Bifalgorithm post · IntroductionToBusiness OP 8D04gAa · 2026-10-07-36573 · 6.5. Controlling*

How are performance standards used to control organizational performance?

How are performance standards used to control organizational performance? (IntroductionToBusiness OP 8D04gAa · 2026-10-07-36573 · 6.5. Controlling*) — "Perform…

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Performance standards are the levels of performance the company wants to attain.
These goals are based on the company’s strategic, tactical, and operational plans.
Effective standards state measurable behavioral objectives achievable within a specified time frame.
A sales-division objective could be $200,000 in gross sales for January.
Each individual employee also receives a specified performance goal.
Actual firm, division, or individual performance is compared with the desired standards.
The comparison determines whether a gap exists between desired and actual performance.
When a performance gap exists, its reason must be determined.
Corrective action must be taken to address the performance gap.
Feedback is essential to the process of control.
Most companies use a reporting system to identify areas where standards are not being met.

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How are performance standards used to control organizational performance?

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IntroductionToBusiness OP 8D04gAa · 2026-10-07-36573

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"Performance standards are the levels of performance the company wants to attain. These goals are based on its strategic, tactical, and operational plans. The most effective performance standards state a measurable behavioral objective that can be achieved in a specified time frame. For example, the performance objective for the sales division of a company could be stated as “$200,000 in gross sales for the month of January.” Each individual employee in that division would also have a specified performance goal. Actual firm, division, or individual performance can be measured against desired performance standards to see if a gap exists between the desired level of performance and the actual level of performance. If a performance gap does exist, the reason for it must be determined and corrective action taken. Feedback is essential to the process of control. Most companies have a reporting system that identifies areas where performance standards are not being met. A feedback system helps managers detect problems before"

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