question_answer 13)

Explain the importance of controlling in an organization. What are the problems faced by the organization implementing an effective control system?

Answer:

Control is an indispensable function of management. Without control the best of plans can go away. A good control system helps an organization in the following way (i) Accomplishing Organizational Goals The controlling function measures progress towards the organizational goals and brings to light the deviations. If any, and indicates corrective action. It thus guides the organization and keeps it on the right track so the organizational goals might be achieved. (ii) Judging Accuracy of Standards A good control system enable management to verify whether the standards set are accurate and objective an efficient control system keeps a careful check on the changes taking place in the organization and in the environment and helps to review and revise the standards in light of such changes. (iii) Making Efficient Use of Resources By exercising control, manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with pre-determined standard: and norms. This ensures that resources are used in the most efficient and effective manner. (iv) Improving Employee Motivation A good control system ensure that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised. It thus motivates them and helps them to give better performancer. (v) Ensuring Order and Discipline Controlling creates an atmosphere of order and discipline in the organization. It helps to minimize dishonest behavior on the part of the employees by keeping a close check on their activities. (vi) Facilitating Co-ordination in Action Controlling provides direction to al' activities and efforts for achieving organizational goals. Each department and employee is governed by pre-determined standards which are well co-ordination with one another. This ensures that overall organizational objectives are accomplished. Although controlling is an important function of management. It suffers from the following limitations also (i) Difficulty in Setting Quantitative Standards Control system loses some of its effectiveness when standards cannot be defined in quantitative terms. This makes measurement of performance and their comparison with standards a difficult task. Employee morale, job satisfaction and human behavior are such areas where this problem might arise. (ii) Little Control on External Factors Generally an enterprise cannot control external factors such as government policies, technological changes competition etc. (iii) Resistance from Employees Control is offer resisted by employees. They see it as a restriction on their freedom. For instance, employees might object when they are kept under a strict watch with the help of Closed Circuit Televisions (CCTVs). (iv) Costly Affair Control is a costly affair as it involves a lot of expenditure, time and effort. A small enterprise cannot afford to install an expensive control system. It cannot justify the expenses involved. Managers must ensure that the costs of installing and operating a control system should not exceed the benefits derived from it.