A PROJECT REPORT

on
“MANAGEMENT FUNCTIONS”

Submi ed for Evalua on in Annual Higher Secondary Examina on in

Commerce-2025

SUBMITTED BY

CHSE ROLL NO . :
REGD NO. :
SUBJECT :
DATE OF SUBMISSION:

VIKRAM DEV HIGHER SECONDARY SCHOOL

JEYPORE(KORAPUT)

SIGNATURE OF STUDENT

INTERNAL SIGNATURE EXTERNAL SIGNATURE

 ABSTRACT
This project report explores the fundamental func ons of management—
planning, organizing, leading, and controlling—and their cri cal role in
achieving organiza onal success. Management func ons are essen al for
aligning resources, ensuring produc vity, and driving organiza onal goals
efficiently. The report focuses on how these func ons are interconnected and
contribute to effec ve decision-making, strategic planning, and overall
business growth. The project examines each func on in detail .
The report also highlights how technology, globaliza on, and evolving
business environments are impac ng these management func ons. The
project emphasizes the importance of adaptability and con nuous
improvement in management prac ces to navigate complex challenges in
today’s dynamic business world.
By analyzing these core func ons, the project aims to demonstrate how
effec ve management enhances organiza onal performance, op mizes
resource u liza on, and drives long-term sustainability.
This project is 20 pages long. The informa on in this is collected from some
websites and the rest has been provided by my friend

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 TABLE OF CONTENT

SR. NO. CONTENTS PAGE NO.

1. ABSTRACT 1
2. INTRODUCTION 3
3. PLANNING 4
4. PLANNING PROCESS 5
5. ELEMENTS OF PLANNING 6

6. ORGANISTION 7

7. STEPS IN ORGANISATION PROCESS 8

8. DELEGATION OF AUTHORITY 10

9. STAFFING 11

10. STAFFING PROCESS 12

11. DIRECTING 14

12. ELEMENTS OF DIRECTING 15

13. CONTROLLING 17
14. PROCESS OF CONTROLLING 19

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 INTRODUCTION
Managers are required to undertake different activities in order to run an organisation . In
order to facilitate working similar activities are classified under different heads known as
management functions. Every business undertaking has to perform functions such as
planning, organising, staffing, directing, co-ordinating and controlling. These functions
have to be perfomed irrespective of the size of the size and nature of an undertaking. Even
in non-business organisations managerial functions are same . Various functions are
interrelated and may be taken up simultaneously. It is not that one function is taken up
first and the other one later. An organisation will run only when all the functions are
performed to achieve the common goals. The success or failure of an undertaking will be
influenced by the methods of taking up managerial functions.
Management is a process that is primarily concerned with the vital duty of
achieving goals. No business venture can fulfil its goals unless and until all of the
company's members work together in a coordinated and planned manner under
the leadership of a central coordinating agency. This central coordinating agency is
referred to as 'management,' and the way of completing tasks is referred to
as 'management process
The management process entails deciding on objectives and putting them
into action. "Management is the process through which managers build, direct,
maintain, and operate purposeful organisations through methodical, coordinated,
and cooperative human effort," says McFarland.
"Management is a separate process consisting of planning, organising,
actuating, and regulating, conducted to define and accomplish stated objectives
by using human beings and other resources," writes G. R. Terry

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 MANAGEMENT FUNCTIONS
Func ons of Management – Planning, Organising, Staffing, Direc ng and
Controlling.

PLANNING

Planning is the func on of management that involves se ng objec ves and

determining a course of ac on for achieving those objec ves. Planning
is deciding in advance what to do, how to do it, when to do it, and who should
do it.

