Benefits of management by exception are as under :
(i) It saves the valuable time of the management.
(ii) It helps the management to identify important deviations which need timely action to keep the organization on the correct path.
(iii) It facilitates delegation of authority and helps in increasing morale of employees.
(iv) It helps the management to concentration on important matters beneficial for the long-term profitability of the organization.

The given statement – “Control does not require any process” is not correct. Process of management control involves the following steps.
Setting performance Standard : Standards are required to judge whether the actual performance is proceeding in the right way. Standards must be in numerical or measurable terms.
Measurement of Actual performance : Actual performance is evaluated and expressed in terms of planned standards.
Comparing Actual performance with standards : Actual performance is compared with the planned performance and deviations if any found out.
Analysing the deviations : In order to know the causes of deviations, and in order to take corrective actions, deviations are analysed.
Taking corrective Actions : If the deviations exceed the acceptable limits they should be immediately brought to the notice of management for taking corrective measures. Thus it is clear that controlling requires systematic process.

Facilitating coordination in action.

According to this, controlling facilities coordination by keeping all activities and efforts directed towards the achievement of goals in conformity with plans.Controlling provides direction to all activities and activities and efforts, so that organizational goals could be achieved.

(a) Controlling Steps involved in the process of controlling
(i) Setting performance standards Standards are the criteria, set in both quantitative and qualitative terms, against which actual performance can be measured. Standards are the benchmarks towards which efforts of entire organization are directed. In order to determine whether the actual performance is proceeding in the right way, standards are required. Thus standards act as a lighthouse that warns and guides the ships at sea. As far as possible, standards must be set up in numerical or measurable terms.
For example
Standard output – 1000 units per day.
Standard scales – Rs. 50 lakh per annum.
(ii) Measurement of Actual performance After setting the standards, next step in the process of controlling is to be measure and evaluate the actual work. It means evaluation of work actually done. It is also preferable to get reports on performance of an employee at regular intervals. Performance may involve ratio analysis and preparation of cash flow statement etc at periodic intervals of time.
(iii) Comparing Actual performance with standards : This steps involved comparing the actual performance with the laid down standards. The standards should be in quantitative terms to facilitate such comparison.
(iv) Analysing Deviations : After identifying the deviations, various causes for same are analysed and the most exact causes are identified in order to take corrective measures. While analyzing the deviations, ‘Critical Point Control’ and ‘Management by exception’ techniques should be used.
(v) Taking Corrective Actions : The final step in the process of controlling involves taking corrective action. If the deviations are within acceptable limits, no corrective measure is required. However, if the deviations exceed the acceptable limits, they should be immediately brought to the notice of the management for taking corrective measures, especially in the important and critical areas.
From the above it can be concluded that controlling requires a systematic process. Controlling without a process is a meaningless activity. Controlling process helps to assure management that actual performance confirms to the planned performance.

Planning and controlling are interrelated and interdependent as follows :
(i) Planning is the basis for controlling Planning is the basis for controlling too. In the absence of plans it is not possible to measure and assess performance. For example, if the output is 500 units, the manager can know whether it is adequate or not only when there is a standard output set up by the planners. Thus, planning provides the base for comparison of actual performance with the budget performance.
(ii) Controlling helps in planning Without effective controlling, activities can not be properly planned. Planning is guided by past experiences and corrective measures suggested by controlling.
(iii) Effective controlling helps in formulation of future plans Controlling helps in revising plans to reap maximum benefits at minimum cost. Controlling ensures improvement in future performance.
(iv) Finding out deviations and cause there of effectiveness of planning can be measured with the help of controlling. Planning is based on fore cast about future conditions. Controlling sets standards and finds out deviations from standards. After that corrective actions are to be taken by controlling function.

Budgetary control is a technique of managerial control under which different operations of an organisation are planned in advance in the form of budgets viz sales budget, cash budget, material budget, production budget etc. These budgets act as standards for comparing with the actual performance and taking necessary corrective action if need be, for attaining organizational goals.
Advantages of budgetary control :—
(i) Helps in attaining targets — It helps in attaining organisational objectives by focusing on specific and time bound targets.
(ii) Optimum utilization of resources — It ensures the optimum utilisation of resources by allocating them among different departments according to their requirement.
(iii) Helps in coordination — It helps in achieving co-ordination among different departments.
(iv) Facilitates the management by exception — By stressing on the operations which deviate from the budgeted standards it helps the management to control by exceptions. However, the effectiveness of budgeting depends on how accurately estimates have been made about future.

