Q.State any one situation in which an organisation's control system loses its effectiveness.
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Start your 14-day free trial to unlock the full solution →A control system loses much of its effectiveness when performance standards cannot be defined in quantitative terms — this is the chapter's own first limitation of controlling.
Controlling works by comparing actual performance against a clear standard, so the system is only as good as the standards it uses. The chapter's first stated limitation captures the most important situation in which control loses its effectiveness: difficulty in setting quantitative standards. When a standard cannot be expressed in measurable numbers, comparing actual performance against it becomes subjective and unreliable, and the control system loses much of its value.
This problem arises in areas that are inherently qualitative — employee morale, job satisfaction, and human behaviour. For example, there is no simple unit in which to measure "team spirit" or "customer goodwill." A manager may sense that morale has dropped, but without a quantitative standard, the control system cannot objectively confirm the deviation or measure its size. Wherever qualitative standards are unavoidable, the manager should try to define them in a way that makes measurement possible (for instance, judging customer service by the time a customer waits to be served) — but the underlying limitation remains. …
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