Name the classification of planning premises?

 Classification of Planning Premises 

Now first we need to understand that about 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 be as:-

·        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: -

(a)   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 industry.

(b)   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.

(c)    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: -

·        Labour Strikes

·        Wars

·        Natural Calamities

·        Emergency

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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Good Bless You!!

Nadeem Khan
M. Com, M.B.A.
Mail - ndmk1338@gmail.com