Controlling, Nature and Scope, Limitations of Control

26/04/2020 1 By indiafreenotes

Controlling is one of the important functions of a manager. In order to seek planned results from the subordinates, a manager needs to exercise effective control over the activities of the subordinates. In other words, the meaning of controlling function can be defined as ensuring that activities in an organization are performed as per the plans. Controlling also ensures that an organization’s resources are being used effectively & efficiently for the achievement of predetermined goals.

  • Controlling is a goal-oriented function
  • It is a primary function of every manager
  • Controlling the function of a manager is a pervasive function

Managers at all levels of management Top, Middle & Lower need to perform controlling function to keep control over activities in their areas. Therefore, controlling is very much important in an educational institution, military, hospital, & a club as in any business organization.

Therefore, controlling function should not be misunderstood as the last function of management. It is a function that brings back the management cycle back to the planning function. Thus, the controlling function act as a tool that helps in finding out that how actual performance deviates from standards and also finds the cause of deviations & attempts which are necessary to take corrective actions based upon the same.

This process helps in the formulation of future plans in light of the problems that were identified &, thus, helps in better planning in the future periods.  So from the meaning of controlling we understand it not only completes the management process but also improves planning in the next cycle.

Importance of Controlling

After the meaning of control, let us see its importance. Control is an indispensable function of management without which the controlling function in an organization cannot be accomplished and the best of plans which can be executed can go away. A good control system helps an organization in the following ways:

  1. Accomplishing Organizational Goals

The controlling function is an accomplishment of measures that further makes progress towards the organizational goals & brings to light the deviations, & indicates corrective action. Therefore it helps in guiding the organizational goals which can be achieved by performing a controlling function.

  1. Judging Accuracy of Standards

A good control system enables management to verify whether the standards set are accurate & objective. The efficient control system also helps in keeping careful and progress check on the changes which help in taking the major place in the organization & in the environment and also helps to review & revise the standards in light of such changes.

  1. Making Efficient use of Resources

Another important function of controlling is that in this, each activity is performed in such manner so an in accordance with predetermined standards & norms so as to ensure that the resources are used in the most effective & efficient manner for the further availability of resources.

  1. Improving Employee Motivation

Another important function is that controlling help in accommodating a good control system which ensures that each employee knows well in advance what they expect & what are the standards of performance on the basis of which they will be appraised. Therefore it helps in motivating and increasing their potential so to make them & helps them to give better performance.

  1. Ensuring Order & Discipline

Controlling creates an atmosphere of order & discipline in the organization which helps to minimize dishonest behavior on the part of the employees. It keeps a close check on the activities of employees and the company can be able to track and find out the dishonest employees by using computer monitoring as a part of their control system.

  1. Facilitating Coordination in Action

The last important function of controlling is that each department & employee is governed by such pre-determined standards and goals which are well versed and coordinated with one another. This ensures that overall organizational objectives are accomplished in an overall manner.

Principles of Controlling

Controlling is one of the managerial functions and it is an important element of the management process. After the planning, organizing, staffing and directing have been carried out, the final managerial function of controlling assures that the activities planned are being accomplished or not.

So the function of controlling helps to achieve the desired goals by planning. Management must, therefore, compare actual results with pre-determined standards and take corrective action of necessary.

Control can be defined as the process of analyzing whether actions are being taken as planned and taking corrective actions to make these to confirm to planning.

Nature of Controlling

  1. Objectives

Controls must positively contribute to the achievement of group goals by promptly and accurately detecting deviations from plans with a view to making corrective action possible.

  1. Interdependence of Plans and Controls

The principles of interdependence states that more the plans are clear, complete and integrated, and the more that controls are designed to reflect such plans, the more effectively controls will serve the need of managers.

  1. Control Responsibility

According to this principle, the primary responsibility for the exercise of controls rests in the manager charged with the performance of the particular plans involved.

  1. Principal of Controls being in Conformity to Organization Pattern

Controls must be designed so as to reflect the character and structure of plans. If the organization is clear and responsibility for work done is well defined, control becomes more effective and it is simple to isolated persons responsible for deviations.

  1. Efficiency of Controls

Control techniques and approaches are effectively detect deviations from plans and make possible corrective actions with the minimum of unsought consequences.

  1. Future-oriented Controls

It stresses that controls should be forward looking. Effective controls should be aimed at preventing present and future deviations from plans.

  1. Individuality of Controls

Control should be designed to meet the individual requirements of managers in the organization. Although some control techniques and information can be utilized in the same form by various types of enterprises and managers as a general rule controls should be tailored to meet the specific requirements.

  1. Strategic Point Control

Effective and efficient control requires that attention to be given to those factors which are strategic to the appraisal of performance.

  1. The Exception Principle

The exception principles whereby exceptions to the standards are notified, should be adopted. Note must be taken of the varying nature of exceptions, as “small” exceptions in certain areas may be of greater significance than ‘larger’ exceptions elsewhere.

10. Principal of Review

The control system should be reviewed periodically. The review exercise may take some or all the points emphasised in the above stated principles. Besides, flexibility and economical nature or controls, should not be lost sight of while reviewing controls.

Limitations of Controlling

No control on external factors:

An enterprise cannot control the external factors such as government policy, technological changes, change in fashion, change in competitor’s policy, etc.

Costly affair:

Control is an expensive process it involves lot of time and effort as sufficient attention has to be paid to observe the performance of the employees. To install an expensive control system organisations have to spend large amount. Management must compare the benefits of controlling system with the cost involved in installing them. The benefits must be more than the cost involved then only controlling will be effective otherwise it will lead to inefficiency.

Difficulty in setting quantitative standards:

Control system loses its effectiveness when standard of performance cannot be defined in quantitative terms and it is very difficult to set quantitative standard for human behaviour, efficiency level, job satisfaction, employee’s morale, etc. In such cases judgment depends upon the discretion of manager.

Resistance from employees:

Employees often resist control and as a result effectiveness of control reduces. Employees feel control reduces or curtails their freedom. Employees may resist and go against the use of cameras, to observe them minutely.