What is Controlling?
Meaning and concept
The objective of every organization is to use scarce resources in the best possible way. Plans are framed to achieve better results. Control is the process of checking whether the plans are being adhered to or not, keeping a record of progress, and them taking corrective measures if there is any deviation. Control is one of the managerial functions. These functions start with planning and end at controlling. Planning will be successful only if the progress is properly controlled. Planning involves setting up foals and objectives while controlling seeks to ensure performance in accordance with the plan.
Control is not limited only to finding out deviations but also tries to find reasons and solutions for the problems. For example, if the planned output is 2000 units and the actual output is 1800 units in a given period then the controlling function will look for the reasons for this deviation the reason for the deviation is the inefficiency of the workers then they may be sent for training that their efficiency improves. Similarly, the other reasons for inefficiency are also analyzed and necessary measures are taken to rectify them.
Features/Characteristics of Controlling
Features of controlling are discussed as follows :
1. Controlling is Goal Oriented.
The controlling function ensures that everybody works as per the plans and the goals are achieved as per schedule. The performance is regularly monitored and deviations, if any, are corrected at the earliest so that organizational goals are reached in time.
2. Controlling is all Pervasive Functions.
Control is exercised at every level of management. It is not that control is exercised at the top level only, it is exercised at middle-level management as well as at the operational level.
3. Controlling is continuous Activity.
Control is not one time job, it is regularly exercised. A manager will have to see that his subordinates perform according to plans at all times. Socnotol is exercised till the organization is surviving.
4. Forward-Looking. Contol is forward-looking.
Measures can be devised to control future study the past performance in order to find out the reasons for low results. A corrective example, production for a particular month is low than the standard. The manager will not be able to do anything about the past performance. However, he may study the reasons for low production. He should take appropriate steps so that the same mistakes are not repeated and production will not suffer in the future.
5. Control is Related to Planning.
Planning is the first function of management while control is the last. control cannot be exercised without planning. First, the objectives are set and efforts are made to see whether these are accomplished or not. Whenever there is a laxity in performance or things are not happening as per the plans then corrective measures are taken immediately. So, planning provides a base for controlling.
Impotrance of Controlling
The following are some of the advantages of a control system :
1. Helps in Achieving Organisational Goals.
All plans of an organization are prepared to set goals. The controlling function ensures that all the goals are achieved as per the plans. In case there is any slackness in reaching the goals then immediate steps are taken to rectify the things and see that performance goes as per plans. When things go as per plans then organizational goals will be achieved.
2. Making Proper use of Resources.
Control ensures that every activity is started and completed in a given schedule. As a result of it the resources of the organization will be used in a most proper way. Contol helps in the proper implementation of plans. thus ensuring the proper use of resources.
3. Improves Employee Motivation.
The goals and standards set for the employees for appraisal are communicated to the employees well in advance. This helps the employees to assess their performance regularly and make efforts ot further improve it. All this will be a part of a good control system. A good control system also guides employees to control their problems. The communication and monitoring system with employees will provide motivation.
4. Ensures order and Discipline.
A good control system keeps a constant watch on the performance of employees. This creates an atmosphere of order and discipline in the organization. A strict control will also keep a check on the dishonesty and fraud of employees. All this will improve the work environment.
5. Contol helps in Improving Efficiency of Employees.
The employees are intimated their standards and goals in advance. The supervisor keeps a regular check on the actual performance of employees and maintains a comparative record after comparing it will standards set. The employees will be motivated to improve their efficiency and produce even more than standards. The employees also prepare their self-appraisal reports to asset their performance. A proper control system will be increasing the efficiency of employees.
6. Helpful in Minimising Errors.
Control systems help in detecting the errors at the earliest. The performance is monitored regularly and errors committed by the employees will come to notice soon. When mistakes happening at various levels go unnoticed the organization may suffer a lot. A good control system will help in detecting and rectifying the mistakes at the earliest.
7. Facilitates Decentralisation.
Decentralization of authority is necessary for big enterprises. The management cannot delegate authority without ensuring proper controls. The targets or goals of various departments are used as a control technique. If the work is going on satisfactorily then top management should not worry. The management by exception enables top management to concentrate on policy formulation. Various control techniques like budgeting cost control, pre-action approvals allow decentralization without losing control over activities.
8. Facilitates Co-ordination.
Control helps in the coordination of activities through unity of action. Every manager will try to co-ordinate the activities of his subordinates in order ot achieve departmental goals. Siimilarly, chief executive will co-ordinate the functioning of various departments. the controls will act as checks on the performance and proper result will be achieved only when activities are co-ordinated.
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