Arrange the following in proper sequence.

A. Critical Point control and management by exception

B. Performance should be measured in an objective and reliable manner

C. Standards are set in both Quantitative as well as Qualitative terms

D. Reveal the deviation between actual and desired results

E. Taking corrective action

Choose the correct answer from the options given below :

C, B, D, A, E

The correct answer is option (3)- C, B, D, A, E.

C. Standards are set in both Quantitative as well as Qualitative terms: This is where the standards or criteria for performance are established. The first step in the controlling process is setting up of performance standards. Standards are the criteria against which actual performance would be measured. Thus, standards serve as benchmarks towards which an organisation strives to work.

B. Performance should be measured in an objective and reliable manner: 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.

D. Reveal the deviation between actual and desired results: 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.

A. Critical Point control and management by exception: Once deviations are identified, critical points or exceptions that require management attention are determined. 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.

E. Taking corrective action : The final step is to take corrective action in response to the identified critical points or exceptions to bring performance back in line with the desired results.