Importance of Controlling

Regulatory issues are an integral part of all commercial and non-commercial organisations. Like all other necessary administrative functions, the need for controlling emerges when issues occur and even before that. An organisation goes through several phases, including the planning and controlling phase, where managers try to visualise if resources have been used as per the plan. In simple terms, it refers to a process of comparing the set standards with the company’s actual performance. Hence it can be said that controlling is the essential function of management. 

Today, this study material notes the importance of quality control; you will get a detailed understanding of what controlling is, its different types, and other related topics. So, without any further ado, let’s get started with the importance of controlling study material.

What is Controlling in Management? 

According to Robert N.Anthony, controlling in management is a critical process through which managers make sure that all the necessary resources are used and obtained effectively and efficiently to meet the pre-set standards of the organisation. The controlling process ensures that the work assigned by the manager to the employees is done timely without any gaps. 

Also, it makes sure that all organisation’s activities are carried out as per strategies formed in the planning phase. Therefore, it is said that an organisation without proper control does not attract valuable results. By looking at the record, it can be concluded that organisations that have followed the path of controlling have grown exponentially. 

Different Types of Control 

There are majorly three different types of control. These are discussed below- 

1. Feedback control – Feedback control is one of the significant types of power, which mainly deals with gathering valuable information on completed activities, overviewing it, and enhancing future outcomes. 
2. Real-time control – Real-time control, also known as concurrent control, is a special kind of control as it deals with investigating the problem before the loss occurs. 
3. Feedforward control – Feedforward control helps in the early analysis of problems so that appropriate actions can be taken before time. 

Characteristics and Features of Controlling

The primary reason “Controlling” is a significant aspect in every organisation is that it positively impacts both individuals and organisational levels. At an individual level, controlling multiples productivity leads to better profit generation whereas, at the corporate level, it helps achieve organisational goals faster and more effectively. 

• Control in the management function – Different procedures are performed at all levels in an organisation. These include planning, directing, staffing, organising and controlling. Out of all, controlling is one primary purpose without which other functions of an organisation are nearly meaningless. 
• Control at all levels – No matter at what level you work, everyone follows the controlling practice in an organisation. However, it may differ based on several factors. For example, the top-level management is mainly engaged with strategic control, and so on. 
• Control as an ongoing activity – Do not misinterpret controlling as a one-time activity; however, it is a continuing process that involves performance review, feedback, and corrections. 
• Control is both forward and backward – Controlling is related to the past and the future as we tend to compare the current performance with the past performance and prepare for the future. 
• Control is interrelated to planning – In an organisation, controlling and planning is hand-in-hand. A set of actions are decided during the planning phase while controlling keeps an eye on it. 

Importance of Controlling 

Controlling is termed as one of the most crucial functions in an organisation. Proper control improves the overall functioning most of the time, thus attracting more significant results. Here are specific points that reflect the importance of inventory control. Let’s have a look- 

• Achieving goals of the organisation – One primary objective of controlling is to achieve goals set in the planning phase. The same is detected if there are any deviations, and corrective actions are suggested. 
• Coping up with changes – Over time, an organisation goes through several changes, which can be because of emerging technologies or products. Practical control helps to cope with these changes by implementing effective strategies. 
• Use of resources – Controlling minimises resource wastage and promotes appropriate utilisation of all the available resources. 
• Motivates employees – When working in an organisation, employees are aware that their activities or performances are judged at a higher level. Thus, it improves work efficiency. 

Measures of Controlling 

There are mainly three measures of control. These are as follows- 

• Standards established – The primary step in the management is controlling standards set by the organisation. There are several areas in which these standards can be found. These include marketing, sales, production, profit, personal development, etc.
• Performance comparison and measurement – Once the organisation standards are established, the next crucial step is to compare the actual performance and expected performance quickly. In case there are any deviations, the same will be unveiled. 
• Corrective actions – Once the deviations are crystal clear, it’s time to take serious corrective actions. 

Conclusion 

With this, we come to an end of our study material on the importance of controlling. The importance of control is one of the most exciting business studies topics. The controlling process ensures that the work assigned by the manager to the employees is done timely without any gaps. Also, it makes sure that all organisations activities are carried out as per strategies formed in the planning phase.

This Study material notes on the importance of controlling, and we studied controlling in length. We also covered different aspects of controlling and other related topics in detail. We hope the importance of controlling study material must have helped attain a greater understanding of this topic.