Why is controlling important in management?

Question

BlackTom AI · Accepted Answer

Question: Why is controlling important in management?

Option a: It handles customer complaints. While handling customer complaints can be part of managerial tasks, controlling as a management function is not primarily about customer service. Controlling focuses on monitoring performance and ensuring plans are carried out, not directly handling external complaints.

Option b: It helps manage financial transactions. Managing financial transactions is typically a function of accounting or finance, not the core purpose of controlling. Controlling uses financial data, but its main role is to compare actual performance against plans and take corrective action, not performing transactions itself.

Option c: It oversees daily operations. Overseeing daily operations is more aligned with the planning and directing (leading) functions or operations management. Controlling uses information about operations to assess performance, but its primary aim is to regulate and adjust activities to meet objectives, rather than simply oversee day-to-day tasks.

Option d: It provides information and feedback on employee performance and minimises potential problems. This option captures a central aspect of controlling: collecting performance data, evaluating deviations from standards, giving feedback, and implementing corrective measures to prevent or correct problems. It ties the monitoring and adjustment roles to people and processes, which is the essence of the controlling function in management.

In summary, options a, b, and c describe activities that are either peripheral to controlling or belong to other management functions, whereas option d accurately describes the core purpose of controlling by providing information/feedback and enabling problem minimization through corrective actions.

MCD2040 - T3 - 2025 Week 6 quiz 1

Why is controlling important in management?

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