Arrange the following steps of controlling process in a logical sequence.
(A) Measuring actual performance
(B) Setting the standards
(C) Using Critical Point Control and Management by Exception
(D) Making comparison of actual performance with standards
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (B), (A), (D), (C)
(B) Setting the standards — first. Standards are the targets against which work will be judged. Nothing can be checked until they are fixed.
(A) Measuring actual performance — second. Once the standards are set, the manager measures the work actually done, for example by personal observation, sample checking or reports.
(D) Making comparison of actual performance with standards — third. The actual work is compared with the standard. This shows the deviation (gap) between what was planned and what was done.
(C) Using Critical Point Control and Management by Exception — fourth. These two are used while analysing the deviations. Critical point control means the manager watches only the key result areas. Management by exception means only big deviations, beyond the allowed limit, are brought to the top manager. A deviation can be judged only after the comparison has found it.
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 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. …” “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. Critical point” “…control and management by exception should be used by a manager in this regard.” “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. …” “Management by Exception: Management by exception, which is often referred to as control by exception, is an important principle of management control based on the belief that an attempt to control everything results in controlling nothing. …” |