Business Studies

Relationship between planning and controlling

In Class 12 Business Studies, this topic explains how planning and controlling work together as essential management functions. Students learn that planning sets objectives, standards, strategies and expected results, while controlling measures actual performance, compares it with planned standards, identifies deviations and supports corrective action. The topic also shows how control provides feedback for improving future plans, making both functions interdependent and important for achieving organisational goals.

Hard · Level 1 · 2 questions

Practice questions

01Which statement is correct from an expert view about planning and controlling?

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Answer and explanation

Correct answer: A. Planning gives standards and controlling checks deviations from them

The governing concept is the interdependence of planning and controlling. Planning looks ahead and establishes objectives, policies, budgets and performance standards. Controlling then measures actual performance, compares it with those standards, identifies deviations and initiates corrective action. The information produced by control may also improve future planning, so the relationship is continuous and reciprocal. Option A accurately states the central connection. Option B reverses the sequence, because standards normally precede comparison. Option C assigns the functions incorrectly, and D denies their obvious coordination. Therefore, A is the only technically correct statement.

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02Which statement most accurately shows the interrelationship between planning and control?

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Answer and explanation

Correct answer: A. Planning creates standards and control corrects after seeing deviations

Planning and controlling are interdependent managerial functions. During planning, managers decide objectives, performance standards, methods, time limits and resource requirements. These standards later provide the basis for control. In the controlling stage, actual performance is measured and compared with the planned standards; significant deviations are analysed and corrective action is taken. The results of control also provide feedback for revising future plans. Therefore, option A is correct because it accurately connects standard-setting in planning with measurement, deviation analysis and correction in control. Option B is wrong because planning cannot remove the need for control. Option C is wrong because control requires objectives or standards for comparison. Option D wrongly reduces planning to imagination.