Importance of Controlling in Business Management

Importance of Controlling in Business Management

Importance of Controlling

Control is an indispensable function of management. Without control the best of plans can go awry. Controlling is the last function of the management process which is performed after planning, organizing, staffing and directing. A good control system helps an organization in the following ways:

(i) Accomplishing organizational goals: The controlling process is implemented to take care of the plans. The controlling function measures progress towards the organizational goals and brings to light the deviations, if any, and indicates corrective action.

(ii) Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective. In case of need, they are redefined.

(iii) Making efficient use of resources: By exercising control, a manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with predetermined standards and norms.

(iv) 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 on the basis of which they will be appraised.

(v) Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organization. It helps to minimize dishonest behavior on the part of the employees by keeping a close check on their activities.