Read the following passage and answer the question.

Bira Machines Limited is engaged in manufacturing of machine components. The company has planned to venture into automobile parts as well for which, it started doing the market research. The target production for machine parts is 500 units per day per worker. The company had been successfully attaining this target until three months ago. The company follows a practice where only significant deviations from a budget or plan are brought to the attention of management. Over the last four months, it has been observed that daily production varies between 450-460 units per day per worker. Management called the supervisor and asked him to find out the reasons for low productivity. CCTV cameras were installed to keep a check on employees. It was found that some of the workers used to spend more time for lunch than allotted. The report for the same was prepared and submitted by the supervisor to the management.

Which importance of controlling is highlighted in the given passage?

Both 1 and 3

The correct answer is option 4-Both 1 and 3

The passage highlights both making efficient use of resources and ensuring order and discipline as the importance of controlling.

Making efficient use of resources (Option 1): The production dropped from 500 units to 450–460 units. Management identified that time (a key resource) was being wasted due to longer lunch breaks. By investigating and correcting this inefficiency, the company is ensuring better utilisation of resources.

Ensuring order and discipline (Option 3):The installation of CCTV cameras and monitoring employee behaviour reflects maintaining discipline and control over activities. This directly aligns with creating an atmosphere of order and discipline.

Why Option 2 is incorrect: “Judging accuracy of standards” would apply only if:

• The company questioned whether 500 units is unrealistic
• OR revised the standard

But here, the issue is employee behaviour, not the standard itself. The focus of management is on correcting deviations and improving performance, not on revising standards.

NCERT:

"Importance of Controlling: Control is an indispensable function of management. Without control the best of plans can go awry. A good control system helps an organisation in the following ways:

(i) 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.

(ii) 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.

(iii) 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.

(iv) 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.

(v) 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.

(vi) Facilitating coordination in action: Controlling provides direction to all activities and efforts for achieving organisational goals. Each department and employee is governed by pre determined standards which are well coordinated with one another. This ensures that overall organisational objectives are accomplished.