Chemicals Ltd., a quoted chemical company, has until recently achieved a steady increase in profitability over a number of years. It faces stern competion and the directors are concerned about the dissatisfaction expressed by major shareholders regarding performance over the last two years. During this period, it has consistently increased dividends, but its share price has not grown at the same rate as it did previously Khemco Ltd., a direct competitor, is similarly experiencing a reduction in profitability. Its shareholders are diverse, with the majority being financial institutions.
Answers
Answer:
CONTROLLING
Explanation:
Importance of Controlling
It helps in accomplishing organisational goals by constantly monitoring the performance of the employees and bringing to light the deviations, if any, and taking appropriate corrective action.
It helps the business managers to judge the objectivity and accuracy of the standards.
It seeks to make efficient use of resources.
It seeks to motivate the employees and helps them in giving a better performance.
It creates an atmosphere of order and discipline in the organisation.
It facilitates coordination in action by providing direction to all activities within and among departments.
Features of Controlling
It is a goal-oriented function.
It is a pervasive function as it is used in the organisations of varying types and sizes.
It is considered to be a forward looking function as it helps to improve the planning by providing valuable feedback for reviewing and revising the standards.
It is considered to be a backward looking function as it is like the post mortem of the past activities to ascertain the deviations if any.
It is not the last function of management as it brings the management cycle back to the planning function.