Comprehension Passage

Read the following case study and attempt question number.

Mr Vinay is a production Manager in a company. Being a Manager he seeks planned results from his subordinates so he sets the criteria against which actual performance of subordinates will be measured. He also conveys these criteria to his subordinates.
He knows that it is neither economical, nor easy to keep a check on each and every activity. He also finds that if he tries to control everything it will result in controlling nothing.
After these two considerations he gives main focus of his effort on comparatively more important tasks and finally he gets planned results.

Name the step of Management Function which is discussed in given phrase "he sets criteria" ?

1
Measurement of Actual Performance
2
Analysing Deviations
3
Comparing actual performance with standards
4
Setting Performance Standards

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