On the basis of the information given in the case, answer the next five questions.
A Maharatna Company, Indian Oil Indian Oil is India’s largest commercial organisation. It is the top-ranked Indian company in the Fortune ‘Global 500’ listings (2017). Indian Oil’s vision is driven by a group of dynamic leaders, who have made it a name to reckon with. With an over 34,000 strong workforce, a Maharatna Company, Indian Oil has been helping to meet India’s energy demands and reaching petroleum products in every part of India for over five decades. It plans to increase its business operations all around the world.
The company plans to invest 20,000 crore in 2017 – 18 acquisitions and plans to expand overseas. The company is always believed to be ahead of the demand. Last year too, IOC had invested close to 20,000 crore, including around 16,000 crore in various Indian projects and on acquisition for upstream in Russia. The company believed that if the goals are well defined, employees are aware of what the organisation has to do and what they must do to achieve those goals. Changes or events cannot be eliminated, but they can be anticipated and managerial responses to them can be developed.
Policy formation serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals. It helps in avoiding confusion and misunderstanding. Manager can look into the future and make a choice from amongst various alternative courses of action.
Q) ”Manager can look into the future and make a choice from amongst various alternative courses of action.” Identify the significance of managerial function highlighted in this statement.
Correct Answer :
Facilitates decision making
Solution :
The correct option is Facilitates decision making.
Step-by-step Explanation:
1. Analyze the statement: The statement given in the question is: "Manager can look into the future and make a choice from amongst various alternative courses of action."
2. Understand the nature of decision-making: Decision-making fundamentally involves looking ahead, evaluating different paths or options, and choosing the most appropriate or optimal course of action to achieve organizational goals.
3. Connect with the planning function: Under the managerial function of planning, looking into the future (forecasting) and choosing from amongst various alternative courses of action specifically highlights how planning facilitates decision-making. It provides a structured framework for managers to assess alternatives and make informed choices rather than acting on whim or trial-and-error.
4. Evaluate other options:
- Provides direction: This refers to ensuring that organizational goals are clearly defined so that employees know what to do and where to focus their efforts.
- Reduces risks of uncertainty: This refers to anticipating changes and preparing managerial responses to deal with future events.
- Reduces overlapping and wasteful activities: This refers to coordinating efforts across different departments to avoid confusion and misunderstanding.
Therefore, the specific action of making a "choice from amongst various alternative courses of action" directly aligns with the significance of facilitating decision-making.
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