‘An effort to control everything may end up in controlling nothing.’ Explain.
● An attempt to control everything results in the control of nothing. This is with regard to the principle-Management by exception.
● According to this principle, everything cannot be controlled effectively. It is not possible to control all the activities in an organisation at the same time.
● Controlling focuses only on the key result areas. It means only those areas are controlled which are the the the critical points are dependent on the organisation.
● Instead of controlling each and every deviation in the performance, a permissible limit must be set.
● Only those deviations which go beyond this limit must be brought to the notice of the management.
● For example, A management has planned to earn a 5% profit on its annual sales.
● At the end of the year, the actual performance is compared with the planned performance.
● The profit is estimated to be a total of 4.5%. This is only a small deviation and should not be brought to the consideration of the management.
● However, if the deviation is of two percent, the management must resort to taking corrective actions, as this is a huge deviation from the planned performance.
Rate this question :
Write a short note on budgetary control as a technique of managerial control.NCERT - Business Studies Part-I
Give any two standards that can be used by a company to evaluate the performance of its Finance & Accounting department.NCERT - Business Studies Part-I
Mr.Arfaaz had been heading the production department of Write well Products Ltd., a firm manufacturing stationary items. The firm secured an export order that had to be completed on a priority basis and production targets were defined for all the employees. One of the workers, Mr.Bhanu Prasad, fell short of his daily production target by 10 units for two days consecutively. Mr.Arfaaz approached MsVasundhara, the CEO of the Company, to file a complaint against MrBhanu Prasad and requested her to terminate his services. Explain the principle of management control that MsVasundhara should consider while making her decision. (Hint: Management by exception).NCERT - Business Studies Part-I
Explain how management audit serves as an effective technique of control.NCERT - Business Studies Part-I
‘An effort to control everything may end up in controlling nothing.’ Explain.NCERT - Business Studies Part-I
Name the principle that a manager should consider while dealing with deviations effectively.NCERT - Business Studies Part-I