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?

Judging accuracy of standards

The correct answer is option 2- Judging accuracy of standards.

In the given passage, the importance of controlling "Judging accuracy of standards" is highlighted.

The company is monitoring the production performance and discovering deviations from the target standard (500 units per day per worker). By analyzing these deviations, the company can assess whether the current standards are realistic and accurate. This helps in evaluating if the standards need adjustment based on actual performance and operational realities. So, the passage highlights the importance of controlling in ensuring that performance standards are not only enforced but also appropriately set and adjusted based on accurate assessments of actual performance.

Note: Installing CCTV and identifying workers who were taking longer lunch breaks reflects an attempt to ensure order and discipline. However, the primary focus of the passage is on how the management responded to a deviation from a set performance standard (500 units/day). The purpose of the investigation was to judge the accuracy of the standard and understand why targets were not being met. The CCTV was a tool used during the control process, not the main highlight. Hence, the importance of controlling emphasized here is primarily “Judging accuracy of standards”, though ensuring discipline also plays a supporting role.