Features of Planning

 Planning is Goal Oriented

 Planning is a Primary Func on

 Planning is All-Pervasive

 Planning is an Intellectual or Ra onal Process

 Planning is a Con nuous Process

 Planning is Forward-Looking

 Planning Involves Choice

 Planning is an Integrated Process

 Planning is a Mental Exercise

 Leads to Efficiency and Economy

 Limi ng Factors

 Co-ordina ng

 Flexiblity

 Realis c

Importance of Planning
 Planning provides direc ons: Planning assures that the objec ves are
certainly asserted so that they serve as a model for determining what

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 ac on should be taken and in which direc on. If objects are well
established, employees are informed of what the company has to do and
what they need do to accomplish those purposes.
 Planning decreases the chances of risk: Planning is an ac vity which
permits a manager to look forward and predict changes. By determining
in prior the tasks to be completed, planning notes the way to deal with
changes and unpredictable effects.
 Planning decreases overlapping and wasteful ac vi es: Planning works
as the founda on of organising the ac vi es and purposes of dis nct
branches, departments, and people. It assists in avoiding chaos and
confusion. Since planning guarantees precision in understanding and
ac on, work is conducted on easily without delays.
 Planning encourages innova ve ideas: Since it is the primary func on of
management, new approaches can take the form of actual plans. It is the
most challenging project for the management as it leads all planned
ac ons poin ng to growth and of the business.
 Planning aids decision making: It encourages the manager to look into
the future and make a decision from amongst several alterna ve plans of
ac on. The manager has to assess each op on and pick the most viable
plan.

Planning process
(1) Se ng Objec ves
 This is the primary step in the process of planning which specifies the
objec ve of an organisa on, i.e. what an organisa on wants to achieve.
2) Developing Planning Premises
 Planning is essen ally focused on the future, and there are certain
events which are expected to affect the policy forma on.
(3) Iden fying Alterna ve Courses of Ac on
 Once objec ves are set, assump ons are made.
 Then the next step is to act upon them.
 There may be many ways to act and achieve objec ves.

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(4) Evalua ng Alterna ve Course of Ac on
 In this step, the posi ve and nega ve aspects of each alterna ve need to
be evaluated in the light of objec ves to be achieved.
(5) Selec ng One Best Alterna ve
 The best plan, which is the most profitable plan and with minimum
nega ve effects, is adopted and implemented.
(6) Implemen ng the Plan
 This is the step where other managerial func ons come into the picture.
 This step is concerned with “DOING WHAT IS REQUIRED”.
 In this step, managers communicate the plan to the employees clearly to
help convert the plans into ac on.
(7) Follow Up Ac on
 Monitoring the plan constantly and taking feedback at regular intervals is
called follow-up.
 Monitoring of plans is very important to ensure that the plans are being
implemented according to the schedule.

Elements of Planning:
 Objec ves: Objec ves or the goals of the organiza on are the
ends towards which every ac vity of the organiza on is aimed at.
 Strategy: A strategy is a comprehensive plan to achieve the
organisa onal objec ves. The dimensions of strategy are : (i)
Determining long-term objec ve. (ii) Adop ng a par cular course of
ac on. (iii) Alloca ng resources for achieving the objec ves.
 Policy: These are the general guidelines which facilitate uniformity
in decision-making for the a ainment of objec ves of the
organisa on. It can be defined as organisa on's general response to a
par cular problem or situa on.
 Procedures: Procedures are designed to execute policies and
achieve objec ves. For example, the procedure may be for the
purchase of raw material, selec on of employees, redressal of
grievances, etc

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  Rules: These are specific statements that inform what is to be done.
They do not allow any flexibility or discre on.
 Methods: Method gives prescribed ways or manner in which the
task has to be performed considering the objec ves of the business
plan.
 Budget: A budget is a financial plan that outlines the expected
income and expenses for a defined period.
 Programmes: Programmes are the combina on of goals, policies,
procedures and rules. All these plans together form a program. The
programmes are made to get a systema c working in the
organisa on.

Organisa on
An organiza on is a group of people with a defined rela onship in
which they work together to achieve the goals of that organiza on.
This rela onship does not come to end a er comple ng each task.
Organiza on is a never ending process.
Characteris cs of organisa on
1. Clear Structure: A well-organized en ty has a clearly defined structure
that outlines roles, responsibili es, and repor ng lines. It establishes a
hierarchy and establishes the flow of informa on and decision-making.

2. Division of Labor: Organiza on involves dividing tasks and

responsibili es among individuals or teams based on their skills and
exper se.

3. Coordina on and Communica on: Effec ve organiza on requires

seamless coordina on and communica on between different
departments, teams, and individuals.

