Controlling Process Class 12 Notes CBSE Business Studies Chapter 8 (Free PDF Download)

WhatsApp Group (Join Now) Join Now
Telegram Group (Join Now) Join Now

Controlling process Class 12 Notes CBSE Business Studies Chapter 8 (Free PDF Download), Revision Notes for CBSE Class 12 Business Studies Chapter 8 – Free PDF Download, Download CBSE Class 12 Business Studies Revision Notes 2023-24 PDF

Controlling process Class 12 Notes CBSE Business Studies Chapter 8 (Free PDF Download)

Chapter No08
ProvidingNcert solutions
Chapter NameControlling process
SubjectBusiness studies
Medium English
Study MaterialsFree VVI Study Materials are Available
Download PDFcontrolling notes class 12 pdf

controlling process class 12 | Controlling Class 12 Notes

Head of the lesson – In the broad sense, control means finding out and seeing whether all the work of the enterprise is being done as per the objectives, plans, programs and instructions and rules set by the management or not. Its objective is to bring to light the weaknesses, errors and deviations in the work, their causes and to prevent their recurrence in future. 

If seen, wherever the goals of the groups are to be achieved through joint reforms and means, control is an inevitable necessity. As the size of an enterprise increases, the number of employees increases and work procedures become complex, the need and importance of control increases. Without control no manager can complete his work.

2 2
NCERT Class 12 Business Studies Chapter 8 Notes in Hindi Control Pdf

There is a close inter-relationship between planning and controlling. Both planning and control are necessary functions for each other. Planning is the initial step or element for effective control. Control is not possible without planning. Every manager has to resort to planning to control. 

Planning and controlling both are managerial functions and are related to each other. Both are dependent on each other. Control without planning is meaningless and without planning, blind control makes planning objective and planning provides direction to control.

The control process is universal. Whatever be the type of organization or work, controlling is necessary but it is not an easy task. For effective control it is necessary to use a process consisting of certain steps.

Very Short Answer Type Questions

Q. 1. Give a proper definition of control. (Give an appropriate definition controlling.)

Ans. Control is the process of bringing closer to both actual results and desired results. Under this, deviations between actual progress and prescribed parameters are detected. The causes of deviations are discovered and corrective action is taken to remove them.

Q. 2. What is the need for control in business? (What is the need of control in business?)


(i) Broad size of Business – In the modern era the size of business has become large. Without this it cannot function. 

(ii) Change in Business – Control is needed to understand the changing governments, new changes and industrial policies from time to time. 

(iii) For decisions (Decision Making) – Many decisions are taken from bottom to top of the management. These decisions are possible only through control.

Q. 3. Explain the characteristics of control as a function of management. (Enumerate the features of controlling as a function of management.) 


1. Controlling is a continuous process and an essential part of management.

2. Control is a ubiquitous function of management. Its range is wide and found everywhere. Is. It gets corrective work done in the organization. It detects deviations by analyzing their actions. 14. It has a futuristic outlook. It looks forward rather than backward.

Q. 4. Enumerate the steps involved in the control process. (Enumerate the steps in process of control.) 

Ans. Following are the steps involved in the control process-

1. To determine the parameters.

2. Measuring actual performance.

3. To compare actual performance with standards and detect deviations.

4 Taking appropriate corrective action as required.

Q.5. What is the scope of control? (What is the scope of  control?)

Ans. (i) Control of Policies: Policy formulation, change implementation etc. come under the scope of control.

(ii) Control on organization checks the organization from time to time to achieve pre-determined objectives.

(iii) Control over Employees and determines their wages and salaries by evaluating them.

Salaries) controls the employees with the help of cadre management. employee duties

Q. 6. What is the meaning of control? (What is the meaning of Control?) 

Ans. The purpose of controlling is to check whether all the work is being done according to the planned objectives, instructions and rules or not. Its objective is to find out the shortcomings of the work which can be rectified in time and they can be prevented in future.

Q. 7. Give the definition of control given by two different scholars. (Give definitions of control given by two different scholars.)


