Question

Long Answer Question:
Explain the various steps involved in a controlling process.

Answer 1

Steps in Controlling:

• Establishing standards: This means setting up of the target which needs to be achieved to meet organisational goals eventually. Standards indicate the criteria of performance.
  

Control standards are categorized as quantitative and qualitative standards. Quantitative standards are expressed in terms of money. Qualitative standards, on the other hand, includes intangible items.

• Measurement of actual performance: The actual performance of the employee is measured against the target. With the increasing levels of management, the measurement of performance becomes difficult.
  
• Comparison of actual performance with the standard: This compares the degree of difference between the actual performance and the standard.
  
• Taking corrective actions: It is initiated by the manager who corrects any defects in actual performance.