Meaning: -Controlling
is indispensable function of management. Management function starts with
planning and ends with controlling. Controlling is one of the managerial
functions like planning, organizing, staffing and directing. It is an important
function as it ensures that there is effective and efficient utilization of
organizational resources so as to achieve the planner goals. If there is any
actual deviation in comparison with the plans, then corrective measures should
be taken to bring improvements towards achievement of desired objectives
Definition: - “Control is the process of taking
steps to bring actual results and desired results closer together”……………Defined
by (Philip Kotler).
The nature of
Controlling is explained as follows:
1.
Planning is a
basis of controlling: -controlling is said to be checking the
performance as per the planning. So planning precedes controlling and sets the
standards and target of performance. Without planning, control is not possible.
2. Continuous
Process: - Controlling is continuous process. As long as
the organization exists, there are activities. And as long as there are
activities, there is a need to control such activities. Therefore, controlling
is a never-ending process
3.
Pervasive
function: - Controlling is exercised at all the levels of
management and is done in every functional area and in each department. Thus,
control is all pervasive.
4.
Action
Oriented Process: -Action is the essence of control. The purpose of
control is to take corrective action for improvement of performance. If there
is any actual deviation in comparison with the plans, then corrective measures
should be taken to bring improvements towards achievement of desired
objectives.
5.
Future
Oriented: - Control is futuristic in nature. It measures
current performance and provides guidelines for the corrective action. This
ensures future performance as per plans so that same mistake should not be
repeated in future.
6.
End
Function: - Controlling is an end function which comes once
the performance is made in accordance to the plan. If all the desired
objectives are achieved as per the planned activities. Then the control
function brings an end to the task assigned.
7.
Tools
Management: -To control activities, management may adopt
various control techniques or tools.
·
Financial control: (Budgetary
control, Management audit control through costing, break even analysis)
·
Operating control: -(Quality
Control, technique for quality control, quality control through quality circle)
·
Inventory control: -(ABC analysis, economic order quantity,
time-event network analysis, PERT/CPM)
8.
Delegation of authority:
-Control action can be
taken only by managers who are responsible for performance and have the
authority to get the things done. A manager gets authority through delegation.
9.
Creativity: - Managers should adopt new and modern
controlling techniques for the achievement of objectives. They have to be
creative and innovative in their thinking.
10.
Acts as a Guide: -Control
System guides the actions of the organization. Activities are undertaken in the
right direction. It acts as a traffic signal post, and keeps the activities
moving on the right track. This system provides guidance in case of any
deviation so as to achieve desired objectives.
