Case 01
CBSE BOARD 2024, Set 1
Mr. Sarthak, the Production Manager of 'Auto-Gear Ltd.', believes that a manager cannot check every single activity in the factory. He has instructed his supervisors to ignore minor deviations in the production process, such as a 2% increase in the defect rate of small bolts. However, he specifically told them that if the labor cost per unit increases by even 5%, it should be reported to him immediately. He believes that focusing on key areas that have a significant impact on the organizational goals is more important than checking every minor detail.
Identify and explain the two concepts of 'Analyzing Deviations' mentioned in the above case.
The two concepts are:
1. Critical Point Control (CPC): It focuses on Key Result Areas (KRAs) which are critical to the success of an organization. If anything goes wrong at these critical points, the entire organization suffers. (Example: 5% increase in labor cost).
2. Management by Exception (MBE): It is based on the belief that "an attempt to control everything results in controlling nothing." Only significant deviations which go beyond the permissible limit should be brought to the notice of management. (Example: Ignoring 2% defect rate).
1. Critical Point Control (CPC): It focuses on Key Result Areas (KRAs) which are critical to the success of an organization. If anything goes wrong at these critical points, the entire organization suffers. (Example: 5% increase in labor cost).
2. Management by Exception (MBE): It is based on the belief that "an attempt to control everything results in controlling nothing." Only significant deviations which go beyond the permissible limit should be brought to the notice of management. (Example: Ignoring 2% defect rate).
Case 02
CBSE BOARD 2023, Set 3
'Ganga Ltd.' is a reputed company. The Managing Director noticed that the production targets were not being met despite having the best technology. He appointed a consultant who found that the plans made by the top management were excellent, but there was no system to check whether these plans were actually being followed on the factory floor. The consultant suggested that "Planning is meaningless without controlling and controlling is blind without planning." He insisted that the company must establish benchmarks to measure performance.
Discuss the relationship between Planning and Controlling in light of the above case.
Planning and Controlling are inseparable and interdependent functions:
1. Planning provides standards for Controlling: Controlling is possible only when there are predetermined standards (benchmarks) provided by planning.
2. Planning is meaningless without Controlling: Without controlling, there is no way to ensure that the plans are being implemented or that objectives are being achieved.
3. Controlling is blind without Planning: If there are no plans or standards, a manager has nothing to compare actual performance with, and thus cannot find any deviations or take corrective action.
1. Planning provides standards for Controlling: Controlling is possible only when there are predetermined standards (benchmarks) provided by planning.
2. Planning is meaningless without Controlling: Without controlling, there is no way to ensure that the plans are being implemented or that objectives are being achieved.
3. Controlling is blind without Planning: If there are no plans or standards, a manager has nothing to compare actual performance with, and thus cannot find any deviations or take corrective action.
Case 03
CBSE BOARD 2022 (TERM 2)
Nitin is the HR manager of a garments factory. He set a target for each worker to stitch 10 shirts per day. At the end of the week, he reviewed the reports and found that while most workers met the target, three workers—Sunil, Ravi, and Aman—stitched only 6, 7, and 5 shirts respectively. Nitin talked to them and found that Sunil was new and needed more training, Ravi's machine was faulty, and Aman was frequently absent due to health issues. Nitin then provided a new machine to Ravi and sent Sunil for a 3-day training session.
Identify the management function discussed above. Also, list and explain the last three steps of this function followed by Nitin.
The management function is Controlling.
Last Three Steps:
1. Comparing actual performance with standards: Nitin compared the actual output (6, 7, 5 shirts) with the standard (10 shirts).
2. Analyzing deviations: Nitin investigated the reasons for the low output (new worker, faulty machine, health issues).
3. Taking corrective action: Nitin provided a new machine to Ravi and training to Sunil to fix the problems and bring performance back to the standard.
Last Three Steps:
1. Comparing actual performance with standards: Nitin compared the actual output (6, 7, 5 shirts) with the standard (10 shirts).
