Fiscal Policy Meaning – Its Main Objectives In India – Conclusion

Meaning of Fiscal Policy ↓
The fiscal policy is concerned with the raising of government revenue and incurring of government expenditure. To generate revenue and to incur expenditure, the government frames a policy called budgetary policy or fiscal policy. So, the fiscal policy is concerned with government expenditure and government revenue.
Fiscal policy has to decide on the size and pattern of flow of expenditure from the government to the economy and from the economy back to the government. So, in broad term fiscal policy refers to “that segment of national economic policy which is primarily concerned with the receipts and expenditure of central government.” In other words, fiscal policy refers to the policy of the government with regard to taxation, public expenditure and public borrowings.
The importance of fiscal policy is high in underdeveloped countries. The state has to play active and important role. In a democratic society direct methods are not approved. So, the government has to depend on indirect methods of regulations. In this way, fiscal policy is a powerful weapon in the hands of government by means of which it can achieve the objectives of development.
Main Objectives of Fiscal Policy In India ↓
The fiscal policy is designed to achive certain objectives as follows :-
1. Development by effective Mobilisation of Resources
The principal objective of fiscal policy is to ensure rapid economic growth and development. This objective of economic growth and development can be achieved by Mobilisation of Financial Resources.
The central and the state governments in India have used fiscal policy to mobilise resources.
The financial resources can be mobilised by :-Taxation : Through effective fiscal policies, the government aims to mobilise resources by way of direct taxes as well as indirect taxes because most important source of resource mobilisation in India is taxation.
Public Savings : The resources can be mobilised through public savings by reducing government expenditure and increasing surpluses of public sector enterprises.
Private Savings : Through effective fiscal measures such as tax benefits, the government can raise resources from private sector and households. Resources can be mobilised through government borrowings by ways of treasury bills, issue of government bonds, etc., loans from domestic and foreign parties and by deficit financing.
2. Efficient allocation of Financial Resources
The central and state governments have tried to make efficient allocation of financial resources. These resources are allocated for Development Activities which includes expenditure on railways, infrastructure, etc. While Non-development Activities includes expenditure on defence, interest payments, subsidies, etc.
But generally the fiscal policy should ensure that the resources are allocated for generation of goods and services which are socially desirable. Therefore, India’s fiscal policy is designed in such a manner so as to encourage production of desirable goods and discourage those goods which are socially undesirable.
3. Reduction in inequalities of Income and Wealth
Fiscal policy aims at achieving equity or social justice by reducing income inequalities among different sections of the society. The direct taxes such as income tax are charged more on the rich people as compared to lower income groups. Indirect taxes are also more in the case of semi-luxury and luxury items, which are mostly consumed by the upper middle class and the upper class. The government invests a significant proportion of its tax revenue in the implementation of Poverty Alleviation Programmes to improve the conditions of poor people in society.
4. Price Stability and Control of Inflation
One of the main objective of fiscal policy is to control inflation and stabilize price. Therefore, the government always aims to control the inflation by Reducing fiscal deficits, introducing tax savings schemes, Productive use of financial resources, etc.
5. Employment Generation
The government is making every possible effort to increase employment in the country through effective fiscal measure. Investment in infrastructure has resulted in direct and indirect employment. Lower taxes and duties on small-scale industrial (SSI) units encourage more investment and consequently generates more employment. Various rural employment programmes have been undertaken by the Government of India to solve problems in rural areas. Similarly, self employment scheme is taken to provide employment to technically qualified persons in the urban areas.
6. Balanced Regional Development
Another main objective of the fiscal policy is to bring about a balanced regional development. There are various incentives from the government for setting up projects in backward areas such as Cash subsidy, Concession in taxes and duties in the form of tax holidays, Finance at concessional interest rates, etc.
7. Reducing the Deficit in the Balance of Payment
Fiscal policy attempts to encourage more exports by way of fiscal measures like Exemption of income tax on export earnings, Exemption of central excise duties and customs, Exemption of sales tax and octroi, etc.
The foreign exchange is also conserved by Providing fiscal benefits to import substitute industries, Imposing customs duties on imports, etc.
The foreign exchange earned by way of exports and saved by way of import substitutes helps to solve balance of payments problem. In this way adverse balance of payment can be corrected either by imposing duties on imports or by giving subsidies to export.
8. Capital Formation
The objective of fiscal policy in India is also to increase the rate of capital formation so as to accelerate the rate of economic growth. An underdeveloped country is trapped in vicious (danger) circle of poverty mainly on account of capital deficiency. In order to increase the rate of capital formation, the fiscal policy must be efficiently designed to encourage savings and discourage and reduce spending.
9. Increasing National Income
The fiscal policy aims to increase the national income of a country. This is because fiscal policy facilitates the capital formation. This results in economic growth, which in turn increases the GDP, per capita income and national income of the country.
10. Development of Infrastructure
Government has placed emphasis on the infrastructure development for the purpose of achieving economic growth. The fiscal policy measure such as taxation generates revenue to the government. A part of the government’s revenue is invested in the infrastructure development. Due to this, all sectors of the economy get a boost.
11. Foreign Exchange Earnings
Fiscal policy attempts to encourage more exports by way of Fiscal Measures like, exemption of income tax on export earnings, exemption of sales tax and octroi, etc. Foreign exchange provides fiscal benefits to import substitute industries. The foreign exchange earned by way of exports and saved by way of import substitutes helps to solve balance of payments problem.
Conclusion On Fiscal Policy ↓
The objectives of fiscal policy such as economic development, price stability, social justice, etc. can be achieved only if the tools of policy like Public Expenditure, Taxation, Borrowing and deficit financing are effectively used.
Though there are gaps in India’s fiscal policy, there is also an urgent need for making India’s fiscal policy a rationalised and growth oriented one.
The success of fiscal policy depends upon taking timely measures and their effective administration during implementation.

