Introduction

Organizations from both the private and public sector are increasingly embracing the practice
of strategic planning in anticipation and effective controlling that this will translate to
improved performance. Past studies have mainly focused on the direct relationship between
strategic planning and performance and did not give attention to the specific steps that make
up the strategic planning process and effective controlling. The manner and extent to which
each of the steps is practiced could have implications on the expected strategic planning
results. This study examined the relationship between planning and effective controlling
giving attention to the strategic planning steps. Secondary information indicates the existence
of a strong relationship between strategic planning and firm performance. Further, all the
strategic planning steps and effective controlling (defining firms corporate purpose, scanning
of business environment, identification of firms strategic issues, strategy choice and setting
up of implementation, evaluation and control systems) were found to be positively related to
organizational performance.

What is meant by Management

Management in business and organizations is the function that coordinates the efforts of
people to accomplish goals and objectives using available resources efficiently and
effectively. Management comprises planning, organizing, staffing, leading or directing, and
controlling an organization or initiative to accomplish a goal. Resourcing encompasses the
deployment and manipulation of human resources, financial resources, technological
resources, and natural resources. Management is also an academic discipline, a social science
whose object of study is the social organization.
Functions of Management
Management operates through five basic functions:
Planning: Deciding what needs to happen in the future and generating plans for
action.
Organizing: Making sure the human and nonhuman resources are put into place
Coordinating: Creating a structure through which an organization's goals can be
accomplished.
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 Commanding: Determining what must be done in a situation and getting people to do

it.
Controlling: Checking progress against plans.
Roles of Management
Interpersonal: roles that involve coordination and interaction with employees
Informational: roles that involve handling, sharing, and analyzing information
Decisional: roles that require decision-making
Levels of Management
Most organizations have three management levels: first-level, middle-level, and top-level
managers. These managers are classified in a hierarchy of authority, and perform different
tasks. In many organizations, the number of managers in every level resembles a pyramid.
Each level is explained below in specifications of their different responsibilities and likely job
titles:
Top-level management
The top consists of the board of directors (including non-executive directors and executive
directors), president, vice-president, CEOs and other members of the C-level executives.
They are responsible for controlling and overseeing the entire organization. They set a tone at
the top and develop strategic plans, company policies, and make decisions on the direction of
the business. In addition, top-level managers play a significant role in the mobilization of
outside resources and are accountable to the shareholders and general public.
The board of directors is typically primarily composed of non-executives which owe a
fiduciary duty to shareholders and are not closely involved in the day-to-day activities of the
organization, although this varies depending on the type (e.g., public versus private), size and
culture of the organization. These directors are theoretically liable for breaches of that duty
and typically insured under directors and officers liability insurance. Fortune 500 directors
are estimated to spend 4.4 hours per week on board duties, and median compensation was
$212,512 in 2010. The board sets corporate strategy, makes major decisions such as major
acquisitions,[17] and hires, evaluates, and fires the top-level manager (Chief Executive Officer
or CEO) and the CEO typically hires other positions. However, board involvement in the
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hiring of other positions such as the Chief Financial Officer (CFO) has increased.[18] In 2013,
a survey of over 160 CEOs and directors of public and private companies found that the top
weaknesses of CEOs were "mentoring skills" and "board engagement", and 10% of
companies never evaluated the CEO.[19] The board may also have certain employees (e.g.,
internal auditors) report to them or directly hire independent contractors; for example, the
board (through the audit committee) typically selects the auditor.
Helpful skills of top management vary by the type of organization but typically include[20] a
broad understanding competition, world economies, and politics. In addition, the CEO is
responsible for executing and determining (within the board's framework) the broad policies
of the organization. Executive management accomplishes the day-to-day details, including:
instructions for preparation of department budgets, procedures, schedules; appointment of
middle level executives such as department managers; coordination of departments; media
and governmental relations; and shareholder communication.
Middle-level managers
Consist of general managers, branch managers and department managers. They are
accountable to the top management for their department's function. They devote more time to
organizational and directional functions. Their roles can be emphasized as executing
organizational plans in conformance with the company's policies and the objectives of the top
management, they define and discuss information and policies from top management to lower
management, and most importantly they inspire and provide guidance to lower level
managers towards better performance. Their functions include:

Design and implement effective group and inter-group work and information systems.
Define and monitor group-level performance indicators.
Diagnose and resolve problems within and among work groups.
Design and implement reward systems that support cooperative behavior. They also
make decision and share ideas with top managers.

