Meaning & Definition
Controlling means ensuring that activities in an organization are performed as per the plans. Controlling also ensures that an organisation’s resources are being used effectively and efficiently for the achievement of predetermined goals.
It can be defined as comparison of actual performance with the planned performance.
The controlling functions finds out how far actual performance deviates from standards, analyses the causes of such deviations and attempts to take corrective actions based on the same.
Nature of Controlling/Features of Controlling
1. Controlling is a goal oriented function: Controlling as a function of management ensures that the overall directions of individuals and groups are consistent with short and long range plans of the organization. So it is completely a goal oriented function.
2. Controlling is an all pervasive function: Controlling is a function which is applicable to all types of organizations and at all levels.
Controlling is applicable to all forms of organization
3. Controlling is a continuous function: Control is not a onetime activity. Rather, it is a dynamic process that involves constant analysis of actual and planned performance. The resultant deviations, if any, are corrected as per the need of the situation.
4. Controlling is both a backward looking as well as forward looking
function: Effective control is not possible without analyzing our past mistakes. So from this point of view, we can call it backward looking. But the business environment is ever changing and controlling helps bring in changes in the organization in a conducive manner. So we cannot ignore the forward looking aspect of it as well.
5. Controlling is a dynamic process: Since controlling requires taking revcwable methods, changes have to be made wherever possible.
6. Controlling is a positive process: George Terry says, the function of controlling is positive – it is to make things happen, i.e. to achieve the goal within stated constraints, or by means of the planned activities. Controlling should never be viewed as being negative in character – as a hurdle in getting objectives won. Controlling is a managerial necessity and a help, not an impediment or a hindrance.
