Planning and control

Planning and controlling are two separate fuctions of management, yet they are closely related. The scope of activities if both are overlapping to each other. Without the basis of planning, controlling activities becomes baseless and without controlling, planning becomes a meaningless exercise. In absense of controlling, no purpose can be served by. Therefore, planning and controlling reinforce each other. According to Billy Goetz, " Relationship between the two can be summarized in the following points
  1. Planning preceeds controlling and controlling succeeds planning.
  2. Planning and controlling are inseperable functions of management.
  3. Activities are put on rails by planning and they are kept at right place through controlling.
  4. The process of planning and controlling works on Systems Approach which is as follows :
    Planning    →    Results    →    Corrective Action
  5. Planning and controlling are integral parts of an organization as both are important for smooth running of an enterprise.
  6. Planning and controlling reinforce each other. Each drives the other function of management.
In the present dynamic environment which affects the organization, the strong relationship between the two is very critical and important. In the present day environment, it is quite likely that planning fails due to some unforeseen events. There controlling comes to the rescue. Once controlling is done effectively, it give us stimulus to make better plans. Therfore, planning and controlling are inseperate functions of a business enterprise.
 The relationship between them is explained as under:

1. Planning Originates Controlling: In planning process, the objectives or targets are to be set, and to achieve those goals, control process is required. So we can say that Planning precedes control. 

2. Control sustains planning: Controlling directs the course of planning. Controlling spots the areas where planning is required. 

3. Controlling provides information for planning: In controlling, the performance is compared with standards and deviations, if any, are to be recorded. The information collected during any type of control, is used for planning also.

4. Planning and control are inter-related: Planning is the initial step and controlling is in the process and required at every step. For the same both are dependent upon each other and inter-related. 

5. Both are forward looking: Planning is always for the future and control is forward looking. No one has the control on past, it is only the future, which can be controlled. 

Planning and Controlling are concerned with the achievement of business goals. Their combined efforts are to achieve maximum output with minimum cost effect. Both, systematic planning and organized controlling are essential to achieve the organizational goals.

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