Read the following case study and attempt questions.

Mr Vinay is a Production Manager in a company. Being a Manager he seeks planned results from his subordinates so he sets the criteria against which the actual performance of subordinates will be measured. He also conveys these criteria to his subordinates. He knows that it is neither economical nor easy to keep a check on each and every activity. He also finds that if he tries to control everything it will result in controlling nothing After these two considerations, he gives the main focus of his effort on comparatively more important tasks and finally, he gets planned results.

Which point has been indicated in the phrase "it is neither economical nor easy to keep a check on each and every activity"?

Critical Point Control

The correct answer is option 3- Critical Point Control.

Critical Point Control is indicated in the given lines.

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. These KRAs are set as the critical points. If anything goes wrong at the critical points, the entire organisation suffers. For instance, in a manufacturing organisation, an increase of 5 per cent in the labour cost may be more troublesome than a 15 per cent increase in postal charges.