Classification of Planning Premises
if we are going to planning premises for our certain some assumptions which
related to planning for our organization future so now question has come how to plan
and what would be the basis of which the plan will be ultimately formulated.
Planning premises are important to the success of planning
as the per the facts and information which relating to the future which would
What would be the population trends?
What is general economic conditions?
What is the production costs and prices?
What is probable competitive behaviour?
How much the capital and material availability?
How is the Governmental control and so on?
Above the question now we are going to CLASSIFICATION OF
PLANNING PREMISES as follows: –
Internal and External premises.
Tangible and Intangible premises.
Controllable and non-controllable premises.
So, let’s discuss about the classification of planning premises
in details: –
Internal and External Premises: –
Internal – its include the forecasts, it would
be how much the cash flow in particular period, policies and programme of
organization, what would be the capital investment in plant and equipment, what
about the competence of management; and how much skill and labour force
required, and what is the behaviour and value of the managements and employees
of the organization.
External – it is include the what is business environments
and what factors which would be influence the demand for the particular products
of the enterprises, and now a days what technological factors would be affect
our business, it has also include the what would be the future Government Policies
would be affect the business and what would be the demand of product in the
Tangible and Intangible Premises: we
need to understand that some of planning premises may be tangible and some are
intangible. so, we need to understand that first what is the mean of tangible
premises so the tangible premises are those which can be measure by quantitively
in opposite intangible premises are those which can be measure by qualitative. So
we are given as example as following which can be easily understand what is tangible
premises and what is intangible premises: –
Population growth, industry demand, capital
investment which would be easily measured by quantitively this is the example
of Tangible Premises.
Business and Economic environment, political stability,
management and employee behaviours this can be measured by qualitative and this
is the best example of intangible premises.
Controllable and non-controllable Premisses:
We know that while we are doing some planning premises there are some
factors controllable and some other are non-controllable. If we found that
there are some factors which are uncontrollable so the organization has to
revise the plans as per period of time according to current developments. We are
given as following some example of uncontrollable factors: –
Normally, controllable factors can not affect the organization
but some time during the passage of time of current development of planning
organization need to amend their organization policy which would be as how to
skill their employee, and how to maximize use of their resource in terms of capital
and labour etc.
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M. Com, M.B.A.
Mail – firstname.lastname@example.org