Skip to content
Controlling
Business Studies · Class 12 · Staffing, Directing and Controlling · 2.º Período

Controlling

Understand the nature and importance of controlling in an organization. Learn the steps in the controlling process and its relationship with planning.

TL;DR:Controlling is the process of monitoring organizational performance and taking corrective action to ensure that goals are met. It is the 'circular' link in management, as it looks back at the planning stage to see if the standards were achieved. For Class 12 students, this topic emphasizes that management is a continuous loop.

CBSE Learning OutcomesCBSE.BS.12.8.1CBSE.BS.12.8.2

About This Topic

Controlling is the process of monitoring organizational performance and taking corrective action to ensure that goals are met. It is the 'circular' link in management, as it looks back at the planning stage to see if the standards were achieved. For Class 12 students, this topic emphasizes that management is a continuous loop.

Students learn the steps of the controlling process: setting standards, measuring performance, comparing it with standards, analyzing deviations, and taking corrective action. This unit introduces sophisticated concepts like 'Management by Exception' and 'Critical Point Control,' which are essential for modern managers who cannot oversee every single detail. This topic comes alive when students can physically model the patterns of feedback and correction in a simulated production environment.

Key Questions

  1. What is the relationship between planning and controlling?
  2. How do managers establish standards for controlling?
  3. What are the steps involved in the controlling process?

Watch Out for These Misconceptions

Common MisconceptionControlling is a negative process used to punish employees.

What to Teach Instead

Controlling is a positive, goal-oriented process meant to improve future performance. Active discussion of 'Corrective Action' helps students see it as a way to help employees succeed.

Common MisconceptionManagers should control every single activity in the office.

What to Teach Instead

Trying to control everything leads to controlling nothing. Peer exercises on 'Management by Exception' help students understand that only significant deviations need attention.

Active Learning Ideas

See all activities

Frequently Asked Questions

What is 'Management by Exception'?
It is a technique where only significant deviations from the standards are brought to the attention of top management. This saves time and allows managers to focus on critical issues rather than routine problems.
How are Planning and Controlling interrelated?
Planning provides the standards for controlling, and controlling provides the data for future planning. Without planning, controlling is blind; without controlling, planning is useless. They are 'two sides of the same coin' in management.
What are 'Key Result Areas' (KRAs)?
KRAs are the critical points in an organization that have a significant impact on its success. For example, in a manufacturing firm, 'Production Cost' is a KRA, while 'Stationery Cost' is not.
What are the best hands-on strategies for teaching Controlling?
The best strategies involve 'Feedback Loop Simulations' and 'Data Analysis Workshops.' By giving students a set of performance data and asking them to identify which figures require immediate management intervention, they learn the logic of 'Critical Point Control.' This active approach helps students master the analytical skills required for the CBSE Business Studies paper.
Edited by Adriana Perusin, Editor-in-Chief, Flip Education