Sita, Geeta and Babita Ltd. is engaged in manufacturing machine components. The target of production is 250 units per day per worker.
Sita, Geeta and Babita Ltd. is engaged in manufacturing machine components. The target of production is 250 units per day per worker. The company had been successfully attaining this target until two months ago. Over the last two months it has been observed that daily production varies between 200-210 units per worker.
(i) Name the function of management and identify the step in the process of this function which helped in finding out that the actual production of a worker is less than the set target.
(ii) To complete the process of the function identified in (i) and to ensure the performance as per set targets, explain what further steps a manager has to take.
1 Answers
(i) The function of management is 'controlling'. This is the third step of controlling process i.e., comparison of actual performance with established standards. This step involves finding deviations and their extent in identifying the causes of such deviations.
(ii) Taking corrective actions: This is the last step of controlling process. By comparing actual performance with established standards, deviations are revealed. The remedial or corrective action is to be taken to remove deficiencies. Here, it involves change in working methods, material, machines, policies and procedures. It may also require improvement in the motivation, supervision and modifications in the business plans.