Consider the following statements about planning and controlling:
(A) Plans are prepared for the future and are based on forecasts about future conditions.
(B) Controlling improves future planning by providing information derived from past experience.
(C) Planning is guided by past experiences.
(D) The corrective action initiated by the control function aims to find out the deviations of past activities from the standards.
Which of the statements given above are correct?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B) and (C) only
(A) Plans are prepared for the future and are based on forecasts about future conditions. — Correct. Plans look at the future and rest on forecasts. So planning is called forward-looking.
(B) Controlling improves future planning by providing information derived from past experience. — Correct. Controlling finds deviations and their causes. This information from past experience helps to make better plans.
(C) Planning is guided by past experiences. — Correct. Planning also uses past experience. So it looks back as well as ahead.
(D) The corrective action initiated by the control function aims to find out the deviations of past activities from the standards. — Incorrect. Finding deviations of past activities is the postmortem side of controlling. The corrective action that follows aims to improve future performance.
NCERT (2026-27 Edition): “Relationship between Planning and Controlling … It is often said that planning is looking ahead while controlling is looking back. However, the statement is only partially correct. Plans are prepared for future and are based on forecasts about future conditions. Therefore, planning involves looking ahead and is called a forward-looking function. On the contrary, controlling is like a postmortem of past activities to find out deviations from the standards. In that sense, controlling is a backward-looking function. However, it should be understood that planning is guided by past experiences and the corrective action initiated by control function aims to improve future performance. Thus, planning and controlling are both backward-looking as well as a forward-looking function. …” “Relationship between Planning and Controlling … Thus, planning and controlling are interrelated and, in fact, reinforce each other in the sense that |