First-level managers
Consist of supervisors, section leaders, foremen, etc. They focus on controlling and directing.
They usually have the responsibility of assigning employees tasks, guiding and supervising
employees on day-to-day activities, ensuring quality and quantity production, making
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recommendations, suggestions, and up channeling employee problems, etc. First-level

managers are role models for employees that provide:

Basic supervision
Motivation
Career planning
Performance feedback

What is Business Planning in Business Organizational Management

A business plan is a formal statement of a set of business goals, the reasons they are believed
attainable, and the plan for reaching those goals. It may also contain background information
about the organization or team attempting to reach those goals.
Business plans may also target changes in perception and branding by the customer, client,
taxpayer, or larger community. When the existing business is to assume a major change or
when planning a new venture, a 3 to 5 year business plan is required, since investors will look
for their annual return in that timeframe.
Business plans may be internally or externally focused. Externally focused plans target goals
that are important to external stakeholders, particularly financial stakeholders. They typically
have detailed information about the organization or team attempting to reach the goals. With
for-profit entities, external stakeholders include investors and customers. External stakeholders of non-profits include donors and the clients of the non-profit's services. For
government agencies, external stakeholders include tax-payers, higher-level government
agencies, and international lending bodies such as the International Monetary Fund, the
World Bank, various economic agencies of the United Nations, and development banks.

Internally focused business plans target intermediate goals required to reach the external
goals. They may cover the development of a new product, a new service, a new IT system, a
restructuring of finance, the refurbishing of a factory or a restructuring of the organization.
An internal business plan is often developed in conjunction with a balanced scorecard or a list
of critical success factors. This allows success of the plan to be measured using non-financial

measures. Business plans that identify and target internal goals, but provide only general
guidance on how they will be met are called strategic plans.
Operational plans describe the goals of an internal organization, working group or
department. Project plans, sometimes known as project frameworks, describe the goals of a
particular project. They may also address the project's place within the organization's larger
strategic goals.
Business plans are decision-making tools. There is no fixed content for a business plan.
Rather, the content and format of the business plan is determined by the goals and audience.
A business plan represents all aspects of business planning process declaring vision and
strategy alongside sub-plans to cover marketing, finance, operations, human resources as well
as a legal plan, when required. A business plan is a summary of those disciplinary plans. For
example, a business plan for a non-profit might discuss the fit between the business plan and
the organizations mission. Banks are quite concerned about defaults, so a business plan for a
bank loan will build a convincing case for the organizations ability to repay the loan. Venture
capitalists are primarily concerned about initial investment, feasibility, and exit valuation. A
business plan for a project requiring equity financing will need to explain why current
resources, upcoming growth opportunities, and sustainable competitive advantage will lead to
a high exit valuation.
The first of the managerial functions is planning. In this step the manager will create a
detailed action plan aimed at some organizational goal. For example, let's say Melissa the
marketing manager has a goal of increasing sales during the month of February. Melissa
needs to first spend time mapping out the necessary steps she and her team of sales
representatives must take so that they can increase sales numbers. These steps might include
things like increasing advertisements in a particular region, placing some items on sale,
increasing the amount of required customer-to-sales rep contact, or contacting prior
customers to see if they are interested in purchasing additional products. The steps are then
organized into a logical pattern so that Melissa and her team can follow them. Planning is an
ongoing step and can be highly specialized based on organizational goals, division goals,
departmental goals, and team goals. It is up to the manager to recognize which goals need to
be planned within his or her individual area.

