Identify the correct sequence of Controlling Process
A. Performance should be measured in an objective and reliable manner
B. Standards are the criteria against which actual performance would be measured
C. Critical point control and management by exception can be used by a manager in this step
D. Immediate managerial attention is required when the deviations go beyond the acceptable range
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → B, A, C, D
(B) Standards are the criteria against which actual performance would be measured — first. Controlling begins with setting performance standards.
(A) Performance should be measured in an objective and reliable manner — second. Once standards are set, actual performance is measured.
(C) Critical point control and management by exception can be used by a manager in this step — third. Actual performance is compared with the standards and the deviations are analysed. At this step the manager uses critical point control and management by exception to decide which deviations need attention.
(D) Immediate managerial attention is required when the deviations go beyond the acceptable range — fourth. This is the last step, taking corrective action. Deviations within the allowed limit need no action; those beyond it must be put right at once.
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. …” “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. …” “Step 4: Analysing Deviations: Some deviation in performance can be expected in all activities. It is, therefore, important to determine the acceptable range of deviations. Also, deviations in key areas of business need to be attended more urgently as compared to deviations in certain insignificant areas. …” “1. Critical Point Control: It is neither economical nor easy to keep a check on each and every activity in an organisation. Control should, therefore, focus on key result areas (KRAs) which are critical to the success of an organisation. …” “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. …” |