Sometimes controlling turns out to be a costly affair. In which case is this especially so?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → In case of small organisations
Control needs a lot of expenditure, time and effort. A small organisation cannot afford an expensive control system and cannot justify its expenses.
NCERT (2026-27 Edition): “(iv) 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. …” “Summary … • Controlling suffers from certain limitations also. An organisation has no control over external factors. The control system of an organisation may face resistance from its employees. Sometimes controlling turns out to be a costly affair, especially in case of small organisations. Moreover, it is not always possible for the management to set quantitative standards of performance in the absence of which controlling exercise loses some of its effectiveness.” |