Planning and controlling are closely interrelated functions of management. On one hand, planning refers to the psychological process of thinking and deciding what is to be done and how it is to be done. That is, planning decides the objectives to be achieved and the course of action to be followed. On the other hand, controlling refers to the process of managing and evaluating the work done in accordance with the standards and taking corrective measures in case of deviations. These standards that form the basis of controlling are provided by planning itself. In different words, the various objectives and policies are formulated under planning serve as standards in controlling, against which the actual performance is evaluated. Thus, controlling without planning is said to be meaningless. This is because, if there are no standards or objectives, there would be nothing to control. In other words, if managers do not know what the final objective is, they will not have any standard against which they can judge current performance and deviations.
Similarly, planning without controlling also holds no meaning. This is because, once plans are formulated, it becomes necessary to monitor and evaluate whether performance is as per the desired plans and objectives. Here, controlling is required as it is a tool for measuring whether the plans are being properly implemented, whether there are any deficiencies in work and whether there is a need for taking corrective actions in order to achieve the planned.goals. If there is no controlling, planning cannot be accomplished, and thus, planning without controlling is of no use. Therefore, it can be said that both planning and controlling complement each other. The following points highlight the relationship between controlling and planning:
(i) By providing the organisation with the working standards against which the actual performance is measured, planning helps in making the process of controlling a much easier and effective process.
(ii) As controlling provides information based on the evaluation of past performances and takes corrective actions in case of deviations, it helps in future planning.
(iii) Controlling without planning is meaningless. This is because, if there would be no standards or objectives, there would be nothing left to control.
(iv) Without controlling, planning cannot be accomplished as controlling is a requisite for measuring whether the plan is being properly implemented or not and also whether it is effective and efficient.