Controlling refers to the comparison of actual performance with the planned performance and taking corrective actions incase of deviation between actual and planned performance. Importance of controlling is as follows:
(i) Accomplishing organisational goals: Controlling function measures progress towards the organisational goals and involve taking corrective actions incase of any deviation. Through controlling, every attempt is made to keep the activities on the right track so that the organisational goals could be achieved efficiently and effectively.
(ii) Making efficient use of resources: Controlling helps to reduce wastage and spoilage of resources. It aims to ensure that each activity is performed according to the predetermined standards. As a result, there is effective and efficient use of resources.
(iii) Ensuring order and discipline: An efficient control system creates an atmosphere of order and discipline in the organisation. Controlling keeps a continuous check on employees to minimise undesirable activities like theft, fraud, dishonesty etc.
(iv) Facilitate coordination in action: Controlling provides direction to all activities and offers for achieving organisational goals. Each department and individual employee is governed by predetermined standards which are well coordinated with one another. This ensures that overall organisation objectives are accomplished.