Question

Explain the importance of controlling.

Describe importance of controlling with any Four Points.

State any four points of importance of the controlling function of management.

Answer 1

Controlling is important in maintaining standards and achieving desired goals effectively and efficiently. It is a function of assessing employees’ performance at every stage of the process. The importance of controlling function in an organization is as follows:

1. Fulfilling the Organization’s Goals: Controlling is the function of measuring performance at every stage, identifying deviations, and taking corrective actions aligned with the organization’s planned activities. Thus, it helps in fulfilling the organizational goals.
2. Making Efficient Utilization of Resources: Managers use various techniques to reduce material wastage and spoilage of other resources. Every performance is subject to established standards. Employees have to follow these standards. As a result, employees use resources in the most efficient and effective manner to achieve organizational objectives.
3. Accuracy of Standards: An efficient control system helps management assess whether standards are accurate. Controlling measures are flexible to some extent. So, after reviewing them in light of changing circumstances, they are revised from time to time, which is beneficial for accurately checking performance.
4. Motivates Employees: After setting performance standards, they are communicated to employees in advance. As a result, employees get an idea of what to do and how to do it. Performances are evaluated, and on that basis, employees are rewarded with increments, bonuses, promotions, etc. It motivates employees to perform at their best.
5. Ensures Order and Discipline: Controlling is the function of order and maintaining discipline. It helps reduce employees’ unprofessional behaviour. Discipline is maintained through continuous performance checks by superiors, and preventive actions are taken to minimise the gap between actual and standard performance.
6. Facilitates Co-ordination: Control is a function in which the roles and responsibilities of all departmental managers and their subordinates are clearly defined. Coordination between them helps identify deviations in their respective departments and implement remedial measures to achieve the organization’s desired results.
7. Psychological Pressure: The performances are evaluated against the standard targets. The employees are well aware that their performance will be evaluated and rewarded accordingly. This psychological pressure works as a motivational factor for employees to give their best performance.
8. Ensures Organizational Efficiency and Effectiveness: Factors of control include holding managers accountable, motivating them to higher performance, and fostering departmental coordination. It ensures organizational efficiency and effectiveness.
9. Builds a Good Corporate Image: The controlling function helps improve the organization’s overall performance. The minimum deviation between predetermined standards and actual performance results in the business’s progress. It can be achieved with proper control. This builds a good corporate image and brings goodwill for the business.
10. Acts as a Guide: The controlling function provides a set of standard performances. Managers and subordinates work according to it. Wherever necessary, they can use these standards to achieve the desired results. Thus, the controlling function acts as a guide for everyone. The steps taken to control an activity guide management in planning future activities.