Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Which of the following is not a limitation of controlling ?

Options:

Costly affair

Restriction in Managerial development

Little control on external factors

Difficulty in setting qualitative standards

Correct Answer:

Restriction in Managerial development

Explanation:

The correct answer is option (2) : Restriction in Managerial development

Limitations of Controlling

(a) Difficulty in setting Quantitative Standards - It becomes very difficult to compare the actual performance with the predetermined standards, if these standards are not expressed in quantitative terms. This is especially so in areas of job satisfaction, human behavior an employee morale.

(b) No control on External Factors - An organization fails to have control on external factor like technological changes, competition, government policies, and changes in taste of consumers etc.

(c) Resistance from Employees - Often employees resist the control systems since they consider them as curbs on their freedom. For example surveillance through closed circuit television (CCTV).

(d) Costly Affair - Controlling involves a lot of of expenditure, time and effort, thus a costly affair. Managers are required to ensure that the cost involved in installing and operating a control system should not be more than the benefits expected from it.