Management & Entrepreneurship 18ES51

MODULE-I
Unit 1 – Management
1. George R Terry, management is distinct process consisting of planning, organizing, actuating &
controlling performance to determine & accomplish the objectives by the use of people &
resources.
2. Management is that function of an enterprise which concern itself with the direction & control
of various activities to attain the business objectives.

Nature & characteristics of management

1. Management is an activity: Management is a process of organized activity which is

concerned with the efficient use of resources of production. Resources include materials,
money & people in the organization.
2. It is a purposeful activity: It is concerned with the achievement of an objectivity these
functions such as planning, organizing, staffing, directing & controlling
3. It is concerned with the efforts of a group: management is concerned with management of
people & not the direction of thugs. It inspires & motivates works to put forts their efforts to
the maximum extent.
4. Management is getting things done: Management is the art of getting things done their &
with people in formally organized groups.
5. It applies economic principles: Management is the art of applying the economic principles
that underlie the control of men & materials in the enterprise under consideration.
6. Involves decision-making: Management in the decision making process & the decisions are
involved in all the functions of management.
7. It Co-ordinates all activities & resource: It is concerned with the Co-ordination of all
activities & resources it’s various functions to attain the stated objectives.
8. It is a universal activity: It manager irrespective of the enterprise in which they are working
& their place in the organization shuttered make use of the management principles.
9. IT is an integrating process: It integrates men, machines & materials for carrying out the
operations of the enterprise & for achieving the stated objectives.
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10. It is concerned with direction & control: It in concerned with the direction & control of
various activating the enterprise to attain the business objectives.

11. It is intangible: It is abstract & cannot be seen with the eyes. It is evidenced by the quality of
organization & results such as increased productivity.
12. Management is both science & an art: It has developed certain principle & laws which are
applicable of to any group activity.
13. It is a proffers ion: Because there are established principles of management which are being
applied in practice.
14. It is an interdisciplinary approach: Management as a body of discipline takes the help of
other social sciences.
15. It is an economic resource: There are five factors of production land, labor, capital,
management. The entrepreneur establishes the organization as owner & it is the
management which transforms these resources these in to productive process.
16. It is a system authority: As management is a process of directing men to perform a task,
authority to extract work from others, it is implied in the busy concept of management.
17. It is dynamic, not static: Management adopts itself to the social changes & also introduces in
methodology.

Objectives of Management
1. Proper utilization of resources: the main objective of management is to use various resources
of the enterprise in most economic way. The proper use of men, machines, money will help
a business to earn sufficient profits to satisfy various in assets.
2. Improving performance: Management should aim at improving the performance of each &
every factor of production. The fixing of objectives of various factors of production will
help them in improving their performance.
3. Mobilizing best talent: The management should try to employ person in various fields so
that better results are possible. The employment of specialists in various fields will be
increasing the efficiency of various factors of production. There should be a people
environment which should encourage good persons to jay the enterprise.
4. Planning for future: No management should feel satisfied with today’s work if it has not
thought of tomorrow future plans should take in to consideration what should we do next.
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Future performance will depend upon present planning. Planning for future is essential to
help the concern.

Scope of management
Management is an all pervasive function since it is required in all types of organized Endeavour.
The following activities are covered under the scope of management
1. Planning
2. Organization
3. Staffing
4. Directing
5. Co-coordinating
6. Controlling

The functional areas of management are

Production management: Production means creation of utilities. This creation of utilities takes
place when raw materials are converted in to finished products. IT deals with aspects such as
production planning, quality control & impaction, Production control techniques.

Marketing management: Marketing is a sum total of physical activities which are involved in the
transfer of goods & services & which provide for their physical distribution. It includes marketing
of goods & services, price determination, market research, sales promotion, advertisement publicity
etc.

Financial management: Finance is viewed as one of the most important factors in every enterprise.
Financial management is concerned with the managerial activities pertaining to the procurement
and litigation of funds or finance for business purposes.

Office management: The concept of management which applied to office is called office
management. It is a technique of planning, Co-coordinating & controlling office activities with a
view to achieve common business objectives. One of the functions of management is to organize
the office work is such a way that it helps the management in attaining its goals. It works as a
service department for other department.
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Is management a science, art or profession?

