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CBSE Class 12 Commerce Business Studies Unit 8 Controlling Complete Notes

CBSE Class 12 Commerce Business Studies Unit 8 Controlling  Complete Notes

CBSE Class 12 Commerce Business Studies Unit 8 Controlling : The Central Board of Secondary Education (abbreviated as CBSE) is a Board of Education for public and private schools, under the Union Government of India. Central Board of Secondary Education (CBSE) has asked all schools affiliated to follow only NCERT curriculum.The first education board to be set up in India was the Uttar Pradesh Board of High School and Intermediate Education in 1921, which was under jurisdiction of Rajputana, Central India and Gwalior.[citation needed] In 1929, the government of India set up a joint Board named “Board of High School and Intermediate Education, Rajputana”. This included Ajmer, Merwara, Central India and Gwalior. Later it was confined to Ajmer, Bhopal and Vindhya Pradesh. In 1952, it became the “Central Board of Secondary Education”.

CBSE Class 12 Commerce Business Studies Unit 8 Controlling  Complete Notes

CBSE Class 12 Commerce Business Studies Unit 8 Controlling : Here our team members Provides CBSE Class 12 Commerce Business Studies Unit 8 Controlling Complete notes in pdf format. CBSE Class 12 Commerce Business Studies Unit 8 Controlling Included some topics those are given bellow :

Unit 8: Controlling

  • Concept, nature and importance
  • Relationship between planning and controlling
  • Steps in the process of control

Download here CBSE Class 12 Commerce Business Studies Unit8 Controlling  Complete Notes In PDF Format

CBSE Class 12 Commerce Business Studies Unit 8 Controlling  Complete Notes

CBSE Class 12 Commerce Business Studies Unit 8 Controlling : It is the basic management function of (1) establishing benchmarks or standards, (2) comparing actual performance against them, and (3) taking corrective action, if required.

Control, or controlling, is one of the managerial functions like planning, organizing, staffing and directing. It is an important function because it helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in a desired manner. According to modern concepts, control is a foreseeing action whereas earlier concept of control was used only when errors were detected. Control in management means setting standards, measuring actual performance and taking corrective action.

CBSE Class 12 Commerce Business Studies Unit 8 Controlling  Complete Notes

CBSE Class 12 Commerce Business Studies Unit 8 Controlling : Controlling consists of verifying whether everything occurs in confirmities with the plans adopted, instructions issued and principles established. Controlling ensures that there is effective and efficient utilization of organizational resources so as to achieve the planned goals. Controlling measures the deviation of actual performance from the standard performance, discovers the causes of such deviations and helps in taking corrective actions

According to Brech, “Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs.”

According to Donnell, “Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course.”

Controlling has got two basic purposes

  1. It facilitates co-ordination
  2. It helps in planning

Features of Controlling Function

Following are the characteristics of controlling function of management-

  1. Controlling is an end function- A function which comes once the performances are made in confirmities with plans.
  2. Controlling is a pervasive function- which means it is performed by managers at all levels and in all type of concerns.
  3. Controlling is forward looking- because effective control is not possible without past being controlled. Controlling always look to future so that follow-up can be made whenever required.
  4. Controlling is a dynamic process- since controlling requires taking reviewal methods, changes have to be made wherever possible.
  5. Controlling is related with planning- Planning and Controlling are two inseperable functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless. Planning presupposes controlling and controlling succeeds planning.

CBSE Class 12 Commerce Business Studies Unit 8 Controlling  Complete Notes

CBSE Class 12 Commerce Business Studies Unit 8 Controlling :  control can be defined as “that function of the system that adjusts operations as needed to achieve the plan, or to maintain variations from system objectives within allowable limits”. The control subsystem functions in close harmony with the operating system. The degree to which they interact depends on the nature of the operating system and its objectives. Stability concerns a system’s ability to maintain a pattern of output without wide fluctuations. Rapidity of response pertains to the speed with which a system can correct variations and return to expected output.

A political election can illustrate the concept of control and the importance of feedback. Each party organizes a campaign to get its candidate selected and outlines a plan to inform the public about both the candidate’s credentials and the party’s platform. As the election nears, opinion polls furnish feedback about the effectiveness of the campaign and about each candidate’s chances to win. Depending on the nature of this feedback, certain adjustments in strategy and/or tactics can be made in an attempt to achieve the desired result.

From these definitions it can be stated that there is close link between planning and controlling. Planning is a process by which an organization’s objectives and the methods to achieve the objectives are established, and controlling is a process which measures and directs the actual performance against the planned goals of the organization. Thus, goals and objectives are often referred to as siamese twins of management. the managerial function of management and correction of performance in order to make sure that enterprise objectives and the goals devised to attain them being accomplished.


  • Control is a continuous process
  • Control is a management process
  • Control is embedded in each level of organizational hierarchy
  • Control is forward looking
  • Control is closely linked with planning
  • Control is a tool for achieving organizational activities
  • Control is an end process
  • Control compares actual performance with planned performance*
  • Control point out the error in the execution process
  • Control helps in minimizing cost
  • Control helps in achieving standard
  • Control saves the time
  • Control helps management for monitoring performance


The four basic elements in a control system:

  1. the characteristic or condition to be controlled
  2. the sensor
  3. the comparator
  4. the activator

occur in the same sequence and maintain a consistent relationship to each other in every system.

