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.
