How can the company relate its planning with control in this line of business to ensure that its plans are actually implemented and targets attained?
Case Problem
A company M limited is manufacturing mobile phones both for domestic Indian market as well as for export. It had enjoyed a substantial market share and also had a loyal customer following. But lately it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction. Also mobile market in India has grown tremendously and new players have come with better technology and pricing. This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing.
How can the company relate its planning with control in this line of business to ensure that its plans are actually implemented and targets attained?
2 Answers
Company relates its planning with control in this line of business by implementing effective control system as this will help in two aspects planning makes controlling effective and efficient whereas controlling improves future planning because it is like a postmortem of past activities to find out deviations from the standards and in order to ensure that its plans are actually implemented and targets are attained they will take the help from controlling process as it is a systematic process and it leads to following benefits
(i) Setting Up of Standards: In this step, company set some targets against which the actual performance is measured.
(ii) Measuring of Performance: In this step, company is able to measure the performance and evaluating that what is actually done by the employees.
(iii) Compare Performance: After evaluating the actual result, company compares the actual performance with the planned one this helps in knowing that the desired goal is achieved or not.
(iv) Analysing Deviations: This refers to the difference between actual and desired performance. It helps in knowing to the company that the deviation is positive or negative. It needs focus on which part rather than analysing whole.
(v) Taking Corrective Measures: Final step is to know the type of deviation and trying to remove this deviation and in future it matches with the plans.
Company relates its planning with control in this line of business by implementing effective control system as this will help in two aspects. Planning makes controlling effective and efficient whereas controlling improves future planning, as it is like a postmortem of past activities to find out deviations from the standards and in order to ensure that its plans are actually implemented and targets are attained they will take the help from controlling process as it is a systematic process and it leads to the following benefits.
1. Setting up of Standards: In this step, company sets some targets against which the actual performance are measured.
2. Measuring of Performance: In this step, company is able to measure the performance and evaluating what is actually done by the employees.
3. Compare Performance: After evaluating the actual result, company compares the actual performance with the planned one. This helps in knowing whether the desired goal is achieved or not.
4. Analyzing Deviations: This refers to the difference between actual and desired performances. It helps the company in knowing whether the deviation is positive or negative. It needs to focus on which part rather than analyzing the whole.
5. Taking corrective measures: Final step is to know the type of operation and trying to remove this deviation and ensuring that in future it matches the plans.