question_answer

Timely Ltd is a manufacturer of premium wall clocks. The company has been doing extremely well and has been able to carve a niche in the market. The company recently decided to go global. To achieve the above objective, the company decided to increase its production to 30,000 units per month. But, after two months, the management observed that only 45,000 units were manufactured. Company is opting for a good control system in order to achieve the targets on time.

(i) In context to this, give some of the advantages of controlling.

(ii) State the values that will be served by an effective control system.

Answer:

(i) Some advantages of good control system are as follows: [a] Attainment of Organisational Objectives Budgeting as a system of control, focuses on specific and time bound targets. Thus, it helps in attainment of organisational objectives. [b] Motivation to the Employees It is a source of motivation to the employees, who knows the standards against which their performance will be evaluated. [c] Optimum Utilisation of Resources By allocating the resources according to the requirements of the different departments, it helps in optimum utilisation of resources. [d] Budgeting Process It helps the management to learn from past experience. The management can critically look at the success or failure of the past budgets and isolate errors, analyse their cause and establish steps to be taken to avoid repetition of such errors. (ii) Values that can be served by good control system are as follows: (any two) [a] Discipline [b] Orderliness [c] Efficiency/Increase in productivity