Question

Explain the following steps in the process of planning :
(i) Setting objectives
(ii) Developing premises
(iii) Identifying alternative courses of action

Hint:

Planning Premises are like "Predictions." You cannot plan for a rainy day without first assuming it might rain.

Answer 1

Step 1: Understanding the Concept:
Planning is a logical process that follows a specific series of steps to move from an idea to a concrete plan of action. It begins with defining the "where" and "why" of the organization.
Step 2: Detailed Explanation:
1. Setting Objectives: This is the first and foremost step. Objectives are the end results which the management wants to achieve. They should be stated clearly for the entire organization and each department. Objectives give direction to all departments.
2. Developing Premises: Planning is concerned with the future, which is uncertain. Therefore, the manager is required to make certain assumptions about the future. These assumptions are called premises. They involve forecasting environmental factors like government policy, tax rates, and competition.
3. Identifying Alternative Courses of Action: Once objectives are set and premises are developed, the next step is to identify all possible ways to achieve those objectives. For example, if the goal is to increase profits, the alternatives could be increasing sales, reducing costs, or launching a new product.
Step 3: Final Answer:
The process begins with goal setting, followed by making future assumptions (premises), and then listing various methods (alternatives) to reach those goals.