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.

"Over the last two months, it has been observed that daily production varies between 450-460 units per worker".

Which step of one of controlling process has carried out by the company here?

Options:

Setting Objectives

Measuring Actual Performance

Analysing Deviations

Taking corrective action

Correct Answer:

Measuring Actual Performance

Explanation:

The correct answer is option 2- Measuring Actual Performance.

In the given context, where it is observed that daily production varies between 450-460 units per worker, the step of management being carried out is Measuring Actual Performance.

This step involves tracking and recording the actual performance against the established standards or targets. The company is measuring the actual production levels of each worker to determine how they compare to the target of 500 units per day. This measurement is crucial for identifying any deviations from the expected performance levels.