What Is The Importance Of Control In Business?
“The continuous flow of information about projects keeps the long range of planning on the right track. It helps in taking corrective actions in future if the performance is not up to the mark. ”
The control function helps business management in various ways. It guides the management in achieving pre-determined goals. The control process also ensures the efficiency of various functions. The shortcoming in various fields is also reported for taking corrective measures. Control provides basis for future action.
The continuous flow of information about projects keeps the long range of planning on the right track. It helps in taking corrective actions in future if the performance is not up to the mark. It also enables management to avoid repetition of past mistakes. Whenever there is deviation between standard and actual performance the control helps in deciding the future course of action.
A decision about follow-up action is also facilitated. Decentralization of authority is necessary in big enterprises. The management cannot delegate authority without ensuring proper control. The targets or goals of various departments are used as a control technique.
If the work is going on satisfactory then top management should not feel worried. The management by exception enables top management to concentrate on policy formulation. Various control techniques like budgeting, cost control, pre action approvals etc. allow decentralization without losing control over activities.
Control helps in coordination of activities through unity of action. Every manager will try to coordinate the activities of his subordinates in order to achieve departmental goals. Similarly the chief executive also coordinates the functioning of various departments. The control acts as a check on the performance and proper results are achieved only when activities are coordinated.
The control system helps in improving organizational efficiency. Various control devices act as motivators to managers. The performance of every person is regularly monitored and any deficiency if present is corrected at the earliest. Controls put psychological pressure on persons in the organization.
Everybody knows that his performance is regularly evaluated and he will try to improve upon his previous work. The rewards and punishments are also linked with performance. The employees will always be under pressure to improve upon their work. Since performance measurement is one of the important tools of control, it ensures that every person tries to maximize his contribution.
Author - DeeKay
Tags - Finance, Economy
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