Science is a systematized body of knowledge acquired by making their observation &
experimentation based on certain principles capable of general application art on the hand is
concerned with the application of skill or knowledge so enquired. It this idea of science & art is
applied to the management activity it is clear that management is both science & an art

The management can be regarded as profession but by the analysis of the characteristics of
management indicates that it does not possess all the essential characteristics of a profession. Like
other recognized professions such as medicine & law, management does not have norms of
managerial behavior, common rules uniform code of conduct & organization & lice ship. It does not
restrict the entry of people in to managerial jobs with a special academic degree. We can conclude
that there management cannot be called a profession however; we may state that there are certain
trends which indicate that the management is moving in the direction of profession

The term management involves providing a body of principles or lows for the solution of specific
management problems & the objective evaluation of results further the analysis of functions of
management has to the development of certain principles which are useful for solving concrete
business problems in future. Thus we find the management is both a science & an art.

Administration V/S management

Administration is different from management: Admin is higher level activity while mar is a lower
level activity. It is concerned with the determination of overall objectives & policies of the
enterprise while management with planning, coordinating & controlling of business activities for
attaining the enterprise objectives.
Admin is part of management: management is the generic term for the total process of an executive
control involving responsibility for effective planning & guidance of the operations of an enterprise.
Administration is the part of management which is concerned with the installation & carrying out of
the procedures by which the program me is laid done & communicated & progress of activities is
regulates & checked against plans.
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Basic difference Administration Management

Nature of work It is primary concerned with It is dues the implementation plans
determination of objectives & & policies,
polices Doing function.
It is thinking function
Scope It takes major decision It takes the decision within frame
work of administration.
Level of authority IT is a top level function Lower level function
Status It consist of owners of an enterprise It consists of managerial personal
with specialize knowledge who may
be employees.
Nature of It is used in relation to good It is making in business forms.
organization military, educational & fuliginous
organization.
Influence Its decisions are influenced by The influence by internal factors
external factors such as social, such as values, beliefs, opinions.
political labor

Roles of management
Manager is any organization plays variety of roles responding to a particular situation. The three
important roles played by a manager are interpersonal roles. Decision roles & information roles.

Interpersonal roles: These includes figure head, leader & liaison rolesIn the figurehead role, the
manager perform some duties that are casual & informal ones like, receiving and greeting visiting
dignitaries, attending to social functions of employees entertaining customers by offering parties &
winches etc. As a leader manager motivates direct & encourages his subordinates He also reconciles
the needs with the goals of the organization.
In the role of liaison, the manager works like a liaison officer between top management & the
subordinate staff. He develops contacts with outside people & collects useful information for the
well being of the organization.
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Decision roles: There are four decision roles played by a manager. They are resource provider
arbitrator entrepreneur & negotiator.
As a resource allocator, the manager divides the work, provides required resources & facilities to
carry out the allocated work and delegates requires authority among his subordinates He decides
who has to do what & who gets what.
As a arbitrator, a manager works like a problems solver. He finds solutions of various un-anticipated
problems both within & outside the organization. As an entrepreneur, a manager continuously looks
for new ideas & lies to improve the organization by going along with changing work environment.
He also acts as a negotiator negotiates with employees & lies to resolve any internal problems like
trade agreements strikes & grievances of employees.

Information role: A manager plays as monitor, spokesman and disseminator. A manager monitors
his environment & collects information their personal contacts with colleagues & subordinates. As a
spokesman, he communicates the information/goals of organization to his staff& the progress of
work to his superiors. He also communicates the performance of company to share holders & the
rules & responsibility to his subordinates. As a disseminator, the manager passes some of the
information directly to his subordinates & to his bosses. Manager is any organization plays variety
of roles responding to a particular situation. The three important roles played by a manager are
interpersonal roles. Decision roles & information roles.

Interpersonal roles: These includes figure head, leader & liaison roles

In the figurehead role, the manager perform some duties that are casual & informal ones like,
receiving and greeting visiting dignitaries, attending to social functions of employees entertaining
customers by offering parties & winches [Link] a leader manager motivate direct & encourage his
subordinates He also reconciles the needs with the goals of the organization.
In the role of liaison, the manager works like a liaison officer between top management & the
subordinate staff. He develops contacts with outside people & collects useful information for the
well being of the organization.
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Level of management
Top management Middle management Supervisor management

Board of directors Departmental heads Senior Supervisor

Chairman Decisional heads Immediate Supervisor

Chief Executive Schlock heads Front Line Supervisor

The process of dividing authority & responsibility among the various executives is called the
creation of level of management.

