Purpose or Objective of Controlling and Essentials of Effective Control

Objectives of Controllling

There are two categories for controlling goals:

• Primary objectives: Primary goals include comparing actual performance to the one that was intended and taking the appropriate action if weaknesses are found. Its goal is to ensure that real performance must meet the set standard and accomplish goals swiftly and successfully.

• Subordinate objectives: Along with the main goals, the following are additional supporting aspects for controlling:

  • Location of Deviation: Locating deviation is one of controlling's goals. It is between people' actual performances and the expected performance for them. A management of the organization must choose supervisors for this position who have experience in the relevant industry.

  • Study the cause of Deviation: The next goal is to investigate the source of the deviation after determining its location. The next step will examine the reasons behind the performance gap between actual and anticipated results. More consideration should be paid to extraordinary reasons of deviation when doing analysis to identify both minor and exceptional causes of the deviation.

  • Taking necessary measures: Taking the appropriate actions to control the organization is one of the goals of regulating after a study of the causes of deviation. Remedial action is required to get actual performance back on track. Making the right decision at the appropriate time is a practical control goal that makes good use of resources.

  • Reduce cost and maximize profit: Profit maximization and cost containment are two goals of control. It is the most effective approach to use resources. Utilizing resources effectively reduces waste, duplication, and losses. It also lowers the cost of production. In the end, it optimizes profit and guarantees the greatest number of business transactions.

  • To maintain Discipline: Maintaining order among the organization's members is another goal of control. It requires all of the organization's employees to follow the regulations. This makes it easier for an organization to function as anticipated.

  • Support to maintain coordination: The final goal of controlling is to support coordination. It keeps everyone's synchronization in tact. If there are any limitations or issues with the real performance, it takes corrective action. To keep departments and individuals coordinated, it also takes corrective action.

Essentials of Effective Control

The primary role of management is control. An organization cannot achieve its intended aim without control. It is therefore essential for all types of organizations. The conditions for an efficient control are:

• Suitability: The enterprise's nature, size, types, and needs should be taken into account when choosing the controlling system. To accomplish organizational goals, management must implement an easy-to-understand control system that all levels of employees can use. Avoiding the intricate control system is necessary. It is not acceptable that the actual performance may not produce the expected and right outcome if it deviates from the standard.

• Simplicity: A controlling system should be simple to use, understand, and understand. A better control system is suitable for the management's requirements. A challenging or complex system makes it harder to accomplish the organizational goal as well as function well on paper. Similar to this, management must take into account the surroundings, the time of day, and the nature of the company.

• Objectivity: Every business needs to have a goal. They should have a clear objective and performance standard so that the controlling party can properly assess how well they are performing compared to the performance standard. The idea of individual preferences shouldn't be taken into account. Standards of performance ought to be expressed in precise, measurable language. Corrective actions should also be impersonal and objective.

• Economical: A controlling system needs to be efficient in terms of resources like time, money, and energy. The cost of the controlling system, both in terms of design and implementation, must be less than the gains made. To put it another way, cost should outweigh benefits and a control's output must exceed its inputs.

• Comprehensive: Instead of blaming the people and causing confusion, an effective control system should be able to provide the problems with a useful and practical remedy. The functional areas that require controlling should receive the most attention. Controlling must avoid focusing excessively on one area of the organization.

• Capable of communicating: Clear, effective, and scientific communication is required. It must be able to communicate with the appropriate authority. Information flow in controlling must occur at the proper time and simply require a simple flow from the top to the level of subordinates. It implies that all management levels should cultivate a sense of accountability.

• Suggestive: A successful control system must make its motivations clear. It determines the difference between the actual performance and the intended performance. Additionally, it offers corrective actions to deal with weaknesses and limitations in actual performance.

• Flexibility: A more effective control must be adaptable. They ought to be able to adapt to the shifting business organization's environment. Because certain changes must be made in accordance with the demands of time and circumstance, the controlling system in place today may no longer be functional or suitable tomorrow.

• Responsibility based: The foundation of any effective control system must be accountability. In addition to carrying out the precise obligation, they should emphasize the accountability of each department and worker. It facilitates and aids in taking the appropriate actions when they are required. Employees that are driven and feel responsible aid in achieving company objectives.

• Strategic and exception: A good controlling system needs to be purposeful and unique. Areas where the controlling system is crucial should receive more attention. In a short amount of time, corrective or remedial action should be conducted.

• Forward-looking: The future path of action is controlled. To safeguard the future, it should be planned as soon as possible. Action should be taken right after after a report of a deviation. Control features that do not connect to the future are useless because they cannot offer a way to prevent deviations from happening again in the future.

Reference

Poudyal, Dr.Santosh Raj. Principles of management.Bhotahity,Kathmandu: Asmita Book publishers &Distributors(P)Ltd, 2011.