Planning and controlling are inter-related to each other. Planning sets the goals for the organization and controlling ensures their accomplishment. Planning decides the control process and controlling provides sound basis for planning. In reality planning and controlling are both dependent on each other. In the words of M.C. Niles, “Control is an aspect and projection of planning, where as planning sets the course, control observes deviations from the course, and initiates action to return to the chosen course or to an appropriately changed one.”
The relationship between planning and control can be explained as follows:
- Planning Originates Controlling
In planning the objectives or targets are set in order to achieve these targets control process is needed. So planning precedes control.
- Controlling Sustains Planning
Controlling directs the course of planning. Controlling spots the areas where planning is required.
- Controlling Provides Information for Planning
In controlling the actual performance is compared to the standards set and records the deviations, if any. The information collected for exercising control is used for planning also.
- Planning and Controlling are Interrelated
Planning is the first function of management. The other functions like organizing, staffing, directing etc. are organized for implementing plans. Control records the actual performance and compares it with standards set. In case the performance is less than that of standards set then deviations are ascertained. Proper corrective measures are taken to improve the performance in future. Planning is the first function and control is the last one. Both are dependent upon each other.
- Planning and Control are Forward Looking
Planning and control are concerned with the future activities of the business. Planning is always for future and control is also forward looking. No one can control the past, it is the future which can be controlled. Planning and controlling are concerned with the achievement of business goals. Their combined efforts are to reach maximum output with minimum of cost. Both systematic planning and organized controls are essential to achieve the organizational goals.