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.

Identify the function of management highlighted in the above case.

Planning

The correct answer is Option (4) → Planning.

The function of management highlighted in the provided case is Planning. Planning involves setting objectives, identifying and assessing various courses of action, and making decisions to achieve organizational goals. In the case of Indian Oil, the emphasis on well-defined goals, anticipation of changes, and policy formation reflects the planning function of management.

* Planning is deciding in advance what to do and how to do. It is one of the basic managerial functions. Before doing something, the manager must formulate an idea of how to work on a particular task. Thus, planning is closely connected with creativity and innovation. But the manager would first have to set objectives, only then will a manager know where he has to go. Planning seeks to bridge the gap between where we are and where we want to go. Planning is what managers at all levels do. It requires taking decisions since it involves making a choice from alternative courses of action. Planning, thus, involves setting objectives and developing appropriate courses of action to achieve these objectives. Objectives provide direction for all managerial decisions and actions. Planning provides a rational approach for achieving predetermined objectives.