Top management: Head of organization

Functions of Top Management

Determine objective of the [Link] relate to profit, business growth, survival,
prestige, competitive pricing, marketing method.
Frame the policy: To frame policies & check out plans to carry out the objectives & policies,
policies may relate to different aspects of the organization.
Organizational frame work: Top management determines the organization structure for the
purpose of executing the plans
Assemble the resource: Execute the plans; the resources of men, machines, materials &
money have to assemble.
Control the operations the organization: Top management also controls operations their
budget cost & statistical quality control & accounting device.

Middle management: It consists of departmental divisional or sectional heads other executive

officers attached to the different departments. This department is responsible for implementing
policies & plans decided by management.
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Functions of Middle Management
To execute the various functions of organization so that the top management gets enough
time to look after their responsibilities.
To cooperate among themselves, with the top management & the supervisors so that the
organization functions smoothly
To achieve coordination between the different parts of organization
To develop & train employers in the organization for better functioning & for filling up
vacancies that may arise in future.
To build company spirit where all are working to provide a product or service wanted by
consumer.

Supervisory management: It consists of senior supervisors. The executives at this level are in
direct touch with the workers & have to see the work is properly carried out.
The effective implementation of the plans & policies, the quality of coordination ship quality of
output & overall success of the organization very much dependent on the hard labor, discipline,
loyalty of the personal at this level of management.

Functions of supervisors
To issue order & instructions to the workers & to supervise & control their work.
To plan activities of the section.
To assign jobs to the workers
To direct & guide the workers about work procedure.
To arrange for the necessary tools, equipment, material etc.
To solve the problems of workers
To maintain discipline among the workers & to develop them the right approach to work.
To inform the management about the problems of workers which are not solved at this
level?
To maintain good human relations.
To build a high group morale among workers.
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DEVELOPMENT OF MANAGEMENT THOUGHT
Development has emerged as a powerful & innovative force on which the today’s society depends
for material support from an unrecognized situations in the past one or two centuries.

This is the area of management which is responsible for undertaking activities such as industrial &
technical surveys, taking up research work, suggesting ways & means for innovations for reacting
the taken up for improving methods of production, finding out best ways of doing things, raising
productivity in the firm. The innovative methods of production & marketing will help the firm to
grow.
Seventeen and eighteen centuries had seen industrial revolution. Lots of inventions & new
technologies had emerged. The importance of management was focused division of lab our concept
was evolved importance of planning was [Link] the management on a separate field of study
had emerged only durum’s early 20th century when new industrial era began.

Business organizations had a stage shift from ownership towards joint stock companies. As an
answer to the problems like insufficient system, inefficiency of lab our & discrepancy in wage
payment, management has been recognized as a separate & important fie d of study.

Subsequently, management has evolved as a specific discipline of study & [Link] evolution of
management can be divided in to two parts early management approach & modem management
approach.

Early Management approaches

History of management is as old as a man. Evidence of well organized principle of management can
be seen in ancient Greece & India. Those kings used the concepts of management like planning,
organizing, leading and controlling the various activities.
The process of early management approaches are
1. Physiological development.
2. Scientific ,management
3. Administrative management
4. Human relations movement.
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Physiological development : (Before 17th century)

In olden days when there was no experience and knowledge of business, they had to depend upon
theca inborn abilities. This gave rise to management that was totally based on Physiological
process. People were having universal belief that massagers are born and cannot be made such as
artists, directors, kings etc

Scientific management: (18th -19th century)

During this time the development was brought about by following two important factors.
➢ The effort of scientists to demonstrate the application of science & scientific methods.
➢ The effort of establishing standard practices.
The work made use of scientific methods for achieving standard practice & higher efficiency. Thus
scientific management came into existence.

a) Work study
Work study includes time and motion study. Taylor observed that the workers were not
producing their full capacity for the fear that their piece rate would be cut with rise in
production. The best way of doing a particular job was arrived at with this the time required
to complete one job was calculated called stand and time
b) Differential payment
Motion and time study and establishment of standard time further helped in arriving at the
production rate of a particular piece or job. It was linked that incentives are introduced with
increase in production. It was thought that this would motivate workers to produce more.
c) Reorganization of supervision
The supervisions work was just to allocate the work to be done. The planning of work and
selection of tools & sequence of doing work are to be done by foreman and the worker had
to simply carry out the work without wasting his time as to how to do that.
d) Scientific requirement and training
Taylor suggested that need for scientific training and development of a worker to carry out a
specific task in a more productive way. He also believes that good cooperation between the
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management and workers would had to the increased production and profits t to both.

