Types of critical point standards:

Although every goal, objective, plan or programme is a standard against which expected performance might be measured in practice standards tend to be of the following types:

1.    Physical standards        
2.    Cost standards        
3.    Capital standards        
4.    Revenue standards
5.    Program standards
6.    Intangible standards
7.    Verifiable goals

Physical Standards

Usually deal with monetary measurements.Common at operating levels where materials and labour are used to produce goods and services. They may be units of output, man hours, units of waste etc. They could also reflect quality e.g. firmness, hardness, elasticity, tolerance, density durability etc. These determine the financial implications of these elements.

Cost Standards

Usually deal with monetary measurement and occur at the operating level. They give monetary values to various expenses e.g. direct costs, labour costs, machine hours cost etc. usually by project/service unit.

Capital Standards

Costs that have to do with the capital invested in the firm e.g. return on investment.

Revenue Standards

Arise when monetary values are attached to sales.

Programme Standards

Standards used to appraise the effectiveness of a given programme e.g. timeliness.

Intangible Standards

Standards not expressed either in physical or monetary terms. There is no generally accepted agreement on what constitutes desired performance for all kinds of operations e.g. the competence of a personnel manager, or loyalty of workers or success of a public relations programme. Where human relationships count in performance, it is very difficult to measure what is "good", "effective" or "efficient". Managerial controls over interpersonal relationships must continue to be based upon intangible standards, considered judgement, trial and occasionally on sheer hunch or a `feeling of the gut'.

Goals as Standards

However, managers are finding that it is possible to define goals that can be used as performance standards. Programmes can be drawn that have specific characteristics which then become standards e.g. training employees in accordance with a plan with specific characteristics, the characteristics furnish standards which tend to become objective.