Question:

HG Air Conditioner Pvt. Ltd. is lagging behind its scheduled production target by a month. Despite a high demand, the company is struggling to meet its production target. Even after taking measures like training of employees and assigning additional workers and equipment to the project, the targets could not be met. The Production Manager, now, decided to revise the standards. Identify the step of the controlling process under which the Production Manager decided to revise the standards.

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The controlling process ensures that performance is in line with the set standards.- Key steps include setting standards, measuring performance, analyzing deviations, and taking corrective actions.- Revising standards is a corrective action when goals are not being met.
Updated On: July 22, 2025
  • Setting performance standards
  • Measurement of actual performance
  • Analysing deviations
  • Taking corrective action
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The Correct Option is D

Solution and Explanation

The controlling process in management encompasses several key steps to ensure that actual performance aligns with planned objectives. These steps include:
  1. Setting Performance Standards: Establishing benchmarks or expected performance levels.
  2. Measurement of Actual Performance: Gathering data to see how well activities are being performed.
  3. Analysing Deviations: Comparing actual performance with standards to find any discrepancies.
  4. Taking Corrective Action: Implementing measures to address and rectify significant deviations to align performance with standards.
In the scenario presented, HG Air Conditioner Pvt. Ltd. took several steps to meet their production targets but ultimately needed to revise the standards. This decision falls under the step of Taking Corrective Action. This step involves adjusting strategies or standards when significant variances from planned performance are identified, despite prior attempts to correct performance issues. Revising standards is a form of corrective action to better align expectations with current capabilities and conditions.
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