Which among the following concept serves as a benchmark towards which an organization strives to work?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Performance Standards
Performance Standards: These are the established criteria that define what a successful or acceptable level of performance is. They are the goals, targets, or expected levels of quality, quantity, timeliness, and cost that an organization or individual aims to achieve. They are the reference point—the benchmark—for all efforts.
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Actual Performance: This is the result that has actually been achieved. It is compared against the Performance Standards.
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Positive Deviation: This is the favorable difference where the Actual Performance exceeds the Performance Standard (e.g., producing 110 units when the standard was 100).
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Negative Deviation: This is the unfavorable difference where the Actual Performance falls short of the Performance Standard (e.g., producing 90 units when the standard was 100).