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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 manufactuers to invest in the same. Inspired by these incentives and concerned about the environmental impact of gas and dieselpowered engines, Nitin Kothari has set up an electric car manufacturing unit at Bhilwara. He set a target of earning Return on Investment of 10 %
The above case highlights the first two steps of the process of one of the important functions of management.
The above case highlights the first two steps of the process of one of the important functions of management.
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Question : 45
Total: 45
State the remaining steps required to complete the above process.
Solution:
Steps mentioned in case study are:
(i) Setting up of objectives.
(ii) Developing premises.
Explanation of remaining steps:
(iii) Identifying Alternative Courses of Action:
1. Once objectives are set, assumptions are made and then alternative courses of action is determined.
2. Managers must identify all the alternative courses of action for achieving the objectives of the organisation.
3. The course of action may be routine or innovative. Innovative course can be adopted by involving more people and sharing their ideas.
(iv) Evaluating Alternative Courses of Action:
1. The next step is to evaluate the pros and cons of each and every alternative course of action.
2. Positive and negative aspects of each proposal is to be evaluated keeping in view the objectives to be achieved. E.g., In financial decisions, risk-return trade-off are important. Riskier the investment, higher the returns. To evaluate such proposals, detailed calculation of earnings, taxes, earnings per share, dividends are made and then decision is taken.
(v) Selecting the Best Alternative:
1. The best plan from all the alternatives is selected and implemented.
2. The ideal plan is the most feasible, profitable and with least negative consequences.
3. Sometimes a combination of plans may be selected instead of one best course.
(vi) Implementing the Plan:
1. In this step the selected best plan is implemented i.e., putting plan into action.
2. Managers start organising and assembling resources for implementing the plans.
3. E.g., If there is a plan to increase production, then more labour, more machinery will be required. This step would also involve organising more labour and purchase of machinery.
(vii) Follow up Action
1. Involves monitoring the implemented plans and ensuring that the activities are being performed according to the schedule.
2. Continuous monitoring is required to find out deviations from plans and corrective action has to be taken to achieve organisational objectives.
(i) Setting up of objectives.
(ii) Developing premises.
Explanation of remaining steps:
(iii) Identifying Alternative Courses of Action:
1. Once objectives are set, assumptions are made and then alternative courses of action is determined.
2. Managers must identify all the alternative courses of action for achieving the objectives of the organisation.
3. The course of action may be routine or innovative. Innovative course can be adopted by involving more people and sharing their ideas.
(iv) Evaluating Alternative Courses of Action:
1. The next step is to evaluate the pros and cons of each and every alternative course of action.
2. Positive and negative aspects of each proposal is to be evaluated keeping in view the objectives to be achieved. E.g., In financial decisions, risk-return trade-off are important. Riskier the investment, higher the returns. To evaluate such proposals, detailed calculation of earnings, taxes, earnings per share, dividends are made and then decision is taken.
(v) Selecting the Best Alternative:
1. The best plan from all the alternatives is selected and implemented.
2. The ideal plan is the most feasible, profitable and with least negative consequences.
3. Sometimes a combination of plans may be selected instead of one best course.
(vi) Implementing the Plan:
1. In this step the selected best plan is implemented i.e., putting plan into action.
2. Managers start organising and assembling resources for implementing the plans.
3. E.g., If there is a plan to increase production, then more labour, more machinery will be required. This step would also involve organising more labour and purchase of machinery.
(vii) Follow up Action
1. Involves monitoring the implemented plans and ensuring that the activities are being performed according to the schedule.
2. Continuous monitoring is required to find out deviations from plans and corrective action has to be taken to achieve organisational objectives.
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