- Books Name
- BUSINESS STUDIES-XII
- Publication
- ABCD CLASSES
- Course
- CBSE Class 12
- Subject
- Business Studies
CONTROLLING PROCESS:
Process
- Setting Performance Standards:
- Standards are set-to compare with the actual performance
- They can be set in both quantitative as well as qualitative terms. I
- Example:- producing 300 units in a month
- Measurement of Actual Performance:
- Actual Performance is measured using controlling techniques like personal observation, sample checking, and ratio analysis.
- Example:- Actual production may comes:- 290,250,310,300 units,
- Comparing Actual Performance with Standards:
- Comparison will tell the difference between actual performance and standards
- If actual production is 290 unit and standards was 300 units (already fixed). Difference is = -10 units
- Examine Deviations:
- Finding the extent of deviation and causes of deviations
- Deviations can be observed by using
- Critical path control: - focus should on deviation in important areas.
- Management by exception:- minor deviation should be avoided
- Taking Corrective Action:
- When the deviations are minor no corrective action is required
- When differences are major immediate actions are required. For example
- Training of employees
- Adding more workers and machines
- Increasing no of working hours