Q4 of 16 Page 226

Discuss the relationship between planning and controlling.

● Planning and controlling are two separate, yet closely related functions of the management.


● Without planning, controlling is baseless. Without controlling, planning is baseless.


● Planning precedes controlling and controlling succeed planning.


● Controlling requires a set of predetermined standards which is provided by planning.


● Once a plan becomes operational controlling is important to monitor its progress, analyze the actual performance, compare it with the standard performance and correct the deviations using corrective measures.


● Both planning and controlling a required for the smooth functioning of the organisation.


● They drive each other in the organisation.


● The business environment is dynamic in nature which for the enhances the relationship between the two.


● A plan may fail at any point in time. Controlling is used in such situations to overcome the loss incurred.


More from this chapter

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2

Explain the techniques of managerial control.

 3

Explain the importance of controlling in an organisation. What are the problems faced by the organisation in implementing an effective control system?

 5

A company M limited is manufacturing mobile phones both for the domestic Indian market as well as for export. It had enjoyed a substantial market share and also had a loyal customer following. But lately, it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction. Also, the mobile market in India has grown tremendously and new players have come with better technology and pricing. This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing.

a. Identify the benefits the company will derive from a good control system.


b. How can the company relate its planning with control in this line of business to ensure that its plans are actually implemented and targets attained?


c. Give the steps in the control process that the company should follow to remove the problems it is facing


 6

Mr. Shantanu is the chief manager of a reputed company that manufactures garments. He called the production manager and instructed him to keep a constant and continuous check on all the activities related to his department so that everything goes as per the set plan. He also suggested him to keep a track of the performance of all the employees in the organisation so that targets are achieved effectively and efficiently.

a. Describe any two features of Controlling highlighted in the above situation. (Goal Oriented, continuous and pervasive – any 2)Answer The two features of controlling highlighted in the above situation are explained below:


a. Goal-oriented: Controlling insurance that the resources of the organizations are being used in the most effective and efficient manner to achieve the predetermined goals.


b. Pervasive: Controlling is a pervasive function. It is the primary function of all the managers. The managers at all the levels- top, middle and lower have to perform this activity.


b. Explain any four points of importance of Controlling.