Chapter 8 of Class 12 Business Studies focuses on Controlling, which is one of the most essential functions of management. Controlling is the process through which managers ensure that the organisation’s activities are going as planned. It includes setting performance standards, measuring actual performance, comparing it with the standard, finding deviations and correcting them. Without control, the entire planning and execution may fail to give results.
I chose to write on this topic because many students think controlling is just about being strict or pointing out mistakes. But actually, it’s much broader and more constructive than that. It helps in saving time, reducing waste and ensuring goals are achieved in the best possible way. In fact, even students use a basic form of controlling when they check their timetable, track syllabus completion and adjust study strategies before exams. Understanding this chapter properly can help you not only score well in Business Studies but also build practical thinking. Since it’s a scoring and logical topic, having the PDF for regular revision is very useful too.
What is Controlling in Management?
Controlling refers to the managerial function that ensures all tasks are carried out as per the planned goals. It acts like a checkpoint in the management process. The aim is to check errors and take corrective action so that actual results match the expected outcomes.
For example, if a company planned to sell 10,000 units in a month but managed only 8,000, then controlling helps in understanding why the shortfall happened and how to fix it next time. It also ensures that employees work efficiently, and resources are not wasted.
Features of Controlling
Some key features of controlling are:
- Goal-Oriented: It focuses on achieving organisational objectives
- Pervasive: Control is needed at all levels – top, middle and lower management
- Continuous Process: It doesn’t stop once a target is met. It keeps repeating for every activity
- Forward Looking: Though it compares past performance, the action is always for future improvement
- Based on Standards: It compares actual performance with pre-set standards
This process helps managers make decisions based on facts, not assumptions.
Importance of Controlling
Controlling plays a major role in business success. Here’s why:
- Helps in achieving objectives on time
- Improves efficiency by reducing mistakes and waste
- Encourages discipline and responsibility
- Ensures better coordination between departments
- Helps in decision-making by providing performance data
For example, if a manufacturing unit finds defects in products during quality check (control stage), it can correct the issue in the next batch, saving brand reputation.
Relationship Between Planning and Controlling
Planning and controlling are like two sides of the same coin. Planning sets the goal, and controlling ensures that the goal is achieved.
- Planning without controlling is like setting a goal but not tracking progress
- Controlling without planning is pointless because there’s no benchmark to compare against
Together, they help management stay focused, adapt to challenges, and improve outcomes.
Limitations of Controlling
Even though it is important, controlling has some limitations too:
- It can be costly and time-consuming
- Not everything can be measured (like employee morale)
- Sometimes too much control can create fear or pressure
- Delays in feedback can make corrective action less effective
So, while using control systems, a balanced approach is needed.
