Question

Identify the step of controlling process applicable in the following cases:
i) Mrs Betty is keenly observing the quantity of capsules produced in a pharmaceutical company. She realizes that there is no need for any action to be taken as the deviations are within the acceptable limits. A day later when she comes to work she finds the situation opposite to that of the previous day. This lime the deviation was beyond the acceptable range and needed immediate action. She called her subordinates and told them that this should not happen again.
ii) Michel, who is the owner of a company has decided to focus only on a few activities of his business. He considers that the rest of all activities are not critical to the performance of his company. One such area he finds is of labour. The labour cost recently went up by 4% sending signals of coming danger. Now he will put his efforts to control this variation by arranging labour at a cheaper rate.

iii) In a company a manager is trying to find out the deviation between the actual number of fans produced and the desired number. He already knows about the standard as the company has assigned him a definite quantity of fans to be produced.
iv) Karen a senior experience manager is concerned about the 2% rise in the raw materials. However he knows that this is an acceptable range. He tells his staff that if this rise goes beyond 2% it should be brought into the notice of management. Then he sets a limit of 5% when the management should give it the priority over other activities.
v) Alexander wants to ran his company in a different manner. He wants to set standards to be achieved in both qualitative as well as quantitative terms. He wants to judge the motivation, skill levels and satisfaction of the employees. All these things will require qualitative standards. On the other hand the company will have to set quantitative standards for the number of units produced.
vi) Some employees have been assigned the job of judging the output of production in a neutral and reliable way. They are applying different techniques for achieving this aim. Some of these are personal observation, sample checking, etc. They are also keeping the units of measurement same to that of the units of set standards

Answer 1

Answer: Essential steps in controlling process are as below:

Step 1: Setting Performance Standard

Step 2: Measurement of Actual Performance

Step 3: Comparing Actual Performance with Standards

Step 4: Analyzing Deviations

Step 5: Taking Corrective Action

Answer 1: Steps of controlling process that are applicable in this case are as given below:

• Measurement of actual performance - As given in case Mrs Betty observe the quantity of capsule that produced in pharmaceutical company.
• Compare actual performance with standard - By comparing Mrs Betty get to know that situation was worst and deviation was beyond the acceptable range.
• Taking corrective action - Mrs Betty took action and command her subordinate not to repeat it again.

Answer 2: Steps of controlling process that are applicable in this case are as given below:

• Compare actual performance with standard- Michel get to know that labor cost is went up by 4% which shows danger.
• Taking corrective action - As Michel put all his effort in controlling the variation by arranging labor at cheaper rate.

Answer 3: Steps of controlling process that are applicable in this case are as given below:

• Compare actual performance with standard - As given in case manager is trying to find out the deviation or gap between actual number of produced fan with desired number.

Answer 4: Steps of controlling process that are applicable in this case are as given below:

• Analyzing Deviation - As given in case Karen trying to find out the cause for 2% rise in the raw materials.
• Taking corrective action: - Karen set a limit to 5% so that it get priority over other activities.

Answer 5: Steps of controlling process that are applicable in this case are as given below:

• Setting performance standard - As Alexander want to set standard in both qualitative and quantitative terms. Qualitative standard for skills like motivation, employee satisfactions etc and quantitative standard like number of unit to be produce.

Answer 6: Steps of controlling process that are applicable in this case are as given below:

• Measurement of actual performance - As given in the case employees were asked to judge the output of production by using different technique.
• Compare actual performance with standard - As given in case employees compare performance and trying to keep the unit of measurement same as that of unit of set standard.