Advantages of Controlling in the Organisation - Need Importance

1. 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.

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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.