The CEO of a firm is involved regularly in personal observation, statistical report making and trying to ensure that current activities conform to planned targets. Which function of management is he performing?
The CEO of a firm is involved regularly in personal observation, statistical report making and trying to ensure that current activities conform to planned targets. Which function of management is he performing?
Solution
Option 1 -> Controlling involves monitoring performance through observation and reports, and ensuring activities align with planned targets.
Option 2 -> Financial Planning relates to budgeting and forecasting financial resources, not monitoring current activities against targets.
Option 3 -> Financing Decision concerns raising capital and managing capital structure, which is unrelated to performance monitoring.
Option 4 -> Managerial Planning involves setting objectives and determining future courses of action, not comparing current performance with targets.
Hence, Option 1: Controlling -> The CEO is performing the controlling function by observing operations, analyzing statistical reports, and comparing actual performance with planned targets to ensure conformity. These are the core activities of the controlling function in management. -> correct
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