Page 2 - Lesson Note 2

(ii) Developing Premises: Premises refers to making assumptions regarding future. The

assumptions are made on the basis of forecasting. Forecast is the technique of gathering

information.

(iii) Identifying Alternative Courses of Action: After setting up of objectives the managers make

a list of alternatives through which the organisation can achieve its objectives.

(iv) Evaluating Alternative Courses: After making the list of various alternatives along with the

assumptions supporting them the manager starts evaluating each and every alternative.

(v) Selecting an Alternative: The best alternative is selected but as such there is no

mathematical formula to select the best alternative. Sometimes instead of selecting one

alternative a combination of different alternatives can also be selected.

(vi) Implementing the Plan: This is the step where other managerial functions also come in to

the picture. The step is concerned with putting the plan into action i.e., doing what is required.

(vii) Follow-up Action Planning is a continuous process so the manager’s job does not get over

simply by putting the plan into action. The managers monitor the plan carefully while it is

implemented.

TYPES OF PLAN

Plan

A Plan is a specific action proposed to help the organization achieve its objectives. It is a
document that outlines how goals are going to be met. The importance of developing plans is

evident from the fact that there may be more than one means of reaching a particular goal. So

with the help of logical plans, objectives of an organization could be achieved easily.