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Briefly explain the relationship between the two functions of management highlighted above. - Commerce

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Question

Ms. Jasdeep, the Production Manager in a reputed manufacturing company believes in planning to achieve the desired goals while Mr. Philips, the Sales Manager in the same company thinks that controlling is the best way to achieve the desired results.
Briefly explain the relationship between the two functions of management highlighted above.

Answer in Brief

Solution

The relationship between planning and controlling in the functions of management is one of interdependence and synergy.

Planning involves establishing objectives, strategies, and action plans to attain organisational goals. Visualising the future and determining the best course of action is crucial for achieving desired goals. Without proper planning, companies can struggle to deploy resources efficiently. Controlling entails monitoring performance, comparing results to planned objectives, and taking necessary corrective action to meet organisational goals. Controlling helps businesses retain responsibility, track performance, and optimise resource utilisation for desired goals.

Planning and controlling follow a cyclical and iterative process. Planning establishes specific goals and objectives to measure performance, laying the groundwork for effective control. Controlling evaluates the efficacy of the planning process by identifying areas where goals are attained or where adjustments are needed. If sales targets are frequently exceeded, the sales manager may consider setting more ambitious goals for the next planning cycle. If production costs exceed expectations, revisions to procedures or resource allocation may need to be made during the planning phase.

For instance, if sales targets are routinely surpassed, the sales manager can decide to make revisions and establish more challenging objectives for the following planning cycle. On the other hand, if manufacturing costs are greater than projected, this could force changes to resource allocation plans or production procedures during the planning stage.

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