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MCQs on Controlling in Management

Few Points to remember

What is Controlling?
Controlling means ensuring that activities in an organization are performed as per the
plans. It ensures that an organisation’s resources are being used effectively and
efficiently for the achievement of suitable goals. It can be defined as comparison of
actual performance with the planned performance.

Features of Controlling
 Controlling is a goal oriented function
 Controlling is an all pervasive function
 Controlling is a continuous function
 Controlling is both a backward looking as well as forward looking function
 Controlling is a dynamic process
 Controlling is a positive process

Planning and controlling are interrelated and in fact reinforce each other in the
following manner:
 Planning is pre-requisite for controlling.
 Planning is meaningless without controlling.
 Effectiveness of planning can be measured with the help of controlling.
 Planning and controlling both are forward looking.
 Planning and controlling are both looking back.

Importance of Controlling
1. Controlling helps in achieving organizational goals
2. For Evaluating/Judging accuracy of standards
3. Making efficient use of resources
4. Improves employee’s motivation
5. Facilitating Coordination in action
6. Ensuring order and discipline

Limitations of Controlling
1. Little control on external factors
2. Resistance from employees
3. Costly affair
4. Difficulty in setting quantitative standards

1. The comparison of actual performance with the planned performance becomes

easier if the standards are set in ____________
a) Either of the above
b) Qualitative terms
c) Quantitative terms
d) None of these
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2. Which of the following is not a limitation of controlling?
a) Ensuring order and discipline
b) Difficulty in setting quantitative standards
c) Costly affairs
d) Little control on external factors

3. Controlling function finds out how far __________ deviates from standards.
a) Actual Performance
b) Corrective actions
c) Improvement
d) Cost

4. Identify the correct sequence of the steps involved in the controlling process.
a) Measurement of actual performance, Taking corrective action, Setting
performance standards, Comparison of actual performance with standards,
Analysing deviations

b) Taking corrective action, Measurement of actual performance, Comparison of

actual performance with standards, Analysing deviations, Setting performance
standards

c) Comparison of actual performance with standards, Setting performance

standards. Measurement of actual performance, Analysing deviations, Taking
corrective action

d) Setting performance standards, Measurement of actual performance,

Comparison of actual performance with standards, Analysing deviations, Taking
corrective action

5. Management by exception is controlling performance in key result areas.

a) Maybe
b) FALSE
c) TRUE
d) cannot be determined

6. Name the principle that a manager should consider while dealing with
deviations effectively.
a) All of these
b) Measurement of actual performance
c) Controlling
d) Management by Exception
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7. Which of the following statements does not highlight the relationship between
planning and controlling?
a) Planning and controlling are separable twins of management.
b) Planning is prescriptive, controlling is evaluative
c) Planning and controlling are interrelated and interdependent
d) Planning without controlling is meaningless, controlling without planning is
blind.

8. Control by action involves reporting of exceptional deviation between actual

performance and standard performance to top management.
a) Maybe
b) True
c) False
d) Cannot be determined

Explanation
Management by exception involves such reporting

9. Deviations are said to be positive in nature when

a) Actual performance is more than the planned performance
b) Both planned and actual perfirance are same
c) Planned performance is more than the actual performance
d) None of the above

10. When the deviations between the actual performance and the planned
performance are within the limits____________
a) A limited corrective action is required
b) A mojor corrective action is required
c) None of the above
d) No corrective action is required

11. Controlling function brings the management cycle back to the ____________
a) Organising function
b) Planning function
c) Directing function
d) None of the above

12. What is the full form of DCS ?

a) Divisional Central system
b) Departure control System
c) Department Control System
d) Department Central System
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13. Which of the following is a traditional technique of managerial control?
a) Breakeven analysis
b) Personal Observation
c) Budgetary control
d) All of the above

14. Which one of the following is not a feature of controlling?

a) Keeping employees busy
b) Action-oriented
c) Continuous process
d) Pervasive function

15. Which term is used to indicate the difference between standard performance
and actual performance?
a) None of these
b) Deviation
c) Quality Assurance
d) Measurements

