Limitations of Controlling in Business Management

Limitations of Controlling in Business Management

Limitations of Controlling

The control system loses its efficiency when a standard of performance cannot be defined in quantitative terms and it is very hard to set the quantitative standard for human behavior, efficiency level, job satisfaction, employee morale, etc.

There are limitations to the control system also besides the advantages. Although controlling is an important function of management, it suffers from the following limitations.

  • Difficulty in setting quantitative standards:

Control system loses some of its effectiveness when standards cannot be defined in quantitative terms. This makes a measurement of performance and their comparison with standards a difficult task. It is not a simple mission to set the principles for the tasks of the human and to set a level for the competence and how to preserve a level of their contentment. In such cases, the decision depends upon the judgment of the manager. This is particularly so in areas of job satisfaction, human behavior, and employee confidence.

  • Little control of external factors:

There are a few things that are not under the control of the manager or the organization. Generally, an enterprise cannot control external factors such as government policies, technological changes, competition, etc. All these are not under the control of the company, and that makes things out of control. The performance should be deliberate quantitatively so that the managers can monitor it in an enhanced way.

  • Resistance from employees:

Control is often resisted by employees. They see it as a restriction on their freedom. Employees feel control reduces or curtails their freedom. The employees that oppose taking the challenges are not under the control of the organization in some area. For instance, employees might object when they are kept under a strict watch with the help of Closed Circuit Televisions (CCTVs). Employees may oppose and go against the use of cameras, to monitor them minutely. The manager can inspire the employees, but they cannot compel them to work as per the rules and regulations.

  • Costly affair:

Control is a costly affair as it involves a lot of expenditure, time and effort. The control system is very costly as it involves the exercises that are exceedingly charged. Controlling involves a lot of expenditure, time and effort, thus it is a costly affair. It also requires hiring many employees which also adds up to incurring the cost. A small enterprise cannot afford to install an expensive control system. To determine the activity of every employee or worker in an organization, there is the requirement of appropriate funds for sending the reports to the high authorities. It cannot justify the expenses involved. To install an exclusive control system organizations have to spend a huge amount.

  • No freedom to the employees

With so much control, the employees believe that their liberty is condensed. They do not consider working for the organization that does not let them work as per their determination. Thus, they go away to the companies that do not give them liberty. There is the requirement of putting a lot of time and effort to the control system.