Managers of one automobile company hired an investigator to look into the matter of security in the company in which they were facing some issues. Investigator revealed that one employee was deleting orders from the corporate books after processing them, pocketing the revenue and building their own company with in. After that a proper controlling system is implemented in the company.

Identify the importance of controlling corresponding to the above case.

Ensuring order and discipline

The correct answer is option 4- Ensuring order and discipline.

Effective controlling mechanisms help maintain ethical standards and operational integrity within an organization. In this case, the employee's actions represent a serious breach of discipline and order. Implementing robust control systems, such as monitoring and auditing, is crucial for preventing and addressing such misconduct.

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.

OTHER OPTIONS

• 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. Each activity is performed in accordance with predetermined standards and norms. This ensures that resources are used in the most effective and efficient manner.

• Improving employee motivation: A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised. It, thus, motivates them and helps them to give better performance.