Question

Which of the following is the first major step in the formal control process?

A. Comparing performance with standards

B. Setting standards

C. Taking corrective action

D. Developing values

E. Measuring performance

Answer 1

The first major step in the formal control process is B. Setting standards.

Step-by-step explanation:

Setting standards is the initial phase in the formal control process as it establishes the benchmarks or criteria against which performance will be measured. These standards serve as the reference point for evaluating actual performance. Once these benchmarks are set, the subsequent steps—measuring performance, comparing it with the established standards, identifying variations or deviations, taking corrective action, and finally, reinforcing positive outcomes—are implemented.

Without predetermined standards, there would be no basis for evaluation or comparison, rendering the control process ineffective. Therefore, the establishment of standards is foundational, enabling organizations to gauge performance and make informed decisions about necessary adjustments or improvements.

Correct Answer: B. Setting standards