8. Controlling
SummaryThe managerial function of controlling is indispensable for
achieving organizational goals. It is considered to be the last step in the
process of management although it is a continuous and on-going activity. The
function of control is performed by every manager in an organisation but its
nature and scope varies at each level. In the absence of controlling function,
it will not be possible for managers to ascertain whether the work performance
in an organisation is moving in the right direction.
Meaning of controlling The managerial function of controlling
involves evaluation and correction of the activities of subordinates in order
to ensure that plans are successfully implemented and the goals of the organisation
are attained.
Purpose of Controlling
• To find out the deviations in actual performance from planned
performance and initiate corrective action if necessary.
• To ensure that the actual performance is proceeding in the
correct manner and in conformity with the plans.
Importance of Control
• Controlling helps in achieving organizational objectives by ensuring
that efforts conform to plans.
• Controlling ensures efficient use of resources by minimizing
their wastage or misuse.
• Controlling facilitates decision-making as it helps to
identify and solve ‘problems which may arise during the course of management
through appropriate and timely decisions.
• Controlling helps to boost the morale of employees-when the
actual performance is in accordance with planned targets the employees feel a
sense of achievement and pride.
• Controlling helps in coordination among various departments
and within; each department in an enterprise, as it ensures that each activity
is carried out correctly. This helps in the smooth functioning of an
organisation as all the activities are interrelated and interdependent on each
other.
Process of Control
• The first step in the controlling process involves the
determination of standards against which the actual performance has to be
measured.
• The second step involves measurement of actual performance in
the same terms in which standards are set.
• The third step in the control process involves comparisons of
actual performance against the standards set to find the extent and causes of
deviation.
• The last step in the control process involves taking
corrective actions to remove the causes of deviations.
Relationship between Planning and ControlThe
managerial functions of planning and controlling are interrelated and
interdependent. Planning provides the basis of control and in the absence of
controlling, planning is meaningless.
Features of a Good Control System
• A good control system should be appropriate according to the
nature and size of an enterprise.
• It should be economical, i.e., its cost of operation should
not be more than the benefits derived from it.
• It should be simple
to understand and easy to operate.
• It should follow an
objective system of measurement.
• It should be flexible so that it can be modified easily in
the light of changing conditions.
• It should be forward looking, i.e., it must enable managers
to identify deviations and take timely actions.
• It should focus the attention of managers only on important
deviations, rather than checking every bit of performance.
No comments:
Post a Comment