Question

Rajni Ltd. is engaged in manufacturing machine components. The target production is 250 units per day per worker. The company had been successfully attaining this target until two months ago. Over the last two months it has been observed that daily production varies between 200-210 units per worker.

1. Name the function of management and identify the step in the process of this function which helped in finding out that the actual production of a worker is less than the set target.

2. To complete the process of the function identified in (1) and to ensure the performance as per set targets, explain what further steps a manager has to take.

Answer 1

1.The management function is controlling. “Comparing actual performance with standards” is the step involved in the process of controlling which helped in finding out that the actual production of a worker is less than the set target.

2 . A manager has to take the following two further steps to complete the process of controlling:

(i) Analysing deviations

(ii)Taking corrective action