16. Write the full form of PERT :-

a) Programme Evaluation And Review Technique
b) Performance Evaluation Report Technique
c) None of these
d) Personnel Enquiry Retrieving Technique

17. Planning is theoretical whereas controlling is practical.

a) TRUE
b) Maybe
c) Cannot say
d) FALSE

18. ____ are the criteria against which actual performance would be measured.
a) Analysing Deviations
b) Measurement of Actual Performance
c) Standards
d) Corrective Actions
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19. In an artificial plants manufacturing unit, the standard output set for a worker
is 50 units per day. Dinesh produces 48 units in one day. In the given case, the
value of deviation is
a) 2
b) -2
c) 98
d) None of the above

20. It’s the process of making sure that things go as planned.

(a) Planning
(b) Controlling
(c) Planning
(d) Directing

21. Which of the following is not a necessary feature of the controlling?

(a) It maintains order and discipline
(b) It prevents action coordination.
(c) It aids in the evaluation of standard accuracy.
(d) It boosts worker motivation.

22. The function of controlling is performed by-

(a) Senior management
(b) Management at the lower levels
(c) Management at the middle level
(d) All of the above

23. The controlling function returns the management cycle to the

(a) organising
(b) directing
(c) planning
(d) none of the above functions.

24. When deviations are good in nature, they are referred to as deviations-
(a) Expected performance exceeds actual performance
(b) Expected performance exceeds actual performance
(c) Both expected and actual performances are the same
(d) None of the above

25. Which of the following claims about the controlling function is correct?
(a) It is a function that looks ahead.
(b) Is a function that looks backward.
(c) Both (a) and (b)
(d) None of the above
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26. Which of the following is an actual performance measurement technique?
(a) Random sampling
(b) Personal observation
(c) Performance reports
(d) All of the above

27. When standards are established, comparing actual performance to intended

performance becomes easier –
(a) Qualitative terms
(b) Quantitative terms
(c) Either of the above
(d) None of the preceding

28. The Concept of Control Management is built on the idea that attempting to
control everything would likely result in controlling nothing –
(a) Critical point control
(b) Key result ideas
(c) Management by exception
(d) Deviations

29. The requirement for the controlling function could be seen in –

(a) Business organisation
(b) Political organisation
(c) Social organisation
(d) All of the above

30. Controlling is said to as a backward-looking function since it –

(a) concerns future actions.
(b) It’s similar to a post-mortem on previous events.
(c) It seeks to improve future performance by determining deviance.
(d) Every single one of the preceding

31. Determine which phase of the controlling process applies in the following
example. Management in a company is attempting to determine the difference
between the actual number of goods produced and the desired quantity. He is
already familiar with the standard because he has been assigned a specific
number of goods to create by the corporation.

(a) Setting standards

(b) Measurement of actual performance
(c) Analysing deviations
(d) Comparing actual and standard performance
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32. Some personnel have been tasked with judging the output of production in a
fair and consistent manner. They are employing a variety of methods to achieve
this goal. Personal observation, sample checking, and so on are examples of this.
They’re also sticking to the same measurement units as the established
standards. Determine which phase of the controlling process applies in the
example.

(a) Taking corrective action

(b) Analyzing deviations
(c) Measurement of actual performance
(d) Comparing actual and standard performance

33 . Controlling function of an organization is

a) Backward looking
b) Forward looking
c) Both [a] and [b]
d) None of the above

Explanation:
It will be unwise to assume that controlling is backward looking.

34. Controlling function of management cannot be performed without

[A]. Planning
[B]. Delegation
[C]. Suspension
[D]. Communication

Explanation:
Planning provides the basis for controlling.

35. An efficient control system has the following advantages

[A]. Judges accuracy of standards
[B]. Accomplishes organizational objectives
[C]. Boosts employee morale
[D]. All of the above

36. While of the following is not a feature of controlling?

[A]. Controlling is a continuous process.
[B]. Controlling is goal oriented.
[C]. Controlling is a negative process
[D]. Controlling is backward looking

Explanation:
Controlling is both forward looking and backward looking.
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37. Controlling is performed at
[A]. Top level
[B]. Middle level
[C]. Lower level
[D]. All levels

Explanation:
Controlling is basically a measure of putting managers and the workers on the right
track. Hence, it is required at all levels.

