Step 1: Setting Performance Standards (b): The first step in the controlling process is setting up of performance standards. Standards are the criteria against which actual performance would be measured. Thus, standards serve as benchmarks towards which an organisation strives to work.

Step 2: Measurement of Actual Performance (a): Once performance standards are set, the next step is measurement of actual performance. Performance should be measured in an objective and reliable manner. There are several techniques for measurement of performance.

Step 3: Comparing Actual Performance with Standards (c): This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results.

Step 4: Analysing Deviations (e): Some deviation in performance can be expected in all activities. It is, therefore, important to determine the acceptable range of deviations.

Step 5: Taking Corrective Action (d): The final step in the controlling process is taking corrective action. No corrective action is required when the deviations are within acceptable limits..