What does measuring actual performance against goals and reacting to deviations refer to in business?

Measuring actual performance against goals and reacting to deviations refers to the control process in business. This involves monitoring and evaluating ongoing activities to ensure that they align with the set goals and objectives. When discrepancies between actual performance and desired outcomes arise, management takes corrective actions to address these deviations.

This process is essential for organizational effectiveness as it helps identify areas needing improvement and allows businesses to adjust their strategies accordingly. Control ensures that resources are being utilized efficiently and that the organization remains on track to achieve its goals. By establishing benchmarks for performance and continuously checking progress against these standards, businesses can maintain accountability and make informed decisions for future operations.