Here’s a chapter about the first and most important part of achieving goals. Planning is the process of visualizing an activity and defining it step-by-step. This is so as to objectively view how and when can the goals be achieved. So planning is a process of identifying your desired goal or objective and thinking of the tasks and activities needed to achieve said objective. It is a fundamental activity to do before proceeding with any new project personally or professionally. Learn more about Planning Premises.
Meaning of Planning
Planning is actually a very specific process. It is a necessary tool in various occupations like management, manufacturing, business, etc. Each field requires its own different type of plan to achieve its objectives efficiently.
An important, but often ignored the aspect of planning, is the relationship it holds to forecasting. Forecasting tries to predict what the future of the company looks like keeping in mind an external factor. Planning, on the other hand, predicts what the future of a company must look like in various scenarios.
What is Planning premises?
The process of planning is based upon estimates and predictions of the future. Though past guides the plans in present, plans achieve the goals in the future. Therefore, the forecast of future events leads to efficient plans. Since future events are not known accurately, the assumption is made about these events.
These events may be known conditions (even changes in the tax laws as announced in the budget) or anticipated events which may or may not happen (entry of a competitor in the same market with the same product).
Though these assumptions are primarily based on scientific analysis and models, managers also use their intuition and judgment to make assumptions about future events. By identifying the factors (assumptions) that affect plans is called premising and the methods used for making premises are called forecasting.
The done forecast or the assumptions about the future which provide a base for planning in present are known as planning premises. This is the expectation or forecasts made for achieving the goals.
Browse more Topics under Planning
- Introduction, Meaning, Importance, Features & Limitations of Planning
- Planning Process
- Types of Plan
Types of Planning Premises
1. Internal and External Premises
- Internal Premises come from the business itself. It includes the skills of the labor force, investment policies of the company, management style, sales forecasts, etc.
- External Premises come from the external environment. That is economic, technological, social, political and even cultural environment. External premises cannot be controlled by the business.
2. Controllable, Semi-controllable and Uncontrollable Premises
- Controllable Premises are fully controlled by the management. They include factors like materials, machines, and money.
- Semi-controllable Premises are partly controllable. They include marketing strategy.
- Uncontrollable Premises as the name suggests are those over which the management has absolutely no control. Take for example weather conditions, consumer behavior, natural disasters, wars, etc.
Question on Planning Premises
- What is the planning premise?
Answer: Planning combines forecasting with the preparation of scenarios and how to react to them. Planning is a very important tool for project management as well as time management. Planning is preparing a sequence of steps to be taken to achieve some specific goal or objective. This is like putting your ladder to your goal, defining your steps towards your goal.