Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Which one of the following is NOT a limitation of controlling?

Options:

Controlling is a Costly affair

Controlling involves Resistance from employees

Controlling is Evaluative

There is little control on external environment

Correct Answer:

Controlling is Evaluative

Explanation:

The correct answer is option 3- Controlling is Evaluative.

Controlling checks whether decisions have been translated into desired action. Thus, controlling is evaluative. This is not a disadvantage.

Controlling is an important function of management, Controlling suffers from the following limitations-

(i) 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.

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

(iii) 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).

(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.