FACTORS AFFECTING PLANNING
Conditions
• Evaluating the present conditions of the business
• Change happens unexpectedly
Time Factor
• Time is the most precious resource of an organization
• Managers are given a span of time within which to bring out plans into implementation
Resources Available
• There must be enough funds and materials available for the purpose of putting plans into effect
Skills and attitudes of management
• An attitude of indifference and non – involvement could but spell failure to any planning
Political, social, and environmental conditions
• Social and economic conditions of the community
Physical Facilities
• Science and technology
• Plants and equipments
Collection and analysis of data
• Information is the greatest resource
• Acquisition, organization and interpretation of data

POLICIES AND CLASSIFICATIONS
 Policies are guides to managerial decisions which fall under certain limits or boundaries
 These are formulated by management to govern actions at all levels
As to Origin
 Imposed policies
 Are those required by the government as laws, procedures and administrative orders
 Appealed policies
 Are formulated when a subordinate endorses to his superior matters not covered by existing policies
 Originated policies
 Are those that are formulated by the top management
As to level in the Organization
 Basic policies
 Formulated at the start of the business but may be amended to cope with changing conditions
 General policies
 Used by middle management
 They consist of specific guides in line with the basic policies
 Department Policies
 Are intended for the use of those in lower management to meet the daily requirements in carrying out the general policies and eventually the basic policies of the organization
As to Functions or Activity Grouping
 Personnel policies
 Cover those that