38.In controlling actual performance is compared with

[A]. Average performance
[B]. Standard performance
[C]. Performance of other companies
[D]. Performance of co-workers

Explanation:
The basic definition of controlling spells out this fact.

39.An effort to control everything may end up at controlling nothing. This

statement is
[A]. True
[B]. False
[C]. Partially true
[D]. Never true

Explanation:
This is called controlling at strategic point.

40. An effort to control everything may end up at controlling nothing. This

statement suggests
[A]. Critical point control
[B]. Management by exception
[C]. Dictatorship
[D]. Laissez- faire

Explanation:
Only exceptional deviation should be drop to the notice of the management.

41. Which function is the end of management cycle.

[A]. Planning
[B]. Controlling
[C]. Directing
[D]. None of the above

Explanation:
The management cycle is continuous process.
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42.Controlling is preceded by ………. function and succeeded by ……….. function.
[A]. Planning , directing
[B]. Planning, supervision
[C]. Planning, follow up
[D]. Planning, planning

Explanation:
Planning precedes and succeeds controlling because these are continuous functions.

43.Controlling is a …… activity.
[A]. One time
[B]. Full- time
[C]. Continuous
[D]. None of the Above

Explanation:
After accomplishment of tasks, deviations are noticed and suitable corrective action
taken and again new plans are prepared.

44.Controlling is like post- mortem of events. This statement is often said

because
[A]. We have to look into the past to find deviations
[B]. We have to think of the future
[C]. Both [a] and [b]
[D]. Controlling is related to planning

Explanation:
Post – mortem means finding the reason for death and assessing the possible reason.
So is controlling.

45. Once controlling is done, managers can sit back and need not supervise the
workers.
[A]. True
[B]. False
[C]. Partially true
[D]. None of the above

Explanation:
It is because workers will become sloppy and unmindful.

46. Deviations could be rectified by

[A]. Lowering the standards, if required
[B]. Educating the workers
[C]. Providing training to workers
[D]. All of the Above
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47.How many steps are there in the process of controlling
[A]. Two
[B]. Three
[C]. Four
[D]. Five

Explanation:
These steps are
1. establishment of standards,
2. measurement of actual performance,
3. and comparison of actual performance with standard performance,
4. finding deviations and
5. taking corrective action.

48 If systems are properly developed, controlling could become a one time

function.
[A]. True
[B]. False
[C]. Partially true
[D]. True subject to certain conditions

Explanation:
Controlling is a continuous function.

49. The responsibility of controlling lies with which level?

[A]. Top Level
[B]. Middle Level
[C]. Lower level
[D]. All levels

Explanation:
It is because controlling is progressive function.

50.The classification of deviations into major and minor varies with the type of
organization and the kind of deviation.
[A]. True
[B]. False
[C]. Partially true
[D]. True subject to certain conditions

Explanation:
What is major deviation for one organization could be minor for another organization.
A 1% increase in stationery expenses could be minor for an NGO but major for large
organization.
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51.Which of the following is not a step of controlling
[A]. Setting standards
[B]. Delegating authority
[C]. Finding deviation
[D]. Fixing responsibility

Explanation:
Delegation is a element of organizing function.

52.Controlling function is the most important function of management.

[A]. True
[B]. Partially True
[C]. False
[D]. True subject to certain conditions

Explanation:
Every function has unique value in the management process. For example – if there is
no staffing function, how will the organization run. If there is no planning how come
comparison be made?

53. Which function of management refers to monitoring organisational

performance towards the attainment of organisational goals?
A) Planning
B) Directing
C) Controlling
D) Organising

54. Identify the function of management that helps in judging the accuracy of
standards
A) Planning
B) Staffing
C) Directing
D) Controlling

55. Maya, the owner of the firms, sets production target for each day and month in
consultation with the production manager and supervisors. They decided that
deviations between standard production and actual production upto5% is
acceptable. Deviations beyond this, should be reported. Identify the concept
mentioned above
A) Managerial by exception
B) Key responsibility areas
C) ROI
D) Budgetary control

Management by Exception: This technique of management is based on the belief that

