Question

Which of the following points highlight the problems faced by the organisation when implementing an effective controlling system?

Options

• Complication While Setting Standards

• External Factors

• Resistance from Employees

• All of the above

Answer 1

All of the above

Explanation - 

1. Complication While Setting Standards : For better control, it is necessary to establish standards in both quantitative and qualitative dimensions. When the standards are set in qualitative terms, however, controlling becomes less effective. The use of qualitative standards complicates the task of evaluating performance and comparing real work to the standards. As a result, it could cause an issue in the control process.
2. External Factors : The business environment is constantly changing, and organisations have little influence over these external circumstances. These issues could make effective control difficult. Changes in government legislation, environmental changes, competitiveness, and other variables are examples of such influences.
3. Resistance from Employees :   Employees may oppose control if it goes against their personal preferences and independence. For example, if the managers set a standard for production and the workers believe it is unachievable, they have the right to strike.