CONTROLLING
Meaning and Definition of Controlling
Controlling is considered to be an indispensable function of management in an organisation . The process of management remains incomplete without proper controlling . It seeks to make sure that all other processes likewise planning , organising , staffing , and directing are properly executed and conducted to achieve the same organisational goal . Controlling is a function of management that strives to measure the performances and take the remedial actions when needed . Thus , it can be concluded that controlling is a process which facilitates measuring the actual performance against set standards .
According to Henry Fayol , " Control of an undertaking consists of seeing that everything is being carried out in accordance with the plan which has been adopted , the orders which have been given , and the principles which have been laid down . Its object is to point out mistakes in order that they may be rectified and prevented from recurring . "
According to EFL . Breach , " Control is checking current performance against pre - determined standards contained in the plans , with a view to ensure adequate progress and satisfactory performance . " According to Reeves and Woodward , " Control refers to the task of ensuring that activities are producing the desired results . Controls in this sense is limited to monitoring the outcome of activities , reviewing feedback information about this outcome , and if necessary , taking corrective answer . "
According to H. Koontz and O'Donnell , " Controlling is the measuring and correcting of activities of subordinates to ensure that events conform to plans " . Controlling validates whether all the activities are being performed in accordance with the selected plan , orders issued , and the principles established by the management . Controlling also ensures that an organisation's resources are being used effectively and systematically for the achievement of pre - determined goals . The controlling function finds out how far actual performance deviates from the standards , analyses the reasons behind such deviations and tries to take remedial measures in order to rectify the deviations .
Controlling process
Controlling Techniques Traditional Techniques Modern Techniques Personal Observation - Statistical Reports and Analysis Control through Costing Budgeting and Budgetary Control Production Planning and Control Operational Audit or Internal Audit Profit and Loss Control External Audit Control Break Even Analysis Financial Statement Analysis Return on Investment PERT and CPM Management Information System - Management Audit System Responsibility Accounting - Human Resources Accounting Quality Control Total Quality Management
Importance of Controlling Controlling helps in following ways :
1) Aids in Achieving Organisational Goals : Controlling allows the management to ensure that the difference between the outcomes and the benchmark is minimum . This in turn , aids in achieving the intended organisational goals .
2 ) Enables Optimum Utilisation of Resources : Implementation of plans involves utilisation of resources , i.e. , men , material , and money . Resources are always limited and scarce and hence have to be judiciously utilised , without wastage or under - utilisation . This is ensured by effective control mechanisms .
3 ) Ensures Discipline and Order : Controlling introduces a sense of attentiveness amongst employees that they are under control and evaluation . This ensures that all are performing as per expectation and working as per the plan .
4) Improves Coordination : Controlling also involves integration of all the activities in the organisation . It seeks to ensure that all the units work in coordination , for the achievement of common goals according to plans and procedures .
5 ) Helps in Better Planning : Planning and controlling are two sides of the same coin , each complementing the other . Controlling provides real - time feedback about the implementation of plans , which in turn helps managers to plan in a better way , so that the observed pitfalls and identified errors could avoided in future .
6 ) Makes Employees Accountable : Control function enables the management to monitor and observe the performance of employees regarding the roles and duties assigned to them . This helps in fixing accountability and holding them responsible for their performance of success or failure .
7 ) Motivates Employees : Controlling enables monitoring the performance of employees . It helps in identifying performers and achievers . Such employees are then felicitated and rewarded by the organisation . This motivates employees to perform as they know that their performances would be noticed and their efforts would be acknowledged .
8 ) Facilitates Delegation : Controlling helps superiors to evaluate the capabilities and performance of their subordinates , which allows the superiors in delegating responsibility to them . Delegation always makes management more efficient , as superiors now have more time for other important tasks and duties .
