Q.(a) Explain the following points of importance of controlling function of management :
🔒You're viewing a preview — the full solution, concept, methods & PYQ mapping are locked.
🔒 Start your 14-day free trial to unlock the full solution →Part (a)Concept understanding — Controlling Definition
Controlling Definition — First Encounter
Imagine you're trying to prove that a function is continuous at a point. You've seen the epsilon-delta definition: for every ϵ>0, there exists a δ>0 such that if ∣x−c∣<δ, then ∣f(x)−f(c)∣<ϵ. That's the standard definition.
Now think about what you're actually doing when you use this definition to prove continuity. You're given an arbitrary ϵ — a tolerance on the output — and you must produce a δ — a window on the input — that controls the output error. The δ you choose depends on ϵ, on the function f, and on the point c. The core idea: you control the input to control the output.
That's the intuition behind the term "controlling definition." It's a definition that tells you: to achieve a desired precision in the output, you must restrict the input within some range. The definition itself gives you the control — the δ — as a function of the desired precision ϵ.
The Precise Statement
A controlling definition is a definition of a limit (or continuity, or derivative) that explicitly quantifies the relationship between an output tolerance and an input restriction. For the limit limx→cf(x)=L, the controlling definition is:
limx→cf(x)=L⟺∀ϵ>0, ∃δ>0 such that 0<∣x−c∣<δ⟹∣f(x)−L∣<ϵ
The word "controlling" highlights that δ is chosen after ϵ is given — you control the input window δ to force the output error below ϵ. The δ is not arbitrary; it must be found (or shown to exist) for every possible ϵ.
Why "Controlling" Matters
This phrasing is most common in analysis textbooks when contrasting with other equivalent definitions. For example, the "sequential definition" of a limit says: if every sequence xn→c (with xn=c) has f(xn)→L, then the limit exists. That definition doesn't give you a direct control mechanism — it's about checking sequences.
The controlling definition is the one you actually use in proofs. It's constructive: you pick δ as a function of ϵ, often by solving inequalities. For instance, to prove limx→2(3x+1)=7, you set δ=ϵ/3. That's the control: if ∣x−2∣<ϵ/3, then ∣(3x+1)−7∣=3∣x−2∣<ϵ. …
Part (b)Concept understanding — Non Monetary Incentives
Non-Monetary Incentives: What They Are and Why They Matter
Imagine you're working on a group project. Your teacher says, "If you finish early, I'll give you ₹500." That's a monetary incentive — a reward in the form of money.
Now imagine the same teacher says, "If you finish early, I'll let you choose the topic for the next project, or I'll write you a letter of recommendation, or I'll give you public recognition in front of the class." None of these involve money, but they still motivate you to work hard. These are non-monetary incentives.
The core idea: Non-monetary incentives are rewards or motivators that do not involve direct cash payment. They appeal to psychological, social, or emotional needs — like recognition, autonomy, growth, or belonging.
The Precise Definition (Exam-Ready)
Non-monetary incentives are rewards or motivators that are not financial in nature. They are used to encourage desired behaviour, improve performance, or boost morale by fulfilling non-material needs such as appreciation, status, responsibility, personal growth, or job satisfaction.
In management and economics, they are often contrasted with monetary incentives (bonuses, commissions, profit-sharing, etc.). Both aim to motivate, but they work through different channels.
Why Do Non-Monetary Incentives Work?
Think about Maslow's Hierarchy of Needs. Money mostly satisfies basic needs (food, shelter) and security. But once those are met, people are driven by:
- Esteem needs — respect, recognition, status
- Belongingness needs — friendship, team spirit
- Self-actualisation needs — growth, creativity, purpose
Non-monetary incentives directly target these higher-level needs. A simple "thank you" from a manager can feel more motivating than a small bonus, because it signals respect and appreciation.
In exams, remember: Non-monetary incentives are especially effective when employees already earn enough to meet their basic needs. They sustain long-term motivation better than money alone.
Common Examples (Memorise These)
| Type | Example | What Need It Fulfils |
|---|---|---|
| Recognition | Employee of the Month, public praise | Esteem |
| Career growth | Training programs, promotions | Self-actualisation |
| Autonomy | Flexible work hours, choice of projects | Esteem, trust |
| Status symbols | A bigger desk, a parking spot, a title | Esteem |
| Job enrichment | More challenging tasks, decision-making power | Self-actualisation |
Part (a)
(i) Accomplishing organisational goals. Controlling measures actual performance against the planned standards, finds deviations and takes corrective action. This keeps activities on track and ensures the organisation actually reaches its goals; without control, plans could drift and fail. …
Part (a): Controlling helps accomplish organisational goals by correcting deviations and makes efficient use of resources by curbing waste.
