There are four steps in the control process. They are as follows:
Step 1. Establish Performance Standards. Standards are created when objectives are set during the planning process. A standard is any guideline established as the basis for measurement. It is a precise, explicit statement of expected results from a product, service, machine, individual, or organizational unit. It is usually expressed numerically and is set for quality, quantity, and time. Tolerance is permissible deviation from the standard.
Step 2. Measure Actual Performance. Supervisors collect data to measure actual performance to determine variation from standard. Written data might include time cards, production tallies, inspection reports, and sales tickets. Personal observation, statistical reports, oral reports and written reports can be used to measure performance. Management by walking around, or observation of employees working, provides unfiltered information, extensive coverage, and the ability to read between the lines. While providing insight, this method might be misinterpreted by employees as mistrust. Oral reports allow for fast and extensive feedback. Computers give supervisors direct access to real time, unaltered data, and information. On line systems enable supervisors to identify problems as they occur.
Database programs allow supervisors to query, spend less time gathering facts, and be less dependent on other people.
Step 3. Compare Measured Performance Against Established Standards. Comparing