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Controlling, Topic 5 Part 2 - Coggle Diagram
Controlling
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3. Controlling process
Measurable or tangible - Those standards which can be measured and expressed are called as measurable standards. They can be in form of cost, output, expenditure, time, profit, etc.
Non-measurable or intangible - There are standards which cannot be measured monetarily. For example- performance of a manager, deviation of workers or their attitudes. These are called as intangible standards.
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- Compare the actual performance with standard performance
Positive Deviation means that the actual performances are better than the established standards. Positive deviations should be appreciated.
Negative Deviation means that the actual performance is less than the established standards. The management should pay special attention to the negative deviation. They should find out the causes of negative deviations
After finding out the negative deviations and their causes, the managers should take steps to correct these deviations. Corrective actions should be taken promptly
Corrective action may include, changing the standards, providing better motivation, giving better training, using better machines, etc
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