RELATIONSHIP BETWEEN PLANNING AND CONTROLLING

RELATIONSHIP BETWEEN PLANNING AND CONTROLLING


Planning and Controlling are inter-related within any organization. Planning sets the goals for the organization and controlling ensures its accomplishment. Planning decides the control process and controlling provides sound basis for planning. In simple words, planning and controlling are basically dependent on each other. 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.