Limitations of Controlling
1. Difficulty in Setting Quantitative Standards
When an organisation cannot define its standards in quantitative terms, the controlling system becomes less effective. For example, it is difficult to measure the human behaviour of employees in quantitative terms, which makes it difficult for the firm to measure their performance from the standards.
2. Little Control on External Factors
The controlling system of an organisation can effectively control the internal factors; however, it is not easy to control the external factors of an organisation. For example, a firm can check and control any change in its production (internal factor), but cannot keep a check on the changing technological advancement, government policies, etc. (external factors).
3. Resistance from employees
The effectiveness of the controlling system highly depends on whether or not the employees have accepted the process. It means that if the employees think of the control system as a restriction on their freedom, they will resist the system. For example, the employees of an organisation might object when they are kept under various restrictions making them feel their freedom is being taken.
4. Costly Affair
Controlling is an expensive process, which means that every employee’s performance has to be measured and reported to the higher authorities, which requires a lot of costs, time, and effort. Because of this reason, it becomes difficult for small business firms to afford such an expensive system. Besides, a controlling system is effective only when the benefits gained from it exceed the expenses made on them.