The objectives of scientific management are

1. To assures industrial and market tendencies and to regularize continuous operation.
2. To earn larger profit from a given expenditure on man and materials by minimizing waste work and
waste movements.

3. To provide healthy and safe working environment

4. To build character this proper work
5. To develop self realization and self satisfaction among workers there by improving their
morale.
6. To give better opportunity for individual their scientific methods of working.
7. To ensure happier and social life to workers,
8. To promote justice among workers by eating them equal.
9. To perform planned and balanced operations.

Administrative management: Henri Fayol is considered as father of administrative management.

The theory was developed to make it applicable to middle and top level management. He suggested
the activity of any business organization could be divided in to six groups, financial, technical,
accounting commercial, managerial security. The focus was on managerial or administrative
activity. Management junction is divided in to functions such as planning, organizing, commanding,
coordinating and controlling.

Principles of management are

1. Division of work
2. Discipline
3. Authority and responsibility
4. Unity of command
5. Unity of direction
6. Union is strength
7. Equity
8. Order
9. Stability of tenure personnel
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10. Remuneration

Human relation movement

The unpredictable and irritable pattern of behavior of worker made the task managers more
difficult. They are broadly classified in to
1. Illumination experiments
2. Relay assembly list room
3. Interviewing program me
4. Bank wiring test room.
The business organization is not merely technical and economical unit where only production and
profits are anticipated but it is also socialistic human system. These are four important modern
management approaches
1. Behavioral approach.
2. Systems approach
3. Quantitative approach
4. Contingency approach
Behavioral approach:
The behavioral approach management is concerned with the application of methods & finding
psychology and sociology for the purpose of understanding the organizational behavior. This is an
improved & extended version of human relations approach to management. Motivation theory,
leadership, communication and employee motivation & development are same
Behavioral scientists regarded the classical approach as highly mechanical & routine & resulting in
demoralizing human aspect.

Quantitative approach
Quantitative approach is also known as management science approach which was developed
during Second World War to find solutions to some complex new problems in warfare.
This deals with formulating a mathematical model to simulate a given problem that includes the
feasibilities, constraints, costs of [Link]. An optimum mix of these critical variables is arrives
at, either for minimizing time or cost or maximizing profit or minimizing time or cost or
maximizing profit or production or service enabling the management to take up logical decision.
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System approach
The classical approach emphasizes in the structure & task, the behavioral approach emphasizes on
people & the quantitative approach on mathematical modeling & decision making based on the
model. But system approach provides the management the integrated approach of problem solving.

A system is defined as a set of independent parts together form a unitary whole that performs a
defined task. Organization is a system that consists of people, task, structure & technology. Each
part of the system has an independent relation with other part. The systems approach tries to
emphasize to resend the organizations as a whole, rather than dealing the parts separately. A system
can be either an open system or closed system, A system that interacts with outside environment is
called open system & a system that works with the closed boundary is called closed system.

Contingency approach
The contingency approach is the most recent development in the field of management. This
attempts to integrate all the management approaches contingency approach suggests the task of
managers to identify the correct techniques that will suit a particular situation & apply them to solve
a problem.

This approach is very much applicable is preparing organizational structure in deciding degree of
decentralization, motivational & leadership approaches establishing communication systems,
resolving conflicts training the employees etc.
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MODULE-I
Unit 2 - Planning
Planning: It is the scientific direction to managers to move is a direction by which objectives will
be met with ease.

Uses:
1. minimizes the risk, reduces uncertainties surrounding business conditions.
2. Increases the degree of success
3. It establishes Co-ordinate effort in the organization.
4. It helps managers to organize people & resources properly.
While planning - managerial function should be performed first.

How to plan:
1. Profit thinking & analysis of information.
2. Predetermined curse of action.
3. Objectives to be attained in the future.
4. Study of alternative courses.
5. Involves decision making.
6. Try to achieve better results.
7. Continuous process & integrated work.

