Below given points will clarify the relation between the two:

1. Planning and controlling are two sides of the same coin:

• Planning and controlling are two very important and interdependent functions of the management process. The success of planning depends on Controlling.
• The function of controlling identifies deviations, takes necessary corrective action and hence keeps the business activities on the decided direction.
• Looking from other perspective, the role of controlling comes only when something is planned. So, if there is no planning, there is no controlling.
• Thus, planning and controlling are two sides of the same coin.

2. Protection against change:

• How well will the programmes of a plan executed depends on internal as well as external factors. Internal factors are factors related to organization work procedures, policy, human resource, etc. External factors include government policy, competition, inflation, depression, scarcity of raw materials, change in the choices of people, change in fashion, etc.
• Taking into consideration the effect of external factors, controlling decides whether activities are being carried out according to plan or not. If not, it suggests the organization to modify the plan and processes.
• Thus, planning and controlling give protection against changes.

3. Planning is a pre-condition for controlling:

• The function of planning is to make programmes to achieve the objectives of the business enterprise. On the other hand, the function of controlling is to see whether the activities are performed according to the plan or not.
• Additionally, controlling also compares the actual performance with the set standards. If deviations are found, corrective action is taken.
• Thus, controlling begins only after planning is done or say planning is the pre-condition of controlling.

4. Planning is the father of controlling:

• Controlling exists because of planning. Controlling keeps a check on activities decided in planning.
• In short, controlling does not exist without planning.
• Hence, it can be said that planning is the father of controlling.