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Read the passage and answer the following questions:

XYZ Logistics faced challenges in meeting delivery deadlines, leading to customer complaints. The management decided to implement a structured control process to ensure timely deliveries.

The company set a standard of delivering 95% of orders within the promised timeframe. A tracking system was introduced to monitor real-time delivery progress, ensuring accurate data collection. Monthly reports revealed that only 85% of orders were delivered on time, falling short of the 95% benchmark. Analysis showed delays occurred due to inefficient route planning and uncoordinated warehouse operations.

To address these issues, XYZ Logistics optimized route planning using AI-based software and trained warehouse staff to streamline operations.

After implementing changes, performance improved to 92% within the first month and met the 95% target in three months. Management regularly reviewed the system to maintain performance.

By implementing all elements of the controlling process, XYZ Logistics ensured continuous improvement and customer satisfaction.

Identify the main cause of the deviation that occured in the organisation.

Solution

✅ Correct Option: 4

Option 1 -> Unrealistic standards refer to performance benchmarks that are too high or unachievable, which can cause deviations but are typically planning-related issues rather than organizational causes.

Option 2 -> Environmental factors are external conditions like market changes, competition, or economic conditions that can influence deviations but are outside organizational control.

Option 3 -> Social factors relate to cultural norms, employee relationships, and social dynamics that may contribute to deviations but are not fundamental organizational issues.

Option 4 -> Structural drawbacks are flaws in the organizational design, hierarchy, communication channels, or reporting systems that create systematic problems causing deviations.


Hence, Option 4: Structural drawbacks -> Structural drawbacks represent fundamental flaws in how the organization is designed and operates. These include poor organizational design, inadequate communication systems, unclear authority lines, or faulty reporting structures. Such structural issues are the main cause of deviations because they create systematic, recurring problems that affect the organization's ability to achieve its objectives, rather than temporary or external factors. -> correct

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