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CSEET · Business Laws and Management · Functions of Management

Sundaram Textiles finds that its monthly sales target of ₹50 lakh was missed by ₹4 lakh because the standard itself was set without considering a seasonal festival lull. The manager revises the target for that period instead of pressing the sales team. Which feature of the controlling process is best illustrated?

The case shows that corrective action may include revising the standards. When deviation analysis reveals the target itself was unrealistic, the right response is to modify the standard rather than blame or penalise employees, so control remains fair and meaningful.

  1. APenalising the responsible employees for the deviation
  2. BIgnoring the deviation because it was below ten percent
  3. CTaking corrective action that may include revising the standardsCorrect
  4. DMeasuring performance by personal observation only

Explanation

Deviation analysis can show the cause lies in faulty standards rather than poor performance. Corrective action then includes revising standards, as done here. Penalising staff would be wrong since the fault was in the target, and nothing in the case suggests the deviation was ignored or that observation was the only measure used.

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