Under decentralisation, the authority of decision making is dispersed throughout the organisation. Whenever, there are any deviations, different departments come together to take collective and corrective steps. In order to co-ordinate their activities, an efficient system of control is required. © 2020 . Sharing Wisdom and Vivid Memories of Life, Advantages of Controlling in the Organisation - Need Importance, What is Finance? Image Credits © Gaelsapori - Advantages of Controlling. Plagiarism Prevention 5. After completing my post graduation I thought to start a website where I can share management related concepts with rest of the people. A good control system helps an organization in the following ways: (i) Accomplishing organizational goals: The controlling process is implemented to take care of the plans. Without control the best of plans can go awry. Management can then integrate the factors of production and the available … Meaning Types of Financial Plans, What is Financial Management? 1. Report a Violation 11. Best Interview Tips, How To Summarize Passage ? Gauging deviations from the planned measures is easier for measurable standards of performance as they can be quantified in units, cost, money terms, etc. Before publishing your articles on this site, please read the following pages: 1. In the above example, if the management was able to get the plans ready, get the finances ready and also get the due permission from the authorities and materials were organised for the commencement of construction, it will be a positive deviation. Control helps the organisation to make optimum utilisation of the available resources. Controlling as a managerial process is associated with ensuring that all the functioning of the business are as per the plans formulated and gives meaning and effect to all other processes of management. Planning without controlling is useless. During such a process the amount or the nature of use of various resources also comes under strict scrutiny. The first and foremost advantage of having a control mechanism in place is that it leads to accomplishments of objectives set by the planning department of the company on time. Meaning - What it Includes? It further helps in reviewing & revising the standards according to the changes in the organisation and the environment. Planning helps the company in evaluating the actual performance of the … Depending upon the nature of distinction, deviations are classified either as Positive or Negative Deviations. It involves ensuring that the remedial actions so taken are bearing fruit and are effective. Image Guidelines 4. Control simplifies supervision by pinpointing significant deviations. Controlling is one of the most basic functions of management, like planning, organizing, staffing, etc. Main Characteristics of Checks, What is Crossing of Cheque ? Different Types of Check Crossing, Automated Teller Machine (ATM) - The Advantages of ATM Machine, E-Banking - Online Banking - Main Advantages of E-Banking, Principles of Good Lending Every Banker Follows - Loans, Different Forms of Advances by Commercial Banks - Loan Types, Duties and Responsibilities of Computer Operator in Bank, Nationalisation of Banks in India - Introduction Objectives Demerits, Narasimham Committee Report I 1991 II 1998 - Recommendations, New Economic Reforms of the Banking Sector In India - Brief, Functions of Reserve Bank of India (RBI) - Credit Policy of RBI, Balayam Nail Rubbing Exercise Cures Alopecia, Hair Loss, Bald, What is Credit Card? It is important activity in any business enterprise. eval(ez_write_tag([[300,250],'letslearnfinance_com-leader-1','ezslot_11',110,'0','0']));As one can see from the above that controlling has advantages as well as disadvantages and it is the responsibility of the company to ensure that controlling is used for the maximum benefit of both employees as well as the company at the same time undermining the disadvantages. Content Filtration 6. If the effort is in a different direction altogether, the process of controlling weeds it out. 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. One management control seeks to compel events to conform to plans.” Planning and controlling are thus correlated and facilitate effective decision-­making. Deviations can be referred to all those factors present in the actual output that prove distinct and different from the established standard. The controlling function also helps in the effective and efficient application of enterprise resources in order to accomplish the planned goals. All rights reserved. Control can be meaningful only when it is preceded by proper delegation of authority and duties. Mere identification of deviation will not be of any consequence to a business when it is either incapable or unwilling to take effective remedial actions. It’s Components and Process. ManagementStudyHQ . It helps the managers to measure actual performance and guide it towards the achievement of predetermined goals. It guides all the operations of the organisation in the right direction. It is the basis of planning and helps the management in achieving adequate progress and satisfactory performance. The defects or limitations of controlling are as following: 1. Controlling is the last function of the management process which is performed after planning, organizing, staffing and directing. This boosts the morale of the employees because they know the work for which they are to be held responsible. Advantages of Planning. I am a mother of a lovely kid, and an avid fan technology, computing and management related topics. There are 4 steps that are involved in the process of controlling and they are:-, Standards are benchmarks that we can compare a particular output to. Hence, it helps in reducing the dishonest behaviour of the employees and in creating order and discipline in an organization. This increases the goodwill of the organisation. This allows the employees to clearly understand what is given more priority and keeps them goal oriented. The controlling function also helps in the effective and efficient application of enterprise resources in order to accomplish the planned goals. Control leads to high returns and low cost. This helps the expansion of span of control at all levels. By virtue of planning a business becomes a goal oriented entity. In simple words just like in case of highway if you do not apply brakes you can go ahead of your destination or if you are driving too slowly then you will reach your destination late in the same way control ensures that company achieves its objectives timely that is neither too fast which leaves scope for errors nor too slow. Being plan based controlling is a function that is inherently goal oriented and clearly involves the understanding of what you want. All the work has to be done according to these standards. Thus the process ensures channelizing effort into achieving predetermined goals. Huge Collection of Essays, Research Papers and Articles on Business Management shared by visitors and users like you. People who bear the most brunt of control function are the employees because controlling is mostly applied on the way employees of the company work whether it’s related to their attendance or monitoring their work through cameras or reducing their rest time and so on. Control is an indispensable function of management. Importance of Controlling in Business Management. In the same way, if controlling is done properly than minor deviation can be easily corrected on time by the management thus ensuring that minor deviation does not become major and puts the whole company in the jeopardy. Management control refers to setting of predetermined standards, comparing actual performance with these standards and, if required, taking corrective actions to ensure the achievement of organisational goals. Terms of Service 7. Remedial actions would include a sum total of all efforts taken to solve the deviations identified. Controlling can also be viewed as detecting and correcting significant variations in the results obtained from planned activities. Saving Account Bank - Meaning, Features and Advantages of It, Fixed Deposit Account of Bank - Meaning, Features, Advantages, What is Current Bank Account ? Positive deviations thus as will be understood from the illustration is when the conditions of the standard are surpassed and the output goes ahead to materialize more factors relevant to the central plan, in this case getting permits and materials. Importance In Modern Marketing, 5 m's of advertising and advantages of advertising, Quality Control Total Quality Management TQM Quality Circles. Account Disable 12. Report a Violation, Difference between Decentralisation and Delegation, Delegation is the Key to Effective Controlling. Privacy Policy 8. Thus, it promotes delegation of authority to the employees at lower levels. Controlling checks the working of employees at each and every stage of operations.

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