Controlling

• Meaning of Controlling
• One of the most essential qualities required in a manager is that
he should command the respect of his team. This allows him to
direct and control their actions. In fact controlling is one of his
more important functions. Let us learn the importance and
meaning of controlling function.
• Meaning of Controlling
• Controlling is one of the important functions of a manager. In order to seek
planned results from the subordinates, a manager needs to exercise effective
control over the activities of the subordinates. In other words, the meaning of
controlling function can be defined as ensuring that activities in an organization
are performed as per the plans. Controlling also ensures that an organization’s
resources are being used effectively & efficiently for the achievement of
predetermined goals.

• Controlling is a goal-oriented function.

• It is a primary function of every manager.
• Controlling the function of a manager is a pervasive function.
• How Controlling Function Helps Managers
• Managers at all levels of management Top, Middle & Lower – need to
perform controlling function to keep control over activities in
their areas. Therefore, controlling is very much important in
an educational institution, military, hospital, & a club as in any
business organization.

• Therefore, controlling function should not be misunderstood as the

last function of management. It is a function that brings back the
management cycle back to the planning function. Thus, the controlling
function act as a tool that helps in finding out that how actual
performance deviates from standards and also finds the cause of
deviations & attempts which are necessary to take corrective actions
based upon the same.

• This process helps in the formulation of future plans in light of the

problems that were identified &, thus, helps in better planning in the
future periods. So from the meaning of controlling we understand it
not only completes the management process but also
Importance of Controlling

• 1. Accomplishing Organizational Goals

• The controlling function is an accomplishment of measures that
further makes progress towards the organizational goals & brings to
light the deviations, & indicates corrective action. Therefore it helps
in guiding the organizational goals which can be achieved by
performing a controlling function.

• 2. Judging Accuracy of Standards

• A good control system enables management to verify whether the
standards set are accurate & objective. The efficient control system
also helps in keeping careful and progress check on the changes
which help in taking the major place in the organization & in the
environment and also helps to review & revise the standards in light
of such changes
• 3. Making Efficient use of Resources
• Another important function of controlling is that in this, each activity
is performed in such manner so an in accordance with
predetermined standards & norms so as to ensure that the resources
are used in the most effective & efficient manner for the further
availability of resources.

• 4. Improving Employee Motivation

• Another important function is that controlling help in accommodating
a good control system which ensures that each employee knows
well in advance what they expect & what are the standards of
performance on the basis of which they will be appraised. Therefore
it helps in motivating and increasing their potential so to make them
& helps them to give better performance
• 5. Ensuring Order & Discipline
• Controlling creates an atmosphere of order & discipline in the
organization which helps to minimize dishonest behavior on the part
of the employees. It keeps a close check on the activities of
employees and the company can be able to track and find out the
dishonest employees by using computer monitoring as a part of their
control system.

• 6. Facilitating Coordination in Action

• The last important function of controlling is that each department &
employee is governed by such pre-determined standards and goals
which are well versed and coordinated with one another. This
ensures that overall organizational objectives are accomplished in an
overall manner.
 Elements of a good Control System
• Every decent control system must possess certain basic elements. Since they all
play a major role, the absence of any one of them can make the whole system
weak. Hence, managers must ensure that their control systems contain the
following basic elements and considerations.
• 1) Feedback
• Feedback is the backbone of all control systems. This feedback is nothing but the
information that managers use to correct their organization’s actual performance.

• The aim of feedback is basically to adjust future actions using previous

experiences. Managers use the information they receive from feedbacks to
implement corrective measures. Such measures generally help in bridging the gap
between the actual performance of the organization and its goals.

• Feedback may be either formal or informal. Formal feedback consists of sources

like financial statements, statistics, reports, other written communication, etc. On
the other hand, informal feedback includes personal opinions, informal discussions
and an individual’s observations
• 2) Control must be objective
• The second essential requirement of a good control system is
that it must always be objective. A subjective criterion should
never be the basis of evaluating actual performances.

• For example, evaluation of an employee’s performance should

comprise of standards like working hours,
productivity, efficiency, etc. Managers should not evaluate
employees using subjective prejudices.
• 3) Prompt reporting of deviations
• This element of the controlling system basically requires quick
reporting of deviations and discrepancies. If some work is not going
according to plans, relevant managers must take notice of this
immediately. This is because any delay in reporting problems and
taking corrective measures can lead to financial losses for a
business.

• 4) Control should be forward-looking

• Control systems can often suffer from the defect of delays in reporting
of deviations and taking of corrective measures. As we saw above,
this problem can lead to financial losses for a business.

• Hence, managers must ensure that their control systems are forward-
looking. This will help in predicting deviations in advance as well as
giving adequate time for course correction.
• 5) Flexible controls
• A rigid control system can often make it ineffective in extraordinary
and unpredictable situations. It should, thus, be flexible and open to
changes. Managers must be able to adapt their control measures as
per the requirements of every possible scenario.

• 6) Hierarchical suitability
• Almost all business organizations possess management hierarchies
comprising of managers at various positions and levels. Since each
manager performs controlling functions at his level, the system itself
must suit his organization’s hierarchy. Every manager must have
adequate powers for this purpose and the flow of information for
evaluation should be effective.

•
• 7) Economical control
• Every good controlling system has to be economical when it comes to its
implementation and maintenance. In other words, its benefits should
outweigh its costs. An organization must be able to afford it and also derive
all possible advantages from it.

• 8) Strategic control points

• Not all deviations require the same level of attention and importance. For
example, if an infrastructure company loses one government tender for
constructing roads, it can work on other projects.

• However, if the government blacklists it altogether due to its financial

irregularities, this can be a huge issue.

• A good control system must be able to deal with every deviation as per its
seriousness. No organization can afford to accord equal importance to
each and every problem. This is basically the whole aim of strategic control
points.
• 9) Control must be simple to understand
• Sophisticated policies can often make elements of control
systems difficult to understand and implement. A good system,
however, is always simple to comprehend and work on.

• Thus, before launching controlling measures, managers should

first check whether their employees will be able to understand
them. They should also try to resolve any ambiguities and
confusion that may arise later.

• 10) Control should focus on workers

• Good control systems always focus on workers instead of the
work itself. Since it is workers who implement these systems,
everybody should be able to work with them effectively.