Meaning of Controlling

Controlling is one of the essential functions of a manager. To get planned results from subordinates, a manager must exercise effective control over their activities. In simple terms, controlling means ensuring that everything happening in the organisation is aligned with the plans that were made.

It also makes sure that the organisation’s resources — money, materials, people, and time — are being used effectively (doing the right things) and efficiently (doing things with minimum waste) to achieve the predetermined goals. Because its entire purpose is to help reach those goals, controlling is described as a goal-oriented function.

Pervasive and Universal

Controlling is not limited to senior managers. It is a pervasive function — every manager, at every level (top, middle, and lower), must perform controlling to keep a check on activities within their own area of responsibility. Furthermore, controlling is needed in all kinds of organisations, not just businesses. It is equally required in an educational institution, a military unit, a hospital, and a club.

Not the End, but a Link

A common misunderstanding is that controlling is the last step in the management process. In reality, it is the function that brings the management cycle back to planning. Here is how it works:

• The controlling function first finds out how far actual performance has deviated from the set standards.
• It then analyses the causes of those deviations.
• Finally, it attempts to take corrective actions based on that analysis.

This entire process helps in formulating future plans in the light of the problems that were identified. So, controlling does not end the management cycle — it completes one cycle and improves planning in the next cycle.

This chapter follows the Controlling chapter of CBSE Class 12 Business Studies (NCERT), and the solved questions below are drawn from the chapter's own exercises.