(i) Joseph L. According to Mousasi, controlling is the process by which current performance is measured and guided to achieve some predetermined goals.

(ii) According to Billy E. Gotz, “Managerial control means keeping the events according to plan. ,

(iii) According to Kohler, “Control is the process by which efforts are made to bring actual results closer to desired results.”

10. 8. Explain the objectives of control. (Write the objectives of control.)

Ans. Following are the objectives of control-

(i) Determining objectives: To find out what is to be done and at what time.

(ii) Determining of Resources: How much capital and human power is required to do a work. 

(iii) Determining Deviation – Detecting and correcting deviations in patterns and performance.

Q. _ 9. What is the nature of managerial control? (What is nature of Managerial Control?)


(i) Basis of Planning – Without planning, planning is not possible.

(ii) It is related to the future (Future Oriented) – It is always related to the future. The mistake that has been made once should not be repeated, this is the basis of control.

(iii) It is an important function of management. Apart from this, no one else can do it.

Q. 10. “Planning is the basis of control. Explain this statement. (Explain “Planning is the basis of control.”)

Ans. Planning is considered the basis of controlling. Planning ensures this. Which department and which persons have to do what in a given time. As a result, controlling becomes effective because now the controlling manager gets the opportunity to measure the actual progress of each concerned department and individual against the planned progress.

Q.11. “Control is a continuous process”. explain. (Control is a Continuous Process”. Define.)

Ans. The work of control continues continuously. According to Koontz and O’Donnell, “Just as a sailor is constantly studying to make sure that he is on course, so too a business manager is constantly studying to make sure that his organization or The department is on the right track.”

Q.12. How many types of scales are there? (What are the ripeness of standard.) 

Ans. There are many types of scales. physical and monetary measurements and tangible and intangible 

Q.13. Define physical and monetary measurements. (Define financial and monetary standards.)

Ans. Physical Standards: Physical standards are those which are expressed in physical units, such as number of units, labor hours or other physical units, such as one liter of petrol in a motor car can travel 10 km. Walking is a physical measurement.

Monetary standards are those monetary standards which are expressed in money. It is known, for example, what will be the cost of raw material in the production of one unit.

Q. 14. Explain concrete and abstract measurements. (Define tangible and intangible standards.)

Ans. Tangible Standards Tangible standards mean those standards which can be expressed in physical or monetary definite units. Such as daily quantity of electricity or total cost of production per day etc.

Intangible Standards – Intangible standards refer to such standards. It is difficult to determine the goals which cannot be expressed in definite units, such as the reputation of the firm, increasing the morale of employees, industrial peace or other human relations.

Q. 15. Define income and capital measures. (Define Revenue and Capital Standards.)

Ans. The income and capital parameters are as follows:

Revenue Standards: This includes those standards which can be expressed in terms of sales value. Such as the scale of per capita sales in Delhi or the scale of sales per week in each area separately, etc.

Capital Standards – Capital standards are those standards which can be expressed in the form of capital expenditure ratio, such as the ratio of debt to owned capital, working ratio etc.

Q. 16. How is the limit of performance determined? (How level of achievement or performance established?)

Ans. Performance levels are determined in the same manner as standards. ”The level can also be determined in terms of physical level or monetary level such as money lease, number of units, volume and price of sales and level of trades. Farting

“Well, this satisfactory level is that which is a reasonable level and which can be achieved. The level should also be somewhat flexible and some maximum and minimum limits of this level should also be determined. 

Q.17. How many types of control systems are there? (What are the types of control method?)

Ans. Most of the control systems can be divided into four parts i.e. there are 4 types of control- 

(i) pre-action control,

(ii) taking control action,

(iii) investigation control, and

(iv) Post-action control.

The above four types of controls are not synonymous with each other, but complementary. Nevertheless, taking control actions in the above is very important because in these, control is established even before the completion of any work.

Q. 18. ‘Control is predictive.’ Explain this statement briefly. (‘Control is forward looking’. Define this sentence in brief.) 

