1.

“Planning is the basis of control, action its essence, delegation its key
and information is the guide” – Discuss.

planning and controlling are closely related to each other as shown in Fig. 1. After a
plan becomes operational, control is necessary to measure progress, to uncover
deviations from the targets and to take corrective steps. It is also not possible to think of
an effective system of control without the existence of good plans. Billy E. Geotz has
explained the relationship between planning and controlling in the following words,
"Managerial planning seeks consistent, integrated and articulated programmes, while
management control seeks to compel events conform to plans".

Control is always based on planning. It is also true that in a running enterprise planning
depends upon controlling. Every manager uses certain standards for measuring and
appraising performance which are laid down by planning. The control process, in turn,
may reveal the deficiency of plans and may lead to the revision of planning. It may also
lead to setting of new goals, improving staffing and making changes in the techniques of
supervision, motivation and leadership.

Planning without control is meaningless and control without planning is blind. Planning is
an empty exercise without controlling. A good plan will not bring any concrete result if
the management is lacking in controlling. Planning identifies the goals and determines
the ways of achieving them. It is control which ensures attainment of goals by evaluating
performance and taking corrective action. Control presupposes the existence of
standards with which the actual performance is to be compared. If the standards of
performance are not set in advance, the manager will have no idea of `what is control'.
Thus, planning must be done before the actual operation and control should follow plans
during and after the actual operation. The experience gained in controlling will help
improve the process of planning.

Controlling and coordination are twins of management. Control is an import-ant element

in the process of management, whereas coordination is the essence of management
itself. Control is a function of management like planning, organising, staffing and
directing. But coordination is an all-inclusive function. Each of the managerial functions
including controlling is an exercise in coordination. Thus, controlling is a facilitative
function that promotes coordination in the organisation. If controlling does not lead to
effective coordination, its basic purpose will be lost.

Controlling and coordination are closely related in many ways. Firstly, authority is the
basis of both the processes. Secondly, both are performed by the managers at all levels.
Thirdly, both are aimed at achieving organisational goals. Fourthly, both are necessary
for achieving stability, continuity and growth of the organisation and consistency,
precision and discipline in the organisation. Lastly, both control and coordination are
rational concepts in the sense that they seek to relate organisational means with
organisational ends or goals. They strive to maintain organisations as rational systems,
relatively free from conflict, confusion and chaos.
Controlling is an important function of management. Without control, a manager cannot
complete his job. All other managerial functions are only preparatory steps for getting
the work done, and controlling is concerned with making sure that there is proper
execution of these functions. Control is necessary whenever a manager assigns duties
and delegates authority to his subordinates. He must exercise control over the actions of
his subordinates so that the authority delegated to them is used properly.
The road signals at a road crossing appropriately illustrate the significance of control.
Just as road signals are essential to ensure accident-free and smooth traffic,
management controls are necessary in any organisation for its smooth functioning. By
controlling, the manager ensures that resources are obtained and used economically and
efficiently for the achievement of organisational objectives. A good control system
provides timely information to the manager which is very much useful for taking various
decisions. Control simplifies supervision by pointing out the significant deviations from
the standards of performance. It keeps the subordinates under check and brings
discipline among them.

An effective system of control will help in achieving the following benefits :

1. Coordination. The size of modern organisations is quite large. A large amount of

capital and large number of people are employed in them. This complicates the problem
of control as there are many units producing and distributing different products. In order
to coordinate their activities, an efficient system of control is necessary.

2. Corrective Action. An efficient system of control provides the basis for future action.
Taking corrective action may lead to modification of planning, organising and directing.
Control will also check the mistakes being repeated in future.

3. Decision-making. The process of control is complete when corrective actions are

taken. This involves making right decisions as to what types of follow up actions are to
be taken. This will lead to accomplishment of organisation objectives. According to W.T.
Ierome, "Control is needed both to simplify the making of subsequent decisions and to
ensure the realisation of the objectives implicit in the original long-range policy
decisions.

4. Better Planning. Control is the only means to ensure that the plans are being
implemented in real sense. It points out the shortcomings of planning by comparing the
actual performance with the planned standard and suggest steps to improve planning.

5. Decentralisation of Authority. The modern trend of business enter-prises towards

decentralisation calls for a systematic attempt for controlling. Under decentralisation, the
authority of decision-making is dispersed through-out the organisation. Management
must keep control in its hands to know whether the authority is being used properly.
Without adequate controls, decentralisation cannot succeed.
6. Effective Supervision. Control facilitates effective supervision by pointing out
significant deviations. It keeps the subordinates under check and brings discipline among
them. While control cannot cure habitual dishonesty in all cases, management is
irresponsible if it does not make a reasonable effort to provide order and discipline
among its employees through effective control processes