NCERT Solutions For Class 12 Business Studies Chapter 8 Controlling - 2025-26

```html 1. Explain the meaning of controlling.
Controlling means making sure that all activities in an organization happen as planned. It is about checking performance against set goals and making changes when there are differences.

2. ‘Planning is looking ahead and controlling is looking back’. Comment.
Planning sets future goals and actions, while controlling checks past performance against those plans to ensure everything happens as intended.

3. ‘An effort to control everything may end up in controlling nothing’. Explain.
Trying to monitor every activity can be overwhelming, making it hard to focus. It's better to control only the most important activities for real results.

4. Write a short note on budgetary control as a technique of managerial control.
Budgetary control involves making budgets to plan and control business operations. It helps managers compare actual results with budgeted targets and take action if needed.

5. Explain how management audit serves as an effective technique of controlling.
Summary: Management audit evaluates how well managers are performing and helps the organization spot problems to improve efficiency.
- Management audit looks at all functions done by managers in the organization.
- It helps find current and possible performance gaps.
- Corrective actions can be taken quickly when issues are spotted.
- Continuous monitoring through management audit leads to better efficiency.
- It also improves coordination among employees and departments, keeping everyone working together.

6. Explain the various steps involved in the process of control.
Summary: The controlling process involves setting standards, measuring results, finding gaps, and fixing them.
- Establishing Standards: Set benchmarks that performance will be compared against. Standards can be numbers like sales goals or qualitative things like teamwork.
- Measuring Actual Performance: Check real performance using reports, observations, or checks. This should be done accurately, during and after the task.
- Comparing Performance: Compare what really happened to the standards. This shows where things did not go as planned.
- Analyzing Deviations: Not all differences matter. Focus on important issues using ‘Critical Point Control’ and ‘Management by Exception’—fix what matters most.
- Find out why the deviations happened—maybe due to bad standards, mistakes, or changes outside the company.
- Corrective Actions: After identifying the causes, take action to get back on track.

7. Explain the techniques of managerial control.
Summary: Managerial control techniques are split into traditional and modern methods to check business performance.
Traditional Techniques:
- Personal Observation: The manager personally watches the work to get direct information but it can take a lot of time.
- Statistical Reports: Use data like charts and graphs to compare results with targets.
- Break-Even Analysis: Find out at what sales point the business makes no profit or loss. Helps plan costs and profits.
Modern Techniques:
- Return on Investment (ROI): Shows if money invested gives good returns.
- Ratio Analysis: Uses financial ratios to judge short-term safety (liquidity), long-term safety (solvency), how profitable, and how efficiently resources are used.
- Responsibility Accounting: Split the company into centers (cost, profit, revenue, investment) with heads responsible for results.
- Management Audit: Checks managers’ overall performance to find weaknesses.
- PERT/CPM: Network methods to plan tasks and timing, mostly for big projects.

8. Explain the importance of controlling in an organisation. What are the problems faced by the organisation in implementing an effective control system?
Summary: Controlling helps organizations reach their goals and use resources well, but there are challenges when applying it.
Importance:
- Controlling helps the organization achieve its set goals by identifying and correcting issues.
- It checks if the standards set by the company are correct and practical.
- Helps to use resources well, reducing waste.
- Motivates employees to meet standards since they know what is expected of them.
- Builds discipline and order, as employees know they are being observed.
- Improves teamwork by making everyone aware of their tasks.
Problems:
- It's hard to set standards when they are not numbers—qualitative standards are tricky to monitor.
- Outside factors like new laws or competition can affect control, even if the business does everything right.
- Sometimes, employees resist control if they feel standards are unrealistic or their freedom is being taken away.

9. Discuss the relationship between planning and controlling.
Planning and controlling are linked—planning sets the goals while controlling checks if those goals are met; both functions depend on each other.

10. For each item below, choose the behaviour that management must keep a check to ensure an efficient control system. You are also required to suggest to the management how the undesirable behaviour can be controlled.
Summary: Certain workplace behaviors need strict control, while others can be less strict; suggestions are given for improvement.
- Biased performance appraisals: Use an expert team for fair evaluations.
- Using company’s supplies for personal use: Can be ignored if not costly.
- Asking a person to violate company’s rules: Take strong action right away.
- Calling office to take a day off when one is sick: Avoid mass leaves.
- Overlooking boss’s error to prove loyalty: Use suggestion boxes for honest feedback.
- Claiming credit for someone else’s work: Keep records of who does what.
- Reporting a violation on noticing it: Minor issues can be ignored.
- Falsifying quality reports: Enforce strict quality control.
- Taking longer than necessary to do the job: Perform time and motion studies.
- Setting standards in consultation with workers: Not undesirable; it can help set practical standards.

11. Case Problem: A company ‘M’ limited is manufacturing mobile phones both for the domestic Indian market as well as for export. It had enjoyed a substantial market share and also had a loyal customer following. But lately it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction. Also the mobile market in India has grown tremendously and new players have come with better technology and pricing. This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing.

11.1 Identify the benefits the company will derive from a good control system.
A good control system helps the company achieve its goals, work more accurately, use resources well, keep workers motivated, and maintain order and discipline.

11.2 How can the company relate its planning with control in this line of business to ensure that its plans are actually implemented and targets attained.
Summary: Linking planning and control helps the company set realistic goals, track progress, and correct course as needed.
- Set clear and practical standards so it’s easy to compare results.
- Measure real performance using accurate methods like checks and reports.
- Compare performance regularly with the set standards.
- Analyze all performance gaps, focusing on critical issues first.
- Find the causes of failures, then take the right corrective steps.

11.3 Give the steps in the control process that the company should follow to remove the problems it is facing.
The company should set performance standards, measure real results, compare results with standards, and analyze any differences to fix problems.

11.4 What techniques of control can the company use? In all the answers keep in mind the sector of business the company is in.
Summary: The company can use methods like ROI and responsibility accounting for better control over its business.
- Return on Investment (ROI): Check if investments in the business give good returns and compare different departments’ results.
- Responsibility Accounting: Divide the company into cost, revenue, profit, and investment centers, assigning heads for each who are responsible for results.

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What You Will Understand from Controlling NCERT Solutions in Class 12 Business Studies

• Controlling checks if goals set during planning are actually achieved by the organization.
• You will learn important steps like setting standards, measuring results, and taking corrective action in real-life cases.
• Techniques from both traditional and modern controlling are explained with simple examples in these Controlling Class 12 NCERT Solutions.
• Controlling NCERT PDF covers why controlling is important, its problems, and how it helps with better teamwork and discipline.
• These controlling questions and answers for Class 12 help you score better and understand practical business management.

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