MEANING OF CONTROLLING
Controlling refers to comparison of actual performance with the planned performance and taking corrective actions, in case of deviations between actual and planned performance. Controlling cannot prevent deviations. But it can minimize them by taking actions and decisions that reduce their recurrence.
CHARACTERISTICS OF CONTROLLING
1. Controlling is a goal-oriented function: Controlling means ensuring that activities in an organisation are performed as per the plans. The essence of control lies in managerial action taken to correct the performance. Mere measurement of performance and finding deviations does not achieve control. An effective control system facilitates timely corrective action so that deviations do not occur again and standards are accomplished. Thus, controlling is a goal-oriented function.
2. Pervasive Function: Control is pervasive function in the sense that it is required at all levels of management in every type of organisation. It is applicable to production, finance, marketing and organisational activities. Every manager performs the controlling function irrespective of his status and the nature of his job.
3. Continuous Process: Controlling is a continuous process in the sense that it involves review of performance and revision of standard operations on a continuous basis. As long as an organisation exists, control continues to exist. Controlling is not an activity to be pursued in the end only, it has to be on a continuous basis. Activities should be supervised on continuous basis.
4. Backward and Forward Looking Process: Control is backward looking process in the sense that it compares actual performance which has been or is being carried out with the planned performance. Control is a forward looking process in the sense that it improves future planning by suggesting revision of existing plans and targets and adoption of new plans on the basis of information derived from past experience. It looks at future through the eyes of past. Therefore, control is both a backward and forward looking process.