Difference between primary and secondary data

Following points distinguish primary and secondary data:
Image credits © Gaurav Akrani.Meaning, example, and definition,
Data’s originality,
Need of adjustment,
Data sources,
Type of data,
Methods used to collect data,
Obtained data’s reliability,
The time consumed,
Need of investigator,
Cost effectiveness,
When are the data collected?
Capability to solve a problem,
Suitability to meet the requirement,
Bias or personal prejudice,
Who collects the data? And
Precaution before using the data.
Now let’s compare primary and secondary data on the above sixteen points.
1. Meaning, example, and definition
Primary data are fresh (new) information collected for the first time by a researcher himself for a particular purpose. It is a unique, first-hand and qualitative information not published before. It is collected systematically from its place or source of origin by the researcher himself or his appointed agents. It is obtained initially as a result of research efforts taken by a researcher (and his team) with some objective in mind. It helps to solve certain problems concerned with any domain of choice or sphere of interest. Once it is used up for any required purpose, its original character is lost, and it turns into secondary data.
One must note that, even if the data is originally collected by somebody else from its source for his study, but never used then the collected data is called primary data. However, once used it turns into secondary data.
Imagine, you are visiting an unexplored cave to investigate and later recording its minute details to publish, is an example of primary data collection.
Wessel’s definition of primary data,
“Data originally collected in the process of investigation are known as primary data.”
Secondary data, on the other hand, are information already collected by others or somebody else and later used by a researcher (or investigator) to answer their questions in hand. Hence, it is also called second-hand data. It is a ready-made, quantitative information obtained mostly from different published sources like companies’ reports, statistics published by government, etc. Here the required information is extracted from already known works of others (e.g. Published by a subject scholar or an organization, government agency, etc.). It is readily available to a researcher at his desk or place of work.
Assume, you are preparing a brief report on your country’s population for which you take reference of the census published by government, is an example of secondary data collection.
Sir Wessel, defined secondary data in simple words as,
“Data collected by other persons are called secondary data.”
Another definition of secondary data in words of M. M. Blair,
“Secondary data are those which are already in existence and collected for some other purpose than the answering of the question in hand.”
2. Data’s originality
Primary data are collected by a researcher (or investigator) at the place or source of its origin. These are original or unique information.
A researcher (or investigator) does the collection of secondary data from already existing works of others. These are neither originals nor unique information.
3. Need of adjustment
The primary data collection is done to accomplish some fixed objective, and obtained with some focus in mind. Hence, it doesn’t need any prior adjustment before getting used to satisfy the purpose of an inquiry.
Secondary data collected are truly the work of someone else done for some other purposes. It is not focused to meet the objective of the researcher. As a result, it needs to be properly adjusted and arranged before making its actual use. Only after proper adjustment, it can be accustomed to some extend for achieving the aim of a researcher.
4. Data sources
Primary data are collected systematically through following activities:By conducting surveys,
Taking in-depth interviews of respondents (These are individuals who give necessary information to the interviewer),
Through experimentation,
By direct observations,
Ethnographic research (It primarily involves the study of an ethnic group of people and their respective culture),
Focus groups,
Participatory research, etc.
The collection of secondary data is from internal and external published sources.
Internal sources of secondary data are:Company’s accounts,
Sales figures,
Reports and records,
Promotional campaigns’ data,
Customers’ feedback,
Cost information,
Marketing activities, so on.
External sources of secondary data include:Data published by country’s central, state and local governments,
Data even published by foreign governments,
Publications released by international organizations (like the IMF, WHO, ILO, UNO, WWF, etc.) and their subsidiary bodies,
Reports prepared by various commissions and other appointed committees,
Results of research work published by research institutions, universities, subject scholars, economists, etc.,
Books, newspapers, and magazines,
Reports and journals of trade unions, industries, and business associations,
Information released by a central bank, stock exchanges, etc.,
Public libraries,
Archives, Directories, Databases, and Indexes,
Old historical records,
Online websites, blogs, and forums.
Note: Sometimes, though rarely, even unpublished information still available in office records can also be used for secondary data.
5. Type of data
Primary data provide qualitative data. It means it gives information on subjective quality-related features like look, feel, taste, lightness, heaviness, etc., of any object or phenomenon under research or inquiry.
On the contrary, secondary data, provide quantitative data. In other words, it gives information about an object or event in a numerical, statistical and tabulated form like in percentages, lists, tables, etc.
6. Methods used to collect data
Methods used to collect primary data are as follows:Observation, experimentation and interview method,
The direct personal investigation,
The indirect oral-investigation,
Information collected through schedules and questionnaires (sets of questions) via enumerator’s (a survey personnel involved in counting and listing) method and mailing method,
Information obtained from correspondents or local sources,
Some other minor methods:The analysis of the content,
Consumer panels,
Use of mechanical devices,
Pantry audits,
Distributor or store audits,
Projective Techniques (PT),
Warranty cards, etc.
The main methods used to collect secondary data are:Desk research methods,
Search on the Internet,
Going through media generated by consumers and their groups, so on.
7. Obtained data’s reliability
Primary data are more reliable than secondary data. It is because primary data are collected by doing original research and not through secondary sources that may subject to some errors or discrepancies and may even contain out-dated information.
