Question

Explain controlling importance.

Answer 1

The importance of Controlling is as follows:

1. Fulfilling Organizational Goals: Controlling function helps to measure the progress towards the organizational goals and points out the deviations, if any, and then suggests the corrective action towards the fulfillment of the organizational goals. In this way controlling helps to achieve the goals of the organization.
2. Accuracy of Standards: An efficient control system helps management in judging the accuracy of standards whether they are accurate or not. Controlling measures are flexible to some extent. So after reviewing them according to changing circumstances, they are revised from time to time which is beneficial for checking performances accurately. 
3. Efficient Use of Resources: By using control techniques, a manager helps to reduce the wastage and spoilage of resources. This ensures that resources are used in the most efficient and effective manner so as to achieve organizational objectives.
4. Improving Employee Motivation: A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance. Once the organizational objectives are achieved then they are rewarded with monetary and non-monetary incentives. This motivation helps the employees to perform better in the future.
5. Ensures Order and Discipline: The controlling function brings about order and discipline in an organization. It helps to reduce the bad behavior on the part of the employees. Under this system, regular checking is done by the authorities concerned and preventive actions are taken to avoid any deviations in already set targets.
6. Facilitates Coordination: Control systems are designed in such a way that they focus not only on the operating responsibilities of a manager but also on his ultimate responsibility. All the departments in the organization are 'interdependent on each other. There is always a possibility of having a good relationship between all the department managers. Coordination between the heads of departments can help to find out any deviations in their respective departments and use the remedial measure so that desired results can be achieved.
7. Psychological Pressure: Control pressure puts psychological pressure on individuals to perform better. Their performance is evaluated with the targets set for them. Everyone is likely to put on their best performance as they are aware that it will be evaluated. They may also have pressure to achieve results according to the standards fixed for them.
8. Organizational Efficiency and Effectiveness: Proper control ensures organizational efficiency and effectiveness. Factors of control like making managers responsible, motivating them for higher performance, and achieving coordination in their performance ensure that the organization works efficiently. An organization is effective if it is able to achieve its desired objectives.
9. Corporate Image: The controlling function helps to improve the overall performance of the organization. Progress in the business is measured in terms of planned standards and actual performance, if there is any deviation then corrective measures are applied and desired results can be achieved. This builds a good corporate image and brings goodwill to the business.
10. Managerial Responsibility: Managerial responsibility is created through the assignment of activities to various individuals. This process starts at the top level and goes to the lower level. A manager assigns some activities to his subordinates and controls them.