Business Studies

Planning

Medium

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 an 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.

Facilitates decision making

Reduces risks of uncertainty

Provides direction

Reduces overlapping and wasteful activities

✅ Correct Option: 4

The quoted sentence discusses how good policy helps everyone do their tasks (without duplication i.e. confusion/misunderstanding): "divisions, departments".

Hence, it doesn't speak of making decisions (1) or uncertainty/risk (2). It doesn't speak about overall vision either (3).

Clearly, the answer is option 4.

Facilitates decision making → Helps managers choose wisely.
Reduces risks of uncertainty → Anticipates changes, lowers surprises.
Provides direction → Guides teams towards common goals.
Reduces overlapping and wasteful activities → Ensures efficiency by clarifying roles.

Question 46

Identify the function of management highlighted in the above case.

Question 47

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

Question 48

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.

Question 50

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.

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.

Solution

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CUET Business Studies Past Year Questions (Topic-Wise)