Vinber Ltd. set up a manufacturing unit at Bhiwadi in Himachal Pradesh to manufacture electric geysers and supply them to dealers all over the country. Their production target was 500 geysers per week. It was decided by the management that variation in production upto 10 units would be acceptable.
At the end of the first week, the production was 450 geysers. The next week, production increased of 470 geysers. A week later, production was 460 geysers. On investigation, it was found that fluctuation in production was due to irregular supply of electricity.
The above para discusses some of the steps in the process of one of the functions of management. Explain these steps.

Explanation

(a) The function performed is controlling and the steps discussed are:
(i) Setting performance standards
(ii) Measurement of actual performance
(iii) Comparing actual performance with standards
(iv) Analysing deviations
For explanation of these steps, refer to Page 244 of Chapter-8.