1.

How does an organization set its standards for executing the control process?

Answer»

Setting standards:

  • The first stage of controlling is to set standards. Standards measure efficiency of the processes and people.
  • By setting standards, the organization can compare if the activities are taking place according to the set standards.
  • Unless standards are set, it is not possible to decide what to control and how to control.
  • These standards can be both qualitative and quantitative.
  • The standards could be set for cost price, income, capital, profit targets, production targets, cost targets, etc.
  • Standards may be set for long term or short term.
  • Standards are decided at the top level management. Employees and subordinates are informed about the same.
  • The employees then plan their work according to the given targets and they constantly strive to maintain these standards.


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