Planning: Full Overview

Every aspect of life requires planning. must devise a strategy to carry out his ambitions. Throughout his life, a person has framed a number of plans, whether he is in business or not. The duration of the plan might be brief or long. “One of the qualities of being human is that he creates plans,” says Arnold Toynbee.

The first and most important job of management is planning. The planning role, according to all notable writers, comes before all other management duties. Effective planning allows for early achievement of goals, which is dependent on the planner’s efficiency.

A planner is someone who creates a strategy for putting his ideas into action. By preparing oneself for future events, the planner can improve his efficiency.

MEANING

Planning is a method of thinking used to identify a path of action that will assist the organisation reach its predetermined goals in the future.

Planning and execution are different, as F.W. Taylor pointed out in his report on Scientific Management. Separate plans are created for various departments, and the organization’s senior executive then coordinates the numerous departmental plans.

DEFINITION

Koontz and O’Donnel, “Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. It bridges the gap from where we are to where we want to go.”

According to Terry, “Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieve desired results.”

M.S. Hurley, “Planning is deciding in advance what is to be done. It involves the selection of objectives, policies, procedures and programmes from among alternatives.”

Allen, “A plan is a trap laid to capture the future.”

Haynes and Massie, “Planning is that function of the manager in which he decides in advance what he will do, It is a decision-making process of a special kind. It is an intellectual process in which creative thinking and imagination are essential.”

Kast and Rosenzweig, “A plan is a determined course of action.”

H.Fayol, “Planning is deciding the best alternatives among others to perform different managerial operations in order to achieve the pre-determined goals.”

J.P. Barger, “Planning is an ability to visualize a future process and its results.” W.H. Newman, “Generally speaking, planning is deciding in advance what is to be done, that is, a plan is a projected course of action.”

L. Urwick, “Planning is fundamentally a mental pre-disposition to do things in an orderly way, to think before acting and to get in the light of facts rather than of guesses.”

Theo Haimann, “Planning is deciding in advance what is to be done.” Peter F. Drucker, “Planning is the continuous process of making present entrepreneurial (risk taking) decisions systematically and with best possible knowledge of their futurity, organizing, systematically the efforts needed to carry out these decisions and measuring the results of these decisions against the expectations through organized, systematic feedback.”

Cyril L. Hudson, “To plan is to produce a scheme for future action; to bring about specified results, at specified cost, in a specified period of time. It is a deliberate attempt to influence, exploit, bring about and control the nature, direction, extent, speed and effects of change.

It may even attempt deliberately to create change, remembering always that change (like decision) in anyone sector will in some way affect other sectors. Planning takes place at each managerial and supervisory level.

Therefore, the overall plan must be made at the top and subsidiary plan making must be relevant to and consonant with the major plan. In short, planning must be a carefully controlled and co-ordinated activity.”

Hamilton Church, “Planning is, in essence, the exercise of foresight.”

Hodge and Johnson, “Planning is an attempt to anticipate the future in order to achieve better performance.”

Hart, “Planning is the determination in advance of a line of action by which certain results are to be achieved.”

Dalton E. Mc. Farland defines planning as, “Planning may be broadly defined as a concept of executive action that embodies the skills of anticipating, influencing and controlling the nature and direction of change.

 Billy E. Goetz, “Planning is fundamentally choosing and a planning that arises only when an alternative course of action is discovered.” 

Alford and Beatty, “Planning is the thinking process, the organised foresight, the vision based on fact and experience that is required for intelligent action.”

CHARACTERISTICS OF PLANNING 

1. Planning entails looking forward.
2. Planning entails deciding on a course of action ahead of time.
3. Planning identifies the optimum option among several possibilities.
4. The execution of planning takes a long period.
5. Planning is an ongoing procedure.
6. The goal of planning is to attain predetermined goals in a more efficient manner.
7. Planning brings together many organisational functions.
8. Planning is carried out for a certain time frame.
9. Planning not only chooses the goals, but also creates policies, programmes, and procedures to attain them.
10. All levels of management require planning.
11. Planning is a multi-step process that brings together numerous company tasks.
12. The members of the organisation are directed by planning.
13. Planning is essential for every organization’s growth and success.

