They ensured the quality standards for hygiene in kitchen, standardized the quality of vegetables, dry fruits and other raw materials to be purchased, made sure that the orders are delivered in time.

While Anukriti's mother took care of all cooking in Kitchen, she personally observed the helpers at work. Being a commerce student, Anukriti decided to take care of finances herself. She prepared budgets in terms of quality, time, cost of material, calculated a point with no profit, no loss to ensure earning of target profits.

As per the feedback received front customers, they improvised the dishes with lesser oil, spices, sugar.

As both of them were very understanding and positive towards feedback, their business grew well. Gradually, they trained their staff in cooking, packaging. inventory management. The employees are happy and satisfied as their basic remuneration and incentives are increased.

Anukriti's mother took care of all cooking in kitchen and personally observed the helpers at work. Identify the technique of controlling -

Options:

Statistical reports

Responsibility accounting

Personal Observation

Management Information System

Correct Answer:

Personal Observation

Explanation:
Personal Observation This is the most traditional method of control. Personal observation enables the manager to collect first hand information. It also creates a psychological pressure on the employees to perform well as they are aware that they are being observed personally on their job. However, it is a very time-consuming exercise and cannot effectively be used in all kinds of jobs.