American Airlines has established a goal of increasing its profits by 12 percent next year. To ensure that the goal is reached, management monitors profits on a monthly basis. After three months, if profits have not increased by 3 percent, management will take corrective action to get the company on track. By doing so, management is carrying out its ____ function(s).
A) planning
B) leading and motivating
C) goal-setting and planning
D) organizing
E) controlling

Question

Quizplus · Accepted Answer

Management is carrying out its controlling function by monitoring profits on a monthly basis and taking corrective action if profits have not increased by 3 percent after three months. The other functions of planning, leading and motivating, goal-setting and planning, and organizing may be involved in achieving the goal of increasing profits, but the specific action described in the scenario is an example of controlling.

American Airlines Has Established a Goal of Increasing Its Profits