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Question : Case Study 3:

LMN Corporation is a multinational conglomerate with various business units. The company has a decentralized management structure and wants to ensure effective coordination among its units.

Question:

Which step in the process of controlling would LMN Corporation prioritize to achieve coordination?

Option 1: Setting performance standards.

 

Option 2: Measuring actual performance.

Option 3: Comparing actual performance with standards.

Option 4: Taking corrective action.


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Comparing actual performance with standards.


Solution : The correct answer is (c) Comparing actual performance with standards.

Comparing actual performance with standards allows the company to identify any deviations or discrepancies between what was planned and what is actually happening. This step is essential for identifying areas where coordination may be lacking or where business units might be deviating from the overall strategic direction. By comparing the performance of different units against established standards, LMN Corporation can assess whether they are operating in alignment with the company's goals and make informed decisions to address any coordination issues that arise.

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