Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Read the following case study and attempt questions.

Mr Vinay is a Production Manager in a company. Being a Manager he seeks planned results from his subordinates so he sets the criteria against which the actual performance of subordinates will be measured. He also conveys these criteria to his subordinates. He knows that it is neither economical nor easy to keep a check on each and every activity. He also finds that if he tries to control everything it will result in controlling nothing After these two considerations, he gives the main focus of his effort on comparatively more important tasks and finally, he gets planned results.

"If he tries to control everything, it will result in controlling nothing".

Identify the point that is underlined in the above phrase.

Options:

Management by Exception

Talking Corrective Action

Comparing Actual Performance with Standards

Critical Point Control

Correct Answer:

Management by Exception

Explanation:

Management by exception, which is often referred to as control by exception, is an important principle of management control based on the belief that an attempt to control everything results in controlling nothing. Thus, only significant deviations that go beyond the permissible limit should be brought to the notice of management.