4. Specializa on: The organiza on allows individuals to specialize in their

respec ve areas, leveraging their exper se to deliver high-quality results.
This enhances efficiency and encourages professional growth enabling
companies to tap into the full poten al of their workforce.

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 5. Standardiza on: Organized en es o en establish standardized
procedures and policies. This ensures consistency and uniformity in
opera ons, leading to improved quality control, reduced errors, and
be er customer experiences.

6. Flexibility and Adaptability: While the organiza on provides

structure, it also allows for flexibility and adaptability to changing
circumstances. A well-organized en ty can adjust its strategies,
processes, and resources to respond to market dynamics and evolving
business needs.

STEPS IN ORGANISING PROCESS

1. Iden fica on and Division of Work:
The process of organising starts with the iden fica on and division
of work. The whole work is to be divided into manageable
ac vi es so that duplica on is avoided and work can be
completed as per predetermined goals.
2. Departmentalisa on:
Departmentalisa on refers to the process of grouping the
ac vi es of similar nature under same departments. This
facilitates specialisa on and coordina on in the organisa on.
3. Assignment of Du es:
Once the departments have been formed; the next step is to
assign the work to the employees according to their skills and
competencies. In order to ensure effec ve performance in an
organiza on, it is essen al that a balance is created between the
nature of a job and ability of the employee responsible for that
job.
4. Establishing Repor ng Rela onships:
Establishing responsibility rela onships in an organisa on
structure implies the alloca on of authority and responsibility
among employees of the enterprise in such a way that each
person should know who is responsible to whom and for what.

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Importance of Organizing

Efficient Administration
It brings together various departments by grouping similar and related jobs
under a single specialization. This establishes coordination between different
departments, which leads to unification of effort and harmony in work.

Resource Optimization
Organizing ensures effective role-job-fit for every employee in the
organization. It helps in avoiding confusion and delays, as well as duplication
of work and overlapping of effort.

Benefits Specialization
It is the process of organizing groups and sub-divide the various activities
and jobs based on the concept of division of labor. This helps in the
completion of maximum work in minimum time ensuring the benefit of
specialization.

Promotes Effective Communication

Organizing is an important means of creating coordination and
communication among the various departments of the organization. Different
jobs and positions are interrelated by structural relationship. It specifies the
channel and mode of communication among different members.

Creates Transparency
The jobs and activities performed by the employees are clearly defined on
the written document called job description which details out what exactly has
to be done in every job. Organizing fixes the authority-responsibility among
employees. This brings in clarity and transparency in the organization.

Expansion and Growth

When resources are optimally utilized and there exists a proper division of
work among departments and employees, management can multiply its
strength and undertake more activities. Organizations can easily meet the
challenges and can expand their activities in a planned manner.

Reduction in labour turnover

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Employee turnover can be reduced by implementing a combination of
strategies focused on improving job satisfaction and employee engagement.

DELEGATION OF AUTHORITY
Delega on of Authority is defined as the specific wri en transfer of. authority
from one official in ED (delegator) to another official in ED. (delegatee). The
transfer of authority must be signed by the official. authorized to delegate the
authority.

ELEMENTS OF DELEGATION

1] Responsibility

A manager will assign some specific work or task to his subordinate. Thus he is
assigning his team-member or subordinate with some responsibili es.

It is not the job of this subordinate to work efficiently and use his mental and
physical capacity to accomplish the task and hence fulfill his responsibility.

2] Authority

Now if the subordinate has to fulfill his responsibility he will need the tools to do
so. One of these tools is the authority that comes with responsibility.

This is the power to take certain decisions in order to accomplish tasks. So when
the manager will delegate the work, he also delegates the authority.

3] Accountability

Once the manager delegates the work and the authority, he needs to check on
the work of his subordinates. He is accountable for the work done by his
subordinates.

Unlike authority, accountability cannot be delegated. So the incapability of the

subordinate to complete the task sa sfactorily will be the manager’s fault.

STAFFING

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Staffing can be defined as one of the most important func ons of management.
It involves the process of filling the vacant posi on of the right personnel at the
right job, at right me. Hence, everything will occur in the right manner.

