Which of the following is the correct sequence of Controlling process for taking the corrective action?

(A) Measurement of actual performance
(B) Analysing deviations
(C) Comparison of actual performance with standards
(D) Setting up standards

Choose the correct answer from the options given below:

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

The correct answer is option 3- (D), (A), (C), (B).

Controlling is a systematic process involving the following steps.

(D) Setting up 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 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.

(C) Comparison of 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.

(B) 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.

* After analysing deviation the last step in the controlling process is taking corrective action. 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, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished.