Question

______ is the step in the controlling process where standards may have to be revised in case the deviation can not be corrected through managerial action.

• A. Setting Performance Standards
• B. Measurement of Actual performance
• C. Comparing Actual Performance with standards and analysing deviations
• D. Taking corrective action

Hint:

If corrective actions don’t work, revise the standard — but only after all adjustments have failed.

Answer 1

The Correct Option is D

Controlling is an ongoing process involving these primary stages:
1. Establishing benchmarks
2. Gauging current performance
3. Contrasting current performance against benchmarks and identifying discrepancies
4. Implementing remedial measures
During the final stage—implementing remedial measures—managers assess if deviations can be addressed through employee development, improved communication, or resource reallocation. However, if discrepancies persist despite these efforts, it suggests the benchmark itself might be impractical or outdated, necessitating its revision.
Therefore, it is within the "Implementing remedial measures" phase that benchmarks may be re-evaluated if corrective actions prove unsuccessful.
Final Answer: (D) Taking corrective action