MANAGEMENT FUNCTION : CONTROLLING

 

 Management in some form or another is an integral part of living and is essential wherever human efforts are to be undertaken to achieve desired objectives. The basic ingredients of management are always at play, whether we manage our lives or business. Management is essential for organized life and necessary to run all types of organizations. There are basically five functions of management which is planning, organizing, staffing, controlling and influencing.

    Controlling is one of the important functions of management. It pinpoints the deviations on the basis of which management can take corrective actions. Without the function of controlling, work done in the organization is not systematic and as per plans, since the inefficiencies remain undetected. According to Henry Fayol, control of an undertaking consists of seeing that everything is being carried out in accordance with the plan which has been adopted, the orders which have been given, and the principles which have been laid down. Its object is to point out mistakes in order that they may be rectified and prevented from recurring.

 The following are the basic characteristics of controlling function:

Ø  Controlling function is a management process

Ø  Controlling is a tool for achieving organizational activities

Ø  Controlling is forward looking. Control is futuristic in nature. It measures current performance and provides guidelines for the corrective action

Ø  Controlling is all pervasive. It is embedded in each level of organizational hierarchy

Controlling consists of three steps, which include (1) establishing performance standards, (2) comparing actual performance against standards, and (3) taking corrective action when necessary. Performance standards are often stated in monetary terms such as revenue, costs, or profits but may also be stated in other terms, such as units produced, number of defective products, or levels of quality or customer service.

The defects or limitations of controlling are as following:

1. Difficulty in Setting Quantitative Standards:

It becomes very difficult to compare the actual performance with the predetermined standards, if these standards are not expressed in quantitative terms. This is especially so in areas of job satisfaction, human behaviour and employee morale.

2. No Control on External Factors:

An organization fails to have control on external factors like technological changes, competition, government policies, changes in taste of consumers etc.

3. Resistance from Employees:

Often employees resist the control systems since they consider them as curbs on their freedom. For example, surveillance through closed circuit television (CCTV).

4. Costly Affair:

Controlling involves a lot of expenditure, time and effort, thus it is a costly affair. Managers are required to ensure that the cost involved in installing and operating a control system should not be more than the benefits expected from it.

Reference : Wikipedia,   https://www.toolshero.com/management/five-functions-of-management/