HAILEY COLLEGE OF COMMERCE

Business Management

Submitted To: Dr. Prof. Ramzan Sb.

Submitted By: Muhammad Ahmad
Roll No. BC 20-654
Section B (Self-supporting)
Article Controlling
 Controlling

The Essential Management Function

Introduction
Controlling is a vital management function that helps ensure an organization’s
success by monitoring and evaluating its performance. It enables managers to
identify deviations from established goals and make necessary adjustments to
keep the organization on track. The purpose of controlling is to ensure that an
organization’s goals and objectives are being met and to take corrective action
when necessary.

What is Controlling?
Controlling is defined as the process of monitoring and evaluating an
organization’s performance to ensure that its goals and objectives are being met.
It involves setting standards of performance, measuring actual performance,
comparing the results with the standards, and taking corrective action as
necessary. Controlling helps organizations to identify problems and make
necessary adjustments to improve their performance.

Why is Controlling Important?

Controlling is important because it helps organizations to achieve their goals and objectives. It helps to
ensure that an organization is operating efficiently and effectively, and that resources are being used in
the most appropriate manner. Controlling is also essential for organizations to identify and rectify
problems before they become major issues, which can result in negative consequences for the
organization.
Types of Controlling
There are several types of controlling that organizations can use to monitor and
evaluate their performance. Some of the most common types of controlling
include:

1. Output Controlling
Output controlling focuses on the results of an organization’s activities and
processes. It involves measuring the output of an organization’s activities
and comparing it with established goals and objectives.

2. Input Controlling
Input controlling focuses on the inputs that are used in an organization’s
processes. It involves monitoring the inputs that are being used in an
organization’s activities and ensuring that they are being used in an
efficient and effective manner.

3. Process Controlling
Process controlling focuses on the processes and activities that are being
performed within an organization. It involves monitoring and evaluating the
processes and activities that are being performed to ensure that they are
being performed efficiently and effectively.

4. Performance Controlling
Performance controlling focuses on the performance of individuals within
an organization. It involves monitoring and evaluating the performance of
individuals to ensure that they are contributing to the organization’s goals
and objectives.
The Steps in the Controlling Process
The controlling process involves several steps, including:

1. Setting standards
The first step in the controlling process is to set standards of performance.
This involves defining what is expected of the organization and its
employees in terms of performance.

2. Measuring actual performance

The second step in the controlling process is to measure actual
performance. This involves collecting data on the organization’s
performance and comparing it with the established standards.

3. Comparing results with standards

The third step in the controlling process is to compare the results with the
standards. This involves comparing the actual performance with the
established standards to determine whether the organization is meeting its
goals and objectives.

4. Taking corrective action

The final step in the controlling process is to take corrective action. This
involves taking actions to correct any deviations from the established
standards and to improve the organization’s performance.

Benefits of Controlling
Controlling provides several benefits to organizations, including:

1. Improved efficiency and effectiveness

Controlling helps organizations to operate more efficiently and effectively
by ensuring that their activities and processes are aligned with their goals
and objectives.
 2. Improved decision-making
Controlling provides organizations with the information they need to make
informed decisions about their operations.

3. Improved resource utilization

Controlling helps organizations to ensure that their resources are being
used in the most appropriate manner, which can result in improved
resource utilization.

Challenges of Controlling
Despite its many benefits, controlling can also present several challenges for
organizations. Some of the most common challenges of controlling include:

1. Resistance to change
Controlling often involves making changes to the way that an organization
operates, and these changes can be met with resistance from employees
who are used to the status quo.

2. Difficulty in measuring performance

Measuring performance can be challenging, especially in organizations that
have complex processes and activities.

3. Lack of accurate data

Accurate data is essential for effective controlling, and organizations that
lack the necessary data can struggle to effectively monitor and evaluate
their performance.

4. Limited resources
Controlling can be resource-intensive, and organizations with limited
resources may struggle to allocate the necessary resources to the
controlling process.
Strategies for Effective Controlling
Despite the challenges of controlling, there are several strategies that
organizations can use to ensure that their controlling processes are effective.
Some of these strategies include:

1. Clear communication
Clear communication is essential for effective controlling. Organizations
should ensure that their employees understand the importance of
controlling and their role in the process.

2. Use of technology
Technology can be used to automate the controlling process and to
improve its efficiency and effectiveness.

3. Employee involvement
Involving employees in the controlling process can help to ensure that they
are invested in the process and that they understand its importance.

4. Regular monitoring and evaluation

Regular monitoring and evaluation of the controlling process can help
organizations to identify and correct any problems before they become
major issues.

FEEDBACK
Involving employees in the review and evaluation process can provide valuable
insights into areas that need improvement. This feedback can be used to make
changes to the controlling process that will benefit the organization as a whole.

1. Use of data analysis

Data analysis can provide valuable insights into the performance of
the organization and can be used to identify areas for improvement.
 2. Continuous learning
Organizations should continuously educate themselves on new
developments in controlling and adopt best practices as they become
available.

3. Alignment with organizational goals and objectives

The controlling process should be aligned with the organization's goals and
objectives, and regularly reviewed to ensure that it remains relevant.
Effective controlling is an ongoing process that requires constant attention and
effort. Organizations that are committed to continuous improvement will be
better positioned to succeed in today's competitive business environment.

The Importance of Communication in Controlling

Effective communication is a critical component of the controlling process.
Communication helps to ensure that all stakeholders are aware of the goals and
objectives of the organization and their role in achieving them. Communication
also helps to ensure that everyone is on the same page and that any concerns or
issues are addressed in a timely manner.
Effective communication can take many forms, including:

1. Regular meetings
Regular meetings can be used to communicate important information and
to discuss progress towards the organization's goals and objectives.

2. Reporting
Regular reporting can provide stakeholders with the information they need
to monitor the performance of the organization.

3. Employee involvement
Involving employees in the controlling process can help to ensure that they
understand the importance of controlling and their role in achieving the
organization's goals and objectives.
 4. Clear communication channels
Organizations should establish clear communication channels to ensure
that all stakeholders are able to communicate effectively and efficiently.
Effective communication is key to ensuring that the controlling process is
successful. Organizations that are committed to effective communication will be
better positioned to achieve their goals and objectives.
In conclusion, controlling is an essential management function that helps
organizations to monitor and evaluate their performance and ensure that they
are achieving their goals and objectives. Organizations that effectively implement
controlling processes will be better positioned to succeed in today's competitive
business environment. Organizations should continuously evaluate and improve
their controlling processes and establish clear communication channels to ensure
that all stakeholders are on the same page and working towards the same goals.

Conclusion
Controlling is a vital management function that helps organizations to monitor
and evaluate their performance and to ensure that they are achieving their goals
and objectives. Despite the challenges of controlling, there are several strategies
that organizations can use to ensure that their controlling processes are effective.
Organizations that effectively implement controlling processes can improve their
efficiency and effectiveness, make better decisions, and utilize their resources
more effectively.