Explain two limitations of Management control.
Answers
Answer:
1. Helps in achieving organisational goals:
→When the plans are made in the organisation these are directed towards achievement of organisational goal and the controlling function ensures that all the activities in the organisation take place according to plan and if there is any deviation, timely action is taken to bring back the activities on the path of planning.
When all the activities are going according to plan then automatically these will direct towards achievement of organisational goal.
2. Judging accuracy of standards:
→Through strategic controlling we can easily judge whether the standard or target set are accurate or not. An accurate control system revises standards from time to time to match them with environmental changes.
3. Making efficient use of Resources:
→Like traffic signal control guides the organisation and keeps it on the right track. Each activity is performed according to predetermined standards. As a result there is most and effective use of resources.
Explanation:
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