Check here for latest case studies and research book : https://kit.co/Anurooba/case-analysis-text-books

OBJECTIVES OF PLANNING

1. Reduces uncertainty: The future is unknown. Planning may help turn the unknown into certainty. To some extent, this is feasible through planning, which is required to lessen uncertainty.

2. Brings co-operation and co-ordination: Planning may foster collaboration and coordination across different parts of an organisation. Departmental rivalry and disputes might be avoided with proper preparation. Furthermore, planning prevents task duplication.

3. Economy in operation: As previously said, planning picks the finest options from among a variety of options. This will result in the most efficient use of resources. The organization’s goals are readily accomplished.

4. Anticipates unpredictable contingencies: Some things are impossible to foresee. Contingencies are incidents that occur unexpectedly. These occurrences may have an impact on the smooth operation of a business. The preparation allows for such situations to be anticipated and dealt with successfully.

5. Achieving the pre determined goals: The enterprise’s objectives are the focus of planning efforts. Only efficient planning allows for the timely realisation of objectives.

6. Reduce competition: The presence of competition provides an opportunity for the business to flourish. Simultaneously, intense competition should be avoided. Planning makes it feasible to lessen competition.

NATURE OF PLANNING

There are a variety of options for completing a task. Planning selects the best option from among the available options. When deciding on the optimal option, cost and certainty are taken into account. As a result, the following is a quick discussion of planning:

1. Primary of planning: Planning, organising, staffing, leading, and managing are all management functions. Eminent writers may add new ones to these functions, as well as those that have not been included.

In any case, all writers agree that planning is the most important role of all the others. The management aspires to attain the predetermined goals in a more efficient manner.

2. Planning contributes to objectives: Objectives and planning are inextricably linked. The objectives guide the planning process. If there is no connection between planning and objectives, the former will be a pointless mental exercise. Planning aids in the achievement of objectives.

3. Planning an intellectual activity: Planning entails deciding on the greatest alternative and thinking about it before deciding on the best option native. It entails the capacity to anticipate potential problems that might disrupt an organization’s smooth operation. As a result, planning is a mental process.

4. Planning results in higher efficiency: Input and output ratios are used to assess planning efficiency. Planning ensures greatest production for the least amount of money spent.

This input-output connection is influenced not just by money, labour hours, and production units, but also by the individual’s and group’s level of satisfaction. The high level of human happiness encourages workers to perform more in the time allotted.

5. Planning is a continuous process: The planning process does not end with the creation of a firm. Other duties require planning as well. Certain decisions must be made after the foundation of a corporate entity. To put the decisions into action, planning is required. Several decisions are made over the life of a corporate enterprise. As a result, planning is required as a continuous process throughout the operation of the company concern.

6. Planning is flexible: As previously stated, during planning, any one of the various options is chosen. Planning chooses the optimal option based on a set of assumptions.

If the assumptions are proven to be inaccurate, the chosen alternative is likely to be erroneous. In the management functions, there is the potential of a dead log. To accommodate future circumstances, planning has one more option.

7. Unity and consistency: At certain periods, each department manager resorts to planning. The attainment of objectives is linked to planning. In other words, various managers’ actions are coordinated in order to fulfil the goals. The organization’s policies and procedures offer a foundation for executive behaviour and action in planning affairs.

8. Planning is common to all: Every employee in a company unit is responsible for planning. He might be a foreman or a managing director. Being in a higher position allows a managing director to design the policies and processes that will be implemented.

Because he is at a lesser position, a foreman’s planning entails delegating tasks to his subordinates. As a result, everyone plans.

9. Basis for all managerial functions: At all levels of management, planning is included. Strategic planning is the responsibility of top management. Administrative planning is handled by middle management, whereas operational planning is handled by lower management.

10. Getting co-ordination: Various company operations are coordinated through planning. Nothing can be coordinated without planning.

