Explain the importance of controlling in an organisation. What are the problems faced by the organisation in implementing an effective control system?
Answers
SOLUTION :
The importance of controlling in an organisation :
(a) Accomplishing organisational goals :
In the absence of control system activities may not be carried out according to plans. Controlling guarantees that results of operations fulfil as early as possible to the established goals and it tries to correct the Difference between actual results and desired results.
(b) Judging accuracy of standards :
Controlling process ensures whether the standard set are correct or not by comparing the actual performance with the set objectives. In the light of changes , the standards are changed or revised as the case may be.
(c) Making efficient use of Resources :
Managers are expected to keep a close watch over the utilisation of human and material resources. They have to prevent the misuse of wastage of resources and ensure proper utilisation of the same.
(d) Improve employee motivation :
It helps employees in realising what they are expected to do and what are the standards of performance.
(e) Ensures order and discipline :
Controlling helps to keep a check on knavish behaviour of the employees by keeping a check on the performance. Supervisor and CCTV help a lot to maintain order and discipline in an organisation.
(f) FACILITATING coordination in action :
It provides direction to all projects running in any department. Coordination helps in establishing coordination among all the employees.
Problem faced by the organisation in implementing effective control system refers to limitation of controlling :
Limitation of controlling :
(a) Difficulty in setting quantitative standards :
A good control system losses is important and it has to set standards and qualitative terms. Setting qualitative standard is a difficult task and setting wrong standards may demoralize the employees. Such standards may relate to employee morale, job satisfaction, human behaviour, etc.
(b) Little control on external factors :
External factors are always in no control of any organisation. Such limitation makes it difficult to achieve the results as desired and expected.
Such factors are government policies, technological changes, changes in the taste of customers, competition ,etc.
(c) Resistance from employees :
Controlling is always resisted by the employee as they feel it as limitation on their freedom but without it conformity of the results is also challenging task. Example ; organisations keep a check on their performance with the help of CCTVs.
(d) Costly affair :
Controlling is always a costly affair as it involves expenses in the form of time and money. Small organisations cannot manage to buy full fledged controlling system. Managers need to ensure the cost of controlling must reap proportionate benefits.
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Answer:
Explanation:
Managers are expected to keep a close watch over the utilisation of human and material resources. They have to prevent the misuse of wastage of resources and ensure proper utilisation of the same.