STEPS OF PLANNING PROCESS- STEP 4:EVALUATING THE AVAILABLE ALTERNATIVES

After listing various available alternatives managers move to the next step of planning process which is to evaluate each alternative in the light of stipulated guidelines and benchmarks. Each of the alternatives are evaluated to know how well each one can help the organization in meeting its goal. All available options are assessed based on the cost and risk involved, merits as well as shortcomings. Once the critical point of each alternative is known a comparison is made among all the available alternatives. Further, alternatives unveiling maximum positive aspects are listed and the ones with negative points are eliminated.

At this stage managers face the issue of listing the final alternatives as each alternative have their own merits and demerits. There are chances that an alternative can have both advantages as well as disadvantages. In such a case, it becomes problematic for the managers to evaluate them i.e. either to pass them to nest stage or to drop them. In such a scenario managers should try to evolve new alternatives by mixing up the merits of some alternatives and eliminating or minimizing the negative points.

Taking the previous example where ‘a company aiming to advertise its products and services has various media options for advertisement like print media, digital media, telecommunication, etc.’ Here, the managers must evaluate each alternative available i.e. ‘Print Media’, ‘Digital Media’ and ‘Telecommunication’. The pros and cons of each one should be listed and the ones with minimum flaws and maximum possibility of goal achievement should be passed to next level for final selection.

Managers must consider this step earnestly as the evaluation of alternatives reveal the vital characteristics of each alternative, which in turn helps in the final selection of alternatives thereby contributing to the success of the planning process.