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CSEET · Business Laws and Management · Introduction to Management

Consider these statements about the controlling function. Statement I: Controlling involves comparing actual performance with the standards set. Statement II: Controlling is needed only when performance falls below expectations, and is not required when targets are met. Which is correct?

Only Statement I is correct. Controlling means comparing actual performance with standards and taking corrective action. It is a continuous activity carried out even when targets are met, so the claim that it is needed only for poor performance is wrong.

  1. ABoth statements are correct
  2. BOnly Statement I is correctCorrect
  3. COnly Statement II is correct
  4. DNeither statement is correct

Explanation

Controlling is a continuous process of setting standards, measuring actual performance, comparing and taking corrective action. It is not limited to periods of poor performance, since even good results must be measured against standards. Statement II is therefore wrong.

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