Secondary data are less reliable than primary data. It is so, since, based on research work done by others and not by the researcher himself. Here, verification of published information cannot be always confirmed accurately as all references used may not be available or mentioned in detail.
8. The time consumed
Reliability of primary data comes at the expense of time it consumes. It is because its collection goes through the following steps:First, the researcher makes a sample (i.e. List of respondents to approach).
Then he prepares a questionnaire (i.e. Containing a set of questions to be asked to respondents).
Later, he appoints and trains a team of field interviewers who are supposed to interview the respondents.
Finally, the researcher has to analyze the collected data by interviewers and draw a conclusion from it.
Accomplishment of the above procedure is not a quick task, is a time-consuming one.
On the contrary, collection of secondary data consumes less time compared to primary data. It is because secondary data collection is mostly made without interviews as follows:Here, a researcher relies heavily on ready-made data and collects it from internal and external published sources (see the point no.4).
He depends on already analyzed and concluded data by someone else to get an understanding of his subject topic or research interest.
He doesn’t waste time appointing field interviewers and waiting for their data.
He saves his precious work hours, and, as a result, it takes him less time to collect secondary data.
9. Need of investigator
Collection of primary data needs availability of trained researchers or investigators. Further, they also need to be adequately supervised and controlled.
If the availability of trained investigators and cost involved in hiring them is a problem, then in such a case, secondary methods of data collection are recommended. Its data collection doesn’t need to hire them.
10. Cost effectiveness
Primary data collection needs the appointment of a team that mainly comprises of researchers, field interviewers, data analysts, so on. Hiring of these experts and other additional costs, demands more funds to be allocated to complete research work on time. For this reason, it is a costly affair.
The secondary data collection doesn’t require the appointment of such a team. Here, since no experts hired, cost is minimized. As a result, it is very economical.
11. When are the data collected?
Collection of primary data starts when secondary data seems insufficient to solve problems associated with the research. The researcher first uses secondary data, if he finds that collected information from secondary sources, is inadequate, only then decides to collect primary data.
The secondary data collection is the priority and economical choice for most researchers to solve an identified problem or answer objects of inquiry. Here, most information extraction is done and if some information is unavailable only then a decision to conduct primary research is taken.
12. Capability to solve a problem
Primary data are fresh (new), original (unique), more accurate (almost correct), verified (confirmed), satisfies a requirement (as needed), up-to-date and current (latest). It gives the required information. For this reason, it is more capable of solving a problem.
Secondary data, on the other hand, may be less accurate or riddled with errors or discrepancies, not directly related (inconsistent) and even outdated (not latest). It gives only supporting and not the required information. As a result, it is less capable of solving a problem.
13. Suitability to meet the requirement
Primary data are suitable to meet the objects of inquiry because these are collected using systematic methods.
Collection of secondary data may or may not fulfill the actual requirement of a researcher.
14. Bias or personal prejudice
There is a possibility of personal prejudice or bias creeping in while collecting primary data because of the direct involvement of an investigator.
The possibility of prejudice is absent in secondary data because the information is not collected at first hand and, for this reason, is not subjected to any bias.
15. Who collects the data?
A researcher (an investigator) or his appointed agents collect the primary data.
Anyone, other than those who gather primary data collects secondary data.
16. Precaution before using the data
The primary data collection is done systematically by a researcher himself or his agents as instructed with great care, requirement, planning, organization and followed by verification of the obtained information. It is less likely that such a well-processed data is subject to errors.
For this reason, no extra precautions are necessary while using primary data.
On the other hand, secondary data, since collected by others for different purposes may be inconsistent (not as required), outdated, unverified, subjected to any errors or mistakes, etc. As a result, immense care must be taken while one is considering using it. If used without precaution, it may have an adverse impact on the quality of one’s research and affect its credibility to a great extent.
Conclusion
We can conclude that any data remain data, whether termed as a primary or secondary. What classifies it from one another is the degree of detachment from its source and how it is being collected (whether as first-hand or second-hand) and used.
Any data become primary if it is first gathered by collecting agency, and the same data becomes secondary if it is used later by the rest of the world.
For example, data collected by an election commission are primary for it, and the same set of data is secondary for all except it.
Thus, Secrist lucidly describes this as follows,
“The distinction between primary and secondary data is one of the degrees. Data primary in the hands of one party may be secondary in the hands of others.”
References (10)
References used and suggested reading for deeper understanding:Research Methodology: Methods and Techniques; by C. R. Kothari.
Research Methodology: Data Presentation; by Dr. Y. K. Singh.
Research Methodology: by Dr. C. Rajendar Kumar.
Research Methodology and Statistical Analysis (for M. Com); by S.C. Aggarwal and S.K. Khurana.
Statistics for Economics and Indian economic development; For Class 11; by T. R. Jain and V. K. Ohri.
Statistics for Economics; Class 11; by Dr. D. P. Jain.
International Business; 4th Edition; by Les Dlabay, James Scott.
Marketing Research: An Applied Orientation; 5th Edition; By Naresh K. Malhotra and Satya Bhushan Dash.
Marketing Research: Methodological Foundations; 10th Edition; by Gilbert A. Churchill, Jr and Dawn Iacobucci.
Office Organization and Management; 2nd Edition; by S. P. Arora.

