WHAT IS CONTROLLING?
INTRODUCTION
Controlling is one of the important functions of a manager. In order to seek planned results from the subordinates, a manager needs to exercise effective control over the activities of the subordinates.
In other words, controlling means ensuring that activities in an organization are performed as per the plans. Controlling also ensures that an organization’s resources are being used effectively and efficiently for the achievement of predetermined goals.Â
Controlling is, thus, a goal-oriented function. The controlling function of a manager is a pervasive function. It is a primary function of every manager. Managers at all levels of management- top, middle, and lower-need to perform controlling functions to keep control over activities in their areas.
Moreover, controlling is as much required in an educational institution, military, hospital, and club as in any business organization. Controlling should not be misunderstood as the last function of management. It is a function that brings the management cycle back to the planning function. The controlling function finds out how far actual performance deviates from standards, analyses the causes of such deviations, and attempts to take corrective actions based on the same.
This process helps in the formulation of future plans in the light of the problems that were identified and, thus, helps in better planning in the future periods. Thus, controlling only completes one cycle of the management process and improves planning in the next cycle.
IMPORTANCE OF CONTROLLING
Control is an indispensable function of management. Without control, the best of plans can go away. A good control system helps an organization in the following ways:-
1. Accomplishing organizational goals
The controlling function measures progress towards the organizational goals and bring to light the deviations, if any, and indicates corrective action. It thus guides the organization and keeps it on the right track so that organizational goals might be achieved.
2. Judging accuracy of standards
A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organization and in the environment and helps to review and revise the standards in light of such changes.
3. Making efficient use of resources
By exercising control, a manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with predetermined standards and norms. This ensures that resources are used in the most effective and efficient manner.
4. Improving employee motivation
A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised. It, thus, motivates them and helps them to give better performance.
5. Ensuring order and discipline
Controlling creates an atmosphere of order and discipline in the organization. It helps to minimize dishonest behavior on the part of the employees by keeping a close check on their activities. The box explains how an import-export company was able to track dishonest employees by using computer monitoring as a part of their control system.
6. Facilitating coordination in action
Controlling provides direction to all activities and efforts for achieving organizational goals. Each department and employee is governed by predetermined standards which are well coordinated with one another. This ensures that overall organizational objectives are accomplished. Read more