"... a good business plan can help to make a good business credible, understandable, and
attractive to someone who is unfamiliar with the business. Writing a good business plan cant
guarantee success, but it can go a long way toward reducing the odds of failure."
Steps of Organizational Business Plan
The major steps of business organizational plan are discussed below:
Step 1
Enlisting the goals and objectives for organizational plans. To be effective, it will need clarity
on the purpose of changes defining what you want your business to become. Common goals
include values, efficiency, and excellent customer service, rapid delivery of goods, integrity,
accountability, quality control, security, uniformity, creativity and internal stability.
Step 2
Selecting the design team. No one can design an organizational structure herself. Consider
including key players in the company who understand the current systems, the effects
changes might have and who have suggestions for improvements that will help everyone do
their jobs better. If the planning team becomes invested and enthusiastic in the new structure,
it can later become instrumental to the implementation process. Many businesses also bring
in an outside consultant to facilitate or guide their organizational planning.
Step 3
Inventory the businesss current processes. Look at everything it does and how it does it. List
all tasks and functions it performs currently and exactly who does what in the process of
accomplishing them. Usually, someone goes around and visits each team member or at least
manager in the organization to observe and interview them. Because this is so detailed and
time-consuming, many companies hire a consultant to make this a full-time project. It may be
noticed some gaps between what the manager think or what should be happening and what
actually occurs.
Step 4

Develop a list of all tasks and functions of company should perform. Don't just list the items
in the gaps between what should be occurring currently and what is occurring. Include
everything you want the organization to do, perhaps over the next six months, year or longer.
Involve the team to help developing this list, and identify functions and issues that might
need inclusion or that the manager may not see.
Step 5
Chart the current organizational structure if the manager doesnt have an existing
organizational chart. Make sure to capture each position, department and reporting structure.
Step 6
Analyze the findings as a team looking to see what about the current structure needs
amending to take account of companys desired goals, tasks and functions. Discuss whether
departments or positions need reorganizing. Look for redundancies in employee duties and
functions as well as tasks no one is currently performing. Consider whether the manager will
need additional or fewer positions, and if these positions are under the optimal reporting
structure.
Step 7
Draft the new organizational chart reflecting decisions from your analysis. If the manager
reshuffle duties, add positions or change any reporting mechanisms, revise jobs descriptions
to match.
Step 8
Create an implementation plan to put these changes into effect, which may include recruiting
or layoff plans. Share the new organization chart with teams and take the time to explain the
changes and what they mean to individuals and the company as a whole.
Types of Planning
There are many different types of plans and planning. They are discussed below:
Strategic Planning
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Strategic planning involves analyzing competitive opportunities and threats, as well as the
strengths and weaknesses of the organization, and then determining how to position the
organization to compete effectively in their environment. Strategic planning has a long time
frame, often three years or more. Strategic planning generally includes the entire organization
and includes formulation of objectives. Strategic planning is often based on the organization's
mission, which is its fundamental reason for existence. An organization's top management
most often conducts strategic planning.
Tactical Planning
Tactical planning is intermediate-range planning that is designed to develop relatively
concrete and specific means to implement the strategic plan. Middle-level managers often
engage in tactical planning. Tactical planning often has a one- to three-year time horizon.
Operational Planning
Operational planning generally assumes the existence of objectives and specifies ways to
achieve them. Operational planning is short-range planning that is designed to develop
specific action steps that support the strategic and tactical plans. Operational planning usually
has a very short time horizon, from one week to one year.

What is meant by Control in Business Organizational Management

Controlling is one of the managerial functions like planning, organizing, staffing and
directing. It is an important function because it helps to check the errors and to take the
corrective action so that deviation from standards are minimized and stated goals of the
organization are achieved in a desired manner.

