CBSE Class 12-commerce Business Studies Part I Controlling Process

Learn about the process of Controlling from the CBSE Class 12 Commerce Business Studies Part 1 syllabus chapter Controlling at TopperLearning. Refer to our revision notes, sample papers, video lessons, MCQs etc. to learn more about the topic.

Controlling is referred to as the process of evaluation of the work that is done. It is all about setting standards for the work and then comparing the actual work that is done with the standard. It ensures that all the activities in an organisation are performed as per the decided plan. Controlling is the process of systematic approach for managing activities in an organisation. It includes the following steps:

  1. Setting standards: This step involves setting standards and developing of benchmarks on the basis of which actual performance can be determined. Standards can be either qualitative or quantitative. 

  2. Measure actual performance: After setting standards, the next step is determining actual performance of the activities. These can be determined by observation and by obtaining data from performance reports.

  3. Comparing performances: This step involves comparing the actual performance with the standard. It helps determine the deviations which guide managers in assessing the performance and to take the necessary steps.

  4. Analysing deviation: When comparing actual performance with the set standards, there will be deviations. It is therefore important to find these deviations in the key areas. The methods most used are Critical Point Control and Management by Exception.

  5. Corrective measures: The management needs to take corrective actions when deviations go beyond admissible limits. This step is all about correcting the errors so that they do not recur. It is the last step that is taken in the process of controlling.

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