'A.S. Ltd' is a large company engaged in the assembly of air-conditioners. Recently the company had conducted the Time' and 'Motion' study and concluded that on an average a worker can assemble ten air-conditioners in a day. The target volume of the company in a day is assembling of 1,000 units of air-conditioners. The company is providing attractive allowances to reduce labour turnover and absenteeism. All the workers are happy. Even then the assembly of air-conditioners per day is 800 units only. To find out the reason the company compared the actual performance of each worker and observed through C.C.T.V. that some of the workers were busy in gossiping.
1) Identify the function of management discussed above.
2) State those steps in the process of the function identified which are discussed in the above paragraph.
1) Controlling has been discussed in the given scenario.
2) Steps in the controlling process
- Setting Standards: The first step is setting standards against which the actual
performance is evaluated. The standards can be in both qualitative terms (such as improved coordination, higher goodwill) and quantitative terms (such as sales targets, production targets). It must be kept in mind that the set standards should facilitate easy comparison.
- Measuring Actual Performance: The next step in the controlling process is to measure the performance of various activities. For this, various techniques can be used such as personal observation and performance reports. This measurement should be exact and reliable such that it facilitates easy comparison with the set standards. Moreover, the measurement of performance can be at various stages in the activity or at the completion of the activity
- Comparing Performance: After the actual performance is measured, it is then compared with the pre-defined standards. This helps in assessing whether there are any deviations/deficiencies in performance. Accordingly, it helps in identifying the required corrective actions to be taken
- Analysing Deviation: With the comparison of the actual performance with the set standards, deviations in performance are identified.
- Corrective Measures: In case deviations are beyond the acceptable range, it becomes necessary to take corrective action. It must be ensured that deviations do not occur again
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