Question : Which management function involves setting performance standards and measuring actual performance against them?
Option 1: Planning
Option 2: Organizing
Option 3: Controlling
Option 4: Directing
Correct Answer: Controlling
Solution : The correct answer is (c) Controlling
Controlling is the management function that focuses on monitoring performance and ensuring that it aligns with the set standards, goals, and objectives. This function involves establishing performance standards or benchmarks that serve as a reference point for evaluating actual performance. Managers use various control mechanisms, such as performance metrics, Key Performance Indicators (KPIs), and regular assessments, to measure and compare actual performance against these standards. The purpose of controlling is to identify any deviations or variances from the desired performance and take corrective actions as necessary to bring performance back on track. Therefore, controlling is the management function that involves setting performance standards and measuring actual performance against them.
