Planning process

Correct answer: A. Controlling

Measurement of actual results is an essential step in the controlling process. Managers collect information about what was actually achieved, such as units produced, sales made, costs incurred, or time used. They then compare these results with the standards established during planning and identify any deviation. Thus, option A, controlling, is correct. Planning determines objectives and standards but does not measure completed performance. Organising creates the structure for work, and staffing supplies and develops employees. These functions support performance, but actual-result measurement specifically belongs to control.

Correct answer: A. Decision-making process

Planning involves examining possible courses of action and selecting the alternative that best supports the stated objective. This act of comparing choices, considering expected consequences and choosing one course is a decision-making process. Hence option A is correct. The selected alternative becomes the basis for subsequent action, allocation of resources and coordination. Office cleaning, employee entertainment and machine repair may be activities in an organisation, but none of them explains the conceptual act of choosing among alternatives. The question tests a feature of planning, not a routine operational task.

Correct answer: D. Because it decides the path before action

Planning is called a process before action because it determines in advance the objectives to be achieved and the course of action to follow. Managers analyse the situation, consider alternatives, select suitable methods, allocate resources and establish a sequence or time frame before implementation begins. Option D is correct: planning provides a route for action rather than merely describing something that has already happened. Option A reverses the timing, option B confuses planning with recording or controlling results, and option C describes punishment rather than planning. The essential idea is advance preparation for purposeful action.

Correct answer: A. Setting objectives

The governing concept is the sequence of the planning process. Planning begins by deciding what the organisation wants to achieve; these desired results are expressed as objectives. Once objectives are clear, managers can develop premises, identify possible courses of action, evaluate them, select the most suitable alternative, implement the plan and finally follow up. Therefore, option A is correct because setting objectives provides direction and a standard against which later performance can be judged. Option B occurs after alternatives have been examined, option C belongs to implementation after planning decisions, and option D is a later monitoring stage. Without objectives, the remaining steps would lack a clear purpose.

Correct answer: B. Developing premises

The direct answer is B: developing premises. In the planning process, premises are assumptions or forecasts about future conditions that may affect the plan. Managers may estimate future demand, prices, costs, interest rates, technology, government policy, or competitor behaviour. The reasoning is: first objectives are understood, then relevant future conditions are anticipated; these assumptions become the basis for comparing actions and preparing detailed plans. Option B is correct because the word “assumptions” directly points to developing premises. Option A is different: evaluating alternatives means comparing possible courses of action after relevant conditions and criteria are considered. Option C comes later and means putting the selected plan into action. Option D is a later checking stage in which actual performance is followed up and corrective action may be taken. Premises are not certain facts; they are working expectations that should be realistic and reviewed. Memory cue: premises are the planning assumptions about what the future may be.

Correct answer: C. Developing premises

The governing concept is developing planning premises. Premises are assumptions or forecasts about future conditions that influence the plan, such as expected demand, prices, technology, competition or government policy. The manager’s belief that demand will rise next year is a forecast about an external future condition. It is not itself an objective, because no desired target has been stated; it is not implementation, because no action has yet been taken; and it is not follow-up, because performance has not been reviewed. Thus option C is correct. Such a premise helps the manager estimate production, inventory, staffing and marketing requirements before selecting a course of action.

Correct answer: D. Identifying alternative courses of action

Finding many ways to reach a goal means identifying alternatives. In exams connect different ways with alternatives.

Correct answer: A. Evaluating alternatives

Checking merits and demerits of options is evaluation. In exams treat merits and demerits as evaluation.

Correct answer: B. Selecting the best alternative

After evaluation the best option is selected. In exams connect best option with selecting alternative.

Correct answer: C. Implementing the plan

Turning a plan into work is implementation. In exams choose implementing plan when you see action.

Correct answer: D. Follow up action

Checking results after the plan is follow up action. In exams connect checking results with follow up.

Correct answer: A. Setting objectives

Increasing sales by 20 percent within the year is a clear and measurable target. Therefore, it belongs to the step of setting objectives in the planning process. Evaluating alternatives is done later, when different ways of achieving the objective are compared. Exam tip: A statement containing a percentage, deadline, or specific result usually indicates an objective.

Correct answer: B. Developing premises

The governing concept is the development of premises in planning. A premise is a reasonable assumption or forecast about a future internal or external condition on which decisions are based. The possible rise in raw-material prices is an external economic condition. By considering it before deciding, the manager may compare suppliers, estimate future costs, revise the budget, build inventory or adjust the selling price. Therefore option B is correct. Option A would mean carrying out a previously selected plan, option C would involve choosing among possible courses of action, and option D would involve checking progress after implementation. The price forecast occurs before all of those later stages.

Correct answer: C. Identifying alternative courses of action

The three methods are different alternatives. In exams treat multiple methods as identifying alternatives.

Correct answer: D. Evaluating alternatives

The direct answer is D: evaluating alternatives. After objectives are set and planning premises are considered, managers usually identify more than one possible course of action. They then compare each alternative using criteria such as expected benefit, cost, risk, time, resources, and feasibility. The option that best supports the objectives within the available limits can be selected. Option D is correct because checking alternatives through cost, risk, and benefit is the meaning of evaluation. Option A is wrong because setting objectives means deciding what the organisation wants to achieve; it does not compare possible methods. Option B is wrong because implementation happens after an alternative has been selected and involves carrying out the plan. Option C is wrong because follow-up action checks actual performance after implementation and corrects deviations. The stages should not be confused: objectives tell where to go, alternatives provide possible routes, evaluation compares the routes, and implementation follows the chosen route. Memory cue: cost, risk, and benefit comparison means evaluate alternatives.

Correct answer: A. Selecting an alternative

Choosing one from three options is selection. In exams treat chosen one as selecting alternative.

Correct answer: B. Implementing the plan

Work assignment converts the plan into action. In exams connect work assignment with implementation.

Correct answer: C. Follow up action

Actual versus target comparison is done in follow up. In exams treat actual versus target as follow up.

Correct answer: D. Developing premises

After objectives future assumptions are made. In exams remember premises after objectives in sequence.

Correct answer: A. Setting objectives

What is to be achieved is stated by objectives. In exams treat what to achieve as setting objectives.

Correct answer: B. Developing premises

Possibility of increased competition is a future assumption. In exams treat competition forecast as a premise.

Correct answer: C. Identifying alternatives

New machine and extra labour are two alternatives. In exams write possible courses as identifying alternatives.

Correct answer: D. Selecting an alternative

The option adopted after examination is the selected alternative. In exams treat most suitable option as selection.

Correct answer: A. Implementing the plan

Getting departments to work through instructions is implementation. In exams understand instructions to departments as implementation.

Correct answer: B. Follow up action

Performance review is done after implementation. In exams write review performance as follow up.