According to modern concepts, control is a foreseeing action whereas earlier concept of

control was used only when errors were detected. Control in management means setting
standards, measuring actual performance and taking corrective action.
According to Harold Koontz:

Controlling is the measurement and correction of performance in order to make sure that
enterprise objectives and the plans devised to attain them are accomplished.
According to Stafford Beer:
Management is the profession of control.
Also control can be defined as "that function of the system that adjusts operations as needed
to achieve the plan, or to maintain variations from system objectives within allowable limits".
The control subsystem functions in close harmony with the operating system. The degree to
which they interact depends on the nature of the operating system and its objectives. Stability
concerns a system's ability to maintain a pattern of output without wide fluctuations. Rapidity
of response pertains to the speed with which a system can correct variations and return to
expected output. A political election can illustrate the concept of control and the importance
of feedback. Each party organizes a campaign to get its candidate selected and outlines a plan
to inform the public about both the candidate's credentials and the party's platform. As the
election nears, opinion polls furnish feedback about the effectiveness of the campaign and
about each candidate's chances to win. Depending on the nature of this feedback, certain
adjustments in strategy and/or tactics can be made in an attempt to achieve the desired result.
From these definitions it can be stated that there is close link between planning and
controlling. Planning is a process by which an organizations objectives and the methods to
achieve the objectives are established, and controlling is a process which measures and
directs the actual performance against the planned goals of the organization. Thus, goals and
objectives are often referred to as Siamese twins of management. The managerial function of
management and correction of performance in order to make sure that enterprise objectives
and the goals devised to attain them being accomplished.

Characteristics of Control

Control is a continuous process

Control is a management process
Control is embedded in each level of organizational hierarchy
Control is forward looking
Control is closely linked with planning
Control is a tool for achieving organizational activities
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Control is an end process

Control compares actual performance with planned performance
Control point out the error in the execution process
Control helps in minimizing cost
Control helps in achieving standard
Control saves the time

Elements of Control
The characteristic or condition to be controlled
The sensor
The comparator

The activator
The first element is the characteristic or condition of the operating system which is to be
measured. We select a specific characteristic because a correlation exists between it and how
the system is performing. The characteristic can be the output of the system during any stage
of processing or it may be a condition that is the result of the system. For example, it may be
the heat energy produced by the furnace or the temperature in the room which has changed
because of the heat generated by the furnace. In an elementary school system, the hours a
teacher works or the gain in knowledge demonstrated by the students on a national
examination are examples of characteristics that may be selected for measurement, or control.
The second element of control, the sensor, is a means for measuring the characteristic or
condition. For example, in a home heating system this device would be the thermostat, and in
a quality-control system this measurement might be performed by a visual inspection of the
product.
The third element of control, the comparator, determines the need for correction by
comparing what is occurring with what has been planned. Some deviation from plan is usual
and expected, but when variations are beyond those considered acceptable, corrective action
is required. It involves a sort of preventative action which indicates that good control is being
achieved.
The fourth element of control, the activator, is the corrective action taken to return the system
to expected output. The actual person, device, or method used to direct corrective inputs into
the operating system may take a variety of forms. It may be a hydraulic controller positioned
by a solenoid or electric motor in response to an electronic error signal, an employee directed
10

to rework the parts that failed to pass quality inspection, or a school principal who decides to
buy additional books to provide for an increased number of students. As long as a plan is
performed within allowable limits, corrective action is not necessary; however, this seldom
occurs in practice.
Information is the medium of control, because the flow of sensory data and later the flow of
corrective information allow a characteristic or condition of the system to be controlled. To
illustrate how information flow facilitates control, let us review the elements of control in the
context of information.
Relationship between the Elements of Control and Management
Controlled characteristic or condition
The primary requirement of a control system is that it maintains the level and kind of output
necessary to achieve the system's objectives. It is usually impractical to control every feature
and condition associated with the system's output. Therefore, the choice of the controlled
item (and appropriate information about it) is extremely important. There should be a direct
correlation between the controlled item and the system's operation. In other words, control of
the selected characteristic should have a direct relationship to the goal or objective of the
system.

