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Because plans are the yardsticks against which controls must be revised, it follows logically that the first step in the control process would be to accomplish plans. Plans can be considered as the criterion or the standards against which we compare the actual performance in order to figure out the deviations.
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Standards are by definition is a simple criteria of performance. They are the selected points in an entire planning program where measures of performance are made so as to give managers signals as to how things are going without having to watch every step in the execution of plans. |
Examples for the standards
a) Profitability standards: In general, these standards indicate how much the company would like to make as profit over a given time period- that is, its return on investment.
b) Market position standards: These standards indicate the share of total sales in a particular market that the company would like to have relative to its competitors.
c) Productivity standards: How much that various segments of the organization should produce is the focus of these standards.
d) Product leadership standards: These indicate what must be done to attain such a position.
e) Employee attitude standards: These standards indicate what types of attitudes the company managers should strive to indicate in the company’s employees.
f) Social responsibility standards: Such as making contribution to the society.
g) Standards reflecting the relative balance between short and long range goals.
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