CBSE Class 12 Business Studies 2015 Outside Delhi set 1

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A.S. Ltd., is a large company engaged in assembly of air-conditioners. Recently the company had conducted the 'Time' and 'Motion' study and concluded that on an average a worker can assemble ten airconditioners in a day. The target volume of the company in a day is assembling of 1,000 units of air-conditioners. The company is providing attractive allowances to reduce labour turnover and absenteeism. All the workers are happy. Even then the assembly of air-conditioners per day is 800 units only. To find out the reason the company compared actual performance of each worker and observed through C.C.T.V. that some of the workers were busy in gossiping.
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Question : 12
Total: 39
State those steps in the process of the function identified which are discussed in the above paragraph.
Solution:  
The following steps of controlling are discussed in the given case:
(i) Setting up of performance standards: The first step of controlling process is to set up the quantitative standards. As in the given case assembling of 1000 units per day is quantitative standards set for the workers to achieve.
(ii) Measuring the actual performance: Once the standards have been set, the next step is to measure the actual performance. The actual performance in the given case is assembling of 800 units of air conditioners.
(iii) Comparing the actual performance with standard: The next step in controlling process is to compare the actual performance with standard performance. Such comparisons will reveal the deviations. In the above case the deviation is of 200 units.
(iv) Analysing deviations: In this step reason for diviation is being analised. In the given case it is observed through CCTV. That some workers were busy in gossiping.
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