BCom Notes Part II Management Importance of Control

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Importance of Control

Describe the Importance of Control. Importance of Control

The major benefits of a good control system may enlisted as follow:

1. Stimulates Action

A good control system stimulates action by spotting the significant deviations from the original plan and by highlighting them for the people who set thing right i.e., who can take corrective action. Thus, it guides and keeps the organization’s operations on the right back.

2. Facilities Decentralization and Coordination

Control encourages top management to delegate authority to subordinates throughout the organization without completely losing their grip over it. In the context of predetermined goals, control keeps all activities and efforts within their specified limits and makes the operations to move towards organizational goals through coordinated efforts.

3. Facilities other Managerial Functions

Control and planning are closely related to each other. Control points out the deficiencies in plans and policies by verifying their quality and correctness. It helps to review, revise and update the plans and policies in order to cope with changes in the environment. By doing so, control also indicates the limitations and drawbacks of organizing staffing, motivation, leadership and decision-making.

4. Enhances Employee Morale

Control is vital to the strength and moral of company employees because it prevents the individuals form going astray from plans and thus prevents anarchy to develop. Employees do not like a situation that goes out control because in that case they may become victims to any within and cannot predict what will happen to them. Thus without control their morale may be lowered. The tremendous complexity of modern organization and certain psychological dependencies of the employees on order and stability, make the control system a necessity.

5. Creates Psychological Pressure to Work

If there exists a sound control system in an organization, employees have psychological pressure to work hard and perform well. Efficient control system provides order and discipline in activities and helps to minimize dishonest behavior on the part of employees. Employees remain alert in their efforts.

6. Other Benefits

Several other benefits from good control system may be as follow:

1. Control is necessary for the optimum use of organization’s scarce resources.
2. It helps in organization’s growth and change
3. It helps in forecasting and thus provides basis for future action.
4. Control techniques like rules, procedures, budgets etc stand as effective guides to managers.
5. In the absence of control, the plans will remain but mere pipedreams.
6. Control helps in judging the accuracy of standards.
7. In the area of their responsibility, if managers do not control events, they will be at the mercy of the events.