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Controlling in management - meaning characteristics process techniques important and limitation

Controlling in management - meaning characteristics process techniques important and limitation

22/June/2025 20:13    Share:   

Here's a complete and structured answer for your topic on Controlling in management — covering meaning, characteristics, process, techniques, importance, and limitations.
 
 
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✅ Meaning of Controlling
 
Controlling is the managerial function of monitoring, measuring, and correcting activities to ensure that organizational goals are achieved. It compares actual performance with planned objectives and takes corrective actions when needed.
 
 
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✅ Definition of Controlling
 
> Koontz and O’Donnell:
“Controlling is the measurement and correction of performance in order to make sure that enterprise objectives and plans are being accomplished.”
 
 
 
> Henry Fayol:
“Control consists in verifying whether everything occurs in conformity with the plan adopted, the instructions issued, and the principles established.”
 
 
 
 
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✅ Essential Characteristics / Features of Controlling
 
1. Goal-Oriented
 
Ensures organizational objectives are being met.
 
 
 
2. Continuous Process
 
It is an ongoing activity, not a one-time task.
 
 
 
3. Pervasive Function
 
Applies at all levels of management.
 
 
 
4. Forward-Looking
 
Though based on past data, it focuses on future improvements.
 
 
 
5. Action-Oriented
 
Identifies deviations and triggers corrective measures.
 
 
 
6. Integrates with Planning
 
Control is effective only when standards are well-defined through planning.
 
 
 
 
 
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✅ Nature of Control
 
Managerial Function: It is a key part of the management cycle.
 
Quantitative & Qualitative: Involves measurable data and subjective judgment.
 
Feedback Mechanism: Provides essential feedback for improvement.
 
Dynamic: Adjusts with changes in internal and external environments.
 
 
 
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✅ Process of Controlling
 
Step Description
 
1. Establishing Standards Define performance benchmarks (quantity, quality, cost, time).
2. Measuring Actual Performance Monitor actual activities through reports, observations, etc.
3. Comparing Performance with Standards Identify deviations from desired results.
4. Analyzing Deviations Find causes of variances (positive or negative).
5. Taking Corrective Action Fix problems or revise standards to improve performance.
 
 
 
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✅ Control Techniques
 
1. Traditional Techniques:
 
Technique Description
 
Budgetary Control Monitoring actual performance against budgets.
Statistical Control Use of graphs, charts, and averages for analysis.
Break-even Analysis Determines profitability at different sales levels.
Internal Auditing Regular examination of processes and finances.
 
 
2. Modern Techniques:
 
Technique Description
 
Management by Objectives (MBO) Targets are set jointly; progress is monitored.
PERT & CPM Techniques for scheduling, planning, and controlling complex projects.
Benchmarking Comparing with best practices from other organizations.
Balanced Scorecard Measures performance using financial and non-financial indicators.
 
 
 
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✅ Importance of Controlling
 
1. Ensures Goal Achievement
 
Aligns actual performance with planned objectives.
 
 
 
2. Improves Efficiency
 
Identifies waste, errors, and inefficiencies.
 
 
 
3. Facilitates Coordination
 
Keeps different departments aligned toward goals.
 
 
 
4. Enhances Decision-Making
 
Provides reliable data for managerial decisions.
 
 
 
5. Motivates Employees
 
Clear targets and regular feedback improve performance.
 
 
 
6. Helps in Planning
 
Reveals weaknesses in plans and assists in making future plans better.
 
 
 
 
 
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✅ Limitations of Controlling
 
1. Costly and Time-Consuming
 
Extensive systems and tools may incur high costs.
 
 
 
2. Resistance from Employees
 
Can be seen as distrust or micro-management.
 
 
 
3. Overemphasis on Quantitative Data
 
Qualitative factors like employee morale may be overlooked.
 
 
 
4. Environmental Factors
 
External changes (political, economic) may make control systems ineffective.
 
 
 
5. Not Always Accurate
 
Depends on the quality of data and analysis.
 
 
 
 
 
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✅ Summary Table
 
Concept Description
 
Meaning Monitoring and correcting performance
Nature Continuous, dynamic, goal-oriented
Process Set standards → Measure → Compare → Analyze → Correct
Techniques Budgeting, MBO, PERT, CPM, Balanced Scorecard
Importance Goal achievement, efficiency, planning aid
Limitations Cost, rigidity, resistance, external influence


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