QS Study

Comparing Actual Performance with Standards

This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results.

Comparison becomes easier when standards are set in quantitative terms. For instance, performance of a worker in terms of units produced in a week can be easily measured against the standard output for the week.

Comparing Performance against Standards

  • Performance may be higher than, lower than or identical to the standard.
  • The timetable for comparing performance to standards depends on a variety of factors
  • Annual comparisons may be appropriate for longer-run and higher-level standards.

Examples of Qualitative Standards:

(a) Improving motivation level of employees.

(b) Improving labor relations.

(c) Improving quality of products.

(d) Improving goodwill etc.

Thus, standards proceed as a lighthouse that warns and guides the ships at sea. Standards are the benchmarks towards which efforts of whole organization are directed.