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Controlling in Management and Importance of Controlling in an Organization

October 20, 2011  by: rekhas  Points: 12   Category: Others  Earning $0.50   Views: 2684

Planning and controlling are interrelated managerial functions. Planning involves setting goals and objectives and developing action plans to achieve the goals. After implementation of plans, control function supervises actual performance against predetermined standards.

         

Planning and controlling are interrelated managerial functions. Planning involves setting goals and objectives and developing action plans to achieve the goals. Control function regulates activities towards the pre-determined goals. There is a cyclical relation between planning function and control function. Planning and control cycle resumes or begins with identification of organization's mission, establishment of aims and objectives and formulation of plans to attain the objectives.

After implementation of plans, control function supervises actual performance against predetermined standards. In case of any deviations, it implements corrective measure. If there is no deviation, the operation process continues ahead. Planning and controlling are dynamic processes. They constantly respond to changing external environment in accordance with organization's objectives.

Importance of Controlling

Control function is important in today's organizations. Accountability in organizations, detecting environmental changes and growing complexities in businesses require a strong control function to prevent errors in operational process. Control function helps in following ways-

Coping with Uncertainty

Today, business environment's are dynamic and organizations need to cope with uncertainties. There is a need to constantly evaluate and modify organizational strategic and tactic plans to cope with uncertainty.

Detecting Irregularities

Detecting product defects, curbing high costs, reducing attrition are all important aspects of control function. It helps to avoid minor problems in the beginning and saves a lot of time and money for the firms. It also prevents missing deadlines and selling faulty products. Only a strong control system can help organizations to minimize errors in operations and production process.

Identify Opportunities

Control function also helps to identify possible future opportunities for organization's growth.

Handling Complex Situations

Control function is effective in handling complex organizations. Using sophisticated control systems can initiate effective organizational control over various production processes.

Decentralized Authority

Control function also allows managers to decentralize authority. It helps managers to allow subordinates to participate in decision-making process though the ultimate authority rests with managers.

Minimize Costs

With effective implementation and practice, control function can improve output for every input unit, reduces wastage and minimizes labor costs.

Thus, control function is a key element of organization planning process. It reduces errors, enforces adherence to standards and provides effective feedback during and after the production process. Control function is essential part of all departments in an organization for its smooth functioning.




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