2. Analyzing deviations: Nitin investigated the reasons for the low output (new worker, faulty machine, health issues).
3. Taking corrective action: Nitin provided a new machine to Ravi and training to Sunil to fix the problems and bring performance back to the standard.
Case 04
CBSE SAMPLE PAPER 2024-25
The CEO of 'Bright-Light Ltd.' noticed that the electricity expenses of the factory increased by 15% in the last month. Initially, he was very angry and called the factory manager for an explanation. However, the manager showed him that while the electricity bill rose, the 'Direct Material Cost'—which is the most critical cost factor for their product—had actually decreased by 10%. He argued that in a large manufacturing setup, a slight increase in a non-critical expense like electricity is not as damaging as an increase in the cost of raw materials.
Identify the concept of controlling highlighted by the factory manager. State one advantage of this concept.
The concept is Critical Point Control (CPC).
Advantage: It helps the management to focus on Key Result Areas (KRAs) that have a major impact on the success of the business, rather than wasting time and energy on controlling minor or non-critical activities.
Advantage: It helps the management to focus on Key Result Areas (KRAs) that have a major impact on the success of the business, rather than wasting time and energy on controlling minor or non-critical activities.
Case 05
CBSE BOARD 2020, Set 2
The manager of 'Apex Furnitures' believes that controlling is the last function of management and it only looks at the past. He says, "Once the mistakes are made, they cannot be changed, so controlling is just about finding faults." However, his assistant manager disagrees and says that controlling also looks at the future and helps in making better plans for the next year. He believes that without the feedback provided by controlling, the company would repeat the same mistakes in every production cycle.
In light of the above discussion, explain why 'Controlling' is both a backward-looking and a forward-looking function.
1. Backward-looking: It is backward-looking because it evaluates past performance and compares it with the standards already set. It acts as a post-mortem of past activities to find deviations.
2. Forward-looking: It is forward-looking because the feedback and corrective actions derived from analyzing past deviations are used to improve future performance and making better plans for the future. It ensures that mistakes are not repeated.
2. Forward-looking: It is forward-looking because the feedback and corrective actions derived from analyzing past deviations are used to improve future performance and making better plans for the future. It ensures that mistakes are not repeated.
Case 06
PREDICTIVE
'Vibrant Paints Ltd.' is a large company with a global presence. The CEO, Ms. Meera, believes that controlling should not be used as a "tool of fear" for the employees. She has implemented a system where every employee participates in setting their own monthly targets in consultation with their supervisors. This way, the employees know exactly what is expected of them, and they work hard to achieve those standards. The company has seen a 20% increase in productivity since the introduction of this participative standard-setting system.
Identify the 'Importance of Controlling' highlighted in the above case. Also, state any other two points of importance of controlling.
The importance highlighted is Improving Employee Motivation. When employees know the standards in advance and participate in setting them, they feel motivated to perform better.
Other two points of importance:
1. Accomplishing Organizational Goals: It corrects deviations to keep the company on the path to its objectives.
2. Making Efficient Use of Resources: It reduces wastage and spoilage of resources by ensuring everything happens as per the plan.
Other two points of importance:
1. Accomplishing Organizational Goals: It corrects deviations to keep the company on the path to its objectives.
2. Making Efficient Use of Resources: It reduces wastage and spoilage of resources by ensuring everything happens as per the plan.
Case 07
CBSE BOARD 2021, Set 3
A textile company, 'Sagar Fabrics', has a policy that if the wastage of raw material is within 5% of the total input, it is considered normal and no action is taken. However, last month the wastage was found to be 12%. The Production Manager immediately called for an investigation. It was found that the quality of raw material supplied by a new vendor was sub-standard. The manager decided to terminate the contract with that vendor and return to the old supplier, even though their prices were slightly higher.
Identify and explain the concept of 'Analyzing Deviations' followed by the company. Name the final step of the controlling process taken by the manager.
The concept is Management by Exception (MBE).
Explanation: Under this concept, only significant deviations which go beyond the permissible limit (the 5% range in this case) are brought to the notice of management. Minor deviations are ignored to save time and focus on major problems.
