LINK BETWEEN PLANNING AND CONTROL
PLANS
Plans are specific commitment to present and future actions.
It has specific objectives.
It facilitates action.
Annual Improvement Plan
Three-Year Annual Plan
Performance Contract
It involves people.It may be constantly improved, redrafted and replanned.All plans are tentative and interim. They are never final. This is because good plans should be flexible, not rigid.
POLICIES, PROCEDURES AND RULES
Policies are general guidelines for decision-making. It sets up boundaries around decisions, including those that can be made and shutting out those that cannot. In so doing, it channels the thinking of organization members so that it is consistent with organizational objectives.
Procedures- policies are carried out by means of more detailed guidelines called “standard procedures” .A procedure provides a detailed set of instructions for performing a sequence of actions that occurs often or regularly. Rules-are statements that a specific action must or must not be taken in a given situation.
ADAPTING TO ENVIRONMENTAL CHANG
In today’s business, between the time a goal is established and the time it is reached, many things can happen in the organization and its environment to disrupt movement toward the goal – or even to change the goal itself.A properly designed control system can help managers anticipate, monitor and respond to changing circumstances.
LIMITING THE ACCUMULATION OF ERRORSmall mistakes do not often damage seriously the financial health of an organization.However, over time the accumulation of mistakes may become very serious.A great rise in demand for a product may cause a drop in quality. Over time this may cause organizations to spend more on repairing defects than on producing new products.
COPING WITH ORGANIZATIONAL COMPLEXITY
Because organizations do not generally purchase one raw material, produce one product, have only one competitor, or enjoy constant demand for its product, a sophisticated system of control must be utilized.
A merger can have short-term disappointing results because the new business becomes so large that the existing control systems are not adequate.
MINIMIZING COSTS
New technology can eliminate waste, lower labor costs and improve output per unit of input.
Businesses are cutting back on everything from health insurance coverage to overnight shipping to business lunches for clients.
Means of comparing actual results with standards and evaluating the difference between results and standards
Means of making changes in the system so as to adjust to the standard
Measures and controls standards which are known to all concerned
Means by which one can measure this characteristic or standard
HOW DOES PLANNING AND CONTROLLING LINK?
Planning sets the fundamental goals and objectives of the organization and the methods for attaining them are established. The control process measures progress toward those goals and enables managers to detect deviations from the plans so that they can take whatever remedial action is necessary.
Planning and controlling in organizations link through a budget.
Planning and controlling are also linked together by the process of employee participation in planning