Importance of Organisational Control and Planning

Topics: Management, Goal, Future Pages: 5 (1315 words) Published: March 14, 2013
Importance of control.
Control improves Goodwill

Quality control improves the quality of the products. Cost control decreases the cost of the products. Therefore, the organisation can supply good quality products at lower prices. This increases the goodwill of the organisation.

2. Control minimises Wastage

Control helps to reduce the wastage of human, material and financial resources. This increases the profits of the organisation.

3. Control ensures optimum utilisation of resources

Control helps the organisation to make optimum utilisation of the available resources. This also increases the profit of the organisation.

4. Control helps to fix responsibility

Control helps to fix responsibility of a particular job on a particular person or a particular department. So, if there are any mistakes then a particular person or a particular department will be held responsible for it.

5. Control guides operations

Control fixes certain standards. All the work has to be done according to these standards. So control, acts like a traffic signal. It guides all the operations of the organisation in the right direction.

6. Control motivates employees

In control, the employees' performances are evaluated regularly. Those who show good performances are rewarded by giving them promotions, cash prizes, etc. This motivates the employees to work hard, and it also improves their morale.

7. Control minimises deviations

Control minimises the deviations between a planned performance and actual performance.

8. Control facilitates Delegation

Control helps the superiors to evaluate the work of their subordinates. So, the superior can concentrate on the very important work, and they can delegate the less important work to their subordinates. Thus, it facilitates delegation.

9. Control facilitates Co-ordination

Control facilitates co-ordination between the different departments of the organisation. Whenever, there are any deviations, different departments come together to take collective and corrective steps.

10. Control increases efficiency

Efficiency is the relation between returns and cost. If there is a high return at low cost then there is efficiency and vice-versa. Control leads to high returns and low cost. Therefore, it increases efficiency.

Advantages of Planning

1.Planning facilitates management by objectives.
a.Planning begins with determination of objectives.
b.It highlights the purposes for which various activities are to be undertaken. c.In fact, it makes objectives more clear and specific.
d.Planning helps in focusing the attention of employees on the objectives or goals of enterprise. e.Without planning an organization has no guide.
f.Planning compels manager to prepare a Blue-print of the courses of action to be followed for accomplishment of objectives. g.Therefore, planning brings order and rationality into the organization.

2.Planning minimizes uncertainties.
a.Business is full of uncertainties.
b.There are risks of various types due to uncertainties.
c.Planning helps in reducing uncertainties of future as it involves anticipation of future events. d.Although future cannot be predicted with cent percent accuracy but planning helps management to anticipate future and prepare for risks by necessary provisions to meet unexpected turn of events. e.Therefore with the help of planning, uncertainties can be forecasted which helps in preparing standbys as a result, uncertainties are minimized to a great extent. 3.Planning facilitates co-ordination.

a.Planning revolves around organizational goals.
b.All activities are directed towards common goals.
c.There is an integrated effort throughout the enterprise in various departments and groups. d.It avoids duplication of efforts. In other words, it leads to better co-ordination. e.It...
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