Question:

‘DF Telecom Ltd.’, which produces a range of mobile phones for the Indian market, set a target to produce 30,000 units of mobile phones in the month of December 2025.
This was the benchmark against which actual performance would be measured. At the end of the month, it was found that only 27,000 units were produced.
Concerned with the shortfall, the General Manager asked the Production Manager to find out and resolve the problem.
State the steps related to the process of one of the functions of management which the Production Manager has to take to find out and resolve the problem.

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Controlling ensures that the "Planned" and "Actual" results are synchronized.
Comparison $\rightarrow$ Analysis $\rightarrow$ Correction.
Updated On: Jul 18, 2026
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Solution and Explanation

Concept:

• The function of management involved here is Controlling.

• Controlling is the process of comparing actual performance with standards and taking corrective action to ensure goals are met.
Step 1: Comparing actual performance with standards
The Production Manager must compare the actual output of 27,000 units with the planned target (standard) of 30,000 units.
This step allows the manager to quantify the deviation, which in this case is a shortfall of 3,000 units.

Step 2: Analysing deviations
The manager needs to determine the causes of the shortfall. Using techniques like "Critical Point Control" and "Management by Exception," the manager identifies why the 3,000-unit gap occurred.
Possible causes could be machine breakdown, shortage of raw materials, or labor inefficiency.

Step 3: Taking corrective action
The final step is to implement measures to bring the performance back on track and prevent future shortfalls.
If the cause was poor machine maintenance, regular servicing would be scheduled; if it was labor shortage, additional staff or overtime would be arranged.
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