Limitations of Controlling in Business Management

Limitations of Controlling in Business Management

Limitations of Controlling

Control system loses its efficiency when a standard of performance cannot be defined in quantitative terms and it is very hard to set the quantitative standard for human behaviour, efficiency level, job satisfaction, employee’s morale, etc.

Although controlling is an important function of management, it suffers from the following limitations.

(i) Difficulty in setting quantitative standards: Control system loses some of its effectiveness when standards cannot be defined in quantitative terms. This makes a measurement of performance and their comparison with standards a difficult task.

(ii) Little control on external factors: Generally an enterprise cannot control external factors such as government policies, technological changes, competition etc.

(iii) Resistance from employees: Control is often resisted by employees. They see it as a restriction on their freedom. For instance, employees might object when they are kept under a strict watch with the help of Closed Circuit Televisions (CCTVs).

(iv) Costly affair: Control is a costly affair as it involves a lot of expenditure, time and effort. A small enterprise cannot afford to install an expensive control system. It cannot justify the expenses involved.

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