Part (b): Status gives recognition and prestige, and a positive organisational climate gives a supportive environment – two non-financial incentives.
Part (a)
Controlling is the process of comparing actual performance with planned standards, finding deviations and taking corrective action. Two points of its importance are the following.
(i) Accomplishing organisational goals. Every organisation exists to achieve certain goals, and planning sets them, but it is controlling that ensures they are actually reached. By continuously monitoring progress, controlling shows whether activities are moving according to plan. If, say, a sales team is falling short of its target, controlling detects the gap early so that corrective steps – more training, better incentives or a revised strategy – can be taken. It thus closes the loop between planning and execution and keeps the whole organisation moving towards its objectives. …
Showing the 12 most recent of 59 on this concept.
- CBSE 2026Set 66/1/11 markMCQQ.The step of controlling process which reveals the deviation between actual performance and desired results is : (A) Setting performance standards (B) Analysing deviations (C) Taking corrective action (D) Comparing actual performance with the standards
›Reveal solutionSolution
The step that reveals the deviation is Comparing actual performance with the standards — it is the measurement moment when you discover how far reality has strayed from the plan.
Controlling is the management function that closes the loop, ensuring that what was planned actually happens. It unfolds in a logical sequence: first you decide what "good" looks like, then you check what actually happened, then you figure out why any gap exists, and finally you fix it. The question asks which step reveals the deviation — which moment in this chain actually brings the gap to light.
Setting performance standards is the foundation. Before you can spot a problem, you need a benchmark — a target sales figure, a quality threshold, a cost ceiling. This step establishes the yardstick, but it does not involve looking at real-world results yet. You are still in the planning phase, defining what success means. No deviation is revealed here because you have not measured anything.
Comparing actual performance with the standards is where the revelation happens. You take the real numbers — actual sales, actual costs, actual output — and place them side by side with the standards you set earlier. The gap, if any, becomes visible in this step. You see that sales were ten per cent below target, or that production costs overran the budget by fifteen per cent. This is the diagnostic moment, the step that answers "Are we on track or off track?" The deviation is disclosed here, not explained or fixed, just identified.
NoteThink of it as reading a thermometer. Setting the standard is deciding that normal body temperature is 98.6°F. Comparing is actually checking the thermometer and seeing it reads 101°F. Only then do you know there is a fever — the deviation is revealed.
Analysing deviations comes next. Once you know a gap exists, you dig into the why. Was the shortfall due to poor market conditions, inefficient processes, or inadequate training? This step interprets the deviation, but it does not reveal it — the deviation was already visible in the comparison step. Analysis explains; comparison exposes. …
- CBSE 2026Set 66/2/11 markMCQQ.The question mark in the picture given below represents a financial incentive. Identify the incentive : (A) Pay and allowances (B) Retirement benefits (C) Productivity linked wage incentives (D) Perquisites For Visually Impaired Candidates : Authority, responsibility, rewards, perquisites and prestige of job etc. indicate which of the following non-financial incentives given to a person holding a managerial position ? (A) Job Enrichment (B) Job security (C) Status (D) Organisational climate
›Reveal solutionSolution
The question mark represents Perquisites (option D), which are financial benefits beyond salary; for the visually impaired variant, authority, responsibility, rewards, perquisites and prestige together signal Status (option C), a non-financial incentive tied to managerial position.
The question tests your grasp of the distinction between financial and non-financial incentives, a core theme in the NCERT Business Studies curriculum on directing and motivation. Financial incentives are tangible, monetary rewards—salary, bonuses, allowances, retirement funds, perquisites (company car, housing, medical reimbursement). Non-financial incentives, by contrast, appeal to psychological and social needs: recognition, autonomy, a sense of belonging, the prestige that comes with rank.
The first part asks you to identify a financial incentive represented by a question mark in a diagram. The options are:
- Pay and allowances – the basic salary and regular monetary additions (dearness allowance, house rent allowance).
- Retirement benefits – provident fund, pension, gratuity paid after service ends.
- Productivity linked wage incentives – bonuses or piece-rate payments tied directly to output or performance.
