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‘If anything goes wrong with the performance of key activities, the entire organization suffers. Therefore, the organization should focus on them.’ Explain the statement with a suitable example. |
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Answer» The statement refers to use of ‘Critical Point Control’, while analysing deviations. ▪ Meaning of Critical Point Control: It refers to that concept of management which holds that instead of all activities, the management should focus its attention on only important activities. ▪ Example: In a manufacturing organisation, an increase of 5% in the labour cost may be more troublesome than 15% increase in postal charges. |
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