Features of Staffing

Following are the features of staffing:

 Staffing is an integral part of management: Staffing is an integral part of

management because an organiza on cannot exist without human
resources.

 Pervasive: It is pervasive because staffing is performed by all managers at

all level and in every department.

 Con nuous Process: Staffing is a con nuous process because it con nues
throughout the life of the organiza on. It is required to meet the growing
needs of an organiza on.

 Deals with a human being: Staffing deals with people because it is

concerned with the people at work and their rela onships.

 Wide scope: Staffing has a wide scope because it includes a series of

ac vi es, like; workforce, planning,recruitement, selec on, and training.

 Mul ple objec ve ac vity: It is a mul ple objec ve ac vity because it has
to fulfill its responsibility towards the organiza on, employees and
society.

Importance of Staffing

Following are the importance of staffing:

 Filling job with competent personnel: Staffing involve with proper

arrangement of people through proper recruitment and selec on
process. It helps with obtaining competent staff for various jobs.

 Be er performance: The performance of an organiza on depends on the

quality of persons employed in the organiza on. The func on of staffing is
significant because it ensures higher performance by pu ng the right
person in the right job at the right me.

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 Survival and growth: Staffing is a very important func on of
management in comparison to other func ons because all the func ons
of an organiza on are performed by the people. Competent and efficient
workers bring an organiza on into existence and ensure its survival and
growth.

 Op mum u liza on of human resources: The staffing process helps to

ensure op mum use of human resources by avoiding overstaffing. It
prevents the underu liza on of personnel and higher labor cost. It also
helps in avoiding disrup on of work by indica ng in advance the shortage
of personnel.

 Improve job sa sfac on and morale: Proper staffing improves job

sa sfac on and morale of employees through objec ve assessment and
fair rewarding for their contribu on. It provides right kind of work
atmosphere and culture to employees.

STAFFING PROCESS

Staffing is a very important part of running a business or an organisa on. It is

referred to as the process of obtaining and hiring of manpower for the
various business requirements. Staffing is regarded as an essen al
managerial func on.

Staffing process consists of the following steps:

1. Manpower Planning

2. Recruitment

3. Selec on

4. Placement

5. Training

6. Development

7. Promo on

8. Transfer

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9. Appraisal

10. Determina on of Remunera on

We will be discussing all these steps in detail in the following lines.

Manpower Planning: Manpower planning is the quan ta ve and qualita ve

measurement of the manpower that is required in an organisa on. It
involves evalua on and crea on of the manpower inventory and also to
develop the necessary talents among the employees that are selected for
obtaining promo on.

Recruitment: Recruitment is the process of finding the poten al employees

of an organisa on and persuading them to apply for the available posi ons in
the organisa on. If the recruitment process is followed scien fically, then it
will result in be er wages, high morale and higher produc vity among the
employees.

Selec on: Selec on is the process of shortlis ng of poten al candidates and

elimina ng the candidates that are not suitable for the posi ons available in
the organisa on. The purpose of selec on is to hire the right candidate for
the right posi on, which will lead to efficient running of opera ons for the
organisa on.

Placement: Placement refers to the process of introducing an employee to

the job for which he was hired in the organisa on. The employee will be
provided with a basic orienta on about the company and its work areas.

Training: Training is the process of providing the newly recruited employees

an idea about the type of work that they are going to do and how to do that.
This falls under the training department.

Development: Development refers to the opportunity of growth of the

employees in the organisa on. The organisa on must provide ample
opportuni es for the development of the employees, without which the
employees may become frustrated.

Promo on: Promo on is referred to as the process of giving the employees a

raise in salary, designa on or both. The raise in designa on is associated with

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 a raise in wages or bonus or incen ves. There can be some instances where
the change in designa on does not result in increase in pay.

Transfer: Transfer is the process of shi ing of an employee from one posi on
to another in the organisa on without any monetary benefit, or any increase
in the responsibili es. This func on needs to be evaluated from me to me.

Appraisal: Appraisal is the process of checking the progress of the work done
by the subordinates. It also studies human behavior and also the a tude and
ap tude of the employee towards performing the job.

Determina on of Remunera on : The remunera on of an employee is very

important for sustenance. It is regarded as one of the difficult func ons to
perform as there exists no tools which can accurately determine wages.

