'Memo Builders' was constructing a five star hotel for a leading hotel chain. The hotel had to be given possession by next year but the construction of the hotel was running six months behind schedule. The Chief Executive Officer of 'Memo Builders' was concerned as Memo Builders was known for its quality and timely completion of projects. He asked Nitin, the senior of the Project Head for a thorough investigation. Nitin investigated and reported to the Chief Executive Officer that inspite of huge absenteeism of workers, additional workers were not called. Nitin also reported to the Chief Executive Officer that three of the ten machines being used by the workers were defective. Nitin ordered for repair of the machines and asked the Project Head to appoint additional workers with attractive wages to ensure that the deadline is met.
(a) Identify the function of management. Quoting the lines from the above para, explain the steps of the process of the function of management discussed.
(b) Also explain any two points of importance of the function of management identified in (a) above.
(a) Identify the function of management. Quoting the lines from the above para, explain the steps of the process of the function of management discussed.
(b) Also explain any two points of importance of the function of management identified in (a) above.
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Solution and Explanation
1. Setting Standards: - Implied standard: Project completion within original timeline - "The hotel had to be given possession by next year"
2. Measuring Performance: - "Construction...running six months behind schedule" - "Huge absenteeism of workers" - "Three of the ten machines...defective"
3. Comparing Results: - Actual (6 months behind) vs Expected (on schedule) - Resource gap analysis (workers, equipment)
4. Corrective Action: - "Ordered for repair of the machines" - "Appoint additional workers with attractive wages"
(b) Importance Points:
1. Goal Achievement: - Ensures projects meet quality/time standards - Protects company reputation ("known for timely completion")
2. Resource Optimization: - Identifies underutilized assets (machines) - Balances labor requirements (absenteeism vs hiring) The case demonstrates: - Concurrent control (during project execution) - Quantitative control (time metrics) - Multi-level control (CEO to Project Head)
Top Questions on Controlling
Piyush is the Production Manager of a shoe company called . He has 1000 workers working under him in his department. Piyush booked a special order for 300 pairs of gents shoes at an estimated cost price of Comforty < 500 per pair plus 20 percent profit margin. The order is to be completed within 10 days. After completion of the order, Piyush found out that the production cost of one pair of shoes was 600 Rupees. He tried to find out the reason but couldn't. He reported it to the Chief Executive Officer. The Chief Executive Officer appointed Abhay to find out the cause. Abhay was not only a specialized Cost Accountant, but also a qualified Human Resource Manager. After two days, Abhay reported that the set targets could be completed with the help of only 800 workers, which revealed that there was overmanning in the organization. The organization was not utilizing the human resources optimally, which had led to higher labour cost. The above case highlights one of the points of importance of an important function of management.
(i) Identify the function of management.
(ii) State any two points of importance of the function of management identified in part (i), except the one discussed in the above case.- Statement I : Controlling ensures that activities in an organization are performed as per the plans. Statement II : Controlling function of a manager is a pervasive function. Choose the correct option from the options given below :
- Sohan, Sales Manager of ‘Kriti Ltd’ is a good efficient manager who always motivated his team to perform to their best ability. Till the year 2023, he and his team were exceeding the targets. However, since the last six months, they were unable to meet their targets. On investigation it was found out that one of his team members had left the job and was offering the competitors’ product to some of the clients of ‘Kriti Ltd.’ at lesser price.
- Identify the function of management being referred to in the above case.
- Identify the step in the process of the above function of management which helped the management to find out the fall in performance.
- Suggest any 2 ways which can help management to achieve the desired target in future.
- ______ is the step in the controlling process where standards may have to be revised in case the deviation can not be corrected through managerial action.
- Nishtha runs a chain of famous restaurants, ‘Indian Kitchen’, in different parts of Delhi. The restaurant chain was known for good quality food and quick service. ‘Indian Kitchen’ was generating good revenue and had goodwill in the market. Nishtha would take a weekly report from all the Restaurant Managers and take necessary action to resolve the problems, if any. Nishtha noticed a sudden decline in sales in one of the restaurants. She questioned the Restaurant Manager who mentioned that the restaurant is seeing a gradual decrease in the number of customers, but could not provide a clear explanation for it. So, Nishtha formed a team to find out the causes of the declining customers as this is the key area for restaurant business and is critical to the success of business. By doing this, Nishtha is performing a step of the process of a function of management.
- [(i)] Identify and explain the function of management discussed above.
- [(ii)] Explain the step of the function identified in (i) above, followed by Nishtha to find out the causes of declining revenue.
- [(iii)] Explain the step Nishtha will take after she gets the report from the team formed to find out the causes of declining revenue.
Questions Asked in CBSE CLASS XII exam
Rupal, Shanu and Trisha were partners in a firm sharing profits and losses in the ratio of 4:3:1. Their Balance Sheet as at 31st March, 2024 was as follows:
(i) Trisha's share of profit was entirely taken by Shanu.
(ii) Fixed assets were found to be undervalued by Rs 2,40,000.
(iii) Stock was revalued at Rs 2,00,000.
(iv) Goodwill of the firm was valued at Rs 8,00,000 on Trisha's retirement.
(v) The total capital of the new firm was fixed at Rs 16,00,000 which was adjusted according to the new profit sharing ratio of the partners. For this necessary cash was paid off or brought in by the partners as the case may be.
Prepare Revaluation Account and Partners' Capital Accounts.- CBSE CLASS XII - 2025
- Partnership Accounts
On the basis of the following hypothetical data, calculate the percentage change in Real Gross Domestic Product (GDP) in the year 2022 – 23, using 2020 – 21 as the base year.
Year Nominal GDP Nominal GDP (Adjusted to Base Year Price) 2020–21 3,000 5,000 2022–23 4,000 6,000 - CBSE CLASS XII - 2025
- National Income Accounting
- Determine those values of $x$ for which $f(x) = \frac{2}{x} - 5$, $x \ne 0$ is increasing or decreasing.
- CBSE CLASS XII - 2025
- Functions
- Analyse how freedom is curbed in the context of Franz in ‘The Last Lesson’ and Saheb in ‘Lost Spring’.
- CBSE CLASS XII - 2025
- The Last Lesson
- Altima Ltd. invited applications for 2,00,000 equity shares of ₹ 10 at a premium of ₹ 4 per share. Amount payable:
On application and allotment – ₹ 7 (incl. ₹ 1 premium)
On first and final call – Balance.
Applications received for 2,40,000 shares. 30,000 rejected. Manvi allotted 4,000 shares failed to pay first and final call. Her shares were forfeited. These were reissued at ₹ 4 per share fully paid-up.
Pass journal entries in the books of Altima Ltd.- CBSE CLASS XII - 2025
- Accounting for Share Capital