Nature or characteristics of planning

1. Focus in objectives: Plan starts with setting up of objectives long term & short term
objectives should be prepared. The main aim is to utilize the financial resources in the best
possible manner. & take the best advantage of prevailing economic situation. It is realized
by developing policies with procurement, administration & distribution of business funds in
a best possible way,
It is important in developing procedures to ensure consistency of actions. The procedures
follow the formulation of policies & strategies etc.
2. It is an intellectual process: The intellectual process requires mental exercise, fore suing
future developments, making forecasts & the determination of the best course of action.
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3. Planning is a selective process: It involves careful study of analysis of various alternative
courses of action. For alternatives to decide & make decision it requires to know what is to
be done. How it is done, when it is to be done & by whom it is done.
4. Planning in pervasive: which is an activity to cover all the levels of enterprise. In the levels
of management the top level is concerned with strategically planning, middle & the cover
are concerned with administrative & operational planning.
5. Planning is integrated process: It involves not only determination of objectives to formulate
sound policies, programmer, procedures & strategies for the meeting these objectives. The
managerial functions & facilities other managerial functions like organizing, staffing,
directing & control try.
6. Planning is directed towards efficiency: Planning is basically to increase the efficiency.
Good plan is will give maximum output & profit at minimal cost. Planning is foundation.
7. Planning is flexible: Planning should be adaptable to the changes in the environment Kuntz
& o, Donnell emphasizes on effective planning which requires continual checking on events
& forecasts and redrawing of plans to maintain a course towards designated goal.
8. First function in the process of management: Planning is important filled of the process
management. Manager takes the responsibility to organize staff direct & control them
without planning. Other functions become meaningless activity, producing nothing but
chaos.
9. It is a decision making process: Decision making is an integral part of planning; it is defined
as the process of choosing among alternatives.
10. It is a continuous process: The manager should constantly monitor the progress of his plans.
The must monitor within & outside the organization to determine if changes are required in
his plans.

Essentials of Good plan

1. Clearly defined objective.
2. Simple
3. Comprehensive
4. It should be rationale & appropriate.
5. It should provide proper analysis & classification
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6. It must be flexible.
7. Balanced
8. It must use all available resources & opportunities to the utmost before creating new
authorities of new resources.
9. It should be flue from social & psychological biases of the planners as well as subordinates.
10. These should be proper co-ordination among short term & long term plans.

Advantages or benefits of planning.

The following points emphasis the importance & benefits.
1. Planning offsets future uncertainty & change
It helps manager in carrying out the future course of action & brings degree of certainty &
order into the organization than would be present without planning.
2. It tackles increasing complexity in modern business. People in different field of
specialization are required for running a business with complex machine.
3. It helps in co-ordination. Refined objectives well published policies, programmers &
procedures help the management in the Co-ordination process.
4. It helps in exercising effective control
It helps in determine advance of the work done, person responsible to do it. The time to be
taken to do the work & the costs incurred.
5. It helps in the proper utilization of companies resources:
It involves deciding in advance of what is to be done, where & by whom it is to be done.
6. It facilitates unity of action:
Under planning, policies, procedures & programmers are predetermined & every decision &
action should be within the frame work of predetermined policies & procedures &
programmes.
7. It helps in a rounding business Failures, Unity of action, Coordination of activities,
economy in operation & offsetting of future uncertainty & change will avoid business
failures.
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8. Focuses attention on organization goals

Easy to apply & coordinate the resources of the organization more efficiently.
9. Improves competitive strength
It facilitates in discovering new opportunities & there by shape its own future.
10. Improves adaptability
It helps in coping up changing environment by anticipating the future events &b changing
conditions prepare the organization to meet then & manage efficiently.
11. Guides decision making: It involves making a choice from the various available
alternatives.
12. Secures economy in junction: It involves selection of the most profitable course of action
after evaluating the alternatives.

Disadvantages
1. Limitations of forecasts: because the information data available are not reliable. It cases the
stab.
2. Rigidity: It restricts individual freedom, initiative & desire for creativity because of
predetermined policies.
3. Time-consuming: IT takes time & hence delays action. It make it realistic sufficient time
should be given to planning process.
4. Costly: It exercises lot of money for preparing estimates, collecting information & facts for
analysis.
5. Influence of external factor: Like natural calamities, break-out of war, changes in political &
economic situations limits the effectiveness of planning.
6. Limited scope: For organizations to change rapidly planning is limited especially for those
engaged in publication of text books & fashionable articles manufacturing industry.
7. People’s resistance: A new plan is simply not executed because of unwillingness or inability
of people.
8. Fisher of people in planning: Persons involves in the planning process fail to formulate
correct plans. Same reasons are lack of commitment to planning Filene to formulate sound
strategies lack of clearly defined objectives, etc.
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Planning process
Various steps :
1. Awareness of opportunities of problems:
a) What business opportunities or problems are likely to come?
b) What are the plans for exploiting the opportunities?
c) Whether it is necessary to devise a new plan or is it sufficient to execute existing plan.
d) By making changes in the plan, what is the benefit to the organization?

2. Collecting & analyzing information

To collect the information & data related to planning should be made & analyzed.