11. Considering limiting factors: Every strategy is developed after considering the constraints. Money, competent labour, high-quality materials, and equipment and machinery may all be limiting issues.

FORECASTING

Many people mix up planning with forecasting. Forecasting and planning are not the same thing. Forecasting is nothing more than properly forecasting the future path of events. It is essentially a strategy for foreseeing future events. Forecasting is included in the phrase planning. Forecasting is a type of planning that relies on previous experience.

“In reality, the success of a firm rests in significant part on management’s ability to foresee and prepare for future occurrences,” says Haimann.

According to Mc Farland, “Forecasts are predictions or estimates of the changes, if any, in characteristic economic phenomena which may affect one’s business plans.”

Louis Å. Allen, “Forecasting is a systematic attempt to probe the future by inference from known facts.”

IMPORTANCE OF PLANNING 

Planning is an important and fundamental management role. Planning allows for a more orderly approach. Planning explains how the objectives are met and predicts the activities far in advance, implying that planning should come before performing.

According to George R. Terry, “Planning is basic to the other fundamental management functions, that is organizing, actuating and controlling. Without the activities determined by planning, there would be nothing to organize, no one to actuate, and no need to control. This viewpoint stresses the importance of planning in the management process.”

The failure of an organisation is caused by poor and insufficient planning. Everyone understands that no action in an organisation can be completed without planning. The actions of various groups of individuals working in an organisation are coordinated through proper planning.

According to Earnest C. Miller, “Managerial planning attempts to achieve a consistent, co-ordinated structure of operation focused on desired ends. Without plans, action must become merely random activity, producing nothing but chaos.”

The business unit must operate in a constantly changing and unpredictable environment. In such circumstances, continuing the business is extremely tough. Effective planning may help the workforce anticipate unforeseen occurrences and prepare for them in order to survive.

George R. Terry has rightly said that, “Planning is the foundation of most successful actions of any enterprise.”

Planning assists the entrepreneur in achieving early success. In business, success without preparation is nearly impossible. As a result, the planning function is critical for the following reasons:

1. To manage by objectives: An organization’s operations are all geared toward achieving its stated goals. Planning, on the other hand, helps the organisation focus on the goals that must be met quickly.

2. Convert uncertainty into certainty: The future is full with unknowns. Forecasting can help foresee these uncertainty. The planning then makes the required provisions to deal with the uncertainties. Furthermore, planning assesses different courses of action for the organization’s continued growth and profitability.

3. Economy in operation: Planning chooses one of the numerous options that will assist achieve the finest results at the lowest cost.

4. Help in co-ordination: Management achieves coordination via planned, well-publicized policies, programmes, and processes.

As a result, planning aids management in achieving coordination. According to Koontz and O’Donnell, “Plans are selected courses along which the management desires to co-ordinate group action.”

5. Tackling increasing complexities of business: Many personnel with various qualifications are required to manage a firm nowadays. As a result, management must explicitly plan company operations, including who will do what, where it will be done, when it will be done, and how it will be done.

6. Effective Control: Only when actual performance differs from intended performance does control become essential. There are no benchmarks to compare in the absence of a strategy.

Simply said, planning is pointless without control, and control without planning is impossible. H.G. Hicks has said that, “Planning is clearly a prerequisite for effective controlling. It is utterly foolish to think that controlling could be accomplished without planning, without planning there is no predetermined understanding of the desired performance.”

7. Effective utilisation of resources: Planning entails deciding on company tasks ahead of time. The commercial operations are then finished as quickly as possible. It leads to the most efficient and effective use of resources at the lowest cost.

8. Avoiding business failures: Selecting the best objectivities, converting uncertainty into certainty, operating efficiently, coordination, dealing with complexity, effective control and resource utilisation, and avoiding business failures are all part of planning.

ADVANTAGES OF PLANNING

Early planning assists the organisation in achieving its goals. In this approach, planning benefits the company in a variety of ways. The following are a few of the advantages of planning:

1. Better utilisation of resources: Planning determines what should be produced and how it should be produced. Then there’s the prospect of properly using the resources.

