Features and Importance of Controlling in Management

Controlling is an essential part of management that every manager needs to perform to guide their team. It helps improve the efficiency of other management tasks.

The Importance of Controlling is seen in how it ensures the proper use of resources to meet the goals of the organisation. The success of an organisation depends on having a simple and effective controlling process. Let’s have a look at the Importance of Controlling Function.

Steps in Controlling

There are three steps in controlling:

1. Establishment of Standards:

The first step in control management is establishing standards.

Standards are the paths that are planned by the organization towards which the performance has to be directed. They are obtained from the objectives of the organization based on which performances are measured. Standards may be set for different areas of the organization such as production, marketing, sales, personality development, 

profitability and so on.

2. Measurement and Comparison of Performance

Once the standards are set, the next step is to measure the actual performances and compare them with the desired standards to find any deviations. If there are deviations, then the reason for it must be found. The end report from this step consists of deviations and their causes which will be forwarded to the team who will be taking further necessary corrective actions.

3. Corrective Actions when Deviations Occur

The final step in controlling is taking corrective actions for deviations. The deviations are first investigated and appropriate actions have to be taken. The reason for deviations could be the flaws in standards that have to be revised and changed.

Importance of Controlling Function

• Achieving Organisational Goals
  Controlling helps ensure that the organisation’s goals are met. It identifies any deviations from the plan and applies corrective actions to reduce the gap between expected and actual results, making it easier to achieve objectives.

• Adapting to Changes
  Organisations often face changes, such as new products, technologies, government regulations, or competitor strategies. Controlling helps businesses adapt to these changes effectively.

• Efficient Use of Resources
  Controlling minimises resource wastage and ensures proper utilisation of available resources. This leads to better organisational performance and productivity.

• Checking Standards for Accuracy
  Managers compare actual performance with set standards to see if the standards are effective. If necessary, they adjust these standards to improve the efficiency of processes.

• Supports Better Decisions
  Controlling helps managers identify gaps between planning and implementation. This improves decision-making and enhances the overall performance of the organisation.

• Motivating Employees
  Employees know their performance is evaluated based on set standards. Regular performance reviews and rewards, such as bonuses, promotions, or increments, encourage employees to perform better.

• Maintaining Discipline and Order
  Controlling ensures discipline in daily operations by enforcing rules and reducing unprofessional behaviour, creating a more organised work environment.

• Improving Coordination
  Controlling aligns all organisational activities and employee efforts with overall goals. This ensures effective coordination and optimal performance.

Limitations of Control Management

• No Control over External Factors: The organizations do not have control over the changes in the external environment for example changes in technology, competition and changes in consumer requirements. 

• Employee Resistance: Employees tend to oppose certain control procedures because it may limit their freedom. For example, time tracker machines or CCTVs may not be accepted by all employees.

• Difficulty in Setting Standards: It gets difficult to measure performance because standards cannot be defined quantitatively which arise due to different problem areas such as human behaviours, employee morale and job satisfaction.

• Costly: Controlling incurs a lot of expense, time, and effort and hence gets costlier. It must be ensured by the management that the cost involved in running a control system should not exceed the benefits gained from it.

Conclusion

Controlling is an important part of management that helps an organization achieve its goals. It ensures proper use of resources, keeps activities on track, improves teamwork, and motivates employees. With effective controlling, organisations can solve problems, work efficiently, and grow successfully.