Controlling — Business Studies STD 12 Commerce — Question

Planning and Controlling are inseparable twins of management: There is close and reciprocal relationship between planning and controlling because:

1. Planning provides the basis (i.e. standards of performance) for controlling activities. If the standards are not established through planning the controlling activity cannot be performed.
2. Controlling ensures that planned goals are achieved efficiently. It provides information about the performance level and the extent and causes of deviations, if any.
3. Planning is incomplete without controlling and controlling ends with new plans.
4. Planning based on facts revealed by controlling is realistic and meaningful.
5. Planning and controlling both are forward and backward looking.

In short, planning and controlling are complimentary to each other as controlling makes planning more meaningful and planning, in turn, makes controlling more effective and purposeful.