Final Step: Taking Corrective Action. (Terminating the contract with the sub-standard vendor and switching back to the old supplier).
Explanation: Under this concept, only significant deviations which go beyond the permissible limit (the 5% range in this case) are brought to the notice of management. Minor deviations are ignored to save time and focus on major problems.
Final Step: Taking Corrective Action. (Terminating the contract with the sub-standard vendor and switching back to the old supplier).
Case 08
PREDICTIVE
'Gourmet Foods Ltd.' is a chain of bakeries. To ensure consistent quality, the owner, Mrs. Anita, has set very specific standards for the 'Baking Time' and 'Temperature' for each type of cake. She noticed that the actual baking time for chocolate cakes was taking 5 minutes longer than the standard 30 minutes. On investigation, it was found that the ovens had not been serviced for over a year, causing them to heat up slowly. Mrs. Anita immediately called for a maintenance team to service all the ovens in the bakery.
Identify the first and last steps of the controlling process mentioned in the case. Also, explain how controlling helps in 'Judging Accuracy of Standards.'
1. First Step: Setting Performance Standards (Setting 30 minutes and specific temperature for baking).
2. Last Step: Taking Corrective Action (Calling the maintenance team to service the ovens).
Judging Accuracy of Standards: An efficient control system helps in reviewing and revising the standards from time to time in light of changes in the business environment. If a standard is too high or too low, controlling helps managers recognize this and adjust it to make it realistic.
2. Last Step: Taking Corrective Action (Calling the maintenance team to service the ovens).
Judging Accuracy of Standards: An efficient control system helps in reviewing and revising the standards from time to time in light of changes in the business environment. If a standard is too high or too low, controlling helps managers recognize this and adjust it to make it realistic.
Case 09
CBSE BOARD 2019, Set 2
During the year-end review, the Finance Manager of 'Z-Tech Ltd.' found that the administrative expenses of the company had increased by 15%. However, he also observed that the company's 'Net Profit' had increased by 25% due to a massive surge in sales volume. He decided not to take any action regarding the rise in administrative costs. He told the CEO that as long as the "overall results" are positive and ahead of the targets, minor increases in operational costs can be managed.
Identify the 'Importance of Controlling' being discussed here. State any three limitations of controlling.
The importance highlighted is Accomplishing Organizational Goals.
Limitations of Controlling:
1. Difficulty in setting quantitative standards: It is hard to measure qualitative factors like employee morale or job satisfaction.
2. Little control on external factors: Factors like government policy or technology cannot be controlled by the company.
3. Resistance from employees: Employees often see controlling as a restriction on their freedom and may oppose it.
Limitations of Controlling:
1. Difficulty in setting quantitative standards: It is hard to measure qualitative factors like employee morale or job satisfaction.
2. Little control on external factors: Factors like government policy or technology cannot be controlled by the company.
3. Resistance from employees: Employees often see controlling as a restriction on their freedom and may oppose it.
Case 10
Mr. Vinay is the manager of a call center. He believes in maintaining high discipline in his office. He has installed a software that tracks the duration of every call taken by the employees. If an employee takes more than the standard 5 minutes to solve a customer's query, the system automatically marks it as a deviation. Vinay then reviews these calls to see if the delay was due to the employee's incompetence or the complexity of the customer's problem. This constant monitoring has ensured that the call center handles 20% more calls per day.
Identify the steps of the 'Controlling Process' highlighted in the case. Explain how controlling helps in 'Ensuring Order and Discipline.'
Steps Identified:
1. Measurement of Actual Performance: The software tracks the duration of every call.
2. Comparing actual performance with standards: The system marks calls exceeding 5 minutes as deviations.
3. Analyzing Deviations: Vinay reviews the calls to find the cause of the delay.
Ensuring Order and Discipline: Controlling creates an atmosphere of order and discipline in the organization by reducing dishonest behavior of employees. Constant monitoring makes employees aware that they are being observed, which minimizes errors and negligence.
