Question

Implementing the controllability principle One of the most widely accepted and longest held beliefs is the controllability principle, which says that organization units and people should be held accountable only for things that they can control.

Required

(a) For any job you choose, give one example of something you should be expected to control and one example of something you should not be expected to control.

(b) Can you think of an example in which making yourself responsible for something that you cannot control would promote a desirable activity?

Answer 1

The controllability principle fixes responsibility on the manager for the revenues, costs and investments controlled by the responsibility center.

a. For example I am the manager in one of the plants that is into manufacturing of bath essentials. I am responsible for the production line and should be evaluated on the basis of labor and machine hours. I must be held responsible for the administrative labor cost and overheads incurred in the admin office.

b. An example in this case will be work on controlling machine failures to reduce the cost of repairs and down time and increase productivity for the business.