Correct Answer: Setting performance standards.

Solution : The correct answer is (a) Setting performance standards.

The first step in the process of controlling is setting performance standards. Performance standards are predetermined expectations or benchmarks that define the desired level of performance for various activities, processes, or outcomes within an organization. These standards serve as a reference point against which actual performance can be measured and evaluated.

Setting performance standards involves determining what is considered acceptable and desirable performance. It includes defining specific, measurable, and realistic goals, targets, or criteria that indicate the desired outcomes or performance levels. Performance standards can be established for various aspects, such as quality, quantity, time, cost, efficiency, customer satisfaction, and more, depending on the nature of the organization and its objectives. Setting performance standards is the initial step in the controlling process as it establishes the criteria for evaluating performance and serves as a reference point for measuring and assessing actual performance.