1. Measurement of Actual Performance: The software tracks the duration of every call.
2. Comparing actual performance with standards: The system marks calls exceeding 5 minutes as deviations.
3. Analyzing Deviations: Vinay reviews the calls to find the cause of the delay.
Ensuring Order and Discipline: Controlling creates an atmosphere of order and discipline in the organization by reducing dishonest behavior of employees. Constant monitoring makes employees aware that they are being observed, which minimizes errors and negligence.
Case 11
CBSE BOARD 2021, Set 1
A global retail giant, 'Hyper-Mart', has a very sophisticated inventory control system. The software automatically places an order with the suppliers when the stock of a particular product falls below the "Minimum Level." However, during the festive season, the demand for electronics surged so quickly that the system could not keep up, leading to a "stock-out" situation. The management realized that their control system was too rigid and did not account for sudden external market shifts.
Identify the limitation of controlling highlighted in this case. Also, explain 'Measurement of Performance' as a step in the controlling process.
Limitation: Little control on external factors. The company could not control the sudden change in consumer demand during the festive season.
Measurement of Performance: It is the second step of the controlling process. Performance should be measured in an objective and reliable manner. There are several techniques for measurement like personal observation, sample checking, and performance reports. It should be measured in the same units as the standards to make comparison easy.
Measurement of Performance: It is the second step of the controlling process. Performance should be measured in an objective and reliable manner. There are several techniques for measurement like personal observation, sample checking, and performance reports. It should be measured in the same units as the standards to make comparison easy.
Case 12
PREDICTIVE
'Apex Logistics' provides delivery services across India. To maintain their promise of '24-hour delivery,' they use GPS tracking for all their trucks. The Dispatch Manager, Mr. Sahil, reviews the GPS logs every morning. He noticed that one particular driver, Ravi, was consistently taking a longer route to the destination. On questioning, Ravi explained that the standard short route was under repair for the last two weeks. Sahil then updated the 'Standard Route' in the system for all drivers until the repairs were completed.
Identify and explain the two 'Steps of Controlling Process' performed by Sahil. What role does 'feedback' play in this case?
Steps Identified:
1. Analyzing Deviations: Sahil questioned Ravi to find out *why* he was taking a longer route.
2. Taking Corrective Action: Sahil updated the 'Standard Route' in the system to reflect the current reality.
Role of Feedback: Feedback is the information derived from the controlling process. In this case, the feedback (Ravi's explanation about road repair) helped Sahil realize that the existing standard was unrealistic due to external changes. It led to the revision of plans, completing the cycle of planning and controlling.
1. Analyzing Deviations: Sahil questioned Ravi to find out *why* he was taking a longer route.
2. Taking Corrective Action: Sahil updated the 'Standard Route' in the system to reflect the current reality.
Role of Feedback: Feedback is the information derived from the controlling process. In this case, the feedback (Ravi's explanation about road repair) helped Sahil realize that the existing standard was unrealistic due to external changes. It led to the revision of plans, completing the cycle of planning and controlling.
Case 13
CBSE BOARD 2024, Set 2
'Modern Textiles Ltd.' has a highly automated production unit. The manager, Mr. Suresh, has set a standard that every machine should produce 500 meters of fabric per day with a maximum of 1% wastage. Last week, Machine No. 4 produced only 420 meters, and the wastage was 4%. Suresh investigated and found that the machine's cooling system was failing, causing it to shut down frequently. He immediately ordered a replacement part. He also noticed that Machine No. 2 produced 510 meters with 0.5% wastage, so he rewarded that operator with a 'Efficiency Bonus.'
Identify the management function performed by Suresh. Explain how this function helps in 'Improving Employee Motivation' and 'Ensuring Order and Discipline.'
The function is Controlling.
1. Improving Employee Motivation: A good control system ensures that employees know in advance what they are expected to do and what are the standards of performance. This helps them give better performance. In this case, rewarding the efficient operator with a bonus motivates others to meet standards.
2. Ensuring Order and Discipline: Controlling creates an atmosphere of order and discipline by keeping a close check on the activities of employees. it helps in reducing dishonest behavior and ensuring that everyone follows the planned path.
