Sponsor Area

Controlling

Question
CBSEENBS12004161

Explain how controlling helps in ‘achieving better co-ordination’ and ‘better planning’.

Solution

(i) Achieving Coordination: Coordination among all the departments of the organisation is necessary in order to achieve the organisational objectives successfully. All the departments of the organisation are interdependent. For example, the supply of orders by the sales department depends on the production of goods by the production department. Through the medium of controlling an effort is made to find out whether the production is being carried out in accordance with the orders received. If not, the causes of deviation are found out and corrective action is initiated and hence, coordination between both the departments is established.

(ii) Better Planning: The controlling function helps in formulation of future plans in the light of the problems that were identified and hence, helps in better planning for the future period.