The sales report of Usha Fans Ltd. for the last six months is given be

1.	The sales report of Usha Fans Ltd. for the last six months is given below. The target fixed for each month was 2000 fans. In the last 3 months the sales manager of the company was on leave for personal reasons Just as traffic signals are essential to make our roads accident free, management controls are necessary for the smooth functioning of the organisation. Month Units Month UnitsJuly2300October2200August2500November1800September2800December1500(a) Identify the management function in the(b) State the steps to be taken by the management to achieve the target.
Answer» (a) Controlling (b) Controlling Process : Controlling is a systematic process involving the following steps. 1. Setting performance standards 2. Measurement of actual performance 3. Comparison of actual performance with standards 4. Analysing deviations 5. Taking corrective action 1. Setting Performance Standards : Standards are the criteria against which actual performance would be measured. Standards can be set in both quantitative as well as qualitative terms. 2. Measurement of Actual Performance : After establishing standards, the next step is measurement of actual performance. Performance should be measured in an objective and reliable manner. 3. Comparing Actual Performance with Standards : This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results. 4. Analysing Deviations: The deviations from the standards are assessed and analysed to identify the causes of deviations. 5. Taking Corrective Action: The final step in the controlling process is taking corrective action. No corrective action is required when the deviations are within acceptable limits.

The sales report of Usha Fans Ltd. for the last six months is given below. The target fixed for each month was 2000 fans. In the last 3 months the sales manager of the company was on leave for personal reasons Just as traffic signals are essential to make our roads accident free, management controls are necessary for the smooth functioning of the organisation. Month Units Month UnitsJuly2300October2200August2500November1800September2800December1500(a) Identify the management function in the(b) State the steps to be taken by the management to achieve the target.

Answer»

(a) Controlling

(b) Controlling Process :

Controlling is a systematic process involving the following steps.

1. Setting performance standards

2. Measurement of actual performance

3. Comparison of actual performance with standards

4. Analysing deviations

5. Taking corrective action

1. Setting Performance Standards : Standards are the criteria against which actual performance would be measured. Standards can be set in both quantitative as well as qualitative terms.

2. Measurement of Actual Performance : After establishing standards, the next step is measurement of actual performance. Performance should be measured in an objective and reliable manner.

3. Comparing Actual Performance with Standards : This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results.

4. Analysing Deviations: The deviations from the standards are assessed and analysed to identify the causes of deviations.

5. Taking Corrective Action: The final step in the controlling process is taking corrective action. No corrective action is required when the deviations are within acceptable limits.

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