Arrange the following in the correct sequence of controlling process.…

Arrange the following in the correct sequence of controlling process.

(A) Measurement of Actual Performance against Standards and their Comparison
(B) Establishment of Goals and Standards
(C) Corrective Action
(D) Using Critical Point Control and Management by Exception while analyzing the deviations

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (B), (A), (D), (C)

Step 1 — (B) Establishment of Goals and Standards: first the manager sets the targets. Actual work will be checked against them.

Step 2 — (A) Measurement of Actual Performance against Standards and their Comparison: the controlling process has five steps, and here measurement and comparison are joined in one statement. The work actually done is measured and compared with the standards. This shows the gap (deviation).

Step 3 — (D) Using Critical Point Control and Management by Exception while analyzing the deviations: the deviations are studied for their causes. The manager focuses on the key result areas and on large deviations only.

Step 4 — (C) Corrective Action: last, steps are taken to remove the cause of the gap.

NCERT (2026-27 Edition): “Controlling Process Controlling is a systematic process involving the following steps.
1. Setting performance standards
2. Measurement of actual performance
3. Comparison of actual performance with standards
4. Analysing deviations
5. Taking corrective action”

“Step 4: Analysing 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. …”

“Critical Point Control: It is neither economical nor easy to keep a check on each and every activity in an organisation. Control should, therefore, focus on key result areas (KRAs) which are critical to the success of an organisation. …”

“Management by Exception: Management by exception, which is often referred to as control by exception, is an important principle of management control based on the belief that an attempt to control everything results in controlling nothing. Thus, only significant deviations which go beyond the permissible limit should be brought to the notice of management. …”