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HG Air Conditioner Pvt. Ltd. is lagging behind its scheduled production target by a month. Despite a high demand, the company is struggling to meet its production target. Even after taking measures - Business Studies

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Question

HG Air Conditioner Pvt. Ltd. is lagging behind its scheduled production target by a month. Despite a high demand, the company is struggling to meet its production target. Even after taking measures like training of employees and assigning additional workers and equipment to the project, the targets could not be met. The Production Manager, now, decided to revise the standards.

Identify the step of the controlling process under which the Production Manager decided to revise the standards.

Options

  • Setting performance standards

  • Measurement of actual performance

  • Analysing deviations

  • Taking corrective action

MCQ
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Solution

Taking corrective action

Explanation:

The production manager has to make changes when things go wrong. Changing the goals is a way to get back on track by revising standards.

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2024-2025 (March) Delhi Set 1
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