Match List-I (points about performance standards) with List-II (what each means or gives):
| List-I | List-II | ||
|---|---|---|---|
| (A) | Standards | (I) | Much easier comparison with actual performance |
| (B) | Setting standards in precise quantitative terms | (II) | Modification to stay realistic in a changed business environment |
| (C) | Defining qualitative standards in a suitable manner | (III) | Criteria against which actual performance would be measured |
| (D) | Keeping standards flexible | (IV) | Easier measurement of performance |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → (A)-(III), (B)-(I), (C)-(IV), (D)-(II)
| List-I | List-II | Reason |
|---|---|---|
| (A) Standards | (III) Criteria against which actual performance would be measured | Standards are the benchmarks. Actual work is measured against them. |
| (B) Setting standards in precise quantitative terms | (I) Much easier comparison with actual performance | A standard in numbers, such as 5 defects in 1,000 pieces, can be compared directly with the actual figure. |
| (C) Defining qualitative standards in a suitable manner | (IV) Easier measurement of performance | A quality such as customer satisfaction becomes measurable when it is defined as, say, the time a customer waits for a table. |
| (D) Keeping standards flexible | (II) Modification to stay realistic in a changed business environment | The environment changes, so a flexible standard can be modified to stay realistic. |
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. Thus, standards serve as benchmarks towards which an organisation strives to work. …” “Step 1: Setting Performance Standards: … At the time of setting standards, a manager should try to set standards in precise quantitative terms as this would make their comparison with actual performance much easier. For instance, reduction of defects from 10 in every 1,000 pieces produced to 5 in every 1,000 pieces produced by the end of the quarter. However, whenever qualitative standards are set, an effort must be made to define them in a manner that would make their measurement easier. For instance, for improving customer satisfaction in a fast food chain having self-service, standards can be set in terms of time taken by a customer to wait for a table, time taken by him to place the order and time taken to collect the order.” “Step 1: Setting Performance Standards: … It is important that standards should be flexible enough to be modified whenever required. Due to changes taking place in the internal and external business environment, standards may need some modification to be realistic in the changed business environment.” |