When the deviations between the actual performance and the planned performance are within the limits, which of the following course of action is suggested?

No corrective action is required

The correct answer is option 2- No corrective action is required.

No corrective action is required if the actual performance and the planned performance are within the limits.

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. The final 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.