India’s trade deficit with China crosses $100 billion for the first time.

The trade between India and China has touched an all-time high of USD 135.98 billion in 2022 while New Delhi’s trade deficit with Beijing crossed for the first time a USD 100 billion mark despite frosty bilateral relations, according to data released by the Chinese customs on Friday.

The total India-China trade for 2022 has climbed to 135.98 billion, overtaking the USD 125 billion mark a year earlier by registering an 8.4 per cent increase, according to the annual Chinese customs data.

India's trade deficit with China crosses $100 billion for the first time.

The trade between India and China has touched an all-time high of USD 135.98 billion in 2022 while New Delhi’s trade deficit with Beijing crossed for the first time a USD 100 billion mark despite frosty bilateral relations, according to data released by the Chinese customs on Friday.

The total India-China trade for 2022 has climbed to 135.98 billion, overtaking the USD 125 billion mark a year earlier by registering an 8.4 per cent increase, according to the annual Chinese customs data.

What are the Main Advantages of Report Writing ?

1. Report gives consolidated & updated information
A report provides consolidated, factual and an up-to-date information about a particular matter or subject. Information in the report is well organized and can be used for future planning and decision making.
Image Credits © tilaneseven
2. Report as a means of internal communication
A report acts as an effective means of communication within the organization. It provides feedback to employees. It is prepared for the information and guidance of others connected with the matter / problem.
3. Report facilitates decision making and planning
Report provide reliable data which can be used in the planning and decision making process. It acts as a treasure house of reliable information for long term planning and decision making.
4. Report discloses unknown information
Reports provide information, which may not be known previously. The committee members collect data, draw conclusions and provide information which will be new to all concerned parties. Even new business opportunities are visible through unknown information available in the reports.
5. Report gives Information to employees
Reports are available to managers and departments for internal use. They are widely used by the departments for guidance. Report provide a feedback to employees and are useful for their self-improvement.
6. Report gives reliable permanent information
The information provided by a report is a permanent addition to the information available to the office. We have census reports (prepared since last 100 years) which are used even today for reference purpose.
7. Report facilitates framing of personnel policies
Certain reports relating to employees are useful while preparing personnel policies such as promotion policy, training policy and welfare facilities to employees.
8. Report gives information to shareholders
Some company reports are prepared every year for the benefit of shareholders. Annual report for example, is prepared and sent to all shareholders before the AGM. It gives information about the progress of the company.
9. Report gives information to the Registrar
Annual report and annual accounts are sent to the Registrar every year for information. Such reports enable the government to keep supervision on the companies.
10. Report solves current problems
Reports are useful to managers while dealing with current problems faced by the company. They provide guidance while dealing with complicated problems.
11. Report helps directors to take prompt decisions
Company reports relate to internal working of the company and are extremely useful to directors in decision making and policy framing. Reports give reliable, updated and useful information in a compact form.

