Arrange the following in the correct sequence with respect to controlling process.
A. Analyzing deviation
B. Taking corrective action
C. Setting standards
D. Comparing actual performance with standards
E. Measurement of actual performance
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → C, E, D, A, B
(C) Setting standards — The first step. Standards are the benchmarks against which actual performance is measured.
(E) Measurement of actual performance — Once standards are set, the next step is to measure actual performance.
(D) Comparing actual performance with standards — Then the actual performance is compared with the standard to reveal the deviation.
(A) Analyzing deviation — The causes of the deviations are then studied.
(B) Taking corrective action — The final step. Action is taken to remove the deviations.
NCERT (2026-27 Edition): “Step 1: Setting Performance Standards: … The first step in the controlling process is setting up of performance standards. Standards are the criteria against which actual performance would be measured. Thus, standards serve as benchmarks towards which an organisation strives to work.” “Step 2: Measurement of Actual Performance: … Once performance standards are set, the next step is measurement of actual performance. Performance should be measured in an objective and reliable manner. There are several techniques for measurement of performance. These include personal observation, sample checking, performance reports, etc. …” “Step 3: Comparing Actual Performance with Standards: … This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results. Comparison becomes easier when standards are set in quantitative terms. …” “Step 4: Analysing Deviations: … After identifying the deviations that demand managerial attention, these deviations need to be analysed for their causes. Deviations may have multiple causes for their origin. …” “Step 5: Taking Corrective Action: The final step in the controlling process is taking corrective action. No corrective action is required when the deviations are within acceptable limits. …” |