Question

Long Answer Question:
Explain the importance of controlling.

Answer 1

The six major purposes of controls are as follows:

• Controls make plans effective. Managers need to measure progress, offer feedback, and direct their teams if they want to succeed.
  
• Controls make sure that organizational activities are consistent. Policies and procedures help ensure that efforts are integrated.
  

• Controls make organizations effective. Organizations need controls in place if they want to achieve and accomplish their objectives.
  
• Controls make organizations efficient. Efficiency probably depends more on controls than any other management function.
  
• Controls provide feedback on project status. Not only do they measure progress, but controls also provide feedback to participants as well. Feedback influences behavior and is an essential ingredient in the control process.
  
• Controls aid in decision making. The ultimate purpose of controls is to help managers make better decisions. Controls make managers aware of problems and give them information that is necessary for decision making.