Planning First Primary Important Function Of Management

1. What is Planning?
A plan is a determined course of action for achieving a specific objective. An individual may prepare a plan for his journey or tour or for a family function. Similarly, a business unit may prepare a plan to achieve a particular objective. It is called a business plan which includes production plan, sales plan, and so on. A business unit prepares a master plan for the whole unit. Such master plan is again divided into departmental plans for actual execution. Planning is a process of thanking to action. It is a means to achieve well defined objectives. Business plan and business planning move together.
Planning is the primary function of management and occupies the first position in the management process. It is the starting point of the whole management process as other management functions are related to planning function. Planning, in simple words, means to decide the objectives clearly and to prepare a plan. Thereafter to take suitable steps for the execution of the plan. Planning function is performed by managers at all levels. It is deciding the objective to be achieved and taking suitable follow-up steps for achieving the same.

Planning is, now, universally accepted as a key/passport to success, progress and prosperity in business as well as in all other aspects of life. It acts as a base of all purposeful human activities. The concept of planning is old enough. Planning was advocated by Confucius almost 2500 years ago. He said “A man who does not think and plan long ahead will find trouble right at his door”. Thus, planning is the centre around which all business activities move.
In planning, various business problems are studied, decisions are taken regarding the future course of action and business activities are adjusted accordingly. Thus, planning means deciding in advance the objectives to be achieved and preparing plans/programmes for achieving them. In other words, planning is the process of foreseeing desired objectives – anticipating problems and developing solutions. It serves as a core of the whole management process.

Planning bridges the gap from where we are to where we want to go. In the absence of planning, events are left to chance. A plan is to-day’s projection for tomorrow’s activity.


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2. Definitions of Planning

  1. According to Koontz and O’Donnell, “Planning is deciding in advance what to do, how to do it, when to do it, and who is to do it. Planning bridges the gap between where we are and where we want to go. It makes it possible for things to occur which would not otherwise happen”.
  2. According to George R Terry, “Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualization and formulation of purposed activities believed necessary to achieve desired results”.
  3. According to Philip Kotler, “Planning is deciding in the present what to do in the future. It is the process whereby companies reconcile their resources with their objectives and opportunities”.

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3. Need of Planning

The need of planning is universally accepted in the business as well as in other aspects of life. The following points justify the need of business planning/planning in business:

  1. Planning is needed for survival and growth of a business unit in an orderly manner.
  2. Planning is needed in order to face new problems/difficulties developed due to growth of markets, market competition, changes in consumer expectations and so on.
  3. Planning is needed in order to face challenges created by changing environmental factors/forces.
  4. Planning is needed as it acts as a pre-requisite to good management. It is needed as it is the core of the whole management process.
  5. Planning is needed in order to achieve the objectives decided by the management. It is also needed as it ensures accuracy, economy and operational efficiency in busin6s management.

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4. Importance of Planning in Business Management

The importance of planning as an element in the management process is universally accepted. It plays a positive role in the management of a business unit. Planning brings stability and prosperity to a business unit. It brings unity of purpose and diverts all efforts in one direction for the achievement of certain well defined objectives. Planning also improves the performance of a business unit. In fact, in the absence of planning there will be disorder, confusion, inefficiency, wastage of human efforts and material resources. Planning is rightly treated as the pre-requisite to efficient management. The fact that large majority of business units use planning as a tool of management indicates its utility and importance. Planning brings safety to business operations. It is the only way for survival in the competitive business world.

Planning is important as it is more than a mere theoretical exercise or paperwork. It has practical utility and creative value. Planning is also a rational and intelligent activity. It is, now, rightly treated as a highly professionalized aspect of business management.