‘an attempt to control everything results in controlling nothing’. According to this, only
the essential and significant deviations that are beyond the acceptable limit should be
controlled.
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56. Which one of the following is not limitation of controlling
A) Little control on external factor
B) Ensuring order and discipline
C) Costly affair
D) Resistance from employees

57. Arrange the following steps of controlling in proper order

A) Analysing deviation
B) Comparing actual performance with standards
C) Setting performance standard
D) Taking corrective action
E) Measurement of actual performance
Choose the most appropriate answer from the option given below
A) c, e, b, d, a
B) c, b, a, d, e
C) c, e, b, a, d
D) d, c, e, b, a

58. Identify an important principle of management control in which only

significant deviations which go beyond the permissible limit should be brought to
the notice of management
A) Management by control
B) Control by exception
C) Critical point control
D) Both a and b

59. ___________ Is an important principle of management control based on the

belief that an attempt to control everything results on controlling nothing
A) Management by exception
B) Critical point control
C) Both a and b
D) Budgetary control

60. ___________ serves as a benchmarks towards an organisation strives to work

A) Planning
B) Standards
C) Goals
D) Objective

61. Time taken by customer to place the order in a fast food chain having self-
service is an example of
A) Quantitative
B) Qualitative
C) Both A and B
D) Neither A nor B
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62. In the controlling process once performance standard are set the next step is
A) Taking corrective action
B) Measurement of actual performance
C) Comparing actual performance with standard
D) Analysing deviations

63. The third step in the controlling process involves comparison of actual
performance with standard Such comparison will reveal___________
A) Acceptable range of deviations
B) The deviation between actual and desired results
C) Causes of deviation
D) Performance standard

64. In organisation____________ are set as the critical points If anything goes

wrong at the critical points the entire organisation suffer.
A) Performance standards
B) Deviations
C) Key result area
D) Objectives

65. In case the divisions can’t be corrected through managerial action,__________

A) Measure after performance again
B) Analyse the division
C) Take corrective action
D) Revise the performance standards

66. Controlling is as much required in an education institution, military hospital

and a club as in any business organisation.
What feature or nature of controlling is highlighted above?
A) Controlling is a goal- oriented function
B) Control controlling is pervasive function
C) Controlling is both backward looking as well as forward-looking probably
D) Controlling is continuous function

67. Today almost every business organisation has computer monitoring add a
part of the control system.
Which point both important of controlling function of management is highlighted
above is highlighted above?
A) Judging accuracy of standard
B) Ensuring order and discipline
C) Accomplishing organisation goals
D) Making efficient use of resources
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68. Deviations are said to be positive when
a) Planned performance is more than the actual performance
b) Actual performance is more than the planned performance
c) Both planned and actual performances are same
d) None of the above

69. Ramesh is a supervisor in zion pvt . Vijay is in the production department and
he as to supervise 50 workers who are producing mobiles. The daily production is
100 mobile sets. The company has a policy of 5 % production defects per day. one
day mr das informed vijay that there were 4 defective mobiles in his unit vijay
told mr das that it was ok and did not tell any worker anything which principle of
controlling is being followed by vijay
A) Management by exception
B) Critical point control
C) Unity of command
D) Harmony not objectives

70. XYZ pvt ltd has set a target of achieving a target of 30% increase in profit mr
vivek the head of the controlling department has informed the board of directors
that the target set may not be possible for the company to achieve as according to
the past 3 years data, the company has never earned more than 10% increase in
profit and due to covid the demand of the product may further decline.
Identify the importance of controlling given in the above case
A) Judging accuracy of standard
B) Ensuring order and discipline
C) Improving employee motivation
D) Accomplishing organisational goals

71. A manager realised the inspite of best efforts put in by his workers, the target
could not be achieved, obsolete machinery was the cause of deviations. Suggest
from the following a corrective action that could be appropriate to overcome the
ongoing problem
A) Repair the existing machine
B) Undertake technological upgradation of machine
C) Modify the existing process
D) Improve the physical conditions of machine

