Control is an indispensable function of management. Without controlling, planning has no meaning. A good controlling system has an important place in the organisation.

(i) Accomplishing organisational goals: A controlling function sets objectives, measure its progress and take corrective measures if there is any deviation. Thus it helps management to accomplish organisational goals.

(ii) Judging accuracy of standards: A good control system helps the management to check the accuracy of the standards set. It keeps in track the recent developments and changes in the business environment and revise the standard according to the need of the organisation.

(iii) Making efficient use of resources: Controlling helps the management to make efficient use of the resources without making wastages. It keeps in track the progress of plan by comparing it regularly with the standards and the deviations are noted simultaneously. Thus it helps to avoid wastages and use the materials wisely and judiciously.

(iv) Improving employee motivation: A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised. It, thus, motivates them and helps them to give better performance.

(v) Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities.

(vi) Facilitating coordination in action: Controlling provides direction to all activities and efforts for achieving organisational goals. Each department and employee is governed by predetermined standards which are well coordinated with one another. This ensures that overall organisational objectives are accomplished.