Practicing Success
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.
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"Changes or events cannot be eliminated, but they can be anticipated and managerial responses to them can be developed." Identify the significance of managerial function highlighted in this statement. |
Provides direction Reduces risks of uncertainty Reduces overlapping and wasteful activities Facilitates decision making |
Reduces risks of uncertainty |
The correct answer is Option (2) → Reduces risks of uncertainty. The significance of the managerial function (planning) highlighted in the statement is 'reduces the risks of uncertainty'. By acknowledging that changes or events cannot be eliminated but can be anticipated, managers can proactively identify potential challenges or opportunities and develop strategies to respond effectively. This proactive approach helps mitigate the uncertainties that may arise in the business environment. Planning reduces the risks of uncertainty: Planning is an activity which enables a manager to look ahead and anticipate changes. By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes or events cannot be eliminated but they can be anticipated and managerial responses to them can be developed. |