Corrective action is aimed at bringing organisational performance up to the level of performance standards. When performance meets or exceeds standards set, no corrective action is necessary. If standards are not met, corrective action is necessary.

Example: Manager of Sales Executive will need to discuss with Sales Executive to find out the cause. If for example, the cause is due to poor product knowledge, propose to send Sales executive for training to improve his product knowledge.

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Involves comparing actual performance to the performance standards.

example: Actual performance of Sales Executive is $150,000 for the year 2019. Comparing to the performance standard of $200,000, there is shortfall of $50,000.

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A manager must decide both how to measure actual performancen and how often to do so.

Example: Measure actua