"A footwear company has already measured its quantifiable and qualitative goals". Identify the step of the controlling process highlighted in the aforesaid statement.

Measurement of actual performance

The correct answer is option 4- Measurement of actual performance.

Measurement of actual performance is the step of the controlling process highlighted in the given statement.

"A footwear company has already measured its quantifiable and qualitative goals." This clearly indicates that the company has measured how well it has done in terms of both quantitative performance (e.g., sales, profits) and qualitative performance (e.g., customer satisfaction, product quality). Thus, the step being referred to is the measurement of actual performance.

Measurement of actual performance- Once performance standards are set, the next step is measurement of actual performance. Performance should be measured in an objective and reliable manner. There are several techniques for measurement of performance. These include personal observation, sample checking, performance reports, etc. As far as possible, performance should be measured in the same units in which standards are set as this would make their comparison easier.

OTHER OPTIONS

• Comparing actual performance with standards- This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results. Comparison becomes easier when standards are set in quantitative terms.

• Analyzing deviations- Some deviation in performance can be expected in all activities. It is, therefore, important to determine the acceptable range of deviations. Also, deviations in key areas of business need to be attended more urgently as compared to deviations in certain insignificant areas. 

• 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.