Direc ng
Direc ng refers to a process or technique of instruc ng, guiding, inspiring,
counselling, overseeing and leading people towards the accomplishment of
organiza onal goals. It is a con nuous managerial process that goes on
throughout the life of the organiza on.

Features of Direc ng

Main characteris cs of Direc ng are as follows:

1. Ini ates Ac on

A direc ng func on is performed by the managers along with planning,

staffing, organizing and controlling in order to discharge their du es in the
organiza on. While other func ons prepare a pla orm for ac on, direc ng
ini ates ac on.

2. Pervasive Func on

Direc ng takes place at every level of the organiza on. Wherever there is a
superior-subordinate rela onship, direc ng exists as every manager provides
guidance and inspira on to his subordinates.

4. Con nuous Ac vity

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It is a con nuous func on as it con nues throughout the life of organiza on
irrespec ve of the changes in the managers or employees.

5. Descending Order of Hierarchy

Direc ng flows from a top level of management to the bo om level. Every

manager exercises this func on on his immediate subordinate.

6. Human Factor

Since all employees are different and behave differently in different

situa ons, it becomes important for the managers to tackle the situa ons
appropriately. Thus, direc ng is a significant func on that gets the work done
by the employees and increases the growth of the organiza on.

Elements of direc ng
Communica on:

Effec ve communica on is the cornerstone of direc ng. Managers must

clearly ar culate goals, expecta ons, and instruc ons to ensure employees
understand what is required. Open and transparent communica on channels
help convey the organiza on’s vision, foster clarity, and prevent
misunderstandings.

Leadership:

Leadership is about se ng an example and inspiring others to follow suit.

Managers should exhibit strong leadership quali es by demonstra ng
commitment, integrity, and a strong work ethic. Effec ve leaders mo vate
their teams and create an environment where employees feel valued and
inspired to perform at their best.

Mo va on:

Mo va on involves encouraging employees to put forth their best effort

willingly. Managers can employ various mo va onal techniques, such as
recogni on, rewards, and career development opportuni es, to boost
employee morale and engagement. Understanding what drives each team
member and tailoring mo va on accordingly is key.

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Supervision:

Supervision involves monitoring and overseeing the progress of tasks and

projects. While delega on grants autonomy, supervision ensures that work is
on track and aligned with organiza onal goals. Managers need to strike a
balance between providing guidance and allowing employees room to
perform their du es.

Importance of Direc ng
The importance of direc ng are as follows:

 Direc ng Ini ates ac on: Direc ng sets an organisa on into mo on, and
helps other managerial func ons to ini ate and ac vate. It helps the
managers to supervise, communicate, lead, guide and mo vate the
subordinates to achieve the organisa onal goals.

 Direc ng leads to integrated group ac vity: The organisa onal objec ves
can be achieved only when individual efforts are integrated. Direc ng
integrates employees’ efforts in such a way that every individual effort
contributes to organisa onal performance.

 Direc ng a empts to get maximum out of individuals: Direc ng helps

superiors to realise the poten al and iden fy the capabili es of
individuals by mo va ng and guiding them. By using the elements of
direc ng, i.e., supervision, mo va on, leadership, and communica on,
the efficiency of employees can be raised.

 Direc ng helps to implement changes: Direc ng helps to introduce

changes in an organisa on. Generally, people in an organisa on resist
changes. Effec ve communica on, supervision, mo va on and guidance
help to overcome such resistance at the workplace.

 Direc ng provides stability and balance in the organisa on: Stability and
balance are maintained in an organisa on with the help of direc ng

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because it fosters coopera on and commitment amongst employees, and
helps to achieve balance amongst various groups, departments, units, etc.

Controlling
Controlling in management refers to the process an organiza on
implements in evalua ng the progress in a aining its set goals. This
process involves monitoring the execu on of the plan and correc ng any
devia ons.