2. Helps in achieving objectives: An organization’s goals or objectives are established through planning. This effectively directs the control of the organization’s workforce. Planning assists the organisation in achieving its predetermined goals or objectives in this way.

3. Economy in operation: Through planning, an organization’s superfluous output, inefficient resource use, and redundant activities are avoided, resulting in operational economy.

4. Minimises future uncertainties: The necessity of preparing grows in the face of an uncertain future. Planning anticipates future changes and uncertainties and devises strategies to address them. As a result, certain future uncertainties are reduced by preparation.

5. Improves competitive strength: Adding new product lines, changing product quality and size, expanding plant capacity, and changing work procedures all help to boost competitiveness. These are accomplished by careful preparation.

6. Effective control: Control without preparation is impossible. Control is only employed when a well-planned strategy is in place. As a result, planning offers a foundation for regulating.

7. Motivation: A well-thought-out strategy motivates employees and offers them a sense of successful engagement. Employees are motivated and defined by planning, which describes what the organisation intends to achieve.

8. Co-operation: Planning assists management in guiding employees toward shared objectives or goals. Planning ensures that goals are well defined, that the direction is clear, and that policies, processes, and programmes are well-publicized. All of this makes it easier to coordinate efforts, reducing duplication of effort and interdepartmental disputes.

9. Promote growth and improvement: Planning establishes a norm for purpose control. As a result, pointless and pointless actions are avoided. It leads to personal and organisational development and progress.

10. Develops rationality among management executives: Formal planning helps management executives think more systematically. Only after putting their ideas on paper do management leaders take action. Planning encourages reasonable thinking and approaches among management leaders in this way.

11. Prevents hasty judgment: We may use a plan to analyse a situation and weigh the options before making a sensible conclusion. It is feasible to plan ahead of time what will be accomplished and how it will be accomplished. This method prevents making hasty decisions.

12. Reduces red-tapism: The most junior executive can act on pre-determined choices. He does not need to seek new authorization for his actions. It removes red tape and saves time, energy, and money.

13. Encourages innovative thought: A good strategy should provide anybody the opportunity to think differently. It is looking for a means to motivate individuals to work together and achieve common goals.

According to D.E.Hussey “A good planning process will provide avenues for individual participation, will throw up more ideas about the company and its environment, will encourage an atmosphere of frankness and corporate self-criticism and will stimulate managers to achieve more.

14. Improves ability to cope with change: Planning aids managers in improving their capacity to deal with change, but it cannot avoid it. This raises managers’ awareness of the possibility of change.

15. Creates forward looking attitude in management: Managers may lose their success as a result of day-to-day issues. Planning assists a manager in becoming more affluent and in developing a forward-thinking mentality, ensuring management stability.

16. Development of efficient methods: Planning assists management in developing effective action techniques and processes.

17. Delegation of authority facilitated: A well-thought-out strategy will always make delegation of authority easier.

18. Anticipation of crisis: Careful planning will help you avert the impending calamity. Management may prevent internal organisational disruptions in this way.

STEPS IN PLANNING PROCESS

The planning process is different from one plan to another and one organisation to another. Given below is a planning process which may be treated as commonly acceptable.

1. Analysis of External Environment: It is vital to examine an organization’s external environment. The word “external environment” refers to the socioeconomic and political conditions that exist in a country.

The socio-economic status of a society is determined by factors such as income, age, class, living circumstances, goals, and expectations. These are uncontrollable variables. However, every organisation must design its plan in accordance with shifting external trends.

2. Analysis of internal environment: It’s also referred to as a resource audit. An study of an organization’s strengths and shortcomings is known as a resource audit. The availability of resources, profitability, plant capacity, available staff, communication efficacy, and other factors are all taken into account.

3. Determination of objectives: An organization’s objectives are pre-determined. The desired outcomes are specified in objectives. Following the determination of the organization’s objectives, section- or department-level objectives are planned.

