Question

Write Short Note on the following:
Nature of Controlling.

Answer 1

Meaning: - Controlling is the indispensable function of management. Management function starts with planning and ends with controlling. Controlling is one of the managerial functions like planning, organizing, staffing and directing. It is an important function as it ensures that there is effective and efficient utilization of organizational resources to achieve the planned goals. If there is any actual deviation in comparison with the plans, then corrective measures should be taken to bring improvements towards the achievement of desired objectives

Definition: - “Control is the process of taking steps to bring actual results and desired results closer together”……………Defined by (Philip Kotler).

Characteristics of controlling:

1. Pervasive: Controlling is a pervasive function. It is exercised by all managers, irrespective of their level, department or division.
2. Positive process: Controlling is a positive process, as it aims at achieving organisational goals despite various working constraints.
3. Continuous process: Controlling is an ongoing process, as it involves constant assessment and evaluation of the progress of the tasks and activities against the set standards.
4. Goal-oriented: Controlling keeps a close watch on the work in progress and constantly works towards the accomplishment of organisational goals.
5. Backwards-looking and forward-looking: Controlling is backwards-looking, as it evaluates the past performances against the pre-defined set of standards and takes the required corrective actions in case of any deviations. The assessment and corrective actions form the base for future planning. Based on those corrective actions, plans are formed. That is why controlling is also a forward-looking function.
6. Planning is a basis of controlling: controlling is said to be checking the performance as per the planning. So planning precedes controlling and sets the standards and target of performance. Without planning, control is not possible.
7. Action-Oriented Process: Action is the essence of control. The purpose of control is to take corrective action for the improvement of performance. If there is any actual deviation in comparison with the plans, then corrective measures should be taken to bring improvements towards the achievement of desired objectives.
8. Future-Oriented: Control is futuristic in nature. It measures current performance and provides guidelines for corrective action. This ensures future performance as per plans so that the same mistake should not be repeated in future.
9. End Function: Controlling is an end function that comes once the performance is made in accordance with the plan. If all the desired objectives are achieved as per the planned activities. Then the control function brings an end to the task assigned.

10. Tools Management: To control activities, management may adopt various control techniques or tools.

    • Financial control: (Budgetary Control, Management audit control through costing, break-even analysis)
    • Operating control: (Quality Control, technique for quality control, quality control through quality circle)
    • Inventory control: (ABC analysis, economic order quantity, time-event network analysis, PERT/CPM)
11. Delegation of authority: Control action can be taken only by managers who are responsible for the performance and have the authority to get things done. A manager gets authority through delegation.
12. Creativity: Managers should adopt new and modern controlling techniques for the achievement of objectives. They have to be creative and innovative in their thinking.
13. Acts as a Guide: Control System guides the actions of the organization. Activities are undertaken in the right direction. It acts as a traffic signal post and keeps the activities moving on the right track. This system guides in case of any deviation to achieve desired objectives.