Features and Importance of Controlling in Management

All organizations, commercial or non-commercial, face the need to address regulatory issues. Like other administrative functions, the need for control arises in order to maximize the use of rare resources and achieve meaningful behavior for members of the organization. In the planning phase, management determines how resources will be used to achieve organizational goals; in the control phase; managers try to visualize that resources are being used in the same way as planned.

Thus, control eliminates the entire management system. One-time control is needed so that the best plans can go wrong. But control also helps managers monitor environmental changes and their effects on organizational progress. Given the pace of change in the organizational environment in recent years, this aspect of control has grown exponentially.

In simple word it is the process of comparing the actual performance with the standards set by the company to make sure that activities are performed accordingly, if not, then take appropriate measures to correct them. Controlling is one of the important functions of management.

Definition

Robert N.Anthony states that “Management control is the process by which managers assure that resources are obtained and used effectively and efficiently to accomplish the organizational goals”.

Concept

The process of Controlling verifies that the tasks allotted to the employees are performed on time. It also ensures that the activities are carried out as per the plans and strategies. 

Controlling leads back to the first function in the management cycle which is planning, revising and taking proper measures if activities are happening incorrectly. It is executed at all levels in the organization.

Different types of control

There are three different types of control:

• Feedback Control: Gathering information on finished activity, assessing it, and enhancing such efforts in the future are all part of this procedure.

• Real-time control is another name for concurrent control. Before any loss occurs, it investigates any problem and takes appropriate action. The control chart is an example.

• Feedforward control: This type of control can help predict problems before they happen. As a result, action can be made ahead of time to avoid a situation like this.

In today's ever-changing and complex world, controlling is a crucial part of every firm.

Features and Characteristics of Control

The purpose of control is to create positive effects on both the organizational and individual levels. At the organizational level, it aims to achieve organizational goals. At the individual level, control strives to increase productivity and make individuals more profitable. Therefore, control has a good purpose in every way.

1. Control is a Management Function:

In management, there are various functions like planning, directing, staffing, organizing and controlling. Controlling is one of the essential functions without which all other functions are rendered meaningless.

2. Control is Embedded at each level of the Hierarchy:

All managers follow the practices of control management to accomplish their tasks and keep a check on their reporters to ensure the attainment of goals. Although control exists at every level, it differs, for example, the top management involves strategic control, middle management in tactical control and lower management in operational control.

3. Control is a Continuous Activity:

Controlling is not a single time activity but instead a continuous process that involves a timely review of performances and results in corrective action.

4. Control is both Backward and Forward-Looking:

We compare the performance with the standards which are set during the planning and processing. The past data or activities are used for the analysis of deviations, hence control is backwards-looking. Control is also related to the future as past activities cannot be controlled. The data analyzed is used to take corrective measures in the future.

5. Control is Closely Linked with Planning:

Planning and Controlling are closely linked and run hand in hand. Planning sets the action course while controlling keeps track of it. If there is any deviation in the course, controlling helps to find errors and design new strategies to get it back on track. The findings from the process of controlling act as an input to the planning process.

6. Control is Related to Results:

The assessment of progress is based on the results. Any deviation from the required results control has to be incorporated to take corrective actions.

Controlling Measures

There are three steps to control:

1. Establishment of Standards:

The first step in management is to control the Standards, which are the standards set by an organization in which performance should be directed. They are available to the organization's objectives based on what is measured. Standards may be set in various areas of the organization such as production, marketing, sales, personal development, profit and so on.

2. Performance Measurement and Comparison:

Once the levels are set, the next step is to measure actual performance and compare the levels required to find any deviation. If there is a fraud, your reason must be found. The final report from this step contains the deviation and its causes which will be referred to the team which will take the necessary remedial action.

3. Corrective Actions When Deviations Occur:

The last step in control is to take steps to correct the deviation. Deviations are first investigated and appropriate action should be taken. The reason for the deviation may be errors in the levels that need to be reviewed and adjusted.

Steps in Controlling

There are three steps in controlling:

1. Establishment of Standards:

The first step in control management is establishing standards.

