CONTROLLING ~ BUSINESS FUNCTION

The Importance Of Controlling In Business Function

Controlling as a function of management is of great value and importance in a business organization to ensure that the actual state of affairs of a business is along the lines of what is expected to be. One of the most obvious benefits of controlling function is that it provides the accurate information which is what is wanted for effective decision making process as well as maintaining effective functioning state of a business.

Controlling is the process through which the activities are not only turned in to producing better results, but are also improved in a way to continue success while eliminating obstacles that get in way of business progress. In addition, controlling function has a great application during the times that demand immediate attention or action. If the timely action is not taken, there might be considerable loss to a business. Hence, in such times, controlling function is of great use to offer timely help and assistance to the key individuals of a business. Control is not just limited to determine whether or not the plans are being adhered to, but it also leads to identify the reasons of deviations and to take corrective actions accordingly.

Characteristic Controlling Function

• End Function - A function which comes once the performances are made in conformity's with plans.
• Pervasive Function -  Which means it is performed by managers at all levels and in all type of concerns.
• Forward Looking  - Because effective control is not possible without past being controlled. Controlling always look to future so that follow-up can be made whenever required.
• Dynamic Process- since controlling requires taking reviewable methods, changes have to be made wherever possible.
• Planning- Planning and Controlling are two inseparably functions of management. Without planning, controlling is a meaningless exercise and without controlling, planning is useless.

Process of Controlling

1. Establishment of standards- Standards are the plans or the targets which have to be achieved in the course of business function. They can also be called as the criterion's for judging the performance. 
2. Measurement of performance- The second major step in controlling is to measure the performance. Finding out deviations becomes easy through measuring the actual performance. Performance levels are sometimes easy to measure and sometimes difficult. Measurement of tangible standards is easy as it can be expressed in units, cost and money terms .Quantitative measurement becomes difficult when performance of manager has to be measured. Performance of a manager cannot be measured in quantities.
3. Comparison of actual and standard performance- Comparison of actual performance with the planned targets is very important. Deviation can be defined as the gap between actual performance and the planned targets.
4. Taking remedial actions- Once the causes and extent of deviations are known, the manager has to detect those errors and take remedial measures for it.

CONCLUSION

1. Good control can often be achieved in several different ways. In some circumstances, the control problems can be avoided, for example, by centralizing or automating certain decisions. If problems cannot be avoided, one or more types of controls are usually desirable or necessary. 
2. Management control is a behavioral problem. The various control tools are only effective to the extent that they influence behavior in desirable directions.