Relationship between Planning and Controlling

Relationship between Planning and Controlling

Relationship between Planning and Controlling

Planning and controlling are inseparable twins of management. Planning and controlling functions always co-exist or have to exist together as one function depends on the other.

The relationship between planning and control can be divided into the following two parts:

(1) Interdependence between Planning and Controlling

(2) Difference between Planning and Controlling.

A system of control presupposes the existence of certain standards. These standards of performance which serve as the basis of controlling are provided by planning. Once a plan becomes operational, controlling is necessary to monitor the progress, measure it, discover deviations and initiate corrective measures to ensure that events conform to plans. Thus, planning without controlling is meaningless. Similarly, controlling is blind without planning. If the standards are not set in advance, managers have nothing to control.

Relationship between the two can be summarized in the following points

  • Planning preceeds controlling and controlling succeeds planning.
  • Planning and controlling are inseperable functions of management.
  • Activities are put on rails by planning and they are kept at right place through controlling.
  • Planning and controlling are integral parts of an organization as both are important for smooth running of an enterprise.
  • Planning and controlling reinforce each other. Each drives the other function of management.

Therefore, planning involves looking ahead and is called a forward looking function. On the contrary, controlling is like a postmortem of past activities to find out deviations from the standards. In that sense, controlling is a backward-looking function. However, it should be understood that planning is guided by past experiences and the corrective action initiated by control function aims to improve future performance.

Thus, planning and controlling are both backward-looking as well as a forward-looking function.

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