Ans. The objective of control is to achieve the future goals of the business. That is why corrective actions are taken in such a way that the shortcomings and mistakes that have been made in the present are not repeated in the future. Thus, the control process is not only a review of the actual progress of the work but also the achievement of future objectives and targets.

Short Answer Type Questions

Q. _ 1. Give definitions of control. (Define the definitions of control.) 

Ans. Definitions of Control: The definition of control has been defined in different ways by different scholars, the main definitions among them are the following – According to Mary Cushing Niles, “Control maintains balance in the actions directed towards a certain goal or group. have to keep .”

According to Mr. Henry Fayol, “Control means to check whether every work is being done as per the approved plans, given instructions and prescribed rules or not. 

Its objective is to find out the weaknesses and shortcomings of the work, so that the balance can be rectified in time and its recurrence can be prevented in future. George R. In the words of Terry (George R. Terry) “Control means knowing what is being done. 

In other words, evaluating tasks and taking corrective action when necessary to ensure that planned performance can be achieved.

Q. 2. Explain the nature and characteristics of control. (Explain the Nature and Characteristics of Control.)

Ans. Nature and Characteristics of Control-

Following are the nature and characteristics of control:

1. It is the manager’s function – Controlling is the job of the management and not of the president of the organization. This work of the manager cannot be completed by any common person on behalf of the manager, that is, the manager himself has to do this work.

2. It is a circular movement. Initial objectives of control. Is determined by. These objectives are the parameters by which the work of the organization’s employees is evaluated. On the basis of evaluation, the manager makes necessary improvements and sets new plans and standards.

3. It is Forwards looking: Control is always related to the future. Whatever happened in the past cannot be controlled, rather the actions in the future cannot be controlled based on the actions done in the past.

4. Control is exercised at all levels – Control is needed at all levels of management and the problems of control are different at each level of management.

5. It is a Continuous Process: The control process continues continuously and never ends. Management is always your undertaking.

Tries to maintain balance between objectives and tasks. 

6. Control is different from Interference – is negative. It blocks the speed of work whereas control is positive.

7. Nature of Control is both positive and negative. Control encourages acceptable actions and activities and restricts or negatives unacceptable actions and activities.

‘8. No Control on Personnel – Managerial control is related to the means of secondary production. Such as materials, machines and other inanimate means of production. 

Q.3. What are the elements or requirements or characteristics of an ideal/good/effective control system? (What are the essential elements for a good control system.)


(i) Be in accordance with the needs of the institution. 

(ii) The control system should be flexible.

(ii) The control system should be economical.

(iv) It should achieve the objectives of the organization.

(v) Responsible centers should be created so that responsibilities can be determined.

(vi) Records of actual performance should be maintained.

(vii) There should be direct control.

(viii) It should be progressive.

(ix) There should be a system for suggesting corrective action.”

Q. 4. What actions can be taken as corrective action? (What are the main types of Corrective Actions?)

Ans. Any of the following actions can be taken as corrective action:

1. Improvement in Standard of Living of Employees: To arrange appropriate raw materials, machines and equipment for the employees at work and at the right time.

2. Arrangements for direction and training of employees (Facilities Direction and Training) – If the reason for deficiencies and errors in work is untrained employees or lack of instructions, then arrangements should be made for their training and proper guidance. 

3. Rectification in Policies – If the reason for deviation is that the plans become unrealistic due to change in business circumstances, then there is a need to create clear, definite and real forces as per the actual circumstances. 

4. Proper Motivation of the employees: If the errors or deficiencies in the work are due to the indifference of the employees towards their work, then proper motivation should be given to the employees so that the employees work with enthusiasm and dedication.

Q.5. How many types of control systems are there? explain. (What are the types of Control Method? Explain.)

Ans. There are four types of control systems which are as follows-

1. Controlling Before Action – In this system, before taking action, it is seen whether the necessary resources are available for the action or not.

2. Initiate Controlling Procedure – In this or even before the completion of the process, deviation from the standards is made and control action is taken to remove that deviation. 

3. Controlling after the Completion of Activities: When a work is completed, the actual performance is compared with the standard performance and the reasons for those deviations are ascertained. 

