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CBSE Class 11 » CBSE Class 11 Study Materials » Business Studies » Idea of Controlling
CBSE

Idea of Controlling

The concept of controlling involves the process of an assessment of an organisation’s progress. In controlling, managers monitor how a plan is implemented.

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The concept of controlling involves the process of an assessment of an organisation’s progress. With proper control, an organisation can achieve its organisational goals.  In controlling, managers monitor how a plan is implemented. If things don’t go according to plan, they make necessary corrections. This helps in rectifying deviations from the original plan. This is why controlling is one of management’s most important goal-oriented functions. It facilitates the comparison of the actual performance with the organisation’s standards.  Keep on reading to know more about the concept of controlling. This way, you will come to know about the objective of controlling.

Features of the Concept of Controlling

The features of the concept of controlling are as follows:

  • It elicits planned results from the various employees. This lets managers exercise good control over the activities of employees
  • It is a goal-oriented function in nature
  • Measurement of the progress of activities is possible with the concept of controlling
  • It helps identify deviations; this way, corrective action can be initiated
  • Controlling ensures that the organisation is moving towards its set goals and objectives
  • All levels of management will have controlling in one form or another. As such, it is a pervasive function
  • It ensures the completion of the cycle of the management process
  • This is a function that is both forward and backwards-looking.  It serves as the basis for improvement for the future. This shows its forward-looking nature. In contrast, it measures current performance with past standards. This shows its backwards-looking nature.

Objective of Controlling

Below are the various objectives of controlling:

  • To ensure that the performance of activities takes place in accordance with the standards that have been predetermined
  • To improve the operational efficiency of operations by avoiding unnecessary actions
  • To ascertain the correct action to take with the least amount of costs, effort, and time
  • To have an understanding of what is happening in the organisation
  • To unite the various diverse efforts of employees towards a single goal.

Importance of Controlling

The importance of controlling can be understood from the following points:

  • It increases the motivation of employees. Controlling helps in guiding the employees throughout the process. As such, it is much more than merely giving orders. It allows the managers to understand the needs and requirements of the employees
  • With controlling, managers can check whether employees are working with proper dedication or not
  • Efficient use of resources takes place due to controlling. It allows the management to utilise the organisational resources in the best possible manner. 
  • Controlling ensures an atmosphere of discipline in the organisation. This way, management controls the workers’ actions to allow managers to seek maximum output from them
  • It makes possible coordination of action. With controlling, the cooperation of the different employees becomes possible efficiently. Controlling establishes communication between people working in different departments of the organisation
  • Controlling helps in making the right judgment decision about the standards. The standards cannot take place quickly over a short period. The manager must make sure that the standards are set after a proper evaluation of the past performance, organisational capacity, resources available, and the market condition. This can all be done by exercising proper control of the working in the company. 
  • Controlling aids in the accomplishment of organisational goals. It allows managers to enhance the performance of the team. This, in turn, increases the profitability of the organisation.

Conclusion

The concept of controlling involves an assessment process regarding organisational progress. This way, an organisation can achieve its organisational goals.  Here, managers monitor the implementation of plans and take necessary corrective actions. It is a very important goal-oriented function of management. Make sure to study the various features of controlling. Finally, pay attention to the objectives of controlling and its importance.

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Frequently asked questions

Get answers to the most common queries related to the CBSE Class 11th Examination Preparation.

What are the various advantages of the concept of controlling?

Ans. The various advantages of the concept of controlling are ...Read full

What are the steps of controlling in business?

Ans. The various steps of controlling in business are as follows: ...Read full

What are the various limitations of controlling in business?

Ans. The various limitations of controlling in business are as follows: ...Read full

What are the various requirements of ensuring effective control?

Ans. The various requirements of ensuring effective control are as follows: ...Read full

Ans. The various advantages of the concept of controlling are as follows:

  • It helps save time, which can then be utilised on important tasks
  • It lets managers focus more on crucial tasks. This ensures efficient use of managerial resources
  • Corrective action can be taken promptly by the manager
  • It ensures efficient delegation of tasks and responsibilities. This way, subordinates can take care of routine chores

Ans. The various steps of controlling in business are as follows:

  • Establishment of standards
  • Measurement of actual performance
  • Comparison of actual performance with the standard
  • Taking corrective actions

Ans. The various limitations of controlling in business are as follows:

  • Lack of adequate and satisfactory standards
  • Impact  of external factors
  • Inefficiencies in management
  • Difficulties and complexities in setting individual responsibilities
  • Limitation of corrective actions
  • Human Reactions are difficult to control

Ans. The various requirements of ensuring effective control are as follows:

  • Control must be a reflection of structures, position, and plans
  • An effective control system must ensure and promote active participation
  • The design of control must be such that individual managers find it comfortable
  • It should be objective
  • It must be suggestive
  • Control System must not be overly expensive
  • It must make possible identifications of exceptions
  • There must be sufficient flexibility in the control System
  • It should encourage and promote the taking of corrective action
  • Control System must be agreeable and understandable
  • It must be able to identify and benefit skilful staff.

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