Planning and controlling are two integral functions of the management process, and there is a close and dynamic relationship between them. These functions are often considered as a continuous and interconnected cycle that helps organizations achieve their goals. Here’s how planning and controlling are related:
1. Establishment of Goals:
- Planning: Planning involves setting organizational goals and objectives. It identifies what the organization wants to achieve in the future.
- Controlling: Controlling uses these established goals as benchmarks for measuring actual performance. The comparison of actual performance against planned goals is a key step in the controlling process.
2. Setting Standards:
- Planning: Planning sets standards and benchmarks against which performance can be measured. These standards include financial targets, timelines, quality criteria, and other relevant metrics.
- Controlling: Controlling uses these standards as a basis for evaluating performance. Deviations from standards are identified during the controlling process.
3. Identification of Resources:
- Planning: During the planning phase, organizations identify the resources (human, financial, technological) required to achieve the established goals.
- Controlling: Controlling involves monitoring the utilization of resources to ensure that they are used effectively and efficiently.
4. Action Plans:
- Planning: Planning involves developing action plans and strategies to achieve goals. It outlines the steps that need to be taken to implement the plan.
- Controlling: Controlling assesses whether the actions taken are in line with the planned strategies. Any deviations or discrepancies are addressed through corrective actions.
5. Feedback Mechanism:
- Planning: Planning sets the foundation for a feedback mechanism by establishing goals and standards.
- Controlling: Controlling uses the feedback mechanism to gather information on actual performance, providing insights into the success or failure of the planned activities.
6. Adaptability to Change:
- Planning: Plans are based on assumptions about the future. However, the planning process recognizes the need for flexibility and adaptability.
- Controlling: Controlling identifies deviations from the plan and requires adjustments to accommodate changes in the internal or external environment.
7. Continuous Improvement:
- Planning: Planning involves a continuous improvement mindset, with periodic reviews and updates to adapt to changing circumstances.
- Controlling: Controlling contributes to continuous improvement by identifying areas where the organization can enhance its performance and efficiency.
8. Coordination:
- Planning: Planning facilitates coordination by aligning various activities and efforts toward common goals.
- Controlling: Controlling ensures that activities remain coordinated by monitoring and adjusting deviations from the planned course.
9. Strategic Alignment:
- Planning: Planning aligns organizational activities with the overall mission and strategic objectives.
- Controlling: Controlling ensures that the actual performance is aligned with the planned strategic direction.
10. Efficiency and Effectiveness:
- **Planning:** Planning aims to maximize efficiency and effectiveness in achieving organizational goals.
- **Controlling:** Controlling assesses whether the organization is operating efficiently and effectively and takes corrective actions when needed.
11. Motivation:
- **Planning:** Setting clear goals during the planning phase provides a sense of direction and purpose, motivating employees.
- **Controlling:** Controlling recognizes the role of motivation by providing feedback on performance and acknowledging achievements.