4. Checking: If there is a lot of expenditure involved in any action or there is a high risk, then before that action, important aspects of that action are checked by deviations and the reasons for those deviations are found out. ,

Q.6. Explain the importance of control. (Discuss the importance of control.)

Ans. Importance or Advantages of Control Control is an important function of management because it is the best method of measuring and evaluating the work. This is the reason why the importance of various control techniques in the management field is increasing day by day. Therefore, control has special importance in the field of management for the following reasons:

1. Control is helpful in delegation – The work of management is to get work done from other people for which they are given rights and responsibilities. Without proper control, it cannot be known whether the rights are being used properly and the responsibilities are being performed properly or not.

2. Helpful in Coordination – Various activities of the enterprise can be tied together by the controller. A good controller helps in preventing irregularities in various departments and departments of the enterprise. Therefore, control is a means by which misuse of labor and material can be prevented in business. Control coordinates all means of production and leads to the achievement of its objectives.

3. Evaluating the Performance – The progress of the work of a business enterprise can be evaluated through controlling. On the basis of this, it is seen to what extent the organization has been successful in achieving its predetermined objectives and what obstacles and difficulties have arisen in this regard and how they can be prevented in future.

4. Source of Motivation – If there is no proper control, it will not be possible to know which employee works more and better and which person is unskilled or weak. Control by establishing standards for the quantity and type of work inspires employees to work better and more as per their capacity.


Q.1. Describe the elements of an effective managerial control system. (Explain the main elements of a sound control system.)

Ans. Essential for a Good Control System – An effective control process should have the following elements:

1. Clarification of Objectives: Before building an effective control system, the biggest requirement is that the objectives of the organization should be clearly clarified.

2. Critical points should be established – The critical points system should be such that it can direct the attention of control towards places of strategic importance. Here, important points mean those places where there is greater possibility of mistakes. Therefore, control at these places should be relatively effective.

3. Setting of Standards: In the control process, both direct (monetary, physical) and indirect (intangible) standards should be determined because the measurements can be seen and tasted. For example, a car can travel 10 kilometers in one liter of petrol, while indirect The parameters are related to the employees like dedication, companionship etc. of the employees.

4. Follow Organizational Pattern – Control should first be in accordance with the organization structure. The following definitions have been given in this regard – Peter F. According to Drucker (Peter F. Drucker), goals should be set for every person and the responsibility of control should also be put on the same person, which Drucker has called ‘self-control’. Control is not a technique imposed by higher officials on lower level employees.

5. Establishment of Procedure for Checking: Checking system should be established at every level of the organization’s activities so that effective control can be possible.

6. Control is a Continuous Process – The process of control continues continuously. Management always tries to establish harmony between the objectives and functions of its organization. It is a process that never ends.

7. Time Control – Time should be taken care of while completing the manager’s activities. If the necessary information is made available at the right time, in the right quantity, to the right person, at the right place, then it is possible to achieve the predetermined objectives.

8. Flexibility: The control process should be flexible enough so that changes can be made on time as required.

9. Assure Corrective Action – The control system not only finds out the deviations and their causes but also works to improve them. Therefore, in the control process it should be made clear which employee is responsible for the deviations.

11. Simple and Clear – The control process should be simple and clear. Every manager and employee should know how the control system will be used.

12. Suitability- The control process should be suitable for controlling the functions. There should be different control methods at each level of the organization.

13. Reporting Deviations Quickly: This is an impact control process by which deviations and their factors are detected and the causes are eliminated as soon as possible.

14. Exception Principle – Managers should not spend themselves on those tasks which are being done efficiently and effectively, rather they should pay special attention to those tasks which are not as per the predetermined standards.

15. Adequacy Control: Control procedures should be adequate so that timely improvements can be made.

16. An efficient officer should be a competent person for effective control system.

Q2. Describe the various steps in the control process. (Explain the various steps in the process of control.)

Ans. Process of Control – Many scholars have described different stages of the control process. Jurin has described seven levels, Jacquith and James L. Peirce have described three levels. 

