Maharashtra State BoardHSC Commerce 12th Board Exam
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Explain Controlling Importance. - Organisation of Commerce and Management

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Explain controlling importance.

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Importance of Controlling is as follows :
  1. Fulfilling Organizational Goals : Controlling function helps to measure the progress towards the organizational goals and points out the deviations, if any and then suggests the corrective action towards the fulfilment of the organizational goals. In this way controlling helps to achieve the goals of the organization.
  2. Accuracy of Standards : A good control system helps management to verify the standards set are accurate or not. An efficient control system keeps a careful check on the changes taking place in the organization and helps to review the standards in light of such changes.
  3. Efficient Use of Resources : By using control techniques, a manager helps to reduce wastage and spoilage of resources. This ensures that resources are used in the most efficient and effective manner so as to achieve organisational objectives.
  4. Improving Employee Motivation : A good control system ensures that employees knows well in advance what they are expected to do and what are the standards of performance. Once the organizational objectives are achieved then they are rewarded with monetary and non-monetary incentives. This motivation helps the employees to perform more better in future.
  5. Ensures Order and Discipline : Controlling function brings about order and discipline in an organization. It helps to reduce the bad behaviour on the part of the employees. Under this system, regular checking is done by the authorities concerned and preventive actions are taken to avoid any deviations in already set targets.
  6. Facilitates Co-ordination : Control systems are designed in such a way that they focus not only on operating responsibilities of a manager but also on his ultimate responsibility. All the departments in the organization are 'interdependent on each other. There is always a possibility of having a good relationship between all the department managers. Co-ordination between the heads of departments can help to find out any deviations- in their respective departments and use the remedial measure so that desired results can be achieved.
  7. Psychological Pressure : Control pressure puts a psychological pressure on the individuals to perform better. Their performance is evaluated with the targets set for them. Everyone is likely to put on their best performance as they are aware that it will be evaluated. They may also have a pressure to achieve the results according to the standards fixed for them.
  8. Organizational Efficiency and Effectiveness : Proper control ensures organizational efficiency and effectiveness. Factors of control like making managers responsible, motivating them for higher performance and achieving co-ordination in their performance ensures that the organisation works efficiently. An organization is effective if it is able to achieve its desired objectives.
  9. Corporate Image : Controlling function helps to improve the overall performance of the organization. Progress in the business is measured in terms of planned standards and actual performance, if there is any deviation then corrective measures are applied and desired results can be achieved. This builds a good corporate image and brings goodwill for the business.
  10. Managerial Responsibility : Managerial responsibility is created through assignment of activities to various individuals. This process starts at the top level and goes to the lower level. A manager assigns some activities to his subordinates and controls them.
Concept: Management Functions
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