Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:

Based on the following case-study, answer the question.

Mr. Arfaaz had been heading the production department of writewell products Ltd., a firm manufacturing stationery items. The firm secured an export order that had to be completed on a priority basis and production targets were defined for all the employees. One of the workers, Mr. Bhanu Prasad, fell short of his daily production target by 10 units for two days consecutively. Mr. Arfaaz approached Ms Vasundhara, the CEO of the company to file a complaint against Mr. Bhanu Prasad and requested her to terminate his services.

Select the step of the function of management that help Mr. Arfaaz in finding that Mr. Bhanu Prasad fell short of his daily production target by 10 units for two days consecutively.

Options:

Setting Standards

Comparing Actual Performance with Standards

Analysing Deviations

Taking Corrective Action

Correct Answer:

Comparing Actual Performance with Standards

Explanation:

The correct answer is option (2) : Comparing Actual Performance with Standards

The step of the management function that helps Mr. Arfaaz in finding that Mr. Bhanu Prasad fell short of his daily production target by 10 units for two days consecutively is:

2. Comparing Actual Performance with Standards

This step involves measuring the actual performance of employees or processes against the established standards or goals. In this case, Mr. Arfaaz compared Mr. Bhanu Prasad's actual performance (which was falling short of the target) with the standard (the daily production target). This comparison likely prompted Mr. Arfaaz to realize the deviation and take further action, which could include analyzing deviations and taking corrective  action.