3. Determination of objectives:
Analysis & interpretation of data facilitates in determining the enterprise objectives.
Objectives should be specific & clean.
4. Determining planning premises & constraints
Premises are planning assumptions on the basis of which planning takes place. Some premises like
population growth & political environment are uncontrollable while somedegree of control can be
exercised on the technology used. Some constraints like government control affect the plans.

5. Finding out the alternative courses action

For every plan there are number of alternatives & hence all possible alternatives to work out a
plan for achieving the desired objectives should be found out for then evaluation.

6. Evaluation of alternatives & selection

Alternatives are in reference to cost, speed, quality & select best course of action.

7. Determining secondary plans

This is to support the basic plan. For example a number of secondary plans for purchasing of raw
materials, acquisition of plant & machinery & aiming of workers have to be prepared for successful
operation of the basic plan.
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8. Securing participation of employees.

The successful execution of plan depends on the extent of Co-operation of the employees.
Management involves employees in planning the communication.

9. Providing for follow up & future evaluation

It is a check made to see that we are proceeding along right lines, for management to devise a
system for continuous evaluation a appraisal of plan.

Steps in planning:
Step-1 Stating organizational objectives
Step-2 List the alternative channels of reacting the objectives
Step-3Develop premises on which each alternative is listed
Step-4 Select the best alternative which first in to organizational objectives.
Step-5 Prepare a sound plan out of selected alternative This will be a master plan which contains
various functional Plans.
Step-6 Implement the designed plan

Types of plans
Planning can be classified in different forms.
1. Time
2. Managerial level
3. Repetitiveness of operations in firm
4. Scope.

Time
a. Long range planning
b. Medium range planning
c. Short range planning
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Managerial level
1. Strategic
2. Administrative
[Link]

Repetitiveness of operation
1. Standing plan
2. Single use plan.

Planning is also classified on basis of scope

1. Company wise or master plan
2. Functional or departmental plan

Standing plans are to be used over & again to lead to the development of policies, procedures,
methods, rules and strategies.

Single use plans are used in specific situations only to produce programmer & budgets.

Planning premises:
Planning premises are certain assumptions about the future on the basis of which the plan will be
ultimately formulated planning premises are chital to the success of planning as they supply
pertinent facts & inf rastructure relating to the future such as Population trends general economic
conditions, Production costs & pries, probable competitive behavior, capital & material availability,
Government control & so on.

Decision-making
Decision – making can be defined as the selection based on some criteria of over behaviors
choosing alternative from two or more possible alternatives. To decide means to cut off or in
practical content to come to a conclusion.
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Importance of decision-making
Decision making permeates the all managerial functions management & decision-making are
inseparable activities managers use the tool of decision-making for discharging their duties
Decision-making is an importance tool in the management functions of direction & central. In
direction, decisions relate to determine the course of action, deciding the type of motivation
deciding the order & instructions to given, where as inaction control, the decisions relate to
deciding of standards control points procedures etc.
Decision-making is necessary in a business concern because there are many alternative courses of
action to most business situations. For instance, for establishing a business, the entrepreneur may
salute one of the forms of organization.
All management functions such as planning, organization direction & control are settled by
managers with the tool of decision-making.
Classification of planning premises
1. Internal & external premises
2. Tangible & intangible premises
3. Controllable & non-controllable

Internal & external premises: Premises may exist within & without the company. Premises
include forecasts, Policies & programmer of organization, capital investment in plant & equipment
competence of management skill of the lab our forces;
a. External premises are classified as baroness environment,
b. Factors which influence the demand for the products of the enterprise
c. Factors which affect the resources available to the enterprise.

Tangible & intangible premises: Tangible are those which can be quantitatively measured while
intangible premises are those which being qualitative in character cannot be so measured.

Controllable & non-controllable: Planning premises are controllable some these one non-
controllable Because of pressure of uncontrollable factors there is need for the organization to
revise the plans periodically in accordance with current developments uncontrollable factors are
strikes was natural calamities, emergency, legislation
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Reasoning hierarchy of plans

A plan is a commitment to a particular course of action for achieving specific results. From this it
follows that there are number of plans for achieving different goals. Managers, normally commit the
mistake of taking major programmers only as plans. But a member of future courses of action are also
plans. The plans may be classified according to origin, use, purpose, kind etc. some of the plans are in
the form of standing plans while others are single use plans. Single use plans are used only one & not
over & over again. Whereas, repeat use plans are used again.