While scrutinizing the production records, it is found that in a particular batch the rejection rate was 5% against the set standard of 2%. The management found out that this was due to negligence of quality control staff. This action is part of which step in the controlling process?
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The particular step in controlling process is comparison of actual performance with the standards.
- The management control mechanism ensures that every operation of an enterprise advances its objectives. Basically, this method allows managers to assess the success of their enterprise.
- Comparison of actual output with the norm is involved in the stage. Such a comparison reveals the deviation between real and desired outcomes will be revealed by comparison.
- When expectations are set in quantitative terms, comparison is simpler. For example, a worker's output in terms of units generated in a week can easily be calculated against the week's normal performance.
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