- Perquisites – fringe benefits in cash or kind (company-provided accommodation, car, medical facilities, subsidised meals, stock options).
Without seeing the diagram, the logic is straightforward: if the other boxes in the picture already list pay, retirement schemes and productivity bonuses, the missing piece is perquisites. Perquisites occupy a distinct category—they are financial (they have monetary value) but are not part of the regular wage packet; they enhance the employee's standard of living and signal status. NCERT emphasises that perquisites are especially common at managerial levels, where a corner office, a company car or club membership becomes both a reward and a symbol of rank.
NotePerquisites blur the line between financial and non-financial motivation: they cost the company money (financial) but also confer prestige and differentiate the recipient from peers (non-financial status signal).
The second part—designed for visually impaired candidates who cannot see the diagram—shifts to non-financial incentives. It describes a bundle: authority, responsibility, rewards, perquisites and prestige attached to a managerial position. Which non-financial incentive does this bundle represent?
- Job Enrichment – redesigning a job to include more challenging tasks, greater autonomy and opportunities for achievement; it makes the work itself more meaningful.
- Job Security – assurance of stable, long-term employment; reduces anxiety and fosters loyalty.
- Status – the social and organisational standing that comes with a position; recognition of rank, respect from peers and subordinates, symbols of authority.
- Organisational Climate – the overall work environment, culture, openness and supportiveness of the organisation. …
- CBSE 2026Set 66/2/11 markMCQQ.Match the non-financial incentives given in Column I with their meaning given in Column II : Column I a. Employee participation b. Organisational climate c. Employee empowerment d. Status Column II i. It indicates the characteristics which describe an organization and distinguish one organization from the other. ii. It means ranking of positions in the organisation. iii. It means giving more autonomy and powers to subordinates. iv. It means involving employees in decision making of the issues related to them. Choose the correct option from the options given below : a b c d (A) ii iii i iv (B) i iv ii iii (C) iv i iii ii (D) iii ii iv i
›Reveal solutionSolution
Employee participation → involving employees in decision-making (iv); organisational climate → the characteristics that describe and distinguish an organisation (i); employee empowerment → giving subordinates more autonomy and power (iii); status → ranking of positions (ii). The correct option is (C).
Non-financial incentives motivate employees by satisfying their psychological, social and emotional needs — recognition, autonomy, belonging and prestige — rather than by direct monetary reward. To match each incentive with its meaning, we only need to be clear about what each term stands for.
a. Employee participation means involving employees in the decision-making of issues that are related to and affect them. Giving employees a voice makes them feel valued and raises their commitment to the decisions taken. This matches (iv) — involving employees in decision making of the issues related to them.
b. Organisational climate refers to the set of characteristics that describe an organisation and distinguish it from other organisations, shaping the overall work environment and the way things are done. This matches (i) — the characteristics which describe an organization and distinguish one organization from the other.
c. Employee empowerment means giving subordinates greater autonomy, authority and power to take decisions and act on their own, without constant supervision. It goes a step beyond mere participation. This matches (iii) — giving more autonomy and powers to subordinates. …
- CBSE 2026Set MARCH1 markMCQQ.After knowing the deviations, what type of measures does the management take?(a) (A) Gives training(b) (B) Removes the staff(c) (C) Corrective action(d) (D) Appoints experts
›Reveal solutionSolution
Management takes corrective action after knowing the deviations.
This GSEB Class-12 Commerce controlling question tests the control process: set standards → measure performance → compare and find deviations → analyse causes → take corrective action. Giving training, removing staff or appoi …
- CBSE 2026Set MARCH1 markQ.Name the function which reviews the operations in a business unit.
›Reveal solutionSolution
The function that reviews the operations of a business unit is Controlling.
Controlling is the management function of ensuring that activities in an organisation are performed as per the plans. It reviews and evaluates operations by:
- Setting performance standards.
- Measuring actual performance.
- Comparing actual performance with the standards.
- Analysing deviations and taking corrective action. …
- CBSE 2026Set ANNUAL1 markQ.Fill in the blank: The last step in controlling process is _______. (Setting performance standards/corrective action)
›Reveal solutionSolution
The last step of the controlling process is taking corrective action, so that fills the blank.
