1. Step 1 : Establish standard

The first step in control is to establish performance standard at strategic points. A performance or control standard is a planned target against which the actual performance will be compared. To make the control process possible and worth while, the performance standard should be relevant, realistic, attainable and measurable so that can be no doubt whether the actual performance meet the standard or not. Example of standard performance or other functional areas that has been developing is Profit standard, Market share standard, Productivity and Staff development standard (Prof G.J de Cronje 2001: 264-265)

It is important for performance standard to be set in a manner that is detailed enough to allow them to be compared with actual performance whenever possible. Standards are function of a goal that is set in the planning phase. In addition of other functions are Inventory standard, Accounts...