The first element is the characteristic or condition of the operating system which is to be measured. We select a specific characteristic because a correlation exists between it and how the system is performing. The characteristic can be the output of the system during any stage of processing or it may be a condition that is the result of the system. For example, it may be the heat energy produced by the furnace or the temperature in the room which has changed because of the heat generated by the furnace. In an elementary school system, the hours a teacher works or the gain in knowledge demonstrated by the students on a national examination are examples of characteristics that may be selected for measurement, or control.

The second element of control, the sensor, is a means for measuring the characteristic or condition. For example, in a home heating system this device would be the thermostat, and in a quality-control system this measurement might be performed by a visual inspection of the product.

The third element of control, the comparator, determines the need for correction by comparing what is occurring with what has been planned. Some deviation from the plan is usual and expected, but when variations are beyond those considered acceptable, corrective action is required. It involves a sort of preventative action which indicates that good control is being achieved.

The fourth element of control, the activator, is the corrective action taken to return the system to its expected output. The actual person, device, or method used to direct corrective inputs into the operating system may take a variety of forms. It may be a hydraulic controller positioned by a solenoid or electric motor in response to an electronic error signal, an employee directed to rework the parts that failed to pass quality inspection, or a school principal who decides to buy additional books to provide for an increased number of students. As long as a plan is performed within allowable limits, corrective action is not necessary; however, this seldom occurs in practice. Information is the medium of control, because the flow of sensory data and later the flow of corrective information allow a characteristic or condition of the system to be controlled. To illustrate how information flow facilitates control, let us review the elements of control in the context of information.

Relationship between the elements of control and real time information

Controlled characteristic or condition

The primary requirement of a control system is that it maintains the level and kind of output necessary to achieve the system’s objectives. It is usually impractical to control every feature and condition associated with the system’s output. Therefore, the choice of the controlled item (and appropriate information about it) is extremely important. There should be a direct correlation between the controlled item and the system’s operation. In other words, control of the selected characteristic should have a direct relationship to the goal or objective of the system.


After the characteristic is sensed, or measured, information pertinent to control is fed back. Exactly what information needs to be transmitted and also the language that will best facilitate the communication process and reduce the possibility of distortion in transmission must be carefully considered. Information that is to be compared with the standard, or plan, should be expressed in the same terms or language as in the original plan to facilitate decision making. Using machine methods (computers) may require extensive translation of the information. Since optimal languages for computation and for human review are not always the same, the relative ease of translation may be a significant factor in selecting the units of measurement or the language unit in the sensing element.

In many instances, the measurement may be sampled rather than providing a complete and continuous feedback of information about the operation. A sampling procedure suggests measuring some segment or portion of the operation that will represent the total.

Comparison with standard

In a social system, the norms of acceptable behavior become the standard against which so-called deviant behavior may be judged. Regulations and laws provide a more formal collection of information for society. Social norms change, but very slowly. In contrast, the standards outlined by a formal law can be changed from one day to the next through revision, discontinuation, or replacement by another. Information about deviant behavior becomes the basis for controlling social activity. Output information is compared with the standard or norm and significant deviations are noted. In an industrial example, frequency distribution (a tabulation of the number of times a given characteristic occurs within the sample of products being checked) may be used to show the average quality, the spread, and the comparison of output with a standard.

If there is a significant and uncorrectable difference between output and plan, the system is “out of control.” This means that the objectives of the system are not feasible in relation to the capabilities of the present design. Either the objectives must be reevaluated or the system redesigned to add new capacity or capability. For example, the traffic in drugs has been increasing in some cities at an alarming rate. The citizens must decide whether to revise the police system so as to regain control, or whether to modify the law to reflect a different norm of acceptable behavior.


The activator unit responds to the information received from the compactor and initiates corrective action. If the system is a machine-to-machine system, the corrective inputs (decision rules) are designed into the network. When the control relates to a man-to-machine or man-to-man system, however, the individual(s) in charge must evaluate  the accuracy of the feedback information,  the significance of the variation, and what corrective inputs will restore the system to a reasonable degree of stability. Once the decision has been made to direct new inputs into the system, the actual process may be relatively easy. A small amount of energy can change the operation of jet airplanes, automatic steel mills, and hydroelectric power plants. The pilot presses a button, and the landing gear of the airplane goes up or down; the operator of a steel mill pushes a lever, and a ribbon of white-hot steel races through the plant; a worker at a control board directs the flow of electrical energy throughout a regional network of stations and substations. It takes but a small amount of control energy to release or stop large quantities of input.

The comparative may be located far from the operating system, although at least some of the elements must be in close proximity to operations. For example, the measurement (the sensory element) is usually at the point of operations. The measurement information can be transmitted to a distant point for comparison with the standard (comparative), and when deviations occur, the correcting input can be released from the distant point. However, the input (activator) will be located at the operating system. This ability to control from afar means that aircraft can be flown by remote control, dangerous manufacturing processes can be operated from a safe distance, and national organizations can be directed from centralized headquarters.


Step 1. Establishment of Standard.

Standards are the criteria against which actual performance will be measured. Standards are set in both quantitative and qualitative terms.

Step 2. Measurement of actual performance

Performance is measured in an objective and reliable manner. It should be checked in the same unit in which the standards are set.

Step 3. Comparing actual performance with standards.

Step 4. Analysis the cause of deviations.

Step 5. Taking Remedial Action

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