Sunday, 29 September 2013

Relationship between Planning and Controlling

Planning and Control are two sides of the same coin”. Do you agree? Why?

When we talk about the functions of management, we essentially mean the actions which the managers have to perform irrespective to the various fields in which they are working. Thus, these functions have the universal applicability and are applicable to all levels of Management. Broad categorization of the functions of management are:
  • Planning
  • Organizing
  • Staffing
  • Directing
  • Controlling
Although, they are usually present in the sequential order, but in real world, most of these functions overlap, and none of them work in silos.

Planning and controlling, though placed at the extreme ends of the spectrum of the management functions, yet both of them exhibits very close relationship. Planning shows the way, control ensures whether we are on the right way or not. Planning provides the context, control provides the guidance. Let us examine their relationship in detail.

Planning can be defined as the exercise to set the goals so as to carry forward the organization to a desired destination. Therefore, one of the key components of planning is to enumerate measurable goals, both short terms and long terms. Against, these laid down goals, the control process track the actual performance against the desired standards of performance. It tracks the deviation, identifies cause and responsibility, and prescribes curative solutions for it. Planning can be done more wisely in future, by utilizing the experience and insights generated from the control process.

Some opinions believe that planning is a “forward looking process” while control is a “backward looking process”, but it must be appreciated that both are related symbiotically and success of one function provides success to another.

Planning
Controlling
It formulates the short term and long term performance standards of an organization
It measures and compares actual performance against the standard laid down during planning
Well defined and measurable goals provide for good control processes
Insights and experiences generated during control process helps in good planning for future
Planning is predictable in nature
Control is curative in nature
A good plan without an effective control process is difficult to achieve
A good control process without a well-defined plan will prove to be dysfunctional



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