Sensor
After the characteristic is sensed, or measured, information pertinent to control is fed back.
Exactly what information needs to be transmitted and also the language that will best
facilitate the communication process and reduce the possibility of distortion in transmission
must be carefully considered. Information that is to be compared with the standard, or plan,
should be expressed in the same terms or language as in the original plan to facilitate decision
making. Using machine methods (computers) may require extensive translation of the
information. Since optimal languages for computation and for human review are not always
the same, the relative ease of translation may be a significant factor in selecting the units of
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measurement or the language unit in the sensing element. In many instances, the
measurement may be sampled rather than providing a complete and continuous feedback of
information about the operation. A sampling procedure suggests measuring some segment or
portion of the operation that will represent the total.
Comparison with standard
In a social system, the norms of acceptable behavior become the standard against which socalled deviant behavior may be judged. Regulations and laws provide a more formal
collection of information for society. Social norms change, but very slowly. In contrast, the
standards outlined by a formal law can be changed from one day to the next through revision,
discontinuation, or replacement by another. Information about deviant behavior becomes the
basis for controlling social activity. Output information is compared with the standard or
norm and significant deviations are noted. In an industrial example, frequency distribution (a
tabulation of the number of times a given characteristic occurs within the sample of products
being checked) may be used to show the average quality, the spread, and the comparison of
output with a standard. If there is a significant and uncorrectable difference between output
and plan, the system is "out of control." This means that the objectives of the system are not
feasible in relation to the capabilities of the present design. Either the objectives must be
reevaluated or the system redesigned to add new capacity or capability. For example, the
traffic in drugs has been increasing in some cities at an alarming rate. The citizens must
decide whether to revise the police system so as to regain control, or whether to modify the
law to reflect a different norm of acceptable behavior.
Implementer
The activator unit responds to the information received from the comparator and initiates
corrective action. If the system is a machine-to-machine system, the corrective inputs
(decision rules) are designed into the network. When the control relates to a man-to-machine
or man-to-man system, however, the individual(s) in charge must evaluate (1) the accuracy of
the feedback information, (2) the significance of the variation, and (3) what corrective inputs
will restore the system to a reasonable degree of stability. Once the decision has been made to
direct new inputs into the system, the actual process may be relatively easy. A small amount
of energy can change the operation of jet airplanes, automatic steel mills, and hydroelectric
power plants. The pilot presses a button, and the landing gear of the airplane goes up or
12

down; the operator of a steel mill pushes a lever, and a ribbon of white-hot steel races through
the plant; a worker at a control board directs the flow of electrical energy throughout a
regional network of stations and substations. It takes but a small amount of control energy to
release or stop large quantities of input. The comparator may be located far from the
operating system, although at least some of the elements must be in close proximity to
operations. For example, the measurement (the sensory element) is usually at the point of
operations. The measurement information can be transmitted to a distant point for comparison
with the standard (comparator), and when deviations occur, the correcting input can be
released from the distant point. However, the input (activator) will be located at the operating
system. This ability to control from afar means that aircraft can be flown by remote control,
dangerous manufacturing processes can be operated from a safe distance, and national
organizations can be directed from centralized headquarters.
Types of Control
The major types of control are discussed below:
Regulative Controls
Regulative controls stem from standing policies and standard operating procedures, leading
some to criticize regulative controls as outdated and counter-productive. As organizations
have become more flexible in recent years by flattening organizational hierarchies, expanding
organizational boundaries to include suppliers in inventory management and customers in
new product development, forging cooperative alliances with competitors, and developing
virtual organizations in which employees are geographically dispersed and may meet only a
few time each year, critics point out that regulative controls may prevent rather promote goal
attainment. There is some truth to this. Customer service representatives at Holiday Inn are
limited in the extent to which they can correct mistakes involving guests. They can move
guests to a different room if there is excessive noise in the room next to the guest's room. In
some instances, guests may get a gift certificate for an additional night at another Holiday Inn
if they have had a particularly bad experience. In contrast, customer service representatives at
Tokyo's Marriott Inn have the latitude to take up to $500 off a customer's bill to solve
complaints. The actions of customer service representatives at both Holiday Inn and Marriott
Inn must follow policies and procedures, yet those at Marriott are likely to feel less
constrained and more empowered by Marriott's policies and procedures compared to Holiday
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Inn customer service representatives. The key in terms of management control is matching
regulative controls such as policies and procedures with organizational goals such as
customer satisfaction. Each of the three types of regulative controls discussed in the next few
paragraphs has the potential to align or misalign organizational goals with regulative controls.
The challenge for managers is striking the right balance between too much control and too
little.
Bureaucratic Controls
Bureaucratic controls stem from lines of authority and this authority comes with one's
position in the organizational hierarchy. The higher up the chain of command, the more an
individual will have authority to dictate policies and procedures. Bureaucratic controls have
gotten a bad name and often rightfully so. Organizations placing too much reliance on chain
of command authority relationships inhibit flexibility to deal with unexpected events.
However, there are ways managers can build flexibility into policies and procedures that
make bureaucracies as flexible and able to quickly respond to customer problems as any other
form of organizational control.