Features of Controlling

The following are some basic features of the controlling process:

i) Forward-looking

Controlling is a forward-looking process because all of its efforts dictate

future courses of ac on. Managers o en use experiences from the past
to make correc ons for the future.

ii) Exists at all levels

The process of controlling is all-pervasive. In other words, managers at all

levels of management hierarchies have to use controlling. The nature of
controlling measures that managers use might differ but they all have to
use them.

iii) Con nuous ac vity

Controlling is not a one-off ac vity that managers have to perform once in

a while. It is generally a con nuous process that goes on permanently in
different ways. Managers have to constantly compare their actual results
with their targets and make changes accordingly.

iv) Posi ve purpose

The objec ve of control is to create posi ve impacts at both

organiza onal and individual levels. At the organiza onal level, it aims to
fulfill the organiza on’s goals. At an individual level, control strives to

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increase produc vity and make individuals benefit as well. Hence, control
has a largely posi ve purpose in every way.

Importance of Controlling

The following are some factors contribu ng to the importance of

controlling:

a) Decentraliza on of authority

Since managers at every level of an organiza on have to exercise control,

the controlling process leads to decentraliza on. This, in turn, enables
middle and lower level managers to have some autonomy in making
decisions. An organiza on that distributes authority at every level always
works smoothly and efficiently.

b) Increasing managerial abili es

By enabling all managers to possess the autonomy to make decisions,

controlling enhances their managerial abili es. With these skills,
managers can further their organiza on’s goals by adap ng to diverse
situa ons and problems. Furthermore, this also helps managers grow and
develop at an individual level by giving them new experiences.

c) Using resources effec vely

The most important func on of controlling is to compare actual

performances with expected results. This, in turn, helps managers
understand where they are lacking and how they can improve their
performances. Using this knowledge, managers can use all available
resources op mally and prevent their wastage.

d) Facilita ng coordina on

In every business organiza on, managers and employees always have to

coordinate and work with each other collec vely. Controlling improves
this coordina on by basically demarca ng all ac vi es and efforts into

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fixed boundaries. It brings together all the resources of an organiza on
and enables its personnel to work together with unified efforts.

e) Structuring human behaviour

Since all organiza ons have to depend on humans for func oning, they
need to regulate human behaviour of their employees. Controlling
ra onalizes this human behaviour and prevents employees from behaving
arbitrarily and badly. It basically does so by providing for sanc ons in case
employees do not prescribe to expected standards of behaviour.

f) Achieving efficiency and effec veness

A good control system can always greatly boost an organiza on’s

efficiency and effec veness. It generally does this by iden fying
deficiencies in an organiza on’s func oning and sugges ng improvement
measures. Managers use control to achieve their targets in this manner.

Process of Controlling
Different steps involved in the process of controlling are as follows:

1. Se ng Performance Standards

The first step of the process of controlling is to establish standards of

performance against which the actual performance of the organisa on is
measured. An organisa on should clearly define its standards to the
employees and must establish a ainable, understandable, and realis c
standards to be achieved. Standards can be set in quan ta ve terms as
well as qualita ve terms.

2. Measurement of Actual Performance

Once the organisa on has established the standards, the second step of
the process of controlling is to measure the actual performance in a
reliable and objec ve manner. The actual performance of an organisa on

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can be measured through different techniques such as sample checking,
personal observa on, etc.

3. Comparison of Actual Performance with Standards

The third step of the process of controlling is to compare the actual

performance of the organisa on with the established standards (in the
first step). By comparing the actual performance with the standards, an
organisa on can determine the devia on between them. When the
standards are expressed in quan ta ve terms, it becomes easy for the
organisa on to make comparisons as there is no subjec ve evalua on
required.

4. Analysing Devia ons

The actual performance and set standards of an organisa on rarely match

with each other. Usually, there is always some varia on between the
expected and actual performance. Therefore, the fourth step of the
process of controlling is to analyse the devia ons. To do so, an
organisa on must fix an acceptable range of devia on in performance.
Besides, an organisa on should focus more on the significant devia on
and less on the minor devia ons.

5. Taking Correc ve Ac on

The last and final step of the process of controlling is to take correc ve
ac on. If the devia ons are within the acceptable limits set by the
managers, then there is no need to take correc ve ac on. However, if the
devia ons go beyond the set acceptable limit in the key areas, then
proper and immediate managerial ac ons are required. An organisa on
can easily rec fy the defects in the actual performance through the
correc ve steps.

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