Planning is important but planning alone is not adequate. It should be supplemented by suitable follow-up actions on the part of managers. Planning may not be able to solve all managerial problems, but it certainly helps the thoughtful managers in overcoming various managerial problems. A plan will remain on paper if suitable follow-up steps are not taken at different levels for its execution. Thus, planning is a means and not the end in itself

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5. Advantages of Planning

  1. Facilitates quick achievement of objectives: Planning facilitates quick achievement of business objectives. In the planning process, the objectives to be achieved are clearly decided / finalised and plans are prepared and executed for achieving such well defined objectives. Planning ensures achievement of objectives in an orderly and quick manner.
  2. Brings unity of purpose and direction: Planning brings unity of purpose and direction before the entire organisation as it is for achieving certain well defined goals. Planning diverts all resources in one direction for achieving well defined objectives.
  3. Ensures full utilisation of resources: Planning ensures effective/maximum utilisation of available human and material resources. It eliminates wastages of all kinds (of material resources and human efforts) and this ensures fuller utilisation of available resources.
  4. Avoids inconsistency in efforts: Planning avoids inconsistency in efforts and also avoids possible frictions and duplications. It ensures economy in business operations.
  5. Raises competitive capacity/strength: Planning raises competitive potentialities of a business unit. It enables a business unit to stand with confidence in a competitive market. It keeps ready solutions for possible problems and enables a business unit to function with confidence.
  6. Promotes managerial efficiency: Planning promotes managerial efficiency. It covers all managerial functions and helps management to execute future programmes in a systematic manner. It makes managerial direction and control effective.
  7. Avoids hasty decisions and actions: Due to planning, hasty decisions and haphazard actions by managers are avoided. It also encourages systematic thinking by the managers. Planning facilitates effective delegation of authority, removes communication gaps and thereby raises overall efficiency. It even encourages innovative thinking among managers.
  8. Ensures effective control on the Organisation: Planning ensures effective control on the whole organisation. It fixes targets in clear terms and draws plans and programmes for achieving them. This facilitates effective control on the functioning of the business unit.
  9. Acts as an insurance against future uncertainties: Planning acts as an insurance against future uncertainties. It takes care of all business uncertainties. In fact, in planning, future problems and situations are studied in advance and alternative solutions are kept ready. This enables management to face any type of critical situation with ease and confidence.
  10. Facilitates other managerial functions: Planning facilitates other managerial functions. It is the basic managerial function and other managerial functions such as organising, etc. move as per the plans prepared. It acts as a motivating force behind other managerial functions.
  11. Improves motivation: Planning facilitates participation of managers and workers in the normal functioning of an enterprise. It develops team spirit and raises morale and motivation of employees. Workers know what is expected from them. This ensures high degree of efficiency from them. Planning also provides training to managers. It serves as a tool for manpower development in an Organisation.

    1. Planning ensures survival, stability and progress of a business unit.
    2. Ensures uniform decision-making.
    3. Acts as a key to solve problems and challenges faced by a business unit.
    4. Sets performance standards for functional departments.
    5. Planning enables a business unit to adjust itself with ever changing business environment.

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6. Limitations of Planning

  1. Time-consuming and costly: It is argued that planning is a lengthy process as it involves collection of data, forecast, research and analysis. Similarly, planning is essentially the job of highly paid experts. As a result, planning is a time-consuming and costly activity. Only large firms can undertake planning due to heavy cost and lengthy procedure involved in it.
  2. Ineffective due to environmental changes: Business environment changes frequently and plans are required to be adjusted as per the changes in the situation through suitable modifications. However, such revision/modification creates a number of problems. Such adjustments in the operational plan are always costly, time-consuming.
  3. Dangers of unreliable data: Planning needs accurate data from internal and external sources. The quality of planning depends on such accurate feedback. If the information supplied by various departments is unreliable, the planning process will be adversely affected. Planning based on incomplete information may prove to be even dangerous. In brief, plans based on unreliable data are not useful /effective. Securing reliable information is always difficult and this brings deficiencies in the entire planning process.
  4. Encroachment on individual freedom and initiative: Planning is a centralized process. At the lower levels, plans are to be executed as per the directives issued. This affects individual freedom and initiative at the lower levels. Employees at the lower levels act as instruments for the execution of plan prepared by the top level managers. People are asked to become cogs in the machine with little scope for initiative or independent thinking.
  5. Delays actions: Planning is a lengthy process. As a result, the actions to be taken for execution are delayed. Planning is not useful when quick decisions and actions are required.
  6. Unsuitable to small firms: Small firms prefer to function without long term comprehensive planning as they find planning rather costly and time-consuming. They prefer to face the situations as they come. Similarly, quick decisions and prompt actions are necessary in the case of certain business activities. Here, long term planning is not suitable.
  7. Limited practical value: It is argued that planning is too theoretical and has limited practical utility. Planning takes long time for preparation and the situation changes when such plans are ready for execution. Planning for example, is not suitable in the case of speculative business. It is also not useful for taking quick benefits of business opportunities. In brief, planning has limited practical value.
  8. No guarantee of expected results: Planning is for achieving certain well defined objectives. However, there is no guarantee that the objectives will be achieved within the specific time limit by using planning as a tool. Actual performance may not be as per the expectation due to various reasons. Thus planning has an element of uncertainty. Planning leads to probable results and not the expected results. It gives benefits but may not be exactly as per the expectation. Thus, there is no guarantee that planning will give 100 per cent positive/expected results.
  9. Generates frustration: At the lower levels, plans are imposed on the employees. No consideration is given to their difficulties, views and opinions. The targets may be too ambitious and the employees may not be able to achieve them in spite of best efforts. This leads to frustration among employees at lower levels.
  10. Involves huge paper work: Planning involves huge paper work in the preparation of master plan and departmental plans.
  11. Danger of overdoing: Sometimes, planners overload the work. Elaborate reports are prepared without practical utility.