1. Improving Employee Motivation: A good control system ensures that employees know in advance what they are expected to do and what are the standards of performance. This helps them give better performance. In this case, rewarding the efficient operator with a bonus motivates others to meet standards.
2. Ensuring Order and Discipline: Controlling creates an atmosphere of order and discipline by keeping a close check on the activities of employees. it helps in reducing dishonest behavior and ensuring that everyone follows the planned path.
Case 14
CBSE BOARD 2023, Set 1
'Gopal Sweets' is a famous chain of sweet shops. The owner, Mr. Gopal, is very particular about the 'Taste' and 'Freshness' of the sweets. However, he finds it very difficult to set a "mathematical standard" for taste, as it varies from person to person. He often has arguments with his chefs because he feels the quality is dropping, but the chefs argue that they are following the same recipe. Gopal realized that while he can measure 'Sales Volume' and 'Cost of Milk' in numbers, measuring the "satisfaction" of a customer after eating a sweet is nearly impossible.
Identify the 'Limitation of Controlling' highlighted in the above case. Also, explain 'Setting Performance Standards' as the first step in the controlling process.
Limitation: Difficulty in setting quantitative standards. Control system loses its effectiveness when standards cannot be defined in terms of quantities (like taste, morale, or job satisfaction), making comparison difficult.
Setting Performance Standards: Standards are the benchmarks against which actual performance is measured. They serve as light-houses that guide managers. Standards can be set in both quantitative terms (like 10 units per hour) and qualitative terms (like improving customer service). They should be flexible enough to be modified in light of changes.
Setting Performance Standards: Standards are the benchmarks against which actual performance is measured. They serve as light-houses that guide managers. Standards can be set in both quantitative terms (like 10 units per hour) and qualitative terms (like improving customer service). They should be flexible enough to be modified in light of changes.
Case 15
PREDICTIVE
'Visionary Eye Care' is a chain of optical stores. The CEO noticed that sales were dropping. He made a plan to increase sales by 20% by offering a 'Buy 1 Get 1 Free' deal. However, at the end of the month, sales only increased by 5%. On checking, he found that the 'Place' element was weak; the stores didn't have enough stock of popular frames to meet the "Buy 1 Get 1" demand. He realized that his 'Planning' was great on paper, but his 'Controlling' failed to monitor the stock levels during the campaign, leading to the failure of the plan.
"Planning and Controlling are interdependent and interlinked." Justify this statement with reference to the case.
The case clearly shows the interdependence:
1. Planning is the base: The 20% sales target was the standard provided by planning. Without this target, the CEO would not have known that the 5% result was a failure.
2. Controlling ensures success: The failure happened because controlling did not monitor the stock levels (actual performance) against the needs of the plan.
3. Circular Nature: The information found during controlling (lack of stock) will now act as a 'feedback' for the next planning cycle, ensuring that enough stock is ordered in future campaigns. Thus, planning and controlling work in a continuous cycle.
1. Planning is the base: The 20% sales target was the standard provided by planning. Without this target, the CEO would not have known that the 5% result was a failure.
2. Controlling ensures success: The failure happened because controlling did not monitor the stock levels (actual performance) against the needs of the plan.
3. Circular Nature: The information found during controlling (lack of stock) will now act as a 'feedback' for the next planning cycle, ensuring that enough stock is ordered in future campaigns. Thus, planning and controlling work in a continuous cycle.
Case 16
CBSE BOARD 2021, Set 2
Mr. Shivam is the manager of a construction company. He noticed that the project was getting delayed by three weeks. On analysis, he found two main reasons: (i) The cement supplier delayed the delivery by two days due to a strike, and (ii) The site engineers were not following the blueprint correctly, leading to re-work. Shivam decided to ignore the delay caused by the supplier as it was a one-time external issue, but he took strict action against the site engineers and organized a technical workshop for them to prevent future errors.
Identify and explain the two principles of 'Analyzing Deviations' used by Shivam.
1. Management by Exception (MBE): Shivam ignored the 2-day delay from the supplier because it was a minor, one-time external deviation. MBE suggests that only significant deviations should be reported to management.
