Question

______ is the step in the controlling process where standards may have to be revised in case the deviation can not be corrected through managerial action.

• A. Setting Performance Standards
• B. Measurement of Actual performance
• C. Comparing Actual Performance with standards and analysing deviations
• D. Taking corrective action

Hint:

If corrective actions don’t work, revise the standard — but only after all adjustments have failed.

Answer 1

The Correct Option is D

Controlling is a continuous process consisting of several key steps:
1. Setting standards
2. Measuring actual performance
3. Comparing actual with standards and noting deviations
4. Taking corrective action
In the final step — taking corrective action — the manager evaluates whether deviation can be fixed by employee training, better communication, or resource allocation. But if the deviations persist even after such steps, it may indicate the standard itself is unrealistic or obsolete. In such cases, the standard may be revised.
Thus, it is during the “Taking corrective action” phase that the standards themselves may be reconsidered if corrective actions fail.
Final Answer: (D) Taking corrective action