Read the following passage and answer the question.

XYZ Ltd. is a large company engaged in assembly of room-heaters. Recently the company had conducted the various studies and concluded that on an average a worker can assemble 25 room heaters in a day. The target volume of the company in a day is assembling of 2,500 units of room-heaters. However, the assembly of room heaters per day is 2,000 units only. To find out the reason, the company compared actual performance of each worker and observed that some of the workers were busy in gossiping. The company decided to keep a close check on the activities of the workers to minimise the dishonest and unethical behaviour as the part of workers.

"To find out the reason, the company compared actual performance of each worker and observed that some of the workers were busy in gossiping."

Identify the step in the controlling process highlighted in the given lines.

Analysing Deviations

The correct answer is option 3- Analysing Deviations.

The step in the controlling process highlighted in the given lines is Analyzing Deviations.

In the passage, the company compares the actual performance of each worker to the target and discovers that some workers are engaged in non-productive activities like gossiping. This process of examining and identifying the reasons for the performance shortfall (i.e., the deviation from the target) is part of analyzing deviations in the controlling process.