Arrange the following steps involved in controlling process in proper sequence.

(A) Measurement of Performance

(B) Establishment of Standards

(C) Finding out Deviations

(D) Appraisal of Performance

Choose the correct answer from the options given below:

(B), (A), (C), (D)

The correct answer is option 2- (B), (A), (C), (D).

The steps in the controlling process is as follows-

(B) Establishment of 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.

(A) Measurement of 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.

(C) Finding out Deviations- After measuring actual performance, it is compared with standards. Such comparison will reveal the deviation between actual and desired results. Comparison becomes easier when standards are set in quantitative terms.

(D) Appraisal of Performance- After finding the deviations, the performance is appraised or evaluated. 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. No corrective action is required when the deviations are within acceptable limits. However, when the deviations go beyond the acceptable range, especially in the important areas.