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Need for Control

There are various reasons which make controlling a necessary part of management process. 

Some of these reasons are given below : 

Environmental Changes 

Environment of organisations refers to social, political, legal, economic, cultural and competitive conditions existing outside the organisation. These conditions are not static but dynamic. They keep on changing. New products enter market, for example in las! few years many brands of soft drinks have been launched like Pepsi, Coca Cola in competition to Thumps Up. Technology and method of production change and improve which reduce cost of production. Government's economic policies change, new rules and regulations are framed every year. Control function enables managers to diagnose such changes that an impact on product or service of the organisation. Once such changes have been identified, managers think of coping with them. It is necessary for a company  to understand and respond to such changes because these changes affect performance of organisation. 

Errors in Decision Making 

Despite of all aids to decision making sometimes  managers make error in decisions. A new product nay be launched without careful study, targets may be unrealistic and demand for goods and services may not increase as expected. A control process enables managers to catch such errors before they can begin to 
show their inculpate on organisation. 

Fluctuations in Employee Performance 

Organisational objectives are achieved by people who are working in the organisation. Performance of employees is not static but dynamical. It can vary. A sales person may achieve his target in one month but may fail in the next month. Such changes will affect the rate at which organisation is trying to achieve its objectives. Therefore, it is necessary to have adequate control to assess how managers are working toward their assignments. 

Changes within the Organisation 

It has been stated earlier that an organisation has various subsystems which are interdependent. Ally change in  one subsystem affects the whole organisation, for example, if there is strike in the plant it affects production as well as sales. Control process facilitates  analysis of changes within the organisation.

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