Defining the objectives of each department is critical; only then will the departments have a clear path to follow. If the objectives are well specified, the control procedure is extremely simple.

4. Determining planning premises and constraints: Planning is a forward-thinking process. As a result, forecasting is used to plan. Forecasting is making assumptions about and anticipating particular outcomes.

It entails predicting how specific variables will behave in the future. These components’ probable behaviour must be factored into the planning. These are the planning premises in this sense.

Generally, forecasting is made in the following ways:

(i) What will be the market force? Market force refers to demand, supply, buying capacity and the like.

(ii) The expectation of volume of sales.

(iii) What kind of products are to be sold and in what price? 

(iv) What would be their manufacturing costs? 

(vii) How is the finance raised for expansion and/or modernisation of the business?

(v) What would be the tax policy and economic policy of the Government? 

(vi) The expectation of technology change in production

5. Examination of alternative courses of action: An activity can be carried out in a variety of ways, but one method is best for the organisation. As a result, the management should look for other options and evaluate them in the context of the planning premises.

According to Koontz and O’Donnell, “There is seldom a plan made for which reasonable alternatives do not exist. Moreover, before weighing alternatives and reaching a decision, one is wise to search for alternatives that may not be immediately apparent. Quite often an alternative does not immediately prove to be the most profitable way of undertaking a plan.”

6. Weighing alternative course of action: All of the options are unsuitable for a business. Each option has its own set of advantages and disadvantages. As a result, all of the options must be weighed in order to find the optimal option.

7. Selection of the best alternative course of action: The best option is chosen after analysing the numerous options. The best course of action is determined by the current situation. When choosing the best option, no bias is displayed.

8. Establishing the sequence of activities: For each area or department, product, quarter, month, week, and so on, the specified course of action is implemented. Finally, the management should write a detailed final plan.

9. Formulation of action programmes: For each area or department, product, quarter, month, week, and so on, the specified course of action is implemented. Finally, the management should write a detailed final plan.

10. Determining secondary plans: The fundamental or basic plan feeds into secondary plans. To accelerate the completion of the basic plan, a secondary plan must be created. For example, after deciding on a fundamental sales strategy, a variety of supplementary strategies may be developed.

The secondary plan covers things like production schedules, plant and machinery purchases, raw material purchases, consumable stores, staff selection, training, and placement, and so on.

11. Securing participation of employees: The level of employee engagement is critical to the success of the project. As a result, via communication, collaboration, and involvement, management should include employees in planning.

12. Follow-up and evaluation: A mechanism of follow-up should be in place. The management should keep an eye on the planning process. The flaws in planning can be discovered and corrected right away by follow-up action.

Continuous planning review is also required. It implies that actual performance is compared to the plan, and if there is a discrepancy, corrective action is implemented.

METHODS OF PLANNING

Types of planning, planning components, and planning elements. Type The methods of planning are classified into the following groups based on their use and nature:

1. Objective plans: Basic plans are handled as objectives. All forms of planning operations require these fundamental plans. The formation of objective plans is the only focus of all management activities. The planning activity is dominated by objectives, but they also play a significant part in the administrative task of organising, directing, and managing.

2. Standing Plans: Policies and processes are included in standing plans, which are subject to repetition. A single activity may be classified into two types: repetitive and nonrepetitive.

Standing plans serve as a quick reference for resolving challenges. Standing plans are useless if issues in an organisation do not repeat. Standing plans are not used to tackle special issues; instead, they are solved in a different method.

Standing plans restrict a manager’s ability to ensure integrated and cooperative action. The reason for this is that the management must implement policies and procedures.

3. Master Plans: The Master Plan outlines the whole path of action, taking into account time and strategy. To expedite the course of activity, little plans are joined together in an organised fashion.

Plans can be either broad or specific in terms of scope. Plans may be concerned with manufacturing, sales, acquisition, and other comparable operations if they are developed function-wise.

