Controlling: Definition, Function and Purpose

Management Controlling in organizations and companies, the term understanding of Control is very easy to find. But the question is whether the definition of Controlling that is spread in general understanding is in accordance with the understanding of experts in the field of management?

The term Control has a broader meaning compared to the notion of supervision. Many say that Control is the same as supervision. Therefore, supervision is always included in the management function together with Controlling.

Controlling in Management of an organization / company has an important role both internal and external supervision. Through supervision activities, it is expected to be immediately known if there are irregularities in the organization’s management process that is not in accordance with predetermined planning.

In this article, we will discuss more specifically about Control theory which includes the definition of Control in general and according to experts, Control functions, Control objectives, and types of Control. Through articles on Controlling, it is expected to be able to become a reference for making scientific articles, journals or other supervision papers.

Definition of Controlling

There are various Definition of Management Control that can be explained. Therefore in the discussion about the definition of Control will be divided into two sub-chapters, namely the general understanding and the understanding put forward by experts. This explanation can later help the reader in understanding more deeply the core meaning of the notion of supervision / Controlling.


In general, the definition of Controlling is a process to guarantee that all activities carried out are in accordance with established plans. More complete is a systematically arranged effort to determine work references in the information feedback system planning process, comparing work results with work references, analyzing the occurrence of irregularities, and immediately taking the necessary corrective steps to ensure the use of organizational / company resources effectively and efficiently in order to achieve organizational goals.

Based on the definition of Controlling, basically this activity is carried out to find out immediately related irregularities, misuse, waste, or other organizational problems, then the corrective and corrective steps are taken to make the problem.

In addition, overall supervision is an activity comparing the results that have been carried out with the plans that have been determined. Therefore in Controlling it is necessary to have a reference, standard, measuring instrument related to the results that are desired to be achieved.

According to experts

Management experts also put forward several definitions of Controlling / supervision. The understanding between one expert and another might be different. However, it has more or less the same meaning, only with a different perspective. The following definition of Control according to experts:


The definition of Controlling is all activities carried out by the manager to ensure that the actual results are in accordance with the results of the planning.

Basu Private

Understanding supervision is a guarantee function that all activities will produce results as expected.

Sondang P. Siagian

Supervision is the process of observing an implementation of the overall activities of the organization to ensure that all tasks that are being carried out in accordance with previous planning.

Victor M. Situmorang and Jusuf Juhir

The meaning of Controlling is all forms of efforts and actions aimed at knowing the extent of the work carried out in accordance with the rules and objectives to be achieved.

Henry Fayol

Fayol states that oversight consists of a testing process to find out whether everything is carried out according to plan and according to existing orders and rules.

Controlling aims to determine the shortcomings and balances to be corrected immediately and prevent the occurrence of the same defeat in the future.

Djamaluddin Tanjung and Supardan

The Controlling function in management is one of the functions of management that aims as a guarantor so that all work activities are carried out in accordance with the references that have been determined and arranged in the planning.

Soekarno K

In the book Fundamentals of Management, the definition of Controlling put forward by Sukarno K is a process that sets out related to the things that must be done, the purpose for which they are carried out, and so that what is carried out is according to plan.

Soekarno K in describing the meaning of supervision emphasizes activities as a process in determining what should be done.

George R. Terry

Terry explained that Controlling is an effort to determine the results that have been achieved, evaluate these results, and ensure that the results are in accordance with planning.


In a book entitled Organizational and Management Basics, the definition of Control described by Sarwoto is the manager’s activity in striving for tasks and work to be carried out in accordance with the specified plan.

In terms of Controlling it is explained that the executor of the Controlling function in management is the manager and the measure of Control activities is a pre-arranged plan.

Besides that, implicitly in his book, Sarwoto stated that related to the Controlling objectives that strive for the duties and responsibilities to be carried out and adjusted with reference to the planning. So the tasks and work in question is the work being carried out.

M. Manullang

Manullang described supervision as the process of determining the duties and responsibilities that have been carried out, conducting assessments, and taking corrective actions if necessary with the aim that the implementation that has been carried out in accordance with planning.


Controlling / Supervision Function in Management

Controlling activities have a function in management activities. The understanding of the supervisory function is basically to assess, analyze, and provide recommendations and to submit reports relating to the field of work of a department or organization / company that has been studied. This activity is also included in the leadership function in the organization.

In more detail the following Controlling functions in management can be known:

  • Control assesses whether each element / unit in the organization carries out policies and rules that are in accordance with their respective duties.
  • To assess whether a letter or report has described the actual activity accurately and accurately.
  • As an appraiser related to Control whether management activities are adequate and carried out effectively.
  • Analyzing whether the activities that have been carried out effectively reach predetermined goals.
  • Examine whether the activities carried out enable the creation of efficiency.


Controlling Objectives

Controlling activities have a variety of objectives in organizational management, including:

  • Ensure the continuity of work in accordance with the plans, policies and procedures established.
  • Coordinate between activities carried out.
  • Avoiding budget misuse and waste.
  • Guarantee the realization of customer satisfaction with the products produced (if a non-profit company)
  • Building consumer / public trust in organizational / corporate / government leadership.


Controlling Types

Controlling is divided into two, namely internal and external supervision. The definition of internal supervision is the Controlling activities carried out by the oversight body within the organization concerned. Then external supervision is Control that is carried out by the oversight unit within the outside environment of the supervised organization.

Based on these two types there are types of Controlling that need to be known as follows:

Preventive Control

Preventive Controlling is carried out before an activity or program is carried out. This Control has the aim to prevent irregularities in an activity. For example, supervision in companies in the financial sector related to the preparation of budget proposals, financial statements (balance sheets and income statements). This supervision is carried out as an effort to avoid any misappropriation of the budget in the course of the program that will harm the company.

Repressive Control

repressive Controlling, namely supervision carried out on activities, after the activity has been completed. For example, supervision is carried out at the end of the fiscal year, from supervision of village funds to the national budget where the funds have been determined during planning and then activities have been carried out up to their accountability reports.

Active Control

Active Controlling is also called close supervision. This supervision is carried out directly at the location of activities to be monitored.

Passive Control

Passive Controlling is done remotely such as Supervision with research and testing on letters or reports on the results of activities accompanied by evidence related to the implementation of activities.

Formal Truth Control

This type of Controlling is supervision according to rights (rechtimatigheid) and checks the truth of the material related to the purpose of spending (doelmatigheid).

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