“An efficient control system keeps a careful check on the changes taking place in the organization and in the environment and helps to review and revise the standards in light of such changes.” Identify the point of importance of controlling highlighted in this statement.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Judging accuracy of standards
Option (1) Making efficient use of resources — Incorrect. This point is about cutting waste: each activity is done as per the standards, so resources are not wasted. The statement is about the standards themselves, not about resources.
Option (2) Ensuring order and discipline — Incorrect. This point is about keeping a close check on employees so that dishonest behaviour is reduced.
Option (3) Facilitating coordination in action — Incorrect. This point is about giving all departments common standards, so that their work fits together.
Option (4) Judging accuracy of standards — Correct. A standard set in the past may no longer suit today’s conditions. A good control system keeps watch on changes inside the firm and outside it, and helps the manager review and revise the standards. In this way controlling checks whether the standards are still accurate and objective.
NCERT (2026-27 Edition): “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.” |