Question

Which function of management ensures that actual activities conform to their plans? Also explain its process.

Answer 1

Controlling is the process of monitoring actual performance, comparing it with planned standards, identifying deviations, and taking corrective actions to ensure achievement of objectives.

1. Setting Performance Standards: Standards are the benchmarks against which actual performance is measured. These can be quantitative (e.g., sales targets) or qualitative (e.g., customer satisfaction).
2. Measuring Actual Performance: Collect data and information about what is actually happening. This is done through observation, reports, or performance metrics.
3. Comparing Performance with Standards: Evaluate the actual performance against the set standards to identify deviations.
4. Analyzing Deviations: Find the causes of deviations—whether due to internal issues (like inefficiency) or external factors.
5. Taking Corrective Action: Based on the analysis, take steps to correct the deviations and align performance with the plan.