A car manufacturing company sets a goal that in future, they will expand their production by 15%. After measuring the performance, they noticed that the production has declined by 10% and the raw material is wasted by the production department.
Relate it to the concept of controlling and which values are ignored in this case?
It is related to the second and the third step of . controlling process. As per this, when the goals are set, the next step is the measurement of actual performance and then at the third step, actual performance is compared with the standards.
It is given in the case that the production has declined by 10% and the department wasted a lot of raw material. Thus, in this case, measurement helps to analyse the efficiency of production department.
The values of a company ignored by the production manager are:
(i) Lack of initiative, commitment, etc.
(ii) Showing irresponsible behaviour because he neither saves the money nor the raw material of a company.