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Features/Nature of Controlling? OCM

Features/Nature of Controlling?  Organisation of Commerce and Management.

Meaning: -Controlling is indispensable function of management. Management function starts with planning and ends with controlling. Controlling is one of the managerial functions like planning, organizing, staffing and directing. It is an important function as it ensures that there is effective and efficient utilization of organizational resources so as to achieve the planner goals. If there is any actual deviation in comparison with the plans, then corrective measures should be taken to bring improvements towards achievement of desired objectives

Definition: - Control is the process of taking steps to bring actual results and desired results closer together”……………Defined by (Philip Kotler).

The nature of Controlling is explained as follows:

1.       Planning is a basis of controlling: -controlling is said to be checking the performance as per the planning. So planning precedes controlling and sets the standards and target of performance. Without planning, control is not possible.

2.       Continuous Process: - Controlling is continuous process. As long as the organization exists, there are activities. And as long as there are activities, there is a need to control such activities. Therefore, controlling is a never-ending process

3.       Pervasive function: - Controlling is exercised at all the levels of management and is done in every functional area and in each department. Thus, control is all pervasive.

4.       Action Oriented Process: -Action is the essence of control. The purpose of control is to take corrective action for improvement of performance. If there is any actual deviation in comparison with the plans, then corrective measures should be taken to bring improvements towards achievement of desired objectives.

5.       Future Oriented: - Control is futuristic in nature. It measures current performance and provides guidelines for the corrective action. This ensures future performance as per plans so that same mistake should not be repeated in future.

6.       End Function: - Controlling is an end function which comes once the performance is made in accordance to the plan. If all the desired objectives are achieved as per the planned activities. Then the control function brings an end to the task assigned.

7.       Tools Management: -To control activities, management may adopt various control techniques or tools.
·         Financial control: (Budgetary control, Management audit control through costing, break even analysis)
·         Operating control: -(Quality Control, technique for quality control, quality control through quality circle)
·         Inventory control: -(ABC analysis, economic order quantity, time-event network analysis, PERT/CPM)

8.       Delegation of authority: -Control action can be taken only by managers who are responsible for performance and have the authority to get the things done. A manager gets authority through delegation.

9.       Creativity: - Managers should adopt new and modern controlling techniques for the achievement of objectives. They have to be creative and innovative in their thinking.


10.    Acts as a Guide: -Control System guides the actions of the organization. Activities are undertaken in the right direction. It acts as a traffic signal post, and keeps the activities moving on the right track. This system provides guidance in case of any deviation so as to achieve desired objectives.

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