Process of Controlling:

Controlling is an essential managerial function that involves monitoring and regulating performance to ensure that organizational goals are achieved effectively and efficiently. The process of controlling consists of several steps that guide managers in evaluating performance and taking corrective actions when necessary. The correct sequence of steps in the process of controlling is as follows:

1. Setting Performance Standards:
The first step in the controlling process is to establish performance standards. Performance standards are predetermined benchmarks or targets that define the expected level of performance. These standards can be based on various factors such as industry benchmarks, past performance, or organizational goals. Clear and specific performance standards help in evaluating performance accurately.

2. Measurement of Actual Performance:
Once performance standards are set, the next step is to measure the actual performance. This involves collecting data and information about the performance of individuals, teams, or the organization as a whole. Various tools and techniques can be used to measure performance, such as performance appraisals, key performance indicators (KPIs), or financial statements.

3. Comparing Actual Performance with Standards:
After measuring the actual performance, it needs to be compared with the established performance standards. This step helps in identifying any deviations or gaps between the desired and actual performance. By comparing the two, managers can determine whether performance is meeting, exceeding, or falling short of the set standards.

4. Analyzing Deviations:
Once deviations or variances are identified, the next step is to analyze them. This involves understanding the reasons behind the deviations and investigating the factors contributing to them. Analyzing deviations helps in identifying the root causes of performance gaps and provides insights into areas that require improvement or corrective actions.

5. Taking Corrective Action:
The final step in the controlling process is to take corrective action to address the identified deviations. Corrective actions can involve making changes to the processes, reallocating resources, providing additional training or support, or revising performance standards. The aim is to bring the actual performance back in line with the established standards and ensure that organizational goals are achieved effectively.

Correct Sequence:
The correct sequence of steps in the process of controlling is as follows:

C. Setting performance standards
B. Measurement of actual performance
D. Comparing actual performance with standards
A. Analyzing deviations
E. Taking corrective action

Explanation:
The correct answer is option 'B' because it follows the logical sequence of the controlling process. Setting performance standards (C) is the first step as it provides a benchmark for evaluating performance. Measurement of actual performance (B) comes next to gather data on how well the performance aligns with the set standards. Comparing actual performance with standards (D) follows to identify any deviations or gaps. Analyzing deviations (A) is the subsequent step to understand the reasons behind the variations. Finally, taking corrective action (E) is the last step to address the identified deviations and improve performance. Therefore, the correct sequence is B, C, D, A, E.