Question

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

Answer 1

Steps in the Process of Planning

(i) Setting Objectives:

This is the first and most important step in planning. It involves defining clear goals that the organisation wants to achieve. Objectives guide all subsequent actions and decisions.

Example: A company may set an objective to increase sales by 25% in the next financial year.

(ii) Developing Premises:

Premises are the assumptions about the future environment in which the plan will be implemented. These may include market trends, government policies, competition, and technological changes. Correct assumptions help in realistic planning.

Example: Assuming that the government will reduce import duties on raw materials while planning for production.

(iii) Identifying Alternative Courses of Action:

Once the objectives and premises are established, the next step is to explore all possible ways to achieve the objectives. Managers identify different strategies or methods for achieving goals.

Example: To boost sales, alternatives may include launching a new product, offering discounts, or entering a new market.

Conclusion: These steps form the foundation of effective planning, helping managers set clear goals, anticipate future conditions, and choose the best path forward.