Controlling | Purpose and Benefit of Control System

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controlControlling | Purpose and Benefit of Control System
Principles of Management (POM)
Third Semester | Second year
BSc.CSIT | Tribhuvan University (TU)

Meaning of Controlling
Controlling is a process of measuring the actual performance achieved with that of planned performance and taking corrective action if actual performance is not in accordance with planned performance.

Control is monitoring organizational progress toward goal achievement. – Ricky Griffin
Control is the process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations. – Robbins and Decenzo
Controlling is determining what is being accomplished, that is, evaluating the performance and if necessary, applying corrective measures so that performance takes place according to plans. – George R. Terry
Hence we can conclude controlling as a management tool which facilitates in measuring actual performance against planned performance and taking necessary steps if any deviation exists.

Purpose of control system:
The control system guides the organizational activities and assures certain minimum standards. It is necessary for the following purpose.

  • To ensure that work is done according to objectives set and activities planned within the time allotted and with resources provided.
  • To enable managers to recognize gaps in knowledge and skills of employees, and arrange for appropriate training.
  • To enable managers to recognize and reward good work, and to recognize staff suitable for promotion and advance training.
  • To enable management to ensure that the resources provided for the work adequate and are being properly used.
  • To enable the management to identify the causes of work deficiencies, if any.

Benefits of control system:

  • Improving the quality of goods and services>employees and managers know about the standard of quality, quality of production and services, and the needs of the customers.
  • Standardizing process. Standardizing produces improve efficiency and reduce risks. Everybody in the organization follows the same policies and procedures.
  • Efficiency utilizing organizational resources. The scare resources are used as planned and cost-effectiveness is maintained.
  • Improving employee accountability. Employees are held accountable for results. Controls can identify training needs, rewards good performance, and motivates employees to improve their work.
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