CBSE 2025, BS Set 1

Question

'Alpha Manufacturing Ltd.' is a company manufacturing high quality car spare parts. The company has a well-established production line and its products are highly demanded in the market. However, it was noticed that the defect rate in the manufacturing process was higher than the standard of 10 per 1,000 pieces produced. In spite of best efforts, the Production Manager was not able to reduce the defect rate. So, he decided to revise the standards.

The step of the controlling process, followed by the Production Manager after not being able to reduce the defect rate, will be: A). Taking corrective action B). Measurement of actual performance C). Analysing deviations D). Comparing actual performance with standards

Edvaya · Accepted Answer

The correct answer is Taking corrective action. When deviations between actual performance and standards cannot be eliminated through operational improvements, it may indicate that the **standards themselves were set incorrectly** (too stringent or based on wrong assumptions). In such cases, **revising or modifying the standards** is a valid and recognized component of the final step of the controlling process: **Taking Corrective Action**. Corrective action does not always mean fixing the performance — it can also mean fixing unrealistic standards when the deviation is uncontrollable.

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Business Studies > Principles And Functions Of Management > Controlling

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