Question

Sohan, Sales Manager of ‘Kriti Ltd’ is a good efficient manager who always motivated his team to perform to their best ability. Till the year 2023, he and his team were exceeding the targets. However, since the last six months, they were unable to meet their targets. On investigation it was found out that one of his team members had left the job and was offering the competitors’ product to some of the clients of ‘Kriti Ltd.’ at lesser price.

• Identify the function of management being referred to in the above case.
• Identify the step in the process of the above function of management which helped the management to find out the fall in performance.
• Suggest any 2 ways which can help management to achieve the desired target in future.

Hint:

The controlling function helps ensure that actual performance meets planned targets. Timely detection and corrective action are critical to organizational success.

Answer 1

(1). Function of Management: Controlling
The function of management highlighted in this case is Controlling. Controlling refers to the process of ensuring that organizational activities are performed as planned. It involves monitoring actual performance, comparing it with the set standards, identifying deviations, and taking corrective actions. Sohan, after noticing the drop in performance, initiated an investigation to understand the cause. This is a clear application of the controlling function, where performance gaps are analyzed, and remedial steps are considered.
(2). Step of the Controlling Process: Comparison of Actual Performance with Standards
The specific step in the controlling process referred to is “Comparison of actual performance with standards.” This involves measuring how well the actual outcomes align with expected goals or benchmarks. In the case, when the targets were not being met for six months, management compared actual sales performance with the earlier set standards, which revealed a major deviation. This comparison step was crucial in identifying the drop in team performance and tracing it back to the employee who left and joined a competitor.
(iii). Suggestions to Improve Future Performance:
To help achieve desired targets in the future, the following two strategies can be applied:

• 1. Strengthen Employee Retention and Motivation: The organization must focus on retaining skilled employees by offering better incentives, growth opportunities, and a positive work environment. Retaining team members prevents disruption in performance and avoids information leakage to competitors.
• 2. Regular Monitoring and Feedback Mechanisms: Management should implement a periodic performance appraisal system and gather feedback regularly. This helps in early identification of issues, deviations, or dissatisfaction among employees, enabling prompt action to keep team performance on track.