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Home/Practice questions/Business Studies
Business StudiesControlling

Select the option when immediate managerial attention is required so…

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 option when immediate managerial attention is required so that deviations do not occur again.

Answer & explanation+

Correct answer: option 2

The correct answer is Option (2) → When deviations are beyond the acceptable range

  • Option (1) Whenever deviations occur — Incorrect. Some deviation (gap between target and actual result) is normal in all work. No corrective action is needed when deviations are within acceptable limits. If the manager acts on every small gap, he will waste his time. Only big gaps need his attention.

  • Option (2) When deviations are beyond the acceptable range — Correct. These are the serious gaps. When deviations go beyond the acceptable range, especially in important areas, they need immediate managerial attention so that they do not occur again. In the passage, a shortfall of 10 units for two days is a small gap. So it may not need such strong action.

  • Option (3) When corrective actions are possible — Incorrect. The need for attention depends on the size of the deviation, not on whether a correction is possible.

  • Option (4) When deviations are in area of production — Incorrect. Deviations can occur in any area, such as sales or finance. The area alone does not decide it. A small gap in production also does not need immediate attention.

NCERT (2026-27 Edition): “Step 5: Taking Corrective Action: 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.”

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