Importance of controlling:

• A controlled organization steers to the right direction. An organization without proper implementation of control is like a chariot without charioteer.
• Controlling is necessary for the achievement of managerial objectives. The main objective of controlling is to check the errors or short comings of the past and stop their recurrence.

Following points bring out the importance of controlling:

1. Helps in achieving objectives: Controlling helps to identify errors in the enterprise and take corrective measures. As a result it becomes easy to achieve objectives of the enterprise.

2. Control on activities: Controlling controls functional areas and activities like organization, production, sales, employees, financial and quality aspects, etc.

3. Makes planning effective:

• It is said that planning lays the path and controlling helps to find the deviations and improve them.
• In this regard, it is said that controlling helps in achieving objectives and making the plan successful as well as effective.

4. Co-ordination between various activities: Controlling helps in coordinating various activities of the business enterprise.

5. Evaluation of activities: Under coordination, the activities are compared with pre-determined standards and then evaluated.

6. Removes deviations: Controlling aims at correcting deviations. It examines the causes of deviation and then takes corrective measures so that deviations can be reduced.

7. Necessary for delegation of authority:

• Controlling is important for delegating authority.
• Once the authority is delegated, the supervisor or authorized personnel supervises and controls the activity.

8. Find out errors:

• Controlling supervises and evaluates the activities of subordinates.
• Controlling also helps to find out errors, difficulties, defects and deviations and remove them so that they are not repeated in future.

9. Long term planning:

• Controlling helps to make long term plans.
• Control can be used to make long term assumptions and forecasts for the business on the basis of the information gathered during controlling activities.

10. Helps in directing: Controlling simplifies directing. It supervises the personnel, gives guidance and direction in their difficulties so that activities are performed as planned.

11. Barometer of efficiency: In business enterprises if control is exercised efficiently, management becomes more efficient. So controlling is called the barometer of efficiency of management.