Kapil & Co. is a large manufacturing unit. Recently the compnay had conducted time and motion studies and concluded that on an average, a worker could produce 300 units per day. However, it has been noticed that the average daily production per worker is in the range of 200-225 units.
Name the function of management and identify the steps in the process of this function which helped in finding out that the actual production of a worker is less than the set target.

Explanation

The function of management referred here is controlling.
The steps in this process that helped in finding out that actual production is less than the set target are :
(i) Setting performance standards Standards are the criteria, against which acutal performance would be measured. These serve as benckmarks, towards which an organisation strives to work.
The first step of the control process is to establish standards, against which actual results are to be evaluated. Standards are set in quantitative as well as qualitative terms. But, managers should try to set standards in quantitative terms, which can be easily measured and compared later on.
If standards are set in qualitative terms, an effort must be made to define them clearly for easy measurement. Due to changes taking place in internal and external environment, standards need to be revised regularly.
(ii) Measurement actual performance Once the standards are fixed, the next step is to measure the actual performance. Generally it is conducted by the managers to analyse the overall efficiency level of the employees. While measuring the performance, objective and reliable methods should be used, such as sample checking, preparing reports, personal observation, etc. Measurement should be done after the task is completed. However, sometime performance can be measured during the performance to ensure regular control over the activities. Usually, in large organisations, certain pieces are checked at random, instead of checking the whole lot. This is called sample checking.
(iii) Comparison of actual performance with standards This step involves comparison of actual performance with the standard. Such comparison helps in revealing the deviations between actual and desired results. Comparison becomes easier when standards are set in quantitative terms.