Relation between Planning and Controlling

 Relationship Between Planning and Controlling

Planning and controlling are inherently linked managerial functions. Planning sets the goals and the framework, while controlling ensures these goals are met by monitoring performance and implementing corrective actions. Below is a concise explanation of their relationship, followed by a detailed comparison in table form:

Key Points:

• Planning Originates Controlling:
  • Definition: Planning establishes objectives or targets.
  • Process: The control process is initiated to achieve these targets, making planning a precursor to control.
• Controlling Sustains Planning:
  • Definition: Control ensures that the planning process stays on track.
  • Process: It identifies areas where planning needs adjustments.
• Controlling Provides Information for Planning:
  • Definition: Control compares actual performance with set standards and notes deviations.
  • Process: The information gathered from control activities is crucial for future planning.
• Interrelation:
  • Definition: Planning is the initial step, followed by organizing, staffing, and directing, all aimed at implementing plans.
  • Process: Control comes last, ensuring performance meets set standards, prompting corrective measures where necessary.
• Forward-Looking Nature:
  • Definition: Both functions are future-oriented.
  • Process: Planning anticipates future activities, and control aims to steer these activities towards desired outcomes.

Detailed Comparison in Table Form

head 1	head 2	head 3
Definition	Establishes goals and the framework for achieving them.	Monitors performance and implements corrective actions.
Order in Management Process	First step in the management process.	Last step in the management process.
Function	Decides what to do and how to do it.	Ensures that activities are done as planned.
Dependency	Sets the targets that control needs to monitor.	Provides feedback and information that guide future planning.
Focus	Future-oriented: anticipates future conditions and sets goals.	Forward-looking: focuses on steering future performance.
Nature	Proactive: involves forecasting and setting objectives.	Reactive and proactive: responds to deviations and plans future adjustments.
Scope	Broad: encompasses all functions of management.	Specific: focuses on monitoring and correcting deviations.
Time Frame	Long-term and short-term.	Typically short-term, but with long-term implications.
Goal	Achieve organizational objectives through systematic planning.	Ensure actual performance aligns with planned performance.
Examples	Strategic planning, budget setting, project planning.	Performance appraisals, financial audits, budget variance analysis.

Additional Information:

• Cycle of Continuous Improvement: Planning and controlling create a cycle where planning sets the objectives, controlling measures the outcomes, and adjustments are made for continuous improvement.
• Feedback Loop: Effective controlling provides feedback that enhances future planning, making the two functions interdependent and cyclical.
• Adaptability: Both functions must be flexible to adapt to changes in the internal and external environment, ensuring organizational agility and resilience.
• Efficiency: Systematic planning and organized controls are essential for achieving organizational goals efficiently, minimizing costs, and maximizing output.

By understanding and applying these principles, organizations can ensure that their planning processes are effectively implemented and that deviations are promptly corrected, thereby achieving their strategic objectives.