Compare Performance To Standards
The comparing step determines the degree of variation between actual performance and standard. If the first two phases have been done well, the third phase of the controlling process - comparing performance with standards - should be straightforward. However, sometimes it is difficult to make the required comparisons (e.g., behavioral standards).
Some deviations from the standard may be justified because of changes in environmental conditions, or other reasons.
Determine The Reasons For The Deviations
The fight step of the control process involves finding out: "why performance has deviated from the standards?" Causes of deviation can range from selected achieve organizational objectives. Particularly, the organization needs to ask if the deviations are due to internal shortcomings or external changes beyond the control of the organization.
A general checklist such as following can be helpful:
- Are the standards appropriate for the stated objective and strategies?
- Are the objectives and corresponding still appropriate in light of the current environmental situation?
- Are the strategies for achieving the objectives still appropriate in light of the current environmental situation?
- Are the firm's organizational structure, systems (e.g., information), and resource support adequate for successfully implementing the strategies and therefore achieving the objectives?
- Are the activities being executed appropriate for achieving standard?
The locus of the cause, either internal or external, has different implications for the kinds of corrective action.