Comparing actual performance against the standard is the process of evaluating actual outcomes against pre-established goals in order to identify any deviations and determine if corrective actions are needed.

Example：

If a company sets a monthly sales target of RM100,000 but only achieves RM85,000, the manager compares the result to the standard and finds a RM15,000 shortfall. Since this is outside the acceptable range of ±RM5,000, corrective action may be needed to address the issue.

Example:

• Use real time sales monitoring systems to track customer demand and adjust production or marketing strategies instantly.

• Keep regular team meetings or virtual check-ins to ensure employees are aligned during disruptions.

• Adapt operations on the spot, such as switching to online delivery or curbside pickups during a pandemic.

• Monitor customer feedback and resolve complaints quickly to maintain satisfaction.

What we measure:
It's important to choose the right things to measure. Two common areas are:

• Productivity – how much output is produced using a certain amount of input.
  For example: how many burgers are made per hour by one staff member.

• Organisational effectiveness – how well the company is meeting its goals.
  For example: are customers satisfied and is the outlet meeting its daily sales target?

  
  

  How we measure:
  There are four common ways to gather this information:

  • Personal observation – managers observe how tasks are being done.

  • Statistical reports – using data like sales figures or customer feedback scores.

  • Oral reports – spoken updates from staff during meetings.

  • Written reports – formal documents like daily performance summaries.

  Example:
  At myBurgerLab, the manager might look at daily sales reports, observe staff during busy hours, and check online customer reviews to see if performance meets expectations.

Key feature: Action is taken before a process begins or problems happen.

Example: Raw materials are inspected for their quality, before they enter the production process. For example a car manufacturer checks the quality of steel and aluminum parts for strength, thickness, and consistency before using them in engine assembly.

• Performance evaluation

• Training needs

As there are 3 types of control, feedback control falls under output, which means it happens after the activity.

Example of feedback control:

Imagine myBurgerLab sets a monthly target of selling 5,000 burgers.

• At the end of the month, they review the sales report and find they only sold 3,800 burgers.

• They analyze reasons: Was it poor marketing? Bad weather? Customer complaints?

• Based on the feedback, they adjust their marketing strategies, add promotions, or improve service for the next month.

That process is looking at actual output (sales) and making future adjustments is output feedback control.