Planning and Controlling
Planning and controlling are two important functions of management. A system of controlling requires the existence of certain standards. These standards of controlling which act as a basis of controlling are provided by proper planning. Once a plan becomes operational, controlling becomes important to examine the progress, measure it, identify deviations, and initiate corrective actions to ensure that events are in accordance to plan. Therefore planning without control is meaningless. Similarly, there is no role of controlling without planning. If the standards are not set beforehand, the manager will not have anything to leave. Therefore, where there is no plan, there is no basis of controlling. Although both planning and controlling go hand in hand, there are certain differences between the two which we will discuss in this article.
(Image will be uploaded soon)
What is Planning?
Planning is an important managerial function. Planning means deciding in advance what to do, when to do, and how to do it. Before performing something, it is necessary for managers to formulate an idea on how to perform the task. Therefore, planning is closely related to creativity and innovation. But the manager first has to set the objectives only then he will be able to know where he has to reach. Planning bridges a gap between where we are and where we want to reach. Managers perform planning at all levels. Planning requires making certain decisions as it involves making a choice from different alternatives available. Hence, planning involves setting objectives and developing appropriate courses of action to attain these objectives.
Features of Planning
It is the primary function of management.
It is a systematic way of thinking for accomplishment of predetermined objectives.
It is essential in ensuring appropriate utilisation of resources.
It is also an activity which includes avoiding risks, confusions, wasted efforts, unpredictability, etc.
Planning offers direction and motive to the executors of a plan, which for a company are the associated employees, managers, etc. For any task, planning also helps in distinguishing future threats.
What is Controlling?
Controlling is the important function of a manager. Controlling means to ensure that activities in the organisation are performed as per the plan. Controlling also ensures that the resources of an organisation are effectively and efficiently used for the achievement of predetermined goals. Hence, controlling is referred to as a goal-oriented function. Managers at all levels i.e., top, middle, and bottom need to perform controlling functions to keep a control over activities in their areas. Controlling is widely required in the areas like hospitals, education institutions, military, and a club as in any business organisation.
Features of Controlling
Controlling is an ending function. It implies that the controlling function originates once the performances are made in accordance with the plan.
Controlling is a pervasive function which implies that it is performed by all managers at all levels.
Controlling is a backward looking function as it is similar to postmortem of activities performed in the past to find out the deviations from the standard.
Controlling is related to planning. Once a plan becomes operational, controlling is important to examine the progress, measure it, discover deviations, and initiate corrective measures to ensure that events are performed according to plan.
How Do Controlling and Planning Differs?
Both controlling and planning differ in some way. Controlling establishes performance standards that are used to measure performance towards organisational goals. The primary objective of controlling is to determine whether people and different parts of the organisation are performing the work as per their target, attaining the objectives that they have planned to achieve. On the other hand, planning chooses goals and determines necessary strategy and tactics to accomplish those goals. Planning is made on how to perform goals in order to prevent failures and promote success. Planning also provides mediums on how to measure the performance of individuals, divisions, departments, and the organisation as a whole.
Difference Between Controlling and Planning
Conclusion
Planning and controlling are two important parts of management, which are interrelated to a great extent, yet are different from each other.
FAQs on Planning vs. Controlling: A Comparison
1. What is the fundamental difference between planning and controlling in management?
The fundamental difference lies in their purpose and timing. Planning is the primary function of management that involves setting objectives and deciding in advance the appropriate course of action to achieve these goals. It is forward-looking. In contrast, controlling is the process of monitoring performance, comparing it with the set standards, and taking corrective action to ensure that events conform to plans. It is both a backward-looking (evaluating past performance) and forward-looking (improving future performance) function.
2. How are planning and controlling interrelated and interdependent?
Planning and controlling are often called the inseparable twins of management because of their deep interdependence. Their relationship can be understood in two ways:
Planning without controlling is meaningless: A plan is just a paper exercise if there is no system to monitor its progress and ensure its implementation. The controlling function provides this system.
Controlling without planning is blind: The controlling function measures performance against set standards. These standards are provided by the planning function. Without a plan defining the desired outcome, there is no benchmark to control against.
3. Can you provide a simple example that illustrates the concepts of planning and controlling?
Certainly. Imagine a student preparing for a board exam. The planning phase involves creating a study timetable, setting a target to score 95%, allocating specific hours to each subject, and scheduling mock tests. The controlling phase begins when the student starts studying. They track their progress against the timetable, analyse their scores in mock tests, and identify weak areas. If they score lower than the target, they take corrective action, such as dedicating more time to difficult subjects or changing their study technique. This ensures they stay on track to achieve their planned goal.
4. Why is planning considered a 'prescriptive' function, while controlling is an 'evaluative' one?
This distinction relates to the core nature of each function. Planning is prescriptive because it prescribes, or dictates, a future course of action. It sets out the 'what', 'how', 'when', and 'who' of achieving a goal before any action is taken. In contrast, controlling is evaluative because its primary role is to assess and judge the performance that has already occurred. It evaluates actual results against the prescribed standards to find deviations and their causes.
5. Is it true that controlling is only a backward-looking function?
This is a common misconception. While controlling is partly backward-looking because it involves a post-mortem of past activities to analyse deviations from standards, it is also fundamentally forward-looking. The purpose of analysing past mistakes is not just to assign blame, but to take corrective action that improves future performance. Therefore, the insights gained from controlling form the basis for better future planning, making it a forward-looking and proactive function.
6. Can controlling exist without an effective plan in place?
No, effective controlling is impossible without a proper plan. The controlling function is entirely dependent on the existence of pre-determined standards of performance. These standards—such as goals, budgets, and quality specifications—are established during the planning stage. Without these benchmarks, managers have no objective basis for measuring actual performance. Any attempt to control would be arbitrary, directionless, and ultimately ineffective.
7. How does the controlling function feed back into the planning cycle?
The controlling function completes the management cycle and directly fuels the next planning cycle. By identifying deviations between planned and actual results and analysing their causes, controlling provides critical feedback. This information helps managers understand what went right and what went wrong. This knowledge is then used to formulate more realistic, accurate, and effective plans in the future, helping the organisation to learn from its experience and continuously improve.
