Consider the following statements about the step ‘Setting objectives’ in the planning process:
(A) At this step, objectives may be set for the entire organisation and for each department or unit within it.
(B) At this step, the assumptions about the future, called premises, are made.
(C) Departments or units set their own objectives within the broad framework of the organisation’s philosophy.
(D) Objectives or goals specify how the organisation wants to carry out its activities.
(E) Managers must contribute ideas and participate in the objective setting process.
Which of the statements given above are correct?
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (C) and (E) only
(A) At this step, objectives may be set for the entire organisation and for each department or unit within it. — Correct. Objectives are set at both levels: the whole organisation and each unit.
(B) At this step, the assumptions about the future, called premises, are made. — Incorrect. Premises are made in the next step, developing premises.
(C) Departments or units set their own objectives within the broad framework of the organisation’s philosophy. — Correct. Unit objectives must fit the organisation’s philosophy.
(D) Objectives or goals specify how the organisation wants to carry out its activities. — Incorrect. Objectives specify what the organisation wants to achieve. How to carry out the work is decided in later steps.
(E) Managers must contribute ideas and participate in the objective setting process. — Correct. Managers take part in setting objectives and understand how their work helps reach them.
NCERT (2026-27 Edition): “(i) Setting Objectives: The first and foremost step is setting objectives. Every organisation must have certain objectives. Objectives may be set for the entire organisation and each department or unit within the organisation. Objectives or goals specify what the organisation wants to achieve. It could mean an increase in sales by 20% which could be objective of the entire organisation. How all departments would contribute to the organisational goals is the plan that is to be drawn up. Objectives should be stated clearly for all departments, units and employees. They give direction to all departments. Departments/ units then need to set their own objectives within the broad framework of the organisation’s philosophy. Objectives have to percolate down to each unit and employees at all levels. At the same time, managers must contribute ideas and participate in the objective setting process. They must also understand how their actions contribute to achieving objectives. If the end result is clear it becomes easier to work towards the goal.” “(ii) Developing Premises: Planning is concerned with the future which is uncertain and every planner is using conjecture about what might happen in future. Therefore, the manager is required to make certain assumptions about the future. These assumptions are called premises. …” |