Planning process

Direct answer: Option A, developing premises. In planning, a premise is an assumption about the future on which a plan is based. The company does not yet know with certainty what customers will do; it predicts that they will prefer mobile payments. Step by step: first, the manager studies the future situation; next, the manager makes a reasonable assumption about customer behaviour; then plans are prepared using that assumption. Therefore this is developing premises. Option A is correct because customer preference is a future assumption. Option B is wrong because no different plans are being compared. Option C is wrong because no action has yet been carried out. Option D is wrong because no final alternative has yet been selected. A useful exam cue is: words such as assumption, forecast, expected demand, customer preference or future condition usually point to developing premises.

Two payment arrangements are two alternatives. In exams treat different arrangements as identifying alternatives.

Comparing mobile payment alternatives on criteria such as security, cost and convenience is the evaluation of alternatives. Therefore, option C is correct. Selecting an alternative comes after evaluation, when the most suitable option is finally chosen, so D is not correct here. Exam tip: Words such as compare, check, or assess advantages and disadvantages usually indicate evaluation of alternatives.

The governing concept is selection in the planning process. When several payment possibilities have been examined and the organisation finally adopts the option that is safe and inexpensive, it has made a choice among alternatives. Thus, option D, “Selecting an alternative,” is correct. Developing premises would involve forecasting or assuming future conditions, such as expected transaction costs or customer preferences. Setting objectives would mean defining a desired result, such as reducing payment expenses by a stated amount. Follow-up action would occur later, after the payment arrangement is implemented, when its performance is reviewed. The phrase “finally adopting” shows that evaluation has ended and selection has taken place.

Starting machines and apps is execution of the plan. In exams treat operational start as implementation.

Correction after error reports is follow up. In exams write error correction after plan as follow up.

Alternatives are identified first and then evaluated. In exams remember evaluation after alternatives.

In the planning process, alternatives are identified and evaluated before the most suitable alternative is selected. The plan is then implemented on the basis of that selected alternative. Therefore, selecting an alternative is the step immediately before implementation. Evaluation occurs before selection, whereas follow-up action is taken after implementation to review progress. Exam tip: remember the sequence—evaluation, selection, implementation, follow-up.

A 15 percent target is a clear and measurable objective. In exams treat a numerical target as objective.

The possibility of an increase in freight cost is an assumption about a future condition. Assumptions on which a plan is prepared are called planning premises. Selecting an alternative comes later, while implementation and follow-up take place after the plan has been made. Exam tip: Link forecasts about costs, demand, or government policy with planning premises.

Rail road and courier are different alternatives. In exams treat transport options as identifying alternatives.

Comparison on the basis of time and cost is evaluation. In exams write time cost comparison as evaluation.

Choosing the most suitable courier is selection. In exams connect chosen transport option with selection.

Sending shipments is actual execution of the plan. In exams treat action starts as implementation.

Finding reasons for delay and correcting is follow up action. In exams write delay correction as follow up.

At the end the plan is reviewed and corrected. In exams remember follow up action as the final step.

Planning premises are assumptions or forecasts about future conditions on which plans are based. The possibility that demand may rise next year is such an assumption, so it is correct. Directing employees is a function of directing, comparing actual results with plans relates to controlling, and selecting the best alternative is a decision-making step. Exam tip: Link statements about future assumptions, estimates, or forecasts with planning premises.

The governing concept is implementation, or putting a chosen plan into action. Assigning specific work to employees converts a general plan into actual responsibilities and activities, so option B is the correct example. Estimating a future price is part of developing planning premises because it concerns an expected future condition. Listing alternatives occurs while identifying possible courses of action before one is selected. Setting objectives establishes the desired results and normally comes at an earlier stage. Implementation begins when people, resources, schedules and responsibilities are arranged to execute the selected plan. Therefore, allocating fixed duties to employees is the only option that directly represents action based on the plan.

The governing concept is follow-up after a plan has been implemented. Follow-up involves checking actual performance, identifying deviations from the plan and taking corrective action where necessary. If expenditure exceeds the approved budget, management investigates the deviation and introduces a remedy, such as controlling unnecessary spending or revising activities. Hence option C is the correct example. Fixing targets is objective setting, which occurs before execution. Estimating the future helps develop premises, while listing alternatives is part of identifying possible courses of action. Although corrective control may also be discussed in the controlling function, within this question it is the practical follow-up response to a deviation in the implemented plan.

After identifying alternatives they are evaluated. In exams remember evaluation after alternatives.

Increasing market share by 10 percent is a measurable goal. In exams write measurable result as objective.

The governing concept is developing premises in the planning process. A planning premise is an assumption or forecast about future conditions on which plans are based. The company’s belief that loans will be cheaper next year is a forecast about a future financing condition; it may influence the timing, size or cost of a proposed investment. Therefore, option B is correct. Alternative selection would mean choosing one course of action from several options. Implementation would involve carrying out the selected plan, such as arranging the loan or starting the project. Result review would occur after action has been taken to compare actual outcomes with expectations. The statement describes an assumption before execution, not an action or review.

The governing concept is identifying alternative courses of action. The organisation has not yet selected one solution; it has retained two possible ways of reaching the target: training existing employees and recruiting new employees. Listing or recognising these possible courses is the identification stage, so option C is correct. Setting objectives would involve stating the target itself, such as raising productivity by a specified amount. Selecting alternatives would occur later, after the two possibilities have been evaluated and one is chosen. Follow-up action occurs after implementation, when results are reviewed. The important clue is that both methods are still available, which shows that alternatives have been identified rather than selected.

The governing concept is evaluating alternatives. Once training and recruitment have been identified as possible ways to achieve the target, managers compare them using relevant criteria such as cost, time, expected results and feasibility. This systematic comparison helps determine which alternative is more suitable, so option D is correct. Setting objectives defines the desired result and does not compare methods. Developing premises involves assumptions about future conditions, such as labour availability or wage levels. Implementing the plan occurs after one alternative has been selected and involves putting it into operation. The reference to comparison on the basis of cost and time is the decisive clue: criteria-based comparison is evaluation.

Choosing training after comparison is selection. In exams understand selected programme as selected alternative.