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Determine Whether Performance Matches Standards
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| Determine Whether Performance Matches Standards In many ways, this is the easiest step in the control process. The complexities presumably have been dealt within the first two steps. Now it is a matter of comparing measured results with the established targets or standards previously set. Performance matches the standards, managers may assume that everything is under control This clearly shown in Fig. 5.2. db Take Corrective Action This step is necessary if performance falls short of standards and the analysis indicates that action is required. The corrective action could involve a change in one or more activities of the organisation's operations. For example, a restaurant owner/manager might discover that more counter workers are needed to meet the five-minute Customer- waiting standard set by the company. On the other hand, controls can reveal inappropriate standards. Under these circumstances, the corrective action could involve a change in the original standards rather than a change inactivity. Unless managers seethe control process through to its conclusion, they are merely monitoring performance rather than exercising control. The emphasis should always be on devising constructive ways to bring performance up to standard, rather than merely identifying past failures. E.7 Characteristics of Effective Control Systems (a) Accurate Information on performance must be reasonably accurate for the organization to take appropriate corrective action. inaccurate data from a control system can cause the organization to take action that will either fail to correct a problem or create a problem where none exists. For example, a foreman may report to a supervisor that parts are being 172 damaged on an assembly line because the people on that line are inadequately trained in fact the machines on that particular line maybe faulty. Because of this wrong evaluation, the workers may become resentful. So, evaluating the accuracy of the information they receive is the most important tasks that managers face. Download 3.37 Mb. Share with your friends:
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