Question

The process of comparing actual performance with standards and taking corrective action is known as:

• A. Planning
• B. Organising
• C. Directing
• D. Controlling

Hint:

The controlling cycle is: \[ \text{Standards} \rightarrow \text{Measurement} \rightarrow \text{Comparison} \rightarrow \text{Correction} \]

Answer 1

The Correct Option is D

Concept:
Controlling is an important managerial function that ensures organizational activities are performed according to planned standards. The controlling process includes:
• Setting standards
• Measuring actual performance
• Comparing actual performance with standards
• Taking corrective action

Step 1: Understanding the meaning of controlling.
Managers establish performance standards in advance. After implementation:
• Actual results are measured.
• Deviations are identified.
• Corrective measures are taken. This ensures organizational goals are achieved efficiently.

Step 2: Understanding the need for corrective action.
If deviations are ignored:
• Resources may be wasted.
• Organizational objectives may not be achieved.
• Operational inefficiencies may increase. Therefore corrective action becomes essential.

Step 3: Analyzing options.

• Planning determines future course of action.
• Organising arranges resources.
• Directing motivates employees.
• Controlling measures and corrects deviations. Hence: \[ \boxed{\text{Controlling}} \]