Planning and controlling are two side of the same coin:

Planning and control, both are complementary and supplementary to each other. It is the planning, which decides the controlling process on the one hand. On the other hand, it is controlling which provides sound basis for planning. In this way, planning and controlling both of them are interdependent.

Planning and control are closely related and depend upon each other. Controlling depends upon planning because planning provides the targets or standards against which actual performance is compared. Controlling on the other hand appraises planning.
The close relationship between planning and controlling can be justified on the basis of following facts : Relationship between Planning and Controlling 1. Planning originates controlling 2. Controlling sustains planning 3. Controlling provides statistical information for planning 4. Planning is theoretical, whereas controlling is practical 5. Planning and controlling both are inter-related or interwoven 6. Controlling measures plans 7. Planning and controlling, both are forward looking

1. Planning originates controlling : The controlling process and technique is decided 2. 3. 4.

5.

6. 7.

by planning. Controlling sustains planning : It is the controlling, which directs and diverts the course of planning. Controlling invites our attention to those areas, where planning is necessary. Controlling provides statistical information for planning : The measurement and comparison of actual performance requires preparation of certain statistical information and reports which provide basis for sound planning. Planning is theoretical, whereas controlling is practical : Both planning and controlling are the two sides of the same coin. Both of them aim at achieving the maximum objectives of the business. Planning prepares plans and controlling works on it. Planning and controlling both are inter-related or interwoven : Without controlling planning is not complete. Planning is the basis of Controlling can be exercised only with reference to and on the basis of plans. Unless the management is able to fix in clear terms the objectives of the organization, and can chart out a course of action, effective controlling is impossible.Thus, planning and controlling are mutually interrelated and interdependent activities. Controlling measures plans: Controlling measures are taken in accordance with the pre-determined plans, programmes and targets. Planning and controlling, both are forward looking : Both planning and controlling aim at the future prospects of the business.

Planning is essentially forward looking Explain.

Planning is process of determing future actions in advance. Hence it is essentially forward looking exercise. In organization planning is used to detemine future course of actions/decisions in terms of the following

what to do when to do How to do Who has to do

In today's business environment, any organization that wishes to exceed customer

expectations and stay competitive needs a long-range strategic plan. This plan must be forward-looking, visionary and achievable, while at the same time striving toward continuous improvement of the organization's key business processes