Importance of Controlling

Controlling is regarded as an important management function. Thus, it is something that every manager needs to perform in order to exercise control over his subordinates. Proper controlling measures are often found to be helpful in improving the effectiveness of the other functions of the management.

Controlling ensures efficient and effective use of the resources of the organisation in order to achieve the organisational objectives.

The success of an organisation thus rests on effective controlling. Let us look at some of the points which show the importance of controlling in an organisation

1. Achieving organisational objectives: Controlling is implemented with the purpose of taking care of the organisational objectives. Controlling detects any kind of deviation and accordingly corrective actions are implemented.

This helps in reducing the gap between expected and actual results and in this way helps in achieving the organisational objectives.

2. Coping with changes: An organisation has to put up with many changes in the environment, which can be emergence of new products and technologies, change in government regulations or changes in strategies of the competitors.

3. Efficient use of resources: Controlling allows the manager in minimising the wastage of resources and ensuring proper utilisation of the available resources that leads to effective performance by the organisation.

4. Determining the accuracy of standards: Managers always compare the work done with a set of provided standards defined for the work and determine whether the set of standards are effective or there is a need for improvement in the standards that will lead to more accurate determination of process efficiency.

5. Helps in decision making: Controlling helps the managers in determining the gap between thinking and actual implementation. It leads to better decision making and improves the overall performance of the organization.

6. Motivates employees: In an organisation employees are also aware that their performance is judged using some set of standards.

Periodic and systematic evaluation of the employee performance and accordingly rewarding the deserving employees in the form of bonus, increment or promotion leads to the employees getting more motivated in order to perform for the organisation.

7. Maintains discipline and order: Controlling brings about order and discipline in the regular operations of the organization. Employees are also bound by the rules which reduces unprofessional behavior in the organization.

8. Improves coordination: Controlling provides a common direction to all the activities of the organisation and also aligns employee action with organisational goals, thus ensuring optimum performance.

Also see: Business Studies MCQs

This concludes our article on the topic of Importance of Controlling, which is an important topic in Business Studies for Commerce students. For more such interesting articles, stay tuned to BYJU’S.