Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Read the following passage and answer the question.

Bira Machines Limited is engaged in manufacturing of machine components. The company has planned to venture into automobile parts as well for which, it started doing the market research. The target production for machine parts is 500 units per day per worker. The company had been successfully attaining this target until three months ago. The company follows a practice where only significant deviations from a budget or plan are brought to the attention of management. Over the last four months, it has been observed that daily production varies between 450-460 units per day per worker. Management called the supervisor and asked him to find out the reasons for low productivity. CCTV cameras were installed to keep a check on employees. It was found that some of the workers used to spend more time for lunch than allotted. The report for the same was prepared and submitted by the supervisor to the management.

"It was found that some of the workers used to spend more than the allotted time for lunch".

Which step should be taken by the company after receiving report by the supervisor?

Options:

Identify various alternatives

Setting up standard

Taking corrective measures

Follow up

Correct Answer:

Taking corrective measures

Explanation:

The correct answer is option 3- Taking corrective measures.

After receiving the report from the supervisor that some workers are spending more than the allotted time for lunch, the appropriate step the company should take is Taking corrective measures.

This step involves addressing the identified issues or deviations to correct and improve performance. In this case, the company would need to implement actions to address the problem of extended lunch breaks, such as revising lunch break policies, increasing supervision, or reinforcing the importance of adhering to allotted times.