The Importance of Planning and Control in an Organisation

The Importance of Planning and Control in an Organisation

Planning is the most basic of all management functions and it provides the framework on which the rest of the managerial functions are implemented. It is the process of deciding in advance what is to be done, when, where, how and who is to do it. In essence, it involves determining specific objectives as well as devising strategies, policies, programmes, and procedures for achieving them. Formulating objective is for most a among management responsibilities. Policies, procures, method and performance standards are derived from objectives. As a manager carries out this functions, he continue to look ahead to plan, revice ideas and choose alternatives when necessary.

To set realistic objectives and to be able to choose the best ways of achieving them, the manager must obtain sound planning information, knowledge estimates of future conditions which is the relevance of forecasting in management forecasting focuses attention on the prediction of the exogenous (outside) factors that are usually not within the control of the organization but has tremendous influence or results. The most obvious of these exogenous factor in public and private enterprises is denounced for the product or services which is the output of the managerial transformation process. It must be emphasized that predicting demand form the product or services is important to private organization as well as public organization. Having a good deal of information may suggest some of the most important strategies for managerial system. G.N Igboeli, management: A function Approach (1990).


This Chapter also deals with the review of the work of other authors based on the topic planning and control in business organizations.

Over the year, educationalists and businessmen have critically emphasized on the importance of planning and control in business organization.

According to Knootz and O. Donne (1976: 129), planning is deciding in advance what to do, how to do it and who is deciding in advance what to do, how to do it, when to do it and who is to do it. Planning bridges the gap from where we are and where we want to go. It makes it possible for things to occur which would not happen if otherwise. Planning is however, not a magic entity that directs activities in a definite order. Variations may occur despite the plans but without plans at all, events are left to change.

In private and public sectors of the economy, planning is definitely required. The business environment is like a battle field. You can only win the battle and survive if you have a superior plan. Over that of your visal- To select a nice market requires planning activities.

According to Aham Aynanwu and A.I. Okafor practice of marketing first edition 1995, page 10, plans are not perfect activities and are therefore subject to change before, during and after implementation. Plans must be monitored and corrections made where necessary. Control involves the measurement of accomplishment of events against the standard of plans and corrections of deviations to assure the attainment of set goals. Various techniques are available for the control of overall performance. These includes budgeting, and cast volume – profit analysis.

The business practitioner should endeavour to point out weakness and errors in order to rectify them and prevent reoccurrence. He can only do this if he can measure the results of things, people and action taken under him.

According to Clifford M. Baumback, Basic small Business Management, (1992) page 49. Controlling means measuring and correcting the actions of sub-ordinates to ensure that plans for the business are fulfilled. It involves:

  1. Setting standard or objective, for accomplishment.
  2. Maintain current operation records for comparison

with standard set, and

  1. Acting promptly when operation derivates too much

from the goal established.

Planning and control in an organization has four important goals which includes:

  1. To effect uncertainty and changes
  2. To focus attention on objectives
  3. To gain economics operation
  4. To facilitate control.

Henri Fayol (1815), put it clearly thus: “In an undertaking, control consists of verifying whether everything occurs in conformity with plan adopted, instructions issued and the principles established. It has  for its objects to point out weakness and errors in order to rectify them and prevent reoccurrence. It operates in everything, people and actions.

According to Goetz, E. Billy, Management planning and control, New York: Mc Graw Hill Book Company, (1949:229), managerial planning seeks consistent, integrated and articulated programmes while management control seeks to compel events to conform to plans for example, if the production manager had budgeted N280,00.00 for manufacturing process, he must monitor the expenditure of this amount with respect to how many spaces in the point media, which television and radio houses were involved which newspapers and magazines were involved, how much was spent on each medium, and what was the probable impact? Armed with these pieces of information, he then determines deviations and effect necessary correction.

Waterton (1932) have rightly said, “macro planning without macro-control is take ahead without a body and ignored the crucial fact that effective planning and control requires that everybody becomes perfect in plan and control”

Zinkin (1915) postulated that an economy that which wants to grow must publish a great deal of information about itself and that though the United States government does not plan, it ensures that the businessmen do have, available to them, more information on every subject, and that is one reason the business enterprises succeed more than often in the United States economy than in those of any other economy.

The researcher has precisely stated earlier the major importance of planning and control in both private and public sectors of the economy.

  1. To offset uncertainty and charge.
  2. To focus attention on objectives.
  3. To gain economical operation.
  4. To facilitate control.


                   The research could not use primary data but adequately utilized secondary data due to limited time financial constraint. The researcher consulted already written business journals by different scholars and business executives in the polytechnics Library

The researcher as well collected data or information from business time magazines and newspapers; also data were collected from Mr. Conel Ohamua, General Manager Nek-owe Motors, Lagos branch and Mr. Andrew Idegwu former manager of John Holt, Lagos Branch (1977-1981). Some management textbooks were as well of immense contribution towards the construction of this term paper tittled “ The significance of planning and control in an organization” with regard to a case study of General Cotton Mill Ltd. Onitsha Anambra State.

The Secondary data collected from the above stated sources helps the researcher in emphasizing to the benefit of business organizations, governments and individuals the significance of planning and control in a business organizations.

2.4     SUMMARY

                   The Significance of planning and control in an organization is now known in this Chapter. This Chapter explains what planning is all about as well as control and their significance in an organization in particular. Through this Chapter, we were able to know various ways, methods and methods to adopt to ensure effective planning and control in an organization.

Planning and control is very important in every firm or organization because without it, the business is bound to fail and so this chapter treated it very well. It was made known that it is obvious and evident that without planning and control in an organization and personal daily existence, our goals and objectives cannot be effectively achieved. Owing to this facts, it becomes very imperative and expedient for the researcher to emphasize and make it clear to individuals and organizations on the need and significance of planning and control to avoid business blunder and failure in an organization.  

This article was extracted from a Project Research Work Topic




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