Meaning:

• In layman language, controlling means deciding the activities to be carried out, evaluate, the same and if required, take corrective measures so that they are done in conformity with plan developed by the organization.
• Controlling is the last step of management process.
• Although controlling is considered as the last step, function of controlling starts as soon as the activities are assigned right in the first stage i.e. the stage of planning.
• According to Peter F. Drucker, “Controlling is to maintain a balance between efforts and results and between resources and objectives.”

Characteristics of controlling:

1. Controlling is related to planning:

• Planning and controlling are the two sides of the same coin.
• Planning function makes the plan whereas controlling ensures that activities are carried out according to the plan.
• It is said that planning and controlling are like twins. If there is no planning, there is no scope of controlling.

2. Functions at every level of management:

• Controlling is performed at every level of management. It is not confined to one department or section.
• Managers of each level control their subordinates at their respective levels.
• Controlling is done quite systematically even at the lowest level of workers by their supervisors.

3. Continuous process:

• Controlling is an ongoing process. It never ends.
• It is wrong to believe that once control is exercised on the activities of the enterprise, work will always be done according to the plan.
• Deviations from the set plan can occur at any level and at any time. Hence the organization constantly needs to supervise and control the activities done at various levels.
• In the controlling function, quality control and cost control are important activities that need to be constantly controlled.

4. It is an end activity of management:

• In the management process, the planning function decides organizational objectives, organizing function implements them and directing gives direction. After these functions, the actual role of controlling begins.
• Thus, it is very important that all managerial functions are performed before control is exercised. As a result, control is the end activity of management.

5. Related to future:

• Although controlling is done at every stage on day-to-day basis, its core objective is to minimize deviations and errors in processes so that end product or service comes out as planned. In this sense, it can be said that control is related to future.
• Controlling also helps the manager to examine past activities and analyse them so that he can learn from past mistakes and prevent them in future.
• The objective of control is to see that errors, wastage and losses which occurred in the past are not repeated or if repeated their frequency decreases.

6. It is a constructive activity:

• A general perception towards controlling is that under it a person is always monitored and hence his freedom is lost however, this belief in incorrect.
• In fact, the real objective of control is to see that workers work as per the plan and that they are guided properly to overcome mistakes and deviations.
• Thus, controlling is not a negative, but a positive as well as constructive activity.

7. Internal process:

• Controlling is an internal process for the organization.
• Control system plays an integral role in all the important activities of the organization such as production, sales, purchase, financial matters, financial accounts and working method of employees, etc.
• Since all these activities are part of business, they can be controlled. On the other hand, change in government policy, depression, inflation, changes in the psychology of people, etc. are external factors and hence cannot be controlled.

8. Dynamic process:

• Although what to control and how to control is pre-decided in the planning and controlling functions, it is quite likely that the parameters of control may change continuously depending upon situations.
• If the organization identifies deviations in its processes, it takes quick decision in its control methods to normalize these processes. Hence, it is said that although controlling is a planned function, it is a dynamic process.

9. Controlling is a person-oriented or subjective activity:

• Controlling is done for the improvement of the activities of workers, by the workers and for the workers. Thus, ‘person’ is at the center of controlling.
• Hence, it is said that control is majorly person-oriented i.e. is subjective.

10. Controlling can be formal or informal:

• Controlling is an extremely important function.
• In an organization, what to control, how to control and who will control what is defined very systematically and scientifically.
• During the actual processes, it is quite likely that the format of control might need on-site change. So, many a times, the format of controlling becomes informal and the changes are brought stepping aside from the format.