"A good control system enables management to verify whether the standards set are accurate and objective". Identify the importance of controlling highlighted in the aforesaid statement.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Judging accuracy of standards
Option (1) Accomplishing organizational goals — Incorrect. This point says controlling measures progress towards the goals and keeps the organisation on the right track. The statement is about checking the standards, not about reaching goals.
Option (2) Making efficient use of resources — Incorrect. This point says controlling reduces waste and spoilage of resources. The statement does not speak of resources.
Option (3) Judging accuracy of standards — Correct. A good control system lets management verify whether the standards are accurate and objective. It keeps watch on changes inside the firm and in its environment. So standards can be reviewed and revised when needed.
Option (4) Ensuring order and discipline — Incorrect. This point says controlling keeps a close check on employees and reduces dishonest behaviour. It is not about the standards themselves.
NCERT (2026-27 Edition): “Accomplishing organisational goals: The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action. It, thus, guides the organisation and keeps it on the right track so that organisational goals might be achieved.” “Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective. An efficient control system keeps a careful check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of such changes.” “Making efficient use of resources: By exercising control, a manager seeks to reduce wastage and spoilage of resources. …” “Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities. …” |