2. Critical Point Control (CPC): Shivam focused on the 'Site Engineers' errors' because correct execution of the blueprint is a Key Result Area (KRA) for construction. If the technical work is wrong, the entire building is at risk, so he focused his control efforts there.
2. Critical Point Control (CPC): Shivam focused on the 'Site Engineers' errors' because correct execution of the blueprint is a Key Result Area (KRA) for construction. If the technical work is wrong, the entire building is at risk, so he focused his control efforts there.
Case 17
CBSE SAMPLE PAPER 2024-25
A garment export house, 'Fashion-Forward Ltd.', has set a standard that the cost of production per t-shirt should not exceed Rs. 150. In April, the cost was Rs. 152; in May, it was Rs. 155; and in June, it reached Rs. 165. The manager was not worried in April and May, but in June, he immediately called a meeting to find the cause. He discovered that the price of electricity and thread had increased significantly. He decided to revise the 'Standard Cost' to Rs. 160 for the next quarter, as the old standard was no longer realistic.
Identify the steps of the controlling process mentioned in the case. Also, explain why 'taking corrective action' might sometimes involve 'revision of standards.'
Steps Identified:
1. Comparing Performance with Standards: Finding cost increased from 150 to 152, 155, 165.
2. Analyzing Deviations: Discovering the increase in electricity and thread prices.
3. Taking Corrective Action: Revising the standard to Rs. 160.
Revision of Standards: Corrective action is not always about fixing worker behavior. If the standard itself was set too low or becomes unrealistic due to external environmental changes (like rising raw material prices), then the standard must be revised upward to make it achievable and meaningful.
1. Comparing Performance with Standards: Finding cost increased from 150 to 152, 155, 165.
2. Analyzing Deviations: Discovering the increase in electricity and thread prices.
3. Taking Corrective Action: Revising the standard to Rs. 160.
Revision of Standards: Corrective action is not always about fixing worker behavior. If the standard itself was set too low or becomes unrealistic due to external environmental changes (like rising raw material prices), then the standard must be revised upward to make it achievable and meaningful.
Case 18
PREDICTIVE
'Quick-Service Logistics' provides courier services. The Operations Manager, Ms. Neha, found that the delivery time in the North Zone has increased by 10% over the last month. She analyzed the data and found that the increase was due to a new 'Safety Protocol' implemented for drivers to prevent accidents. Neha realized that while the delivery time had increased, the 'Accident Rate' had dropped to zero. She concluded that the 10% delay was an acceptable trade-off for the increased safety and decided to make the 10% extra time the 'New Standard.'
Identify the 'Importance of Controlling' and the 'Step of Controlling Process' highlighted here.
Importance: Judging Accuracy of Standards. Neha used the control system to realize that the old delivery standards were no longer accurate after the safety protocol was added.
Step of Process: Analyzing Deviations. She did not just see the 10% delay as a "failure" but investigated the *why* behind it and found it was actually a positive trade-off for zero accidents.
Step of Process: Analyzing Deviations. She did not just see the 10% delay as a "failure" but investigated the *why* behind it and found it was actually a positive trade-off for zero accidents.
Case 19
PREDICTIVE
A software development firm, 'Alpha-Code,' uses 'Budgetary Control' as a technique. The Finance Manager prepares a budget for every project, specifying the maximum hours of coding allowed and the cost of server space. Last month, for the 'E-Bank' project, the actual coding hours exceeded the budget by 200 hours. On investigation, it was found that the client requested three extra features mid-way. The manager approved the extra hours but insisted that the 'additional features' be billed to the client to cover the cost.
Define 'Budgetary Control.' Explain any two advantages of using 'Budgets' as a tool for controlling.
Budgetary Control: It is a technique of managerial control in which all operations are planned in advance in the form of budgets and actual results are compared with budgetary standards to find deviations.
Advantages:
1. Standards for Comparison: Budgets provide clear, numerical standards that make it very easy to measure actual performance and find deviations.
2. Coordination: Budgets help in coordinating different departments (like Finance and Production) because everyone knows the financial limits they must work within.