The steps in the controlling process are: (1) setting performance standards, (2) measuring actual performance, (3) comparing actual performance with standards, (4) analysing deviations, and (5) taking corrective action. Setting performance standards is the FIRST step, so the blank cannot be that. The final step is taking corrective action — correcti …
- CBSE 2026Set ANNUAL1 markQ.What is the main objective of controlling? Explain.
›Reveal solutionSolution
The main objective of controlling is to make sure actual performance is in line with planned standards, by detecting and correcting deviations.
Controlling is the management function of comparing actual performance with the pre-set standards, finding out deviations, and taking corrective action. Its main objective is to ensure that events conform to plans — that is, that the organisation actually achieves what it set out to achieve. To do this, controlling:
- Measures actual performance and compares it with planned standards.
- Identifies the deviations and their causes.
- Takes corrective action to bring performance back on track, and revises standards if necessary. …
- CBSE 2026Set ANNUAL1 markMCQQ.Control is related to:(a) Results(b) Functions(c) Efforts(d) None of these(a) Results(b) Functions(c) Efforts(d) None of these
›Reveal solutionSolution
Control is related to results, because controlling compares the actual outcome achieved against the standard that was planned.
Controlling is the management function that measures actual performance against predetermined standards, identifies deviations, analyses their causes, and takes corrective action. It is inherently an outcome-focused, end-of-process function — it looks at what has actually been achieved (output, sales figures, quality levels, costs incurred) and compares that result with what was planned. "Functions" and "efforts" describe the process of doing …
- CBSE 2025Set 66/4/11 markMCQQ.Read the following statements : Assertion (A) and Reason (R). Assertion (A) : A good control system motivates employees and helps them to give better performance. Reason (R) : It ensures that employees know well in advance what they are expected to do and what the standards of performance are, on the basis of which they will be appraised. Choose the correct alternative from the options given below : (A) Assertion (A) is true, but Reason (R) is false. (B) Assertion (A) is false, but Reason (R) is true. (C) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A). (D) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
›Reveal solutionSolution
A good control system motivates employees by setting clear expectations and standards, and the reason given correctly explains why this happens.
Control in management is often misunderstood as a restrictive, top-down process — something that limits freedom and creates pressure. But the NCERT textbook presents a far more constructive view. A well-designed control system does not merely check errors; it guides behaviour, aligns effort with organisational goals, and — crucially — motivates people. The Assertion here captures that positive side: a good control system does indeed motivate employees and helps them perform better.
How does this motivation actually work? The Reason provides the mechanism. When employees know in advance what is expected of them — the specific tasks, the quality standards, the deadlines — they work with clarity rather than confusion. They also know the yardstick against which their performance will be judged. This transparency removes anxiety and guesswork. Instead of fearing evaluation, they see it as a fair, predictable process. That sense of fairness and clarity is itself motivating.
NoteThe NCERT text emphasises that control standards should be objective and communicated beforehand. Vague or secret standards create resentment, not motivation. …
- CBSE 2025Set ANNUAL1 markMCQQ.In a business enterprise controlling is needed (A) at the time of establishment of business (B) at the time of operation of business (C) at the end of the year (D) continuously
›Reveal solutionSolution
Controlling is a continuous function because performance must be monitored against standards throughout operations, not only at the start or end of a period.
Control is an ongoing process that measures actual performance against planned standards and takes corrective action whenever deviations occur. If control were done only at establishment, only during operation, or only at year-end, m …
- CBSE 2025Set ANNUAL1 markMCQQ.Controlling is the ............ function of management. (A) first (B) second (C) third (D) last
›Reveal solutionSolution
Controlling is the last function of management because it evaluates whether the objectives set during planning have actually been achieved after the other functions have been performed.
The recognised order of management functions is Planning → Organising → Staffing → Directing → Controlling. Controlling appears last because it measures actual performance, compares it with the standards f …
- CBSE 2025Set ANNUAL1 markMCQQ.Control is a ............ managerial function. (A) compulsory (B) necessary (C) optional (D) none of these
›Reveal solutionSolution
Controlling is a necessary (indispensable) managerial function because it ensures that organisational activities conform to plans and that objectives are actually achieved.
Without control, managers would have no way of knowing whether plans are succeeding or where corrective action is required. It is therefore not optional but a basic, necessary function performed by managers a …
🎓Unlock everything free for 14 days
- ✓Full step-by-step solutions
- ✓Concept-first explanations
- ✓Methods, shortcuts & mistakes
- ✓PYQ mapping + timed mock tests
Full access for 14 days. No credit card required.