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Controlling

Question
CBSEENBS12004896

“Kitchen Saj limited” is a company manufacturing plastic goods. Mr. Shah is its marketing manager and Mr. Sahu, its production manager. Style of working of both the managers is entirely different .Mr. shah set such standards for different activities of his department as were quite easy to achieve. On the other hand, Mr. Sahu set standards for different activities of his department as were very difficult to achieve. As a result, marketing department achieved his target very easily. Mr. Shah and his team were very pleased with these result. But the situation prevailing in the production department was quite contrary to it. Mr. Sahu was far behind his target. Now he and his team were very much worried.

  1. Which step of controlling process has been discussed in the above paragraph?
  2. In your opinion, both the manager would have set standards for which activities of their respective departments? Write two standards each.
  3. Of the two managers, one set easily achievable standards whereas the other set such standards as could be achieved with great difficulty. In your opinion, what effect of situation would have on the employees?
  4. State in one word, what should be the type of standards?

Solution
  1. First step of the controlling process i.e., setting of performance standards, has been discussed.
  2. Two standards are:
    1. Main standards of marketing department.
      • Sales Volume
      • Sales Expenses.
    2. Main standards of production department.
      • Quality
      • Quantity
  3. Effects of both standards are:
    1. Effect of easily achievable standards:
      • In this situation, employees turn lazy (idle).
    2. Effect of those standards which are achieved with difficulty:
      • In this situation employees are worried.
  4. Reasonable.