The question bureaucratic controls must address is: How can the chain of command be
preserved while also building flexibility and quick response times into the system? One way
is through standard operating procedures that delegate responsibility downward. Some
hospital respiratory therapy departments, for example, have developed standard operating
procedures (in health care terms, therapist-driven protocols or TDPs) with input from
physicians. TDPs usually have branching logic structures requiring therapists to perform
specific tests prior to certain patient interventions to build safety into the protocol. Once
physicians approve a set of TDPs, therapists have the autonomy to make decisions
concerning patient care without further physicians' orders as long as these decisions stay
within the boundaries of the TDP. Patients need not wait for a physician to make the next set
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of rounds or patient visits, write a new set of orders, enter the orders on the hospitals intranet,
and wait for the manager of respiratory therapy to schedule a therapist to perform the
intervention. Instead, therapists can respond immediately because protocols are established
that build in flexibility and fast response along with safety checks to limit mistakes.
Bureaucratic control is thus not synonymous with rigidity. Unfortunately, organizations have
built rigidity into many bureaucratic systems, but this need not be the case. It is entirely
possible for creative managers to develop flexible, quick-response bureaucracies.
Financial Controls
Financial controls include key financial targets for which managers are held accountable.
These types of controls are common among firms that are organized as multiple strategic
business units (SBUs). SBUs are product, service, or geographic lines having managers who
are responsible for the SBU's profits and losses. These managers are held responsible to
upper management to achieve financial targets that contribute to the overall profitability of
the corporation. Managers who are not SBU executives often have financial responsibility as
well. Individual department heads are typically responsible for keeping expenses within
budgeted guidelines. These managers, however, tend to have less overall responsibility for
financial profitability targets than SBU managers. In either case, financial controls place
constraints on spending. For SBU managers, increased spending must be justified by
increased revenues. For departmental managers, staying within budget is typically one key
measure of periodic performance reviews. The role of financial controls, then, is to increase
overall profitability as well as to keep costs in line. To determine which costs are reasonable,
some firms will benchmark other firms in the same industry. Such benchmarking, while not
always an apples-to-apples comparison provides at least some evidence to determine
whether costs are in line with industry averages.
Quality Controls
Quality controls describe the extent of variation in processes or products that is considered
acceptable. For some companies, zero defects no variation at all is the standard. In other
companies, statistically insignificant variation is allowable. Quality controls influence the
ultimate product or service outcome offered to customers. By maintaining consistent quality,
customers can rely on a firm's product or service attributes, but this also creates an interesting
dilemma. An overemphasis on consistency where variation is kept to the lowest levels may
15

