1. Explain the relation between planning and controlling.
Ans :-

• Planning refers to a systematic and intellectual programme to achieve objectives.
• Planning clarifies the goals behind future activities.
• It is also an Outline or Plan of which activities are to be undertaken, when and in low much time they are to be completed and for that what resources are required so that goals can be achieved.
• Control is a process to monitor whether business activities are carried out according to the plan, set standards and given instructions; and if deviations are found, then corrective actions are taken.
• Whenever there is planning there is controlling and conversely (vice-versa) whenever there is controlling planning pre-exists.
• Thus planning and controlling are interrelated.

2.‘Planning and controlling are two sides of the same coin’ – Explain.
Ans :-

• Planning and Controlling are two very important and interdependent functions of the management process.
• The success of planning depends on controlling.
• Controlling finds out the deviations, takes necessary corrective action and also takes business activities in the right direction.
• Controlling is also not possible without planning.
• This is because, through controlling, it can be ascertained whether the objectives of planning are achieved or not.
• So where there is no planning, there is no need of controlling.
• Thus planning and controlling are two sides of the same coin.

3.‘Controlling is not a negative function.’ – Justify the statement.
Ans :-

• Controlling is not a negative function because it does not create disturbance in any person’s work.
• The belief that controlling attacks the independence of employees to work; is wrong. Through controlling it is verified that employees are working as per planning or not and appropriate guidance is provided to employees.
• Controlling rectifies mistakes and takes steps so that mistakes are not repeated again.
• Thus, it can be said that controlling is not negative function but is positive or creative function.

4.Is controlling an end activity of management? Why?
Ans :-

• In the very beginning planning determines the objectives of the organization, for its effective implementation organization is created, staff is provided with appropriate guidance and direction.
• Then only function of controlling begins.
• Thus it is necessary that all the functions of management are executed before controlling.
• Controlling function is to control, which can only be executed after all the activities of organization has started.
• Thus, it can be said that controlling is the end activity of management.

5. Answer the following questions in detail :

1. Explain the characteristics of controlling giving its meaning.
Ans :-

• In ordinary sense, controlling means to decide the activities to be carried out. evaluate, the same and if required, take corrective measures so that they are done in conformity with plan.
• Planning determines objectives and controlling makes them effective.
• Control of an undertaking consists of ensuring that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given and the principles which have been laid down.
• Its objective is to point out the mistakes in order that they may be rectified and prevented from recurring. The implementation of control affects things, people and functions, and all other factors.
• According to Peter F. Drucker, “Controlling is to maintain a balance between efforts and results and between resources and objectives.”
• The main part of controlling is to see that functions are carried out according to predetermined standards and to regulate the activities.

Characteristics:

1. Related to Planning:

• Planning and control are like two sides of the same coin.
• Planning performs the function of making plans while controlling ensures that activities are carried out according to the plan.
• Planning and controlling are like twins.
• Controlling is impossible without planning.

2. Functions at every Level of Management:

• Controlling is performed at every level of management.
• It is not confined to one department or section.
• Managers control their subordinates at every level.
• The extent of control depends on the level of management.

3. Continuous Process:

• It is wrong to think that once control is exercised on the activities of the enterprise, work will always be done according to the plan.
• By keeping constant supervision over the activities of the personnel, constant efforts must be made to remove deviations.
• Quality control and cost control are important and constant activities.

4. It is an End Activity of Management:

• In the management process planning decides objectives, organizing implements them, directing gives direction for the same and after this, the function of control begins.
• It is essential that all managerial functions are performed before control is exercised.
• Thus the function of controlling is that of regulating which begins only after the activities get initiated.
• Thus control is the end activity of management.

5. Related to Future:

• Controlling is related to future. The manager has no control over past activities.
• But he can examine past activities and analyse them so that he can take benefit in future.
• The objective of control is to see that errors, wastage and losses which occurred in the past are not repeated.
• Controlling is thus related to improvements in future.

6. It is a Constructive Activity:

• Controlling is generally regarded as an attack on workers freedom. In fact this belief is incorrect.
• The function of control is to see that workers work as per the planning and that they are guided properly.
• Thus, controlling is not a negative, but a positive activity.
  ->Controlling rectifies mistakes and takes steps to ensure that mistakes are not repeated. Thus it is a constructive activity.

7. Internal Process:

• Controlling is an internal process.
• Various activities of the business enterprise like production, sales, purchase, financial matters, financial accounts and working method of employees etc. are an integral part of the control system.
• Due to these various activities, it becomes possible to have control over the business.

Whereas, external factors like change in government policy, depression, inflation, changes in the psychology of people etc. cannot be controlled.

8. Dynamic Process:

• The process of control is related to planning.
• It is an intellectual process based on planning and foresight.
• As the assumptions of different factors change, the goals of planning change and accordingly, fast changes are made in the controlling process.

9. Controlling is a Person-Oriented or Subjective Activity:

• It is done for the improvement of the activities of workers, by the workers and for the workers.
• The person is at the centre of controlling.
• Controlling is exercised on workers by workers (managers).
• Every activity is performed ultimately by the person.
• The errors and deviations are also due to human weaknesses.
• That is why we can say that control is very much person-oriented or subjective.