Keeping all this in mind, a good control process should mainly have the following four steps or stages: 

1. Determining goals and parameters, 

2. Evaluating tasks, 

3. To find out the reason for deviation, 

4. To take corrective action.

1. Setting of Goals and Standards: The first level of the control process is to establish goals and standards so that the behavior of employees can be regulated. While determining the scale, care should be taken that the scale and target should not be set too high or low, that is, there should not be much conflict with reality. 

2. Appraisal Performance: The second level of control is to compare with actual work and standards. Knowledge of actual work is done on the basis of various information collected by the enterprise. 

3. Determining the Reasons for Deviation – The next third level of the control process is to find out the reasons for the difference between the measured and actual work. An attempt is made to find out this fact. Whether the difference that has occurred has come due to wrong planning or due to proper implementation of the plan.

4. Taking corrective action: The fourth last level of the control process is to correct the deviations, that is, to eliminate the reasons due to which there is a difference between the actual work and the parameters. In fact, corrective action is the cornerstone of control. Correctional work should be done not only to correct the mistake but also to prevent the mistakes from happening in the future.

Q. 3. Explain the scope or areas of control. (Discuss the various areas of span of Control.)

Ans. The purpose of control is to achieve the goals of the business, therefore it is necessary that all the resources of the enterprise are regularly, systematically and efficiently directed, led and controlled. In this regard, Holden, Fish and Smith have mentioned the main areas of management, which are as follows-

1. Policy Control – Control over the policies of the business creates stability in the policies and helps in the planned development of the business by preventing any deviation from them.

2. Control over organization: By evaluating the organization system, an efficient organization structure is created and maintained.

3. Control over Process and Procedure – To increase efficiency, simplification and standardization of processes and procedures is necessary, hence it is necessary to check both of them from time to time.

4. Control on Personnel – Management fulfills the responsibility of controlling the employees with the help of personnel management. 5. Control on wages and salaries – Management determines the wages and salaries to be given to workers through work study.

6. Social Security: The safety and welfare schemes of workers are checked from time to time. 

7. Control over capital: Proper use of capital received from shareholders.

Consumption is planned and it is the main function of control to satisfy itself that the capital is actually being used for the intended purposes. If not, why and what improvements should be made.

8. Control over production: Various goods should be produced as per the demand for the goods. More or less goods should be produced as per the market requirement. The goods should be made in the quantity which is required at the time, otherwise there will be wastage of resources.

9. Cost Control – Competitiveness is maintained by controlling the cost of goods through efficient use of various means of production.

10. Materials Control – Proper arrangement of major raw materials should be maintained in production. Necessary improvements should be made by examining the arrangements for their purchasing, collection and utilization.

11. Control over services: The number of employees in the business is assigned to the appropriate and suitable employee.

12. Control over researches – Through research work, there is efficient use of business resources and their minimum wastage. Latest methods can be adopted, but expenditure on research work should be controlled so that the enterprise does not have to spend more than the profit it gets.

13. Wide Control: Under this, all the schemes are kept collectively.

Q.4. Define control and write briefly about its various principles. (Define control and mention its important principles.) 

Ans. Definitions of Control: Different scholars have defined the definitions of control in different ways, the main definitions among them are as follows: According to Billy E. Goctesz, managerial planning means making the program consistent, By making unified and satisfied whereas controlling tries to make the events according to the plans.

“George R. In the words of George R. Terry, controlling means making sure that something is being done. In other words, it is necessary to evaluate the work and apply corrective efforts when necessary so that the planned execution can be achieved. According to Mr. Henry Fayol, ‘Controlling means checking whether each work is carried out as per the approved plans. Whether it is happening as per the given instructions and prescribed rules or not. Its objective is to find out the weaknesses and errors in the work, which can be rectified in time and their recurrence can be prevented in future.

Principles of Control – Koonte and O’Dannel have described fourteen principles of control, which are as follows –

1. Principles of Assurance of Objectives: The control process should be such that it detects the difference between deviations from plans and actual work and eliminates those deviations.

