Importance of Controlling in Management


What is Controlling?

Controlling is one of the most important functions of management as it helps in making sure whether all the activities are going in accordance with the predetermined goals and taking the remedial measures wherever required.

It is simply the process by which the management monitors all the operations of the organization for the achievement of their pre-set targets.

This process starts with setting up some standards and then measuring up the actual performance with these pre-determined standards and if in case any deviations are found then remedial measures to remove these deviations are taken. It is the process through which managers regulate the corporation operations and employees working these so that there are no deviations between the actual performance and pre-determined standards.

It helps in bring full efficiency in the organization through optimum utilization of resources as it helps in monitoring each and every operation of the corporation.
Controlling is like other important functions of management like planning, staffing, organizing and directing. It is a forward-looking process as it controls each and every activity for better results in the future.

Importance of Controlling in Management

Importance of Controlling in Management
Importance of Controlling in Management

Setting up Standards

First of all, the standard is set up by managers. These basically include the goals and objectives of the concerned business which it needs to attain. These become the parameters for measuring the performance and helps in finding out the deviations.

Measurement of the performance of the organization

It involves measuring and monitoring the actual performance of the organization. This step is important as unless and until performance is not measured it can’t be known whether standards are met or not.

Comparison of the performance

It starts with matching the above-measured performance with the pre-set standards. It helps in finding out the percentage and degree of deviations in performance and deciding whether the outcome should be accepted or not.

Analyzing the Deviations

It involves accessing the deviations in the outcome and finding out their reasons and nature. It helps in finding outsource of deviations in performance.

Taking Remedial Actions

Once deviations are found in the performance, the managers take steps to remove these deviations so the actual standards can be met and also make changes in the overall processes.

Control based on Feedback

It starts with gathering the complete information once the work is finished, checking that information collected and taking steps to improve the work quality in future.

Control based on Concurrent

It is termed as real-time controlling. It involves accessing the operations and activities from time to time and taking action accordingly to avoid any loss.

Control based on Prediction

It involves predicting the future conditions and taking actions accordingly before any wrong situation arrived so that performance is not affected.


What is Direction?

What is Planning?