Answer the following Questions: What do you mean by Controlling and explain its nature?

Answer the following Questions:

What do you mean by Controlling and explain its nature?


Controlling is evaluating and assessing the progress of the work done. It involves setting specific criteria or standards for the work and then comparing the actual work with the set standards. It helps in assessing deviations from the set targets and taking the required corrective actions. It ensures that everything goes as per the set plans.

The following points highlight the nature of controlling:

i. Pervasive - Controlling is a pervasive function. It is exercised by all managers, irrespective of their level, department or division.

ii. Backward-looking and forward-looking - Controlling is backward-looking, as it evaluates the past performances against the pre-defined set of standards and takes the required corrective actions in case of any deviations. The assessment and corrective actions form the base for future planning. On the basis of those corrective actions, future plans are formed. That is why controlling is also a forward-looking function.

iii. Positive process - Controlling is a positive process, as it aims at achieving the organisational goals despite various working constraints.

iv. Adopts tools of management - Controlling makes use of various tools and techniques of management such as financial control (by Budgetary control, break-even analysis); operating control (by quality control) and inventory control (by ABC analysis and PERT/CPM)

v. Continuous process - Controlling is an on-going process, as it involves constant assessment and evaluation of the progress of the tasks and activities against the set standards.

vi. Goal oriented - Controlling keeps a close watch on the work in progress and constantly works towards the accomplishment of organisational goals.

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