Productivity Improvement

Management Planning and Control Systems

Step 4. Take corrective action

Making changes as the activity is in progress is a form of corrective action. The real correction occurs when warnings raised by the forecasters or predictors are confirmed.

The corrective action can be changing objectives, standards, plans, and the like, but it can also be penalizing employees when the objectives, standards, and plans are determined to be appropriate and employees have not met them.

However, there usually are several alternative corrective actions that can be taken and often more than one will prove effective. The planning control system is not effective until corrective action is taken and this action begins a new planning-control cycle.