Planning and controlling are interdependent functions where planning sets the goals and standards, and controlling ensures those goals are achieved by monitoring performance and taking corrective actions.
The relationship between planning and control can be explained as follows:
1. Planning Originates Controlling: In planning the objectives or targets are set in order to achieve these targets control process is needed. So planning precedes control.
2. Controlling 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 actual performance is compared to the standards set and records the deviations, if any. The information collected for exercising control is used for planning also.
4. Planning and Controlling are Interrelated: Planning is the first function of management. The other functions like organizing, staffing, directing etc. are organized for implementing plans. Control records the actual performance and compares it with standards set. In case the performance is less than that of standards set then deviations are ascertained. Proper corrective measures are taken to improve the performance in future. Planning is the first function and control is the last one. Both are dependent upon each other.
5. Planning and Control are Forward Looking: Planning and control are concerned with the future activities of the business. Planning is always for the future and control is also forward looking. No one can control the past, it is the future which can be controlled. Planning and controlling are concerned with the achievement of business goals. Their combined efforts are to reach maximum output with minimum cost. Both systematic planning and organized controls are essential to achieve the organizational goals.
6. Controlling improves future planning: By providing information derived from past experience, controlling helps to improve future plans. For example, from deviations noted in the achievement of the previous quarter’s sales targets, the sales managers will delve into the reasons for such deviations and implement steps to improve the performance in the future. Thus, sales targets for the upcoming quarter will be based on the shortcomings identified in the previous quarter. If the manager is hopeful to fix the current issues and expects to increase manpower, he will plan the sales targets for the next quarter accordingly.
