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.

"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." Identify the significance of managerial function highlighted in this statement.

Reduces overlapping and wasteful activities

The correct answer is Option (4) → Reduces overlapping and wasteful activities.

The significance of the managerial function (planning) highlighted in the statement is 'reduces overlapping and wasteful activities'. By establishing clear policies, managers provide guidelines and frameworks for coordinating the activities and efforts of different divisions, departments, and individuals within the organization. This helps avoid confusion and misunderstanding, ensuring that resources are allocated efficiently and that efforts are directed towards achieving organizational objectives without unnecessary duplication or waste.

* Planning reduces overlapping and wasteful activities: Planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals. It helps in avoiding confusion and misunderstanding. Since planning ensures clarity in thought and action, work is carried on smoothly without interruptions. Useless and redundant activities are minimised or eliminated. It is easier to detect inefficiencies and take corrective measures to deal with them.