Arrange the following steps of the planning process in the correct sequence:
(A) Objective setting
(B) Alternative identification
(C) Alternative evaluation
(D) Alternative selection
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (B), (C), (D)
(A) Objective setting — the first and foremost step. The firm first decides what it wants to achieve.
(B) Alternative identification — once the objectives are set and the premises (assumptions) are made, all the possible ways of reaching the objectives are found.
(C) Alternative evaluation — the good and bad points of each way are weighed against the objective.
(D) Alternative selection — the best plan is chosen. This is the real point of decision making.
NCERT (2026-27 Edition): “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. …” “Identifying alternative courses of action: Once objectives are set, assumptions are made. Then the next step would be to act upon them. There may be many ways to act and achieve objectives. All the alternative courses of action should be identified. …” “Evaluating alternative courses: The next step is to weigh the pros and cons of each alternative. Each course will have many variables which have to be weighed against each other. The positive and negative aspects of each proposal need to be evaluated in the light of the objective to be achieved. …” “Selecting an alternative: This is the real point of decision making. The best plan has to be adopted and implemented. The ideal plan, of course, would be the most feasible, profitable and with least negative consequences. …” |