Question

The Government of India in its budget for the financial year of 2021-22 reiterated its support for Electric Vehicle sector. The Government launched several schemes and incentives to boost their demand as well as to motivate manufacturers to invest in the same. Inspired by these incentives and concerned about the environmental impact of gas and diesel- powered engines, Nitin Kothari has set up an electric car manufacturing unit at Bhilwara, He set a target of earning Return on Investment of 10% in the first year itself and forecasted that the demand for electric cars will increase by 20 million in the next few years.

The above case highlights the first two steps of the process of one of the important functions of management.

1. Identify the function of management discussed above.
2. State the remaining steps required to complete the above process.

Answer 1

1. The managerial function highlighted in the given case study is planning. "Planning is an intellectual process, the conscious determination of a course of action, the basing of decisions on purpose, facts, and considered estimates." "Planning is deciding ahead of time what will be done, when it will be done, how it will be done, and by whom it will be done.
2. The steps mentioned in case study are:
   1. Setting up of objectives.
   2. Developing premises.
      Explanation of remaining steps:
   3. Identifying Alternative Courses of Action: 
      1. Once objectives have been established, assumptions are developed, and different courses of action are chosen.
      2. Managers must identify all different courses of action for accomplishing the organization's goals.
      3. The course of action may be conventional or novel. A more innovative system can be implemented by including more people and sharing their thoughts.
   4. Evaluating Alternative Courses of Action: 
      1. The next stage is to weigh the benefits and drawbacks of each prospective course of action.
      2. Each plan's positive and negative features must be examined in light of the goals to be attained. For example, in financial decisions, the risk-return trade-off is critical. The more significant the risk, the higher the return. To examine such ideas, extensive calculations of earnings, taxes, earnings per share, and dividends are performed before deciding.
   5. Selecting the Best Alternative: 
      1. The best plan among all choices is chosen and implemented.
      2. The ideal plan is practicable, profitable, and has the fewest negative implications.
      3. Instead of taking the optimal option, a combination of methods may be chosen. 
   6. Implementing the Plan: 
      1. This step involves putting the best strategy that was chosen into effect.
      2. Managers begin organising and organising resources for plan implementation.
      3. For example, if there is a plan to boost output, more people and machinery will be necessary. This stage would also include coordinating additional labour and purchasing machinery.
   7. Follow-up Action: 
      1. They monitor plan implementation and ensure that the timetable carries out actions.
      2. Continuous monitoring is essential to detect deviations from plans, and corrective action is required to fulfil organisational goals.