A BEST WAY TO EARN WHILE YOU STUDY, JOIN THIS APP UPLOAD PHOTOS, SAVE MONEY FROM NOW ON : https://bit.ly/3g7PxAg

LIMITATIONS OF PLANNING

Though the planning function is a major management function that aids other management activities, it has several limits.

1. Inflexibility: The plans get more rigid as they become more comprehensive and ubiquitous. An description of management philosophy emerges from this inflexibility. It may be difficult for management to prepare for a lower-quality product if their attitude is to provide high-quality items at a high cost.

2. Limitation of forecasts: Forecasts are used to plan everything. If projections are inaccurate, the planning will be rendered useless.

3. Unsuitability: Objectives, rules, and processes are established in planning following a thorough examination of all relevant aspects. In actuality, however, business is always confronted with fresh possibilities and problems.

As a result, there is a need to modernise such stated objectives and policies in light of new possibilities and difficulties. As a result, planning is inappropriate.

4. Time consuming: Management cannot simply draught a plan. It must gather diverse data and engage in talks with others. As a result, planning takes a long time.

5. Costly: Collection of relevant information, rigorous study and interpretation of possible courses of action, and selection of the best one among them all precede planning. This project cannot be finished without spending money.

At the same time, there is no assurance that such preparation would result in any advantages. As a result, the planning process is pricey.

6. Mental ability: It is a mental workout to plan. Only a capable and skilled manager can make the most meticulous preparation. There will be no effective planning if the CEOs or managers lack this capacity.

According to George A.Steiner, “Planning is hard work. It requires a high level of imagination, analytical ability, creativity and fortitude to choose and become committed. Management must exert pressure to demand the best efforts in managers and the staff. Both the talents required are limited and the maintenance of high quality planning is difficult to achieve.”

7. False sense of security: The future is unpredictable. The future is the focus of planning. If good preparation is followed, management believes that there is security. In practise, however, this is not the case.

As a result, the route of action is constrained, and the planning becomes more accurate. This complication gives management a false feeling of security.

8. Delay during emergency period: During an emergency, planning does not provide any benefits to an organisation. The planning is dominated by spot decisions. There is a chance that the job may be delayed if planning is followed during the emergency time.

9. Capital investment:When large sums of money are invested in fixed assets, the opportunity to alter direction in the future is limited, and planning becomes more precise. This problem persists until investments are liquidated or it becomes necessary to write down the investment.

10. Political climate: Government views can shift in response to changes in the political context. The organization’s planning process is being hampered by tax policy and financial institution regulation of business and money.

11. Trade Unions: The ability to plan freely is hampered by the national organisation of trade unions. Trade unions have the ability to intervene in management operations such as work rules, salary fixing, productivity, and related perks. As a result, managers are limited in their ability to make judgments in this area.

12. Technological changes: When technology changes, management is confronted with a slew of issues. The issues might include excessive production costs, market competitiveness, and so forth. The management is unable to adapt its policies in response to technological advancements. It will have an impact on planning.

OBSTACLES IN PLANNING

Planning may face certain difficulties or obstacles in the planning process. These obstacles are summarised below:

1. Unreliability of Forecasts: The future is unknown. As a result, the likely occurrences cannot be predicted precisely. As a result, the degree of unreliability rises in tandem with long-term planning. To put it another way, planning is ineffective.

2. Recurrence of same type of problems: With the passage of time, the form and shape of problems change. Some issues may be postponed and manifest themselves later. As a result, it is necessary to keep standing plans. It adds to the workload of management people.

3. Expensive: Planning has some costs. The small business unit may be responsible for the costs. The attainable gains from preparation should outweigh the costs. However, if a small business unit fails to comply to the strategy after it has been prepared, this is not possible and costly for a large company unit.

4. Loss of initiative: Everyone has a unique perspective. Pre-planned programmes will not be able to materialise and repress these notions. Some businesses have suggestion boxes, but the recommendations presented are not given weight since planning establishes standards, and the task should be carried out properly.

