Planning and controlling form an integral part of business management. Both are interrelated to each other, and the boundaries of these two functions are overlapping.
Both planning and controlling are important components of business management, and it is difficult to identify them separately.
It is impossible to identify the point at which the function of planning ends and the function of controlling begins.
The objectives and goals of an organization determine the contents of planning laid down by the management. On the other hand, controlling monitors the operation and performance of business activities and compares them to the standards laid down in the plans with the end objective of achieving the goals of the organization.
Planning paves the way through which the business should carry on its operations for the growth, development, and survival of the organization in the long run. Controlling helps to rectify the deviated actions that are concerned with the performance of the organization.
Controlling is a managerial function that is concerned with the achievement of goals. It sets the working of the plans made by the management in the right direction. The process of controlling involves comparing the actual performances of the business activities of an organization with the standard performances laid down in the plans. If any discrepancies are found, corrective steps are undertaken to rectify them. Controlling helps the managers in monitoring and observing the business activities and take immediate actions for any adversities to avoid incurring a loss on behalf of the organization. Controlling takes place throughout all managerial levels in a business organization. It facilitates optimum utilization of the available resources by constant monitoring of the actual performances with the standards. As the business develops and becomes stable through the process of controlling, it boosts employee morale and increases efficiency. Ultimately, it helps to make more effective plans by revising the business standards and performances.
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