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1. Establishing standard for measuring work performance.Standards serve as a basis for measuring performance. They may be expressed in quantitative or qualitative terms. A standard is a criterion against which results can be measured. In quantitative terms they are expressed in numbers, which are to be produced, by workers. In terms of money they refer to the cost of production, cost of distribution per unit etc. It is the duty of the planner to set the standards and communicate clearly to those from whom the results are expected so that they do not face any difficulty in achieving the goals.
2. Measurement of actual performance and comparing it with the standard.The second important element in the process of control is the measurement of the actual performance. Measurement of actual performance does not mean, knowing what has happened but also what is likely to happen. It means that deviations are predicted in advance, which help the management to take corrective action in advance for the achievement of goals. As such, it is desirable to measure performance as soon as the operations are completed. Not only this, it can also be measured while the activity is in progress, so that appraisal would be possible in time.
Measurement of performance can be done by personal observation, as m the case of the subordinates being observed while they are engaged in work and by a study of various summaries of figures, reports, charts and statements. If the control system is well organized, quick comparison of these figures with the standard figures is quite possible. This will reveal variations. Some variations are desirable, such as the output above the standard or expenses below the standard. But some other variations are undesirable, such as a variation in the delivery schedule agreed upon with the customer or a variation in the speed limit fixed for all drivers.
One important point to be considered before introducing a control system is whether measurement and comparison are to be done at various stages in the total process or at the end. If the purpose of control is to catch trouble while it is forming then this should be done at various strategic points before the end of the process.
3. Comparison of actual performances with standards
The actual performance can be easily compared if the standards are properly determined and methods are clearly communicated. The manager should concentrate on those main deviations, which are noticed while making the appraisal. But he should not waste his time and energy on small deviations. This approach will give the correct, quick and favorable results. At the same time simple and effective action also avoids uneconomic watching, wastages of time and attention.
4. Finding out deviations
While comparing the actual arid standard performance, it is wiser to find out the extent, nature and the basic causes for deviations. A competent manager does not find any difficulty in locating the deviation points while measuring the actual performance properly. To find out the cause of deviations he will have to depend on proper, accurate and timely information. A manager after getting the information from various departments would conveniently tell whether errors have occurred in the operation or project designing and from them he can easily find out the causes of deviations and the workers who are responsible for such errors.
5. Correction of deviations
The last but not the least element in the process of control is correction of deviations. For the correction of deviations, management should take necessary action and implement them so that in future these errors and deviations are minimized. Correction involves improvement in technology, direction, supervision, setting new goals, restructuring the organization and revision of targets, set in advance. If corrective action is not taken properly in time against the major deviations, then it will lead to heavy losses.
Judiesiz answered the question on November 17, 2017 at 20:23
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