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Unit 7: Controlling




          7.9 Review Questions                                                                  Notes

          1.   Why is control a must in business management? What are the requirements of an effective
               control system?

          2.   "The essence of control is action". Comment.
          3.   "The controlling function of management is similar to the function of the thermostat in a
               refrigerator". Comment.

          4.   Planning and control are after thought of as a system; control is also often referred to as a
               system. What is meant by this? Can both statements be true?
          5.   “PERT is a management interventional technique designed to establish an effective control
               system.” Justify the statement.
          6.   Refer to the Figure below and answer the questions that follow:



                                         C, 1
                                                          E, 4

                             B, 3
                   A, 2                  D, 3                            I, 3
                                                        F, 3
                            G, 2
                                                   H, 5



               (a)  Which tasks are on the critical path of the PERT chart above?
               (b)  What is the slack time for tasks C, D and G?
               (c)  The person working on task C tells the project manager he can't start work until one
                    day after the scheduled starting date. What impact would this have on the completion
                    date of the project? Why?
          7.   What is the relationship between planning and control?

          8.   What should you understand as manager by the term breach of planning control?
          9.   How much do you find poor planning and control in Indian SMEs to be a reason for their
               weak financial performance?

          10.  What is the utility of the CPM?
          11.  What would you use as an effective and powerful method of assessing tasks which must be
               Chosen where parallel activity can be carried out?

          12.  What do you see as the essential elements of a control system?
          13.  Out of planning and control, what is budgeting more important for and why?

          Answers: Self  Assessment

          1.   superiors                         2.  'control'
          3.   Responsibility                    4.  start, ending

          5.   task, duration, dependency        6.  Control




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