What is planning premises?

 Planning premises 

Planning premises or developing premises refers to assumption and the prediction for future course of action on the basis of past experience.

These premises act as the foundation for planning, ensuring that decisions are made in alignment with anticipated internal and external conditions.

They help organizations understand the constraints, risks, and opportunities they may face while implementing their plans.

Importance 

Decision-Making Guidance: Assures that plans correspond with expected circumstances. 

Lessens Uncertainty: Offers a more lucid image of possible hazards and possibilities. 

Enables Coordination: Encourages uniformity throughout departments. 

Boosts Efficiency: Assists in making efficient use of resources.

Types of Planning Premises

Internal Premises

Definition: Assumptions within the organization's control.

Examples:

• Organizational policies.
• Work culture.

External Premises

Definition: Factors outside the organization’s control.

Examples:

Government policies (e.g., taxation laws, labor laws).

Economic trends (e.g., inflation, market growth).

Example 1: New Product Launch

Scenario: A company plans to launch a new product in the market.

Internal Premises:

• The marketing team is capable of creating a strong campaign.
• Sufficient funds are available for production.

External Premises:

• The economy is stable, and demand for similar products is growing.
• Competitors may lower their prices during the launch.

Planning premises are essential assumptions that provide a structured approach to planning. They help organizations anticipate and adapt to future uncertainties, improving the likelihood of achieving objectives.