also reduce response to unique customer needs. This is not a problem when the product or
service is relatively standardized such as a McDonald's hamburger, but may pose a problem
when customers have nonstandard situations for which a one-size-fits-all solution is
inappropriate. Wealth managers, for example, may create investment portfolios tailored to a
single client, but the process used to implement that portfolio such as stock market
transactions will be standardized. Thus, there is room within quality control for both
creativity; e.g., wealth portfolio solutions, and standardization; e.g., stock market
transactions.
Normative Controls
Rather than relying on written policies and procedures as in regulative controls, normative
controls govern employee and managerial behavior through generally accepted patterns of
action. One way to think of normative controls is in terms how certain behaviors are
appropriate and others are less appropriate. For instance, a tuxedo might be the appropriate
attire for an American business awards ceremony, but totally out of place at a Scottish awards
ceremony, where a formal kilt may be more in line with local customs. However, there would
generally be no written policy regarding disciplinary action for failure to wear the appropriate
attire, thus separating formal regulative controls for the more informal normative controls.

Figure 1: an Ideal Control Process

Is standard
Compare
actual

being

Is variance
acceptable?

16
Measure
actual

Do Nothing

Do Nothing

Identity
Cause of
variation

Is standard
acceptable?

Revise standard

Correct
performance

Relationship between Planning and Controlling in a Business Organization

Planning and controlling are two separate functions of management, yet they are closely
related. The scopes of activities if both are overlapping to each other. Without the basis of
planning, controlling activities becomes baseless and without controlling, planning becomes
a meaningless exercise. In absence of controlling, no purpose can be served by. Therefore,
planning and controlling reinforce each other. According to Billy Goetz, Relationship
between the two can be summarized in the following points
1. Planning precedes controlling and controlling succeeds planning.
2. Planning and controlling are inseparable functions of management.
3. Activities are put on rails by planning and they are kept at right place through
controlling.
4. The process of planning and controlling works on Systems Approach which is as
follows :

Planning

Results

Corrective

5. Planning and controlling reinforce each other. Each drives the other function of
management.
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Planning and controlling are integral parts of an organization as both are important for
smooth running of an enterprise. In the present dynamic environment which affects the
organization, the strong relationship between the two is very critical and important. In the
present day environment, it is quite likely that planning fails due to some unforeseen events.
There controlling comes to the rescue. Once controlling is done effectively, it gives us
stimulus to make better plans. Therefore, planning and controlling are inseparable functions
of a business enterprise.

Conclusion
Nowadays the managerial roles have widened, became more complicated, active and creative.
Managers, who want to administrate enterprises in an appropriate way must be up to the
mark, fulfill more and more functions and play on many stages. They should be flexible, be
able to adapt themselves to different situations and play many roles, change roles, adapt them
and even create the roles, because the internal and external contexts of companys such as
planning and controlling functions are constantly changing. Who is not able to keep up with
it, will lose the game called management art. To conclude, we see that management control
systems and management planning are constantly evolving in designing and using
information and performance management systems for organizational control. The change
and evolution is inevitable as the world moves forward into the knowledge economy, thereby
integrating new ways and means to enhance performance and competition of organization, in
the 21 century. All in all, management control system can be summed up as an integrated
technique for collecting and using information to motivate employee behaviour and to
18

evaluate performance. This paper explores the issues surrounding management control and
planning systems. It is important to understand the limitations as well as the possibilities of
planning. A strategic plan is not a wish list, a report card or a marketing tool. It is certainly
not a magic bullet or a quick cure for everything that ails an organization especially if the
plan winds up on the shelf. What a strategic plan can do is shed light on an organizations
unique strengths and relevant weaknesses, enabling it to pinpoint new opportunities or the
causes of current or projected problems. If board and staff are committed to its
implementation, a strategic plan and effective controlling can provide an invaluable blueprint
for growth and revitalization, enabling an organization to take stock of where it is, determines
where it wants to go and chart a course to get there.

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