2. Principle of Efficiency of Control: The system of control should not be too expensive. Apart from economy, the control system should also not have a bad effect on the initiative power, delegation of power and morale of the subordinate employees.

3. Principle of Control Responsibility – It is the responsibility of managers to control. This responsibility cannot be passed on.

4. Principle of Direct Control – Control should be done indirectly. Instead of detecting errors, emphasis should be placed on preventing errors from occurring.

5. Principle of Reflection of Plan – The purpose of control is to detect deviations in plans and act accordingly. Plans should be reflected in the control stage.

6. Principle of Organizational Suitability: Control should be arranged in such a way that it can be adjusted according to the structure of the organization.

7. Principle of Individuallity of Controls – Controls are established with the aim of meeting the individual needs of the manager.

8. Principle of Standards: The scale should be objectively pure and appropriate. Therefore, the standards having the above mentioned qualities and being fair will be accepted by the subordinates.

9. Principle of Critical Point Control – The system should be such that it can attract the attention of the control towards important places. 237

10. Principle of Exception: Although the control work should be implemented by the concerned officer only, but in the circumstances, the senior officer should also have significant authority. 

11. Principle of Flexibility – There should be sufficient flexibility in the control process so that control can be done easily in case of failure of the plans. 

12. Principle of Direct Control – To establish future control, the method of direct control should be adopted. 

13. Principle of Review – For effective control, the control process should be reviewed from time to time and changes should be made according to the changed circumstances. 

14. Principle of Action – Unless effective measures are taken for deviations, the control function will not be completed.

Q.5. Explain the relationship between planning and controlling. (Explain the relationship between Planning and Control.) 

Ans. Planning and controlling both complement and help each other. On the one hand, planning determines the control actions, while on the other hand, control acts as the basis of planning. Thus, control is prevalent in planning and planning is prevalent in control. 

In this regard, according to Willie E. Gortz, “Managerial control means bringing business events in line with planning.” While discussing the relationship between planning and control, ‘Mary Cushing’ has rightly said that, “Control is an aspect and model of planning. 

Where plans determine the path, control keeps an eye on the deviations from that path so that we do not deviate from the path, that is, control guides us in implementing the plans.” Both planning and controlling are influenced by each other. 

In order to implement the plans efficiently, the control system must be improved and necessary amendments are made in the plans to carry out the control function successfully. Both planning and controlling are made keeping in mind the future of the business. 

The objective of both is to achieve the business goals efficiently. In this regard, Koontz and O’Donnell have rightly said that “Like planning, control is also forward-looking. An excellent control corrects deviations from plans before they occur. ,

Thus we come to the conclusion that both planning and controlling are efforts towards achieving the goals of business efficiently. Since both goals are the same, efforts of both are sometimes made separately and sometimes together in the same direction. 

Mutual cooperation, coordination, coordination and adjustment of planning and control provides achievement of maximum objectives of the organization with minimum efforts. Therefore, planning and controlling are helpful to each other and interrelated.


Q:’Control helps in coordination.’ Explain this statement 

Ans. An effective control directs and coordinates all the business activities towards the specified goal because if there is no balanced development of all the departments then the business activities will become disorganized. Coordinates business functions by systematically reviewing individual, group and institutional progress of employees and making necessary improvements.

Q.What is the relationship between planning and controlling? 

Ans. Relation between planning and controlling – both of these are parts of management. Management function starts with planning and ends with controlling. Willie E. Goetz, while clarifying the relationship between planning and controlling, has written, “Managerial planning means making the program consistent, integrated and clear, whereas controlling tries to make the events according to the plans.” Is.” There is a close relationship between planning and controlling. If any discrepancy is noticed between the established objectives and achievement, the manager immediately takes control or corrective action.

Q. Explain the meaning of budget control. 

Ans. Meaning of Budgetary Control – Control is done by comparing the general, it is called control through budget. Budget Controller 230 The main objective is to know the discrepancies between budget estimates and actual progress and to see that they are not repeated in future.

NCERT Solutions for Class 12 Commerce Stream

Leave a Comment