Final answer:
Managers interact with subordinates in the controlling process, providing true to the statement. While modern trends emphasize a collaborative relationship, traditional managerial approaches such as Theory X are still present in some firms. The controlling function is fundamental to ensuring actions align with the organization's goals.
Step-by-step explanation:
True or False: Controlling involves the interactions between managers and their subordinates as they both work to meet the firm's objectives. This statement is generally considered true, as controlling is one of the four major functions of management which also includes planning, organizing, and leading. It's essential for managers to engage with subordinates in order to ensure that the company's goals are met. This engagement involves monitoring performance, comparing it with set objectives, and taking corrective actions if necessary.
There has been a shift towards more of a two-way street approach between managers and employees, with the latter providing significant value through their insights and the former offering support and resources. This modern trend emphasizes collaboration and recognizes employee contributions to the firm's broader goals. However, this may not be the standard in every workplace; traditional hierarchical structures and the Theory X style of management still exist in some organizations.
In such traditional settings, managers may often have a more authoritative role, assuming that employees are primarily motivated by external factors like compensation rather than internal motivation or satisfaction from the job itself. Regardless of the managerial approach, the controlling function involves frequent interaction and communication to adjust activities towards the firm's objectives. This is congruent with organizational structures that can range from very flat, where employees at all levels participate in decision-making, to very hierarchical. Moreover, in the larger context of company management, the board of directors plays a role in ensuring that the firm acts in the shareholders' interests, although top executives often have significant influence in the board's composition.