(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 the acceptable limits.