Q21
1 markSection B

Identify and state the function of management performed by Verma, the Chief Executive Officer of the company.

Controlling
Function of Management — Controlling
Official Answer

The function of management performed by Verma is Controlling.


  • Verma set performance standards (informed employees in advance of expected performance and standards), measured actual performance through audit/stock checks/biometric attendance, compared actual results with these standards, and this led to corrective outcomes (reduced pilferage, improved punctuality and performance) — all of which are the essence of the controlling function.
controlling functioninternal auditperformance standardsinventory pilferagebiometric attendancedeviationcorrective action

Marking Scheme

  • 11 mark for correctly identifying the function as Controlling, with at least one supporting reason/example from the case (audit, stock checks, or standards).

Hint

Look for keywords like audit, stock checks, biometric monitoring, and standards of performance — these all point to one specific management function.

Quick Oral Answer

Verma performed the controlling function — setting standards, checking actual performance through audits and biometric systems, and taking corrective steps to fix pilferage and lateness.

Analysis & Explanation

This is a case-identification question requiring recognition of controlling from behavioural cues in the passage.


Cues pointing to Controlling

  • Internal audit to check performance = measurement of actual performance.
  • Surprise stock checks and automated inventory tracking = monitoring against a standard to detect pilferage (deviation).
  • Biometric attendance system = measuring actual punctuality against the expected standard.
  • Informing employees in advance of expected performance/standards = setting performance standards, a core step of controlling.

Why not other functions

  • This is not planning (no future course of action being decided), not organising (no division of work/authority being designed), and not directing in isolation (though motivation is mentioned, the dominant emphasis is on measurement and correction of deviations, which is the hallmark of controlling).

Exam tip: In case-based questions, look for keywords like 'audit', 'checks', 'standards', 'monitor', 'track' — these consistently signal the controlling function.

Common Mistakes

  1. 1Identifying the function as 'Directing' merely because employee motivation is mentioned, ignoring the dominant emphasis on audit/checks/standards which signal controlling.
  2. 2Failing to link specific facts in the case (audit, biometric system, informing standards in advance) to the steps of the controlling process while justifying the answer.

Interesting Facts

Controlling and planning are often called 'Siamese twins' of management because controlling is meaningless without pre-set standards from planning, and planning is ineffective without controlling to verify its execution.

Modern controlling increasingly relies on technology-enabled systems (like the automated inventory management and biometric systems in this case) rather than manual checks, improving both accuracy and speed of detecting deviations.

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Frequently Asked Questions

How do you identify the controlling function in a case study?

Look for keywords like standards, measurement, audit, checks, monitoring, deviation, and corrective action — these consistently indicate the controlling function of management.

Why is controlling not the same as directing in this case?

Although employee motivation is mentioned, the case's dominant emphasis is on measuring, checking, and comparing actual results against pre-set standards (audit, stock checks, biometric attendance) — which is specifically the controlling function, not directing.