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.
 planning and controlling are interdependent functions that form a continuous cycle in the management process. While planning establishes the roadmap and goals, controlling ensures that the organization stays on course by monitoring, evaluating, and adjusting its activities. This dynamic relationship between planning and controlling contributes to organizational effectiveness and adaptability in a dynamic business environment.