The advantages of planning are more important/significant while its limitations are few and also not of serious nature. Moreover, these limitations can be minimized. The practical utility of planning is universally accepted. It is not fair to give up the concept of planning due to certain limitations. The better alternative is to make it more effective, purposeful and result oriented.

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7. Steps in Planning Process

Planning is a lengthy process which moves gradually and step by step approach is usually adopted. These steps are like stations in the journey of planning process. Usual steps in the planning process are as briefly explained below:

  1. Classifying the problems: The planning process starts with clear understanding and classifying business problems faced by a business unit. Identification of problems or opportunities by managers justifies the need for action. It is like the diagnosis of the health problem of a patient by his doctor. Planners have to understand the problems of the Organisation first and, then, prepare a plan to deal with the problems in the light of the prevailing business environment.
  2. Determining the objectives: In this second stage in the planning process, the planners decide the overall objectives to be achieved. Planning is always for achieving certain well defined objectives and naturally objectives must be spelt out precisely. Objectives act as pillars of the entire planning process. Business objectives may be decided in terms of profit, sales, production or market reputation. Objectives may be defined in quantitative or qualitative terms.
  3. Collecting complete information and data: The planners have to collect information relating to problems facing the business unit. Such information is necessary and useful for analyzing the problems in depth and also for accuracy in planning. Information can be collected from internal and external sources. Reliable, updated and adequate data make planning process result-oriented.
  4. Analyzing and classifying the information: At this stage, the information collected is analyzed and interpreted systematically for drawing specific conclusions. This facilitates purposeful use of information, while preparing alternative plans. Irrelevant information can be discarded through such analysis.
  5. Establishing planning premises: Planning premises are various assumptions and predictions about the future business situation. Such premises act as background for planning activities. The planning premises are expected to supply relevant facts, information and data on the basis of which forecasts are prepared and future trends are indicated. Planning premises reduce uncertainties in the planning process. Planning premises are three in number viz., (a) Controllable permises, (b) Semi-controllable permises, and (c) Uncontrollable premises.
  6. Determining alternative plans: Here, the planners prepare and keep ready alternative plans suitable for use under different situations. The best among the available alternative plans is used for actual execution. The preparation of alternative plans is essential as one plan is normally not adequate under all types of situations. It is a type of stand-by arrangement useful for meeting any emergency situation.
  7. Selecting operating plan and preparing derivative plans: After study of the business environment and the alternative plans available, the planners select the best plan for actual execution. This decision is a delicate one and must be made with proper care. After the selection of operating plan, the planners have to prepare derivative plans. Such plans are related to different departments/activities and constitute sub-sections of the operating plan. The division of overall plan into derivative plans is necessary for effective execution.
  8. Arranging timing and sequence of operations: Timing involves fixation of starting and finishing time for each job or piece of work. Sequence of operations ensures proper flow of work. This step in planning process is important as it brings coordination in the activities of different departments. The timings and sequence of operations must be communicated to concerned departments, managers and staff for implementation of the plan.
  9. Securing participation of employees: Planning needs willing participation of all employees and departments. For this, information regarding the operative plan should be given to employees well in advance. Here, the internal communication system should be used extensively. For such participation, employees should be associated with the planning process.
  10. Follow-up of the proposed plan: The purpose of follow-up is to make periodical review of the execution process. It is useful for understanding actual progress and deficiencies in the process of execution of the plan. This also facilitates adoption of suitable remedial measures as and when required.

To_The Second-Person-You

To

 The Second-Person

  You

For you; Always be you!

                And if I say,

                I’m there for you;

                Indefinitely,

               it is an add-on to be more you.

               You check,you rely,you observe 

               and you test me too; 

              That is all I allow only for you!..

For you;I’m being for real as always I amuse to be!

              I trust, i tease,

              I tweet on your treat;

              Infinitely it gonna be, 

             Hence,

           you mean a lot to me since you met!…

       From   

                                                                                        Yours you

Note: Written and expressed by Ghufrana but neither only by her and nor only for specific one.

To_The Second-Person-You

To

 The Second-Person

  You

For you; Always be you!

                And if I say,

                I’m there for you;

                Indefinitely,

               it is an add-on to be more you.