Advantages:
1. Standards for Comparison: Budgets provide clear, numerical standards that make it very easy to measure actual performance and find deviations.
2. Coordination: Budgets help in coordinating different departments (like Finance and Production) because everyone knows the financial limits they must work within.
Case 20
PREDICTIVE
Mr. Rahul is a manager who believes in "total control." He monitors the lunch timings of his employees, the number of tea breaks they take, and even the number of stationery items used daily. Last month, while he was busy checking why the canteen used 5 kg extra sugar, he failed to notice that his competitors had launched a new product that took away 15% of his market share. Rahul's superior scolded him, saying, "You are losing the forest for the trees."
Identify and explain the 'Principle of Controlling' that Rahul violated. What is the logic behind this principle?
Rahul violated Management by Exception (MBE).
Explanation: This principle suggests that a manager should focus only on significant deviations. Minor issues (like sugar consumption or tea breaks) should be handled by lower-level staff.
Logic: The logic is that "an attempt to control everything results in controlling nothing." If a manager spends time on petty matters, he will have no time to deal with major strategic issues (like market share loss) that actually determine the survival of the firm.
Explanation: This principle suggests that a manager should focus only on significant deviations. Minor issues (like sugar consumption or tea breaks) should be handled by lower-level staff.
Logic: The logic is that "an attempt to control everything results in controlling nothing." If a manager spends time on petty matters, he will have no time to deal with major strategic issues (like market share loss) that actually determine the survival of the firm.
Case 21
PREDICTIVE
In a manufacturing unit, the Production Manager, Mr. Tanmay, set a goal to reduce labor turnover by 10% in one year. He decided to measure this by checking the 'Exit Interview' records every month. In the first six months, he found that the turnover had actually increased by 5%. He analyzed the feedback from exit interviews and found that workers were unhappy with the 'Hot and Suffocating' environment on the shop floor. Tanmay immediately ordered the installation of a central ventilation system and high-speed fans.
Identify the steps of the 'Controlling Process' in this case. Also, mention the 'importance of controlling' that helps in 'making efficient use of resources.'
Steps Identified:
1. Setting standards: Reduce labor turnover by 10%.
2. Measurement: Checking exit interview records.
3. Analyzing deviations: Finding the 5% increase and identifying the 'environment' as the cause.
4. Taking corrective action: Installing ventilation system.
Efficient Use of Resources: By reducing labor turnover, controlling ensures that the company does not waste money on repeatedly recruiting and training new workers. It helps in utilizing 'Human Resources' to their full potential.
1. Setting standards: Reduce labor turnover by 10%.
2. Measurement: Checking exit interview records.
3. Analyzing deviations: Finding the 5% increase and identifying the 'environment' as the cause.
4. Taking corrective action: Installing ventilation system.
Efficient Use of Resources: By reducing labor turnover, controlling ensures that the company does not waste money on repeatedly recruiting and training new workers. It helps in utilizing 'Human Resources' to their full potential.
Case 22
PREDICTIVE
A large retail company, 'Big-Basket,' found that its 'Online App' was crashing frequently. The IT Manager, Mr. Rohit, found that the number of users had tripled in the last two days due to a flash sale. The server capacity (the standard) was only designed for 1 lakh users, but the actual users reached 3 lakhs. Rohit immediately upgraded the server to 'Cloud-based scaling' which automatically increases capacity when traffic spikes. This ensured that the app didn't crash again during the rest of the sale.
Identify and explain the 'Step of Controlling Process' that involves 'correcting the situation.' Also, list any three points of importance of controlling.
The step is Taking Corrective Action. It involves identifying the cause of the deviation and taking measures to bring actual performance in line with the standards or upgrading the system to handle new demands.
