Question

Explain any two steps of the control process.

Hint:

Setting clear standards and accurately measuring performance are crucial for identifying deviations and implementing corrective actions effectively.

Answer 1

The control process involves various steps that help in ensuring organisational goals are met effectively. Two key steps are: 
1. Setting Performance Standards: 
This step involves defining measurable and realistic benchmarks for evaluating performance. These standards can be quantitative (e.g., profit margins, sales targets) or qualitative (e.g., customer satisfaction levels). Standards must align with organisational goals and should be flexible enough to accommodate changes. For instance, a company may set a sales target of increasing revenue by 10 % within six months. 
2. Measuring Actual Performance: 
This step includes collecting and analysing data related to actual performance through reports, observations, and feedback. Tools like Key Performance Indicators (KPIs), financial reports, and audits are often used. Accurate measurement ensures a clear understanding of deviations from the planned performance. For example, if the sales team achieves only 8% growth instead of the targeted 10%, this deviation is noted. 
Importance of These Steps: 
- They help in identifying gaps between expected and actual performance. 
- They provide a basis for corrective action, ensuring that the organisation remains on track toward achieving its goals. 
- They foster accountability by linking individual performance to organisational benchmarks. 
These steps are integral to the control process, enabling continuous improvement and ensuring efficiency in operations.