72. In an organisation, all the workers take things easy and it has also resulted in
loss of secrecy and confidential information being leaked out. To supervise the
affairs of the workers, the company decides to install closed circuit televisions
(CCTVs) which the employee consider as restriction on their freedom
Identify the limitation of controlling the company is suffering
A) Ensure order and discipline
B) Resistance to change
C) Judging accuracy of standard
D) None of the above
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73. Which deviation is most important (In controlling)
A) Positive
B) Negative
C) None
D) All of the above

74. Statement I: ROUTINE problems should be left to the subordinates” is

governed by the principle management by exception
Statement II: MANAGEMENT by exception principle suggest that, if a manager
tries to control everything, he may end up in controlling nothing
Alternatives
A) Statement I is correct and statement ii is wrong
B) Statement ii is correct but statement I is wrong
C) Both the statements are correct
D) Both the statement are incorrect

75. ASSERTION (A): Control is required at all the levels of management.

REASON (R): Controlling is a pervasive function of management.
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A)
b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation of Assertion (A)
c) Assertion (A) is True but Reason (R) is False
d) Assertion (A) is False but Reason (R) is True

76. ASSERTION: Controlling is backward looking as well as forward looking

process
REASON: Controlling is the end of the management function cycle
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation of Assertion (A).
c) Assertion (A) is True but Reason (R) is False.
d) Assertion (A) is False but Reason (R) is True

77. ASSERTION: By keeping a check on the activities of the workers, directing

creates an atmosphere of order and discipline among them
REASON: Controlling is performed by all managers
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct
explanation of Assertion (A).
c) Assertion (A) is True but Reason (R) is False.
d) Assertion (A) is False but Reason (R) is True
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78. Match

List i List ii

a) personal i) Operations are planned in advance in the form of

observation financial statements and actual results compared

b) Budgetary ii) Technique used to study relationship between

control cost, volume and profits

iii) Enables manager to collect first hand

c) Break even point
information

iv) aInformation presented in the form of chart,

d) statistical report
graph, table etc

Options
A) a-iii, b-I, c-ii, d-iv
B) a-iii, b-I, c-iv, d-ii
C) a-ii, b-iii, c-I, d-iv
D) a-iii, b-ii, c-I, d-iv

79. Match
List 1 List 2

i) Performance should be measured in reliable

Setting actual standard
manner

Measurement of actual
ii) Critical point control is used
performance

iii) Standard are the bench marks against which

Analysing deviations
actual performance is measured

iv) When deviations goes beyond permissible

Taking corrective actions
limit

Options
A) a-I, b-ii, c-iii, d-iv
B) a-iii, b-I, c-ii, d-iv
C) a-i, b-iv, c-iii, d-ii
D) a-iii, b-i , c-i, d-iv
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Controlling Case Study

‘A.S. Ltd.’ is a large company engaged in assembly of air – conditioners. Recently the
company had conducted the ‘Time’ and ‘Motion’ study and conducted that on average
a worker can assemble ten air conditioners in a day. The target volume of the company
in a day is assembling of 1,000 units of air – conditioners.
The company is providing attractive allowances to reduce labour turnover and
absenteeism. All the workers are happy. Even then the assembly of air – conditioners
per day is 800 units only. To find out the reason the company compared actual
performance of each worker and observed through C.C.T.V. that some of the workers
were busy in gossiping. The company decided to keep a close check on the activities
of the workers to minimise the dishonest and unethical behaviour as the part of the
workers.

1) As per time study and motion study , how many workers are required to meet the
daily target volume of A.S LTD
A) 10
B) 100
C) 1000
D) None of the above

2. Identify the function of management discussed above

A) Planning
B) Staffing
C) Directing
D) Controlling

3. Observed through CCTV that some of the workers were busy in gossiping “ identify
the step in the function of management identified , as highlighted above
A) Measurement of actual performance
B) Comparing actual performance with standard
C) Analysing deviations
D) Taking corrective action

4. The company decided to keep a close check on the activities of the worker to
minimise the dishonest and unethical behaviour a the part of workers
Identify the point of importance of the function of management identified as highlighted
above
A) Accomplishing organisation goals
B) Ensuring order and discipline
C) Making efficient use of resources
D) Judging accuracy of standards