Question

State any three reasons as to why controlling is regarded as an indispensable function of management.

Answer 1

Importance of controlling:

1. The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action.
2. A good control system enables management to verify whether the standards set are accurate and objective.
3. By exercising control, a manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with predetermined standards and norms.
4. 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 are appraised.
5. Controlling creates an atmosphere of order and discipline in the organisation.
6. Controlling provides direction to all activities and efforts for achieving organizational goals.