Business Studies – 2.2.2 The functions of management | e-Consult
2.2.2 The functions of management (1 questions)
Answer: The planning function sets the targets and standards against which the controlling function measures performance. Effective planning provides a benchmark for evaluating whether the organization is achieving its goals. Without a clear plan, there's nothing to control against.
Example: Consider a clothing retailer planning to increase sales by 10% in the next year. The planning function would involve analyzing market trends, identifying target customers, and developing a marketing strategy. This plan would set a sales target of 10% growth. The controlling function would then involve regularly monitoring sales figures, comparing them to the target, and identifying any deviations. If sales are lower than expected, the retailer can then take corrective action, such as adjusting the marketing strategy or offering discounts. Therefore, the plan provides the basis for the control process.
| Planning (Example: Sales Target) | Controlling (Example: Sales Monitoring) |
| Increase sales by 10% in the next year. | Regularly monitor monthly sales figures. |
| Develop a marketing campaign targeting younger consumers. | Track website traffic and social media engagement. |