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Importance of Control

A should control system offers the following benefits:

1.    It helps in detecting mistakes:

An effective control mechanism helps to detect mistakes at early stages of performance. It sates time, effort and money by not allowing the problems turn into major deviations. Increasing costs, labor absenteeism and turnover, defective product samples are some of the indications that manages should note at the early stage so that production schedules are not disturbed subsequently.

2.    It helps in managing complex situations:

In a small-sized organization, mangers can personally control various organizational activities but as organization grow in size, they become complex and managers cannot personally monitor all the managerial activities.Various product lines, armrest (domestic and international), retail and wholesale outlasts become so diverse that organization activates can be coordinated only through a formally  designs control system.

3.    It helps manages in monitoring the actions of employees:

Past policies help manages make plans for future.FGuture being uncertain, planned objectives may not be achieved. Changes in of suppliers and competitors can make the plans ineffective. Well-developed control systems help manager’s forecast these changes and face them when they occur rather that declaring the plans redundant.

4.    It helps manages in monitoring the actions of employees:

If subordinates/employees are sure of not making mistakes, actual results will always be as expected and there will be no need for manages to monitor their activates; but it does not happen. Mistakes do occur, actions do get diverted, wrong diagnosis of the problem and wrong decisions are also made and, therefore, control is necessary so that mistakes do not affect the efficiency of plans and goals of the organization.

5.    It helps in identifying potential of the organizations:

Control system helps the organization face challenges and changes as they and explores future opportunities which the organization can venture into.

6.    It facilitates delegation:

Managers delegate authority down the scalar chain as organizational work load cannot be handled by them alone. However, the accountability continues to vest with managers. Managers must, therefore, ensure hat delegated tasks are effectively accomplished by the subordinates. An effectively designed control system helps mangers in this regard.

7.    It facilitates decentralization:

Increasingly complex organizations decentralize the activities to achieve their goals.Wide geographical dispersions with respect to production , marketing  and research make it difficult for the control mechanism to be initiated from the head office . A well-devised control system facilitates control of decentralized units at the operational level.

8.    Coordination:

Control provides unity of direction to the organizational activities. It ensures that actions conform to plans and there is compete synchronization between organization’s Physical, financial and human resources; internal and external environment; and goals at carious levels.

9.    Psychological impact:

When employees know their actions are being watched, that is, when there is control system in the organization, they perform better than they would in the absence of a control system. A control system related to rewards where good performance is rewarded and poor performance is not punished creates appositive psychological impact amongst employees and increases organizational productivity.

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