10. Controlling can be formal or informal:

• Controlling is an extremely important function.
• In an organization, what to control, how to control and who will control what is defined very systematically and scientifically.
• During the actual processes, it is quite likely that the format of control might need on-site change. So, many a times, the format of controlling becomes informal and the changes are brought stepping aside from the format.

2.Explain the importance of controlling.
Ans :-

• Controlling is an important management.
• Controlling is necessary tot stage of managnt of managerial objectives.
• Controlling does the work the achievement of mi the activities of the enterprise are being carried out in accordancerifying whether allch has been adopted, the orders which have been given and the principles which have been laid down.
• The main objective of controlling isciples which haver ser short comings of the past and stop their recurrence.

1. Helpful in the Achievement of Objectives:

• Controlling finds out errors in the enterprise and takes corrective measures.
• As a result achievement of objectives becomes easy as all activities are performed according to a plan.

2. Control on Activities:

• Various activities of an undertaking and functional areas like
  organizations,production, sales, employees, financial and quality aspects etc. can be controlled.

3. Makes Planning Effective:

• According to an expert, planning lays down the path and controllinghelps to find the deviations (mistakes/errors) and improve them.
• Thus due to controlling, achievement of objectives is possible and planning becomes successful.

4. Co-ordination between various Activities:

• Controlling is helpful in coordinating various activities of the business enterprise.
• It is only because of control that co-ordination is possible.

5. Evaluation of Activities:

• The activities are compared with pre-determined standards and evaluated.

6. Removes Deviations:

• Controlling aims at taking corrective action.
• It examines the causes of deviation and then takes corrective measures so that deviations can be reduced.

7. Necessary for Delegation of Authority:

• Controlling is essential for the delegation of authority.
• After the work of delegation, it is the responsibility of the supervisor to supervise.
• He can delegate authority but not accountability (responsibility).

8. Find out Errors:

• Supervision and evaluation of activities of subordinates is necessary and this is done by controlling.
• Activities are observed by control.
• Controlling also helps to find out errors, difficulties, defects and deviations and remove them so that they are not repeated in future.

9. Long Term Planning:

• Controlling helps to make long term plans.
• On this basis of the information which is gathered about present organizational activities, control can be used to make long term assumptions.

10. Helpful in Directing:

• Controlling simplifies directing.
• It supervises the personnel, gives guidance and direction in their difficulties, so that activities are performed as planned.

11. Barometer of Efficiency:

• In business enterprise if control is exercised efficiently, management becomes more efficient.
• So controlling is called the barometer of efficiency of management.

3.Explain in detail the various stages of the controlling process.

Ans :-
The stages of the Controlling Process:

• Controlling is a universal and continuous process.
• Each business enterprise has its own specialties.
• So controlling process cannot be the same for all organizations.
• Still there are certain common stages of controlling mechanism which as follows

1. Setting Standards:

• Controlling process starts with the establishment of standards.
• Standards are measures of efficiency.
• In this the actual performance is compared and evaluated.
• The basis of controlling is pre-determined standards.
• Controlling sees to it whether activities are carried out in the organization according to these set standards or not. These standards can be qualitative or quantitative.
• The standards should be such that they can be understood by those who have to achieve them.
• The standards include physical, cost price, income, capital etc.
• Over and above this, standards can be profit targets, production targets, cost targets etc. standards may be long term or short term.
• Standard are decided at the top level mangement. Employee and subordinates are informed about the same.
• The employees then plan their work according to the given targets and they constantly strive to maintain these standards.

2. Gathering of Information:

• At this stage, information is gathered about the work done and the actual situation.
• Information is gathered by gathered about the work deports and written reports.

3. Measuring Performance:

• Performance is to be measured to find out whether activities have been undertaken according to set standards.
• Such a measurement can be qualitative or quantitative or both.

4. Comparison of Work done with Set Standard:

• At this stage of controlling, information about actual work done is sought of acquired.
• After that, it is compared with set standards.
• From this comparison it can be known whether the set standards have been achieved or not.

5. Corrective Measures:

• Corrective measures is the last stages in the controlling process. The activities are compared against set standards to find out deviations. If deviations are found out, necessary corrective measures can be taken.

Any of the following three measures can be taken.

(1) No Change in the Condition:

• No corrective measures is to be taken when deviations are found to be normal or acceptable, as compared to set standards means there is no change in the condition.

(2) Change the Condition to Remove Deviation:

• If deviation from actual performance is more when compared to set standards, such deviations are to be examined and necessary corrective measure is to be taken.

(3) Change the Condition and Establish Fresh (New) Standards:

• When the established standards are not attained continuously, it means they are extraordinarily high and a change has become essential.
• In such a situation fresh or new standards are to be set by making required changes.
• Likewise when better results as compared to the established standards are continuously obtained, the set standards are changed and new higher standards are set.
• The function of control is not only to find out deviations but also to take organizational activities towards the achievement of objectives. So controlling is a constructive process.