Planning and controlling are interrelated and interdependent
Planning is the base of controlling function, as controlling involves measurement of performance against the standards to analyze deviations and take corrective action. Thus, controlling is impossible without planning.
Planning without controlling is meaningless because, in the absence of controlling, it is impossible to minor the progress and keep a check on the proper implementation of plans. Thus, without controlling, planning will fail to achieve objectives.
Planning is a thinking process while controlling is an executive function. While planning involves creative thinking, imagination and sound judgment, controlling ensures that such decisions are converted into desired actions. Thus, planning is prescriptive, whereas, controlling is evaluative.
On the basis of the above discussion, it is concluded that planning and controlling are interrelated and reinforce each other because:
(i) Planning based on facts makes controlling easier and effective.
(ii) Controlling improves future planning by providing information derived from past experiences. 
Both are Forward-looking as well as Backward-looking Functions
1. Planning is a Forward-looking Function
Planning involves setting objectives and deciding the future course of action to achieve them. Thus, it is regarded as a forward-looking function.
2. Controlling is a Backward-looking Function
Controlling involves a post-mortem of the past activities of an enterprise and finding out deviations from the targeted standard. Thus, it is regarded as a backward-looking function.
3. Planning is a Backward-looking Function
Planning is guided by the past experiences and corrective actions taken in the controlling process. Thus, it is regarded as a backward-looking function.
4. Controlling is a Forward-looking Function
The process of control necessarily involves analyzing deviations and taking corrective action, which aims to improve future performance and achievement of predetermined goals. Thus, it is regarded as a forward-looking function.

Importance of controlling
Controlling is an indispensable function of management due to the following reasons:
1. Accomplishing Organizational Goals
It measures progress towards the organizational goals and find out deviations. In the absence of control system, activities may not be carried out according to plans. Thus we can say, it guides the organization and keeps it on the right track, so that it can attain its goals.
2. Judging Accuracy of Standards
Through an effective control system, managers can easily judge the accuracy of standards. It also keeps a careful check on the changes taking place in the organization and in the environment, which facilitates the review of standards, in the light of such changes.
3. Making efficient use of Resources
By exercising control, a manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with predetermined standards and norms, which helps in effective and efficient utilization of resources.
4. Improving Employees Motivation
It helps employees in realizing, what they are expected to do and what are the standards of performance, on the basis of which they are appraised. This motivates them to perform better.
5. Ensuring Order and Discipline
By keeping a check on the activities of the workers, controlling creates an atmosphere of order and discipline among them. It also helps to keep a check on the dishonest behavior of employees.
6. Facilitating Coordination in Action
It provides direction to all activities and each department and employee is governed by predetermined standards, which helps in establishing coordination among them.
Limitations of Controlling
The process of controlling suffers due to following reasons:
1. Difficulty in Setting Quantitative Standards
Control system is effective when standards are defined in quantitative terms. But in some cases, like employee morale, job satisfaction, etc, it is not possible to set quantitative standards. In the absence of these standards, measurement and comparision becomes difficult.
2.Little Control on External Factors
There are certain external factors like change in government policies, technological changes, competition, etc, which are beyond the control of the organization. Thus, controlling such factors becomes difficult.
3. Resistance from Employees
Employees often resist control as they consider it as restriction or boundation on their freedom. e.g. employees might resist working under close supervision of CCTV's and cameras.
4. Costly Affair
Control is a costly affair as it involves a lot of expenditure, time and effort. A small firm cannot afford to install an expensive control system. The cost of control system should not exceed the benefits derived from it.

Through controlling, managers keep tight control over finance and spend well within the budget. To access different aspects of the organizations financial position and for optimum utilization of various resources of finance, managers take recourse to financial controls. They use modern techniques for controlling such as ratio analysis, cash flow statements. etc.

A since it is neither easy nor economical to check each and every activity in an organistion, the control should focus on key result areas (KRAs). These KRAs are very essential activities for the success of organisation and act as critical point. If anything goes wrong to these critical point, the entire organisation suffers.
For Example— Increase in material cost by 10% is more harmful than 20% increase in stationery expenses. So management should focus the controlling these KRA or critical point.
This concept of also known as Management by exception.

“Controlling is the last function of management” Comment controlling should not be mis-understood as the last function of management. The controlling functions measures actual performance against standards, finds out the deviations analyses the causes of such deviations and takes corrective actions. This process helps in formulation of future plans in the light of the past problems. Thus controlling only completes one cycle of management process and improves in the next cycle.

“Controlling is blind without Planning”- Under the system of control actual performance is compared with budgetd standards to judge the effectiveness of performance. These standards are provided by planning. In the absence of standards there will be no justification left for control. Therefore it is correct to say that controlling is blind without planning.