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CMA Foundation · Fundamentals of Business Economics and Management · Communication, Co-ordination, Collaboration, Monitoring and Control

A plant manager at a Pune auto-parts firm reviews daily output reports and notices that production in the machining section is running 8% below the weekly target by Wednesday. Which role of monitoring is mainly illustrated?

The case illustrates monitoring's role in early detection of deviations. Because the shortfall is noticed on Wednesday, before the week ends, the manager can still take corrective action. Monitoring supplies timely information on progress, whereas mission setting, pay fixation and board appointments are unrelated to tracking performance.

  1. AEarly detection of deviations so corrective steps can be taken before the period endsCorrect
  2. BDeciding the long-term mission of the firm
  3. CFixing the salary structure of workers
  4. DAppointing a new board of directors

Explanation

Spotting a shortfall midweek gives time to correct it before the target period ends. This is the early-warning role of monitoring. The other options relate to strategy, compensation, and governance, not tracking of progress.

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