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Explain the importance of controlling. - Organisation of Commerce and Management

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Answer in Brief

Explain the importance of controlling.

Answer in brief.

Describe importance of controlling with any Four Points.

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Importance of Controlling:
Controlling is important in maintaining standards and to achieve desired goals effectively and efficiently. It is a function of checking the performances of employees at every stage of their work in process. The importance of controlling function in an organization is as follows:

  1. Fulfilling Goals of Organization:
    Controlling is the function of measuring the performances at every possible stage, finding out the deviations, if any; and taking corrective actions according to planned activities for the organization. Thus, it helps in fulfilling the organizational goals.
  2. Making Efficient Utilization of Resources:
    Various techniques are used by managers to reduce wastage of material and spoilage of other resources. Standards are set for every performance. Employees have to follow these standards.
    As an effect of this, the resources are used by employees in the most efficient and effective manner so as to achieve organizational objectives.
  3. Accuracy of Standards:
    An efficient control system helps management in judging the accuracy of standards whether they are accurate or not. Controlling measures are flexible to some extent. So after reviewing them according to changing circumstances, they are revised from time to time which is beneficial for checking performances accurately.
  4. Motivates Employee:
    After setting standards of checking performance, they are communicated to employees in advance. Due to this, employees get an idea about what to do and how to do it. Performances are evaluated and on that basis, employees are rewarded in the form of increment, bonus, promotion, etc. It motivates the employees to perform at their best level.
  5. Ensures Order and Discipline:
    Controlling is the function of order and maintaining discipline. It works for reducing the unprofessional behavior of the employees. Discipline is maintained by continuous checking of performances by the superiors and preventive actions are taken to minimize the gap between actual and standards.
  6. Facilitates Co-ordination:
    Control is a function in which the roles and responsibilities of all departmental managers and the subordinates are designed clearly. Coordination between them helps to find out the deviations in their respective departments and to use remedial measures for desired results of the organization.
  7. Psychological Pressure:
    The performances are evaluated with the standard targets. The employees are very well aware that their performance will be evaluated and they will be 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 making managers responsible, motivating them for higher performance, and achieving departmental coordination. It ensures organizational efficiency and effectiveness.
  9. Builds Good Corporate Image:
    The controlling function helps to improve the overall performance of the organization. The minimum deviation in predetermined standards and actual performance results in the progress of the business. It can be achieved with the help of 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 performance. Managers as well as subordinates-work according to it. Wherever necessary, they can take the help of these standards and can achieve desired results. Thus, the controlling function acts as a guide for everyone. The steps are taken for controlling an activity guide the management while planning future activities.
Concept: Concept of Functions - Controlling
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