Standards are the paths that are planned by the organization towards which the performance has to be directed. They are obtained from the objectives of the organization based on which performances are measured. Standards may be set for different areas of the organization such as production, marketing, sales, personality development, profitability and so on.

2. Measurement and Comparison of Performance

Once the standards are set, the next step is to measure the actual performances and compare them with the desired standards to find any deviations. If there are deviations, then the reason for it must be found. The end report from this step consists of deviations and their causes which will be forwarded to the team who will be taking further necessary corrective actions.

3. Corrective Actions when Deviations Occur

The final step in controlling is taking corrective actions for deviations. The deviations are first investigated and appropriate actions have to be taken. The reason for deviations could be the flaws in standards that have to be revised and changed.

Importance of Control

The following are some of the factors that contribute to the importance of control:

• Distribution of authority

Since managers at all levels of the organization are supposed to be in control, the process of control leads to the division of countries. This enables middle and lower-level managers to be independent in decision-making. An organization that distributes authority at all levels is always effective and efficient.

• Increasing management skills

By empowering all managers to have independent decision-making, management improves their management skills. With these skills, managers can further the goals of their organization by adapting to different situations and problems. In addition, this also helps managers to grow and develop at each level by providing them with new information.

• Effective use of resources

The most important function of control is to compare actual performance with expected results. This, in turn, helps managers understand where they are lacking and how they can improve their operations. By using this information, administrators can use all available resources efficiently and prevent damage to them.

• Making communication easier

In all business organizations, managers and employees should always communicate and work collaboratively. Control enhances this integration by basically separating all activities and efforts into fixed boundaries. It integrates all the resources of the organization and enables its employees to work together in a concerted effort.

• Planning human behavior

Since all organizations have to rely on people to operate, they need to control the human behavior of their employees. Control regulates this human behavior and prevents employees from behaving recklessly and negatively. It does this by imposing sanctions if employees do not meet the expected ethical standards. For example, managers often take disciplinary action against employees who take unauthorized leave.

•  Achieving efficiency and effectiveness

A good control system can always greatly enhance the efficiency and effectiveness of an organization. It usually does this by identifying flaws in the organization's performance and suggesting ways to improve. Managers use control to achieve their goals in this way.

Importance of Control in Management 

• Accomplishing Organizational Goals:

Control measures the progress of organizational goals and accentuate deviations, if any, and lays out the basis for corrective measures. It ensures that the organizational goals are on track.

• Efficient Use of Resources:

Wastage and spoilage of resources are reduced. For example, in damage control, the defective products are examined and the production will be modified to reduce errors and produce error-free products and thereby reducing further wastage of materials. Thus it ensures that resources are used in the most effective and efficient manner.

• Judges Accuracy of Standards:

The management will be able to verify whether the standards set by the organization are accurate. According to the changes in the environment, the standards can be reviewed and revised by exercising control.

• Employee Motivation:

When standards are set by the organization, employees will know beforehand as to what is expected from them and perform accordingly, based on their performance, they will be appraised. When control is practised to check the tasks, the performances will be better and so will be the appraisals which in turn will motivate the employees.

• Ensuring Order and Discipline:

Controlling keeps a close check on the employee’s activities and ensures the activities are performed honestly. It fosters a sense of discipline and order in the organization.

• Facilitating Coordination in Action:

At every level in the management, the activities of the subordinates will be checked and coordinated by the managers which lead towards the accomplishment of organizational goals.

Limitations of Control Management

• No Control over External Factors:

The organizations do not have control over the changes in the external environment for example changes in technology, competition and changes in consumer requirements. 

• Employee Resistance:

Employees tend to oppose certain control procedures because it may limit their freedom. For example, time tracker machines or CCTVs may not be accepted by all employees.

• Difficulty in Setting Standards:

It gets difficult to measure performance because standards cannot be defined quantitatively which arise due to different problem areas such as human behaviours, employee morale and job satisfaction.

• Costly:

Controlling incurs a lot of expense, time, and effort hence gets costlier. It must be ensured by the management that the cost involved in running a control system should not exceed the benefits gained from it.