Question : Statement 1: Controlling involves setting performance standards.
Statement 2: Controlling involves evaluating employee performance.
Option 1: Both correct.
Option 2: Both incorrect.
Option 3: Statement 1 correct, Statement 2 incorrect.
Option 4: Statement 2 incorrect, Statement 1 correct.
Correct Answer: Statement 1 correct, Statement 2 incorrect.
Solution : The correct answer is (a) Both correct.
Statement 1 is correct. Setting performance standards is an integral part of the controlling function in management. Performance standards serve as the criteria against which actual performance is measured and evaluated.
Statement 2 is also correct. Part of the controlling function in management is the evaluation of employee performance. This evaluation is done by comparing actual performance against the established performance standards and taking corrective action as necessary.
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