Question

Sohan, Sales Manager of ‘Kriti Ltd’ is a good efficient manager who always motivated his team to perform to their best ability. Till the year 2023, he and his team were exceeding the targets. However, since the last six months, they were unable to meet their targets. On investigation it was found out that one of his team members had left the job and was offering the competitors’ product to some of the clients of ‘Kriti Ltd.’ at lesser price.

• Identify the function of management being referred to in the above case.
• Identify the step in the process of the above function of management which helped the management to find out the fall in performance.
• Suggest any 2 ways which can help management to achieve the desired target in future.

Hint:

The controlling function helps ensure that actual performance meets planned targets. Timely detection and corrective action are critical to organizational success.

Answer 1

(1). Management Function: Control
The primary management function demonstrated is Control. This involves ensuring that organizational activities align with planned objectives. It encompasses tracking actual performance, comparing it against established benchmarks, identifying discrepancies, and implementing corrective measures. Sohan's investigation into the performance decline exemplifies this function, as it addresses performance gaps and considers remedial actions.
(2). Controlling Process Step: Performance vs. Standard Comparison
The specific step within the controlling process highlighted is “Comparison of actual performance with standards.” This step entails evaluating the extent to which actual results meet predetermined goals or metrics. In the scenario, the prolonged period of unmet targets led management to compare actual sales performance against prior standards, revealing a significant deviation. This comparison was instrumental in pinpointing the performance drop and attributing it to the departure of an employee to a competitor.
(iii). Recommendations for Enhanced Future Performance:
To facilitate the achievement of future objectives, the following two strategies are recommended:

• 1. Enhance Employee Retention and Engagement: The organization should prioritize retaining skilled personnel by offering superior incentives, career advancement prospects, and a supportive work environment. Retaining team members mitigates performance disruptions and prevents the disclosure of sensitive information to competitors.
• 2. Implement Consistent Monitoring and Feedback Systems: Management should establish a regular performance appraisal system and solicit ongoing feedback. This facilitates the early detection of challenges, deviations, or employee dissatisfaction, enabling swift interventions to maintain team performance on course.