PLANNING PREMISES

Planning is the process of preparing for the future. The future, though, is more unclear. As a result, while formulating a strategy, management leaders make certain assumptions about the future.

These assumptions should not be relied on guessing or intuition. Because the planning is created on the basis of such planning, the assumptions should be developed by scientific forecasting of future occurrences.

According to Koontz and O’Donnell, “Planning premises are the anticipated environment in which plans are expected to operate. They include assumptions or forecasts of the future and known conditions that will affect the course of plans, such as prevailing policies and existing company plans that control the basic nature of supporting plans.”

The development of well-developed planning premises is critical to effective planning. If the planning premises change, the planning will have to adapt as well. Similarly, if the planned premises are incorrectly assessed.

As a result, managerial plans become unstable. As a result, the most important phase in managerial planning is a precise appraisal of planning premises.

Numerous causes and factors influence the business environment. When creating planning premises, management leaders should examine these dynamics and circumstances. The elements and forces that have a significant influence on the business environment should be prioritised, while the forces and factors that have a minor impact should be ignored.

The understanding of influencing forces and circumstances helps management executives choose the best and most appropriate planning premises from which to build the planning superstructure.

The basic goal of planning premises is to make the planning process easier by guiding, directing, simplifying, and lowering the level of uncertainty. Planning may become a waste of time and money if it is done by anybody without considering the planning premises. As a result, establishing good premises is critical for effective planning.

CLASSIFICATION OF PLANNING PREMISES

1. External Premises: Outside the company are external premises. External foundations include economic, technological, political, social, and market factors, to name a few.

Economic premise refers to consumer purchasing power, technological premise refers to application of cutting-edge technology, political premise refers to government policy, social condition refers to culture, and market condition refers to the product or service’s demand and supply factors.

2. Internal Premises: Human resources, material resources, machine resources, financial resources, and procedures are some of the types of internal premises that exist within a corporate firm. Internally, the most important conditions are management competence and labour force skill.

3. Tangible Premises: Quantified variables are sometimes known as concrete premises. Money, time, and manufacturing units are examples of tangible premises. Money is measured in rupees, time is measured in seconds, minutes, and/or hours, and productivity units are measured in kilogrammes, litres, and horsepower.

4. Intangible Premises: Intangible premises are what qualitative elements are. Intangible premises include the company’s reputation, employee loyalty, public relations, staff morale, and motivation. In planning, both physical and intangible planning premises must be considered.

5. Controllable Premises: Controllable premises are those that are totally within the control and sphere of management. Controllable premises include policies, techniques, processes, systems, programmers, rules, and regulations.

6. Uncontrollable Premises: Uncontrollable premises are those that are not within the scope of management’s control. Furthermore, these sorts of locations cannot be predicted. Uncontrollable premises, however, should be considered while creating a strategy. Uncontrollable premises include war, natural disasters, new discoveries and innovations, and human behaviour.

7. Semi-controllable Premises: Semi-controllable premises are those that can be foreseen and controlled to some extent. In other words, certain premises, known as semi-controllable premises, are under management’s partial control.

Some examples of semi-controllable premises are trade union and management relations, employer and employee relations, superior and subordinate relations, inter-departmental relations, and market supply position.

8. Fixed or Constant Premises: Regardless of management action, certain locations have remained unchanged. They’re precise, well-known, and well-understood. As a result, the management does not need to examine these types of locations. Men, machines, and money are examples of permanent or constant premises while constructing a strategy.

9. Variable Premises: Some facilities may be altered as a result of management decisions. These assumptions have a substantial impact on the plan’s performance. As a result, while making plans, the management should take these factors into account. Variable premises include things like sales volume and production costs.

10. Foreseeable Premises: Some premises are clear and well-known, and they can be predicted with confidence. Predictable premises include all fixed or consistent locations.

11. Unforeseeable Premises: Some locations are impossible to manage. As a result, these sorts of establishments cannot be unexpected. Unforeseeable circumstances include war, strikes, natural disasters, consumer preferences, and consumer taste.

Other Related Topics