Explain any four points of importance of the controlling function of management.

Importance of controlling:

(a) Accomplishing organisational goals: The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action. It thus, guides the organisation and keeps it on the right track so that organisational goals might be achieved.

(b) Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes.

(c) 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. This ensures that resources are used in the most effective and efficient manner.

(d) 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. It thus, motivates them and helps them to give better performance.

(e) Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organisation and helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities.

(f) Facilitating coordination in action: Controlling provides direction to all activities and efforts for achieving organisational goals. Each department and employee is governed by predetermined standards which are coordinated with one another. This ensures that overall organisational objectives are achieved.

Importance of controlling :

(i) Accomplishing organisational goals.

(ii) Making efficient use of resources.

(iii) Ensuring order and discipline.

(iv) Improving employee motivation.

(v) Judging accuracy of standards.

(vi) Facilitating co-ordination in action.

Detailed Answer :

Importance of controlling : 

(i) Accomplishing organisational goals : The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action. It thus, guides the organisation and keeps it on the right track so that organisational goals might be achieved.

(ii) Judging accuracy of standards : A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes.

(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. This ensures that resources are used in the most effective and efficient manner.

(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. It thus, motivates them and helps them to give better performance.

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

(vi) Facilitating coordination in action : Controlling provides direction to all activities and efforts for achieving organisational goals. Each department and employee is governed by predetermined standards which are coordinated with one another. This ensures that overall organisational objectives are achieved.

Following points highlight the importance of controlling function of management: 

1. Accomplishing organisational goals – Controlling ensures that results of business operations conform as closely as possible to the predetermined objectives. Controlling tries to correct the deviation between actual results and desired results.

2. Judging accuracy of standards – A control system enables management to verify whether standards are objective. Standards need to be revised in the light of changes in environment. 

3. Making efficient use of resources – Controlling reduces wastage of resources. Since activities are performed in accordance with standards, resources are used in efficient manner. 

4. Improving employee motivation – The existence of control system has a positive impact on the behaviour of the employees. Employees know well in advance what are the standards of performance. It motivates them to improve their performance. 

5. Ensuring order and discipline – Controlling creates an atmosphere of order and discipline in the organisation. Controlling minimises the dishonest behaviour on the part of the employees.