Planning process

Review and correction happen in follow up. In exams connect continuous improvement with follow up.

The planning process begins with setting objectives. Objectives state what the organisation wants to achieve; only then can planners develop assumptions, identify alternatives, and evaluate them. Evaluating alternatives is a later step, while follow-up action takes place after implementation. Exam tip: Remember the sequence—objectives come first, followed by development and evaluation of alternatives.

The direct answer is B, developing premises. A planning premise is an estimate or assumption about a future condition that may affect the plan. Managers cannot know the future with certainty, so they make reasonable forecasts about demand, prices, wages, technology, government policy or competition. Step by step, they estimate likely conditions, use those estimates while preparing alternatives, and later review the plan if conditions change. Option B is correct because estimates about future conditions form the planning premises. Option A is wrong because selecting an alternative means choosing one course after comparison. Option C is wrong because implementation means carrying out the selected plan. Option D is wrong because reviewing results occurs after action and checks performance. Exam cue: future conditions, assumptions, forecasts and estimates all point to premises.

After an organisation fixes its objective, it must think about the possible ways of reaching it. These ways may differ in cost, time, resources, risk, and expected results. At this stage, the organisation does not yet decide which way is best. It first makes a list of realistic courses of action so that they can later be compared carefully.

Therefore, option C, identifying alternative courses of action, is correct. The phrase “different ways” directly indicates alternatives. Setting objectives comes before this step, while final selection comes after alternatives have been examined. Follow-up action occurs later, when implementation is checked. Confusing identification with selection would be a mistake because listing possibilities and choosing one are separate planning activities.

Comparing the expected costs and benefits of different courses of action is the core of evaluating alternatives. Managers use relevant criteria to determine which option offers the most suitable balance between resources required and results expected. This analysis occurs after alternatives have been identified but before one is selected and implemented. Setting objectives defines the desired destination, while developing premises concerns assumptions about future conditions. Implementation puts the chosen plan into action and does not represent the initial comparison. Therefore, option D correctly names the step where cost-benefit comparison takes place.

Planning normally creates several possible courses of action before a final decision is made. After these alternatives are identified, managers compare them according to their expected results, cost, risk, resources, and suitability for the objective. The alternative that best meets the objective is then chosen. This decision completes the selection step.

Selecting an alternative is different from developing premises, which means making assumptions about future conditions. It is also different from setting objectives, which happens at the beginning, and follow-up action, which occurs after implementation to review performance. The key expression in the question is “the best option is chosen.” Therefore, option A, selecting an alternative, is correct.

Converting a plan into action is implementation. In exams connect actual work with implementing the plan.

After a plan is implemented, its performance and progress are checked through follow-up action. Actual progress is compared with the expected results, and corrective action is taken where needed. Evaluating alternatives is done before selecting and implementing a plan, so it is not the correct step. Exam tip: Link post-implementation checking, monitoring and correction with follow-up action.

“Reduce expenses within three months” states a desired result together with a time limit, so it is an objective. Objectives tell the organisation what it intends to achieve and provide a basis for later planning, evaluation, and follow-up. The statement does not compare possible methods, so it is not evaluation. It also does not describe carrying out a chosen action, so it is not implementation. Identifying alternatives would involve listing methods such as renegotiating contracts or reducing waste. Since the statement establishes the target before those methods are considered, option D is correct.

The direct answer is A, developing premises. The manager’s statement that wages may rise next year is an assumption about a future condition. Labour cost can influence the total cost, selling price, profit and feasibility of a plan, so it must be considered while planning. The reasoning is: wages may change in the future; the change may affect business results; therefore the manager records it as a planning premise before selecting a course of action. Option A is correct. Option B is wrong because selecting an alternative means choosing among already-developed choices. Option C is wrong because implementation means putting the selected plan into operation, not forecasting wages. Option D is wrong because follow-up is later monitoring of progress and results. Memory cue: any expected change in wages, prices, demand or competition is a premise.

These methods are different options to reach the target. In exams call a list of methods identifying alternatives.

Risk comparison is done in evaluation of alternatives. In exams treat risk comparison as evaluation.

Final adoption is selection. In exams treat the finally adopted option as selected alternative.

Starting production according to the chosen plan means putting the plan into action; therefore, it belongs to implementing the plan. Identifying and evaluating alternatives occur before a plan is selected, while planning premises are assumptions about future conditions. Exam tip: When actual work begins as per a plan, identify the step as implementation.

The manager is performing follow-up action because the plan has already produced a result that is being compared with the target. The shortfall is a deviation, and investigating its causes is part of reviewing implementation. The findings may lead to corrective measures, such as changing the method, reallocating resources, or revising an unrealistic assumption. Setting objectives occurs before implementation, selecting an alternative occurs before the chosen plan is executed, and developing premises concerns assumptions about future conditions. Since the question describes examining actual performance after a gap appears, option B is correct.

Objectives are set first and then premises are developed. In exams remember the first two steps in this order.

After premises alternatives to reach goals are searched. In exams remember alternatives as the third step.

In the planning process, objectives are set first. Objectives clarify what the organisation wants to achieve in the future; therefore, ‘Setting objectives’ is correct. Alternatives are evaluated only after objectives have been set, while implementation and follow-up are later stages. Exam tip: Link phrases such as ‘what is to be achieved’ or ‘goals’ with setting objectives.

Estimate of raw material availability is a future assumption. In exams treat availability estimate as a premise.

Opening a new branch and creating an online platform are two possible courses of action for achieving the target. Listing such possible courses is the step of identifying alternative courses of action. Evaluating alternatives comes later, when their cost, benefits, and feasibility are compared. Exam tip: choose ‘identification’ when options are being generated and ‘evaluation’ when they are being compared.

Comparing the cost of two options is evaluation. In exams call comparing alternatives evaluation.

The governing concept is the planning process, in which alternatives are first identified, then compared against suitable criteria, and finally one alternative is selected. Here, the online platforms have already been compared, and the decision-maker chooses one platform for adoption. Therefore, the completed step is “Selecting an alternative,” represented by option A. Developing premises refers to forming assumptions about future conditions, such as demand or costs. Setting objectives means deciding what the organisation wants to achieve, while follow-up action occurs after implementation to review progress and take corrective measures. The words “chosen after comparison” directly indicate selection.

Assigning work to a team converts the plan into action. In exams treat assigning work as implementation.

The governing concept is follow-up within the planning process. After a plan has been implemented, managers observe actual results and compare them with the expected results or objectives. In this case, the online platform has already started, and the organisation is reviewing the number of users obtained. This post-implementation review is follow-up action, so option C is correct. Setting objectives happens before implementation, when targets are established. Selecting alternatives means choosing one plan from several possibilities, and identifying alternatives means listing possible courses of action. Neither describes a review conducted after launch. Follow-up may also reveal deviations and lead to corrective action.

Without a clear target the plan gets no direction. In exams set objectives first for an unclear target.