What is Controlling?Importance Of Controlling In Management?

Controlling helps managers monitor the effectiveness of their planning, organizing, and leading activities.Controlling determines what is being accomplished — that is, evaluating the performance and, if necessary, taking corrective measures so that the performance takes place according to plans.

Controlling can also be viewed as detecting and correcting significant variations in the results obtained from planned activities

Importance of Controlling

The following are some factors contributing to the importance of controlling:

1️⃣Decentralization of authority

Since managers at every level of an organization have to exercise control, the controlling process leads to decentralization. This, in turn, enables middle and lower level managers to have some autonomy in making decisions. An organization that distributes authority at every level always works smoothly and efficiently.

2️⃣Increasing managerial abilities

By enabling all managers to possess the autonomy to make decisions, controlling enhances their managerial abilities. With these skills, managers can further their organization’s goals by adapting to diverse situations and problems. Furthermore, this also helps managers grow and develop at an individual level by giving them new experiences.

3️⃣Using resources effectively

The most important function of controlling is to compare actual performances with expected results. This, in turn, helps managers understand where they are lacking and how they can improve their performances. Using this knowledge, managers can use all available resources optimally and prevent their wastage.

4️⃣Facilitating coordination

In every business organization, managers and employees always have to coordinate and work with each other collectively. Controlling improves this coordination by basically demarcating all activities and efforts into fixed boundaries. It brings together all the resources of an organization and enables its personnel to work together with unified efforts.

5️⃣Structuring human behaviour

Since all organizations have to depend on humans for functioning, they need to regulate human behaviour of their employees. Controlling rationalizes this human behaviour and prevents employees from behaving arbitrarily and badly. It basically does so by providing for sanctions in case employees do not prescribe to expected standards of behaviour. For example, managers often take disciplinary action against employees who take unauthorized leaves.

6️⃣Achieving efficiency and effectiveness

A good control system can always greatly boost an organization’s efficiency and effectiveness. It generally does this by identifying deficiencies in an organization’s functioning and suggesting improvement measures. Managers use control to achieve their targets in this manner.