"Planning is concerned with the future, which is uncertain, and every planner is using conjecture about what might happen in the future. Therefore, the manager is required to make certain assumptions about the future".
In the above statement, the assumptions can be referred to as:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Premises
Option (1) Alternatives — Incorrect. Alternatives are the different courses of action that could achieve the objectives. They are identified after the premises are set.
Option (2) Premises — Correct. Planning premises are the assumptions about the future on which plans are built. They may be forecasts of demand, interest rates, prices or tax rates, or existing plans and past information. All managers must use the same premises. Developing premises is the second step of the planning process, after setting objectives.
Option (3) Resources — Incorrect. Resources are the means, such as men, money and materials, used to carry out a plan. They are not assumptions.
Option (4) Ideas — Incorrect. An idea is any thought. The assumptions on which plans are made have their own name, premises.
NCERT (2026-27 Edition): “Developing Premises: Planning is concerned with the future which is uncertain and every planner is using conjecture about what might happen in future.” “Therefore, the manager is required to make certain assumptions about the future. These assumptions are called premises. Assumptions are the base material upon which plans are to be drawn. The base material may be in the form of forecasts, existing plans or any past information about policies. …” |