Importance of Controlling:
1. Accomplishing Organizational Goals.
2. Judging Accuracy of Standards.
3. Making Efficient Use of Resources.
Importance of Controlling:
1. Accomplishing Organizational Goals.
2. Judging Accuracy of Standards.
3. Making Efficient Use of Resources.
Case 23
PREDICTIVE
Mr. Aman is a very frustrated manager. He says, "I made the most perfect plan for the year 2025. I listed everything that should happen. But today, at the end of the year, my sales are 40% below target. My planning failed because it couldn't tell me *why* we were failing throughout the year." His mentor replied, "Your planning didn't fail, your management failed because you didn't look at the other twin. Planning alone is just a dream; it needs a companion to make it a reality."
In light of the above case, explain why "Planning is prescriptive and Controlling is evaluative."
Planning is Prescriptive: It is prescriptive because it tells the manager what to do, how to do it, and what goals are to be achieved. It is forward-looking and gives instructions for the future.
Controlling is Evaluative: It is evaluative because it checks whether the instructions given in planning are actually being followed. It evaluates actual performance against the plans and finds out where things went wrong.
In the case, Aman only prescribed (planned) but never evaluated (controlled), which is why he didn't know *why* he was failing until it was too late.
Controlling is Evaluative: It is evaluative because it checks whether the instructions given in planning are actually being followed. It evaluates actual performance against the plans and finds out where things went wrong.
In the case, Aman only prescribed (planned) but never evaluated (controlled), which is why he didn't know *why* he was failing until it was too late.
Case 24
PREDICTIVE
A boutique hotel, 'Royal Residency,' has a standard that every guest room must be cleaned within 20 minutes of the guest checking out. The Housekeeping Manager noticed that the average time had increased to 28 minutes. He found that the new 'eco-friendly' cleaning products they were using required more scrubbing time. However, he also noticed that the 'Guest Review Score' for cleanliness had increased from 4.2 to 4.9. He decided that the 8-minute delay was worth the higher customer satisfaction and updated the cleaning standard to 30 minutes.
Identify the 'Step of Controlling Process' and the 'Concept of Analyzing Deviations' mentioned. Also, explain how controlling helps in 'Accomplishing Organizational Goals.'
Step: Analyzing Deviations. The manager looked at the reasons for the 8-minute delay.
Concept: Critical Point Control (CPC). The manager realized that 'Customer Satisfaction' (KRA) is more critical to the hotel's success than 'Cleaning Speed.'
Accomplishing Organizational Goals: Controlling identifies deviations and initiates corrective action. This keeps the organizational behavior on track and ensures that the final result matches the desired objectives.
Concept: Critical Point Control (CPC). The manager realized that 'Customer Satisfaction' (KRA) is more critical to the hotel's success than 'Cleaning Speed.'
Accomplishing Organizational Goals: Controlling identifies deviations and initiates corrective action. This keeps the organizational behavior on track and ensures that the final result matches the desired objectives.
Case 25
PREDICTIVE(6 MARKS)
'Ganga Beverages' is a large organization. The management follows a systematic process to ensure everything works according to plan. First, they set a target to sell 1 million bottles per month. Second, they collect sales reports from every district at the end of the month. Third, they compare these reports with the 1 million target. If they find a gap, they sit with the sales team to find out if the gap is because of poor marketing, high price, or strong competition. Finally, they change their strategy to fix the gap.
Discuss the various steps of the 'Controlling Process' in detail as highlighted in the above case.
The steps are:
1. Setting Performance Standards: Setting the target of 1 million bottles per month.
2. Measurement of Actual Performance: Collecting sales reports from every district at the end of the month.
3. Comparing actual performance with standards: Finding the gap between the reports and the 1 million target.
4. Analyzing Deviations: Sitting with the team to identify the cause (price, competition, or marketing).
5. Taking Corrective Action: Changing the strategy to fix the gap and ensure the target is met in the future.
1. Setting Performance Standards: Setting the target of 1 million bottles per month.
2. Measurement of Actual Performance: Collecting sales reports from every district at the end of the month.
3. Comparing actual performance with standards: Finding the gap between the reports and the 1 million target.
4. Analyzing Deviations: Sitting with the team to identify the cause (price, competition, or marketing).
5. Taking Corrective Action: Changing the strategy to fix the gap and ensure the target is met in the future.
No comments:
Post a Comment