PLANNING PREMISES

PLANNING PREMISES


Basically, Planning is based on assumptions, which are likely to be happened in nearest future. These assumptions may be referred as Planning Premises (PP).

It constitutes the frame within which the planning is done. These assumptions are not merely based on post experience, but also on systematic predictions with the help of quantitative methods.

Types of Planning Premises











1. Internal & External: The internal PP includes the sales forecast, the existing policies & programmes of the organisation, capital investment policies, philosophy of Management, abilities & skills of the workers etc are the significant internal premises.

On the other hand, the external PPs are derived from external environment. They relate to the political, economic, social and technological forces in which the organisation operates and conditions which influence demand for the organizational products.

2. Controllable, Semi Controllable & Non-Controllable: Factors like materials, money and machines are controllable up to great extent. In these areas, mgt has maximum control over the future commitments.

Semi controllable premises are those assumptions about future on which business has partial control, like labour relation and marketing policies.

Non-controllable premises are entirely beyond the scope of business, for instance, government policy, international trade agreements, wars, natural calamities etc.

3. Tangible & Intangible: Tangible PPs are capable of being expressed in terms of quantitative units.

Intangible premises are not measurable quantitatively. The factors includes like goodwill, public relations, employees attitude, manners etc.