IMPORTANCE

AND
PREREQUISITES
OF CONTROL
SYSTEMS

SUBMITTED BY
K.POTHANNA SETTI

16331E0046
SECTION A
FIRST SEMESTER

PERSPECTIVES OF MANAGEMENT

D E PA RT M E N T O F M A N A G E M E N T S T U D I E S
MVGR COLLEGE OF ENGINEERING

CONTENT
INTRODUCTION
DEFINITIONS
FEATURES OF CONTROLLING

SCOPE OF CONTROLLING
IMPORTANCE OF CONTROL SYSTEM
PREQUISITES OF AN EFFECTIVE CONTROL SYSTEM

REFERENCE

INTRODUCTION
Control is the last function of management. If there is any imperfection of in the
planning and actual performance, control will be needed.
Managerial functions commence with planning and end at controlling. The other
functions like organizing, staffing, directing are the connected links between
planning and controlling.
Planning identifies the actives and controlling regulates the activities. Success or
failure of planning depends upon the result of success or failure of controlling.
The managerial function of controlling implies, measurement of performance
against the standard and the correction of deviations to ensure accomplishment
of goals as per plan.

DEFINITIONS
George R . Terry, Controlling is determine what is being accomplished, that is,
evaluating the performance and if necessary, applying corrective measure so that the
performance takes place according to plans.
Knootz and O'Donnel, Controlling is the measurement of accomplishment against
the standard's and the correction of deviations to assure attainment of objective's
according to plans.
Henry Fayol, Control consists in verifying whether everything occurs in
conformity, is with plans adapted, the instructions issued and principles established.
It gas for its object to point out weakness and errors in order to rectify them and
prevent recurrence.

FEATURES OF CONTROLLING
The Following elements or features of control are evident:
Control is closely linked with planning.
It is comparison and verification process.
It maintains balance in activities directed towards a set of goals.
It corrects imbalances, if any.
It is a mean to detect deviations from plans, policies, schedules etc.
It is continuous process.
Controlling is mainly looking ahead for forward thinking.

SCOPE OF CONTROLLING
The term control covers all the activities of a business. The main areas of control
are as follows:
Control over the policies of the concern.
Control over organization.

Control over the personnel employed in an organization.

Control over capital available to the concern.
Control over production.

Control over wages and salaries paid to employees.

Control over public relations.

IMPORTANCE OF CONTROLLING
An effective system of control helps in realizing the following benefits:
Basis for future action:- Control helps the management to avoid repetition of past
mistakes and provides the basis for future action.
Facilitates decision making:- Control is fundamental to decision making. It helps in
determining the future course of action whenever there is a deviation between the
standard and the actual performance.
Facilitates coordination:- Control helps in integration of activities through unity of
action. It provides unity of direction.

Facilitates supervision:- The existence of a proper control system should have a

positive impact on the behaviour of the employees.

IMPORTANCE OF CONTROLLING
An effective system of control helps in realizing the following benefits:
Improves efficiency:- Since a good control system smooths away wrinkles in
the working of an organisation, the morale of the employees remains high.
Facilitates decentralisation:- The modem trend of business organisations
towards decentralisation calls for a systematic attempt towards controlling.
Without proper control, decentralisation cannot succeed.

PREQUISITES OF AN EFFECTIVE
CONTROL SYSTEM
The following prerequisites should also be born in mind while devising an effective
control system in an organisation: Appropriateness:- The control techniques should be tailored to reflect accurately the
performance of a particular segment of activity. This means that they should be
appropriate to the nature and needs of the activity.

Simplicity:- A good control system should be simple and easily understandable to

the managers and to the subordinates. The subordinates should know what is
expected of them and how their performance will be evaluated.
Flexibility:- A good control system should be responsive to changing conditions. It
should be adaptable to new developments including the failure of the control system
itself.

PREQUISITES OF AN EFFECTIVE
CONTROL SYSTEM
The following prerequisites should also be born in mind while devising an
effective control system in an organisation: Prompt reporting:- A good control system should enable the subordinates to
inform the superiors in time about their performance. This will help the managers
in finding out the deviations and also in taking prompt corrective actions.
Forward looking:- The control system should be directed towards the future. A
good control system is one that reports the deviations quickly in order to
safeguard the future.

PREQUISITES OF AN EFFECTIVE
CONTROL SYSTEM
The following prerequisites should also be born in mind while devising an
effective control system in an organisation: Economical:- A good control system should be economical. It should justify the
expenses involved. A control system is justifiable if the saving anticipated from it
exceeds the expected costs of its working.
Fixing responsibility:- A good control system should be able to fix
responsibility for poor performance. Thus, appropriate action can be initiated as
and when required.

REFERENCE
Principles of management and administration by D. Chandra Bose
Principles of management by T. Ramasamy
Planning and Controlling by Doctor Kamel Ali Omran, Professor of Human
Resources, Faculty of Commerce, Cairo University