Principles of Management CLEP Practice Exam

Which management function involves monitoring and comparing performance to established objectives?

1. Planning function

2. Organizing function

3. Leading function

4. Controlling function

The correct answer is: Controlling function

The controlling function is integral to the management process as it ensures that an organization is on track to achieve its established goals and objectives. This function involves several key activities, such as setting performance standards based on the company's objectives, measuring actual performance against these standards, and taking corrective actions when necessary. When managers engage in the controlling function, they systematically monitor organizational performance, analyze deviations from planned outcomes, and determine the necessary adjustments to align actual performance with the set objectives. This process not only helps to gauge the effectiveness of the organization’s strategies and operations but also enables managers to make informed decisions that foster continuous improvement. In contrast, the other functions, such as planning, organizing, and leading, serve different purposes. Planning focuses on defining goals and determining the means for achieving them, organizing deals with arranging resources to execute plans, and leading is centered around motivating and influencing employees to work towards the organization's objectives. While each of these functions plays a critical role in management, it is specifically the controlling function that is focused on performance monitoring and alignment with established objectives.