Question

State the importance of controlling in an organisation.

Hint:

Controlling is crucial for ensuring that an organization stays on course to meet its objectives, improves performance, and rectifies any issues that arise during operations.

Answer 1

Controlling is an essential function of management that ensures that the organization's activities are aligned with its objectives. It involves setting standards, measuring performance, and taking corrective actions. Below are the key reasons why controlling is important in an organization: Step 1: Ensures Goal Achievement.
Controlling ensures that the activities of the organization are directed toward achieving the predetermined goals. By measuring performance against established standards, it helps in identifying deviations and taking corrective actions to stay on track.
Step 2: Improves Efficiency.
Through effective controlling, organizations can identify inefficiencies and areas where resources are being underutilized or misused. This helps to improve operational efficiency and reduces waste, ensuring that the organization makes optimal use of its resources.
Step 3: Provides a Basis for Decision-Making.
Control provides managers with valuable information about the current performance and progress of various departments. This data serves as a basis for informed decision-making, which can lead to better strategies and plans.
Step 4: Ensures Compliance with Policies and Procedures.
Controlling ensures that all actions taken within the organization comply with established rules, policies, and procedures. This reduces the risk of legal or ethical violations and ensures consistency in operations.
Step 5: Helps in Corrective Actions.
When deviations from the plan are identified, controlling helps in taking corrective actions promptly to avoid further problems. It provides a mechanism for rectifying mistakes and ensuring continuous improvement.