Question

Explain any five points which highlight the importance of controlling function of management.

Answer 1

Controlling is an important and an indispensable function of management. It aims at managing the managerial actions by setting standards and identifying the deviations of actual performance as against the set standards. It also ensures optimum utilisation of resources while taking corrective measures for the deviations. The following are the factors that highlight the importance of controlling.
i) Achieving Organisational Goals Controlling aims at accomplishment of the organisational goals by indicating the deficiencies and the corrective actions which are to be taken. It helps in moving in the right direction for attaining the set organisational objectives.
ii) Evaluating she Standards Controlling helps in judging the accuracy of the standards adopted by the management. A good controlling system enables the manager to check whether the set standards are accurate and feasible. It also helps the organisation to review and revise the standards according the changing business environment.
iii) Optimum Utilisation of Resources. A continuous control and monitoring helps in the efficient and optimum utilisation of resources. As each work is done according to the set standard, there is less wastage and spoilage of resources.
iv) Employee Motivation. By exercising effective control, employees get to know well in advance about what is expected from them and the standards against which their performance will be assessed. This motivates them to achieve the assigned targets in a better way.
v) Order and Discipline Efficient controlling helps in creating an atmosphere of order and discipline in the organisation. As the employees are aware of the fact hat they are being continuously observed, the dishonesty and inefficiency in behaviour is minimised.