               You check,you rely,you observe 

               and you test me too; 

              That is all I allow only for you!..

For you;I’m being for real as always I amuse to be!

              I trust, i tease,

              I tweet on your treat;

              Infinitely it gonna be, 

             Hence,

           you mean a lot to me since you met!…

       From   

                                                                                        Yours you

Note: Written and expressed by Ghufrana but neither only by her and nor only for specific one.

India’s 75th Army day.

India celebrates Army Day on January 15 every year to commemorate the achievements of the first Indian Commander in Chief of the Indian Army — General (later Field Marshal) K.M. Cariappa.

On this day, Cariappa, who led Indian forces to victory in the 1947 war, took over the command of the Indian Army from General Sir FRR Bucher, the last British Commander-in-Chief in 1949 and became the first Indian Commander-in-Chief of Independent India. The Army Day is celebrated every year to honour Cariappa and the defence forces.

As part of an initiative to take major events to other parts of the country, away from the national capital region, the 75th Army Day will be held in Bengaluru this year.

The rationale behind the move is to bring about increased visibility of these events and secure greater engagement with the local population.

India's 75th Army day.

India celebrates Army Day on January 15 every year to commemorate the achievements of the first Indian Commander in Chief of the Indian Army — General (later Field Marshal) K.M. Cariappa.

On this day, Cariappa, who led Indian forces to victory in the 1947 war, took over the command of the Indian Army from General Sir FRR Bucher, the last British Commander-in-Chief in 1949 and became the first Indian Commander-in-Chief of Independent India. The Army Day is celebrated every year to honour Cariappa and the defence forces.

As part of an initiative to take major events to other parts of the country, away from the national capital region, the 75th Army Day will be held in Bengaluru this year.

The rationale behind the move is to bring about increased visibility of these events and secure greater engagement with the local population.

Rights that Indian women should be aware of:

  Regarding rights in the modern era, every Indian woman needs to be aware of a few legal rights. There are plenty of laws protecting women in India. For the protection and advancement of women, our constitution grants them exclusive rights.

Indian women rights history:

During the early Vedic era, women and men were treated equally in all aspects of their lives. Women may have received an education during the early Vedic era, according to the writings of ancient Indian grammarians like Patanjali and Katyayana. In a practise known as swayamvar or a live-in relationship known as Gandharva marriage, Rigvedic verses imply that women married at an advanced age and were likely free to choose their own husbands.

The modern laws to look in today’s world are:

Right to maintenance

As long as she doesn’t remarry, a married woman is entitled to get maintenance from her ex-husband, which includes the necessities of life like food, clothing, shelter, and access to healthcare. Except when the wife is living in adultery or refuses to live with her husband without a good reason, Section 125 of the Code of Criminal Procedure, 1973, requires the husband to support his divorced wife.

Right to equal pay

Our laws are now gender-neutral. Equal remuneration for equal work is due to both men and women. The same is provided for by the Equal Remuneration Act. It guarantees equal pay for equal work for both male and female employees. There won’t be any gender discrimination in the context of hiring practises or working conditions.

Right to dignity and decency

Women’s rights include decency and dignity. Anyone who tries to harm her modestly is regarded as a sinner, and the law very good mandates punishment for such behaviour. Each and every woman has the right to live in dignity, free from intimidation, compulsion, violence, and prejudice. The criminal code outlines the penalties for offences against women such as sexual harassment (Section 354), assault with the intent to strip her naked or violate her sense of modesty (Section 354), voyeurism (Section 354), stalking (354D), etc.

Rights at workplace

You have a right to have a female restroom where you work. At places, with more than 30 female workers, providing facilities for care and feeding of children is mandatory. Further, the Supreme Court and the Govt. had put in to ensure the safety of women at workplaces. The Hon’ble Supreme Court in Vaisakha v. State of Rajasthan, had laid down exclusive guidelines for protection of women from Sexual Harassment at workplace, following which, the Govt. in 2013, has enacted an exclusive legislation- The Sexual Harassment of Women at Workplace (PREVENTION, PROHIBITION and REDRESSAL) Act, 2013 for that end. So, if any person at your workplace, asks you for sexual favours, or makes sexually coloured remarks and whistles looking at you or sings obscene songs looking at you, touches you inappropriately, or shows pornography, then all that will constitute Sexual Harassment and you may complain to the Internal complaints committee which is required to be constituted by the employer at each office or branch with 10 or more employees. The District Officer is also required to constitute a Local Complaints Committee at each district, and if required at the block level. Apart from this, IPC also, penalizes Sexual Harassment under 354A by providing an imprisonment of 1-3 years.

.

Right of private defence/ self-defence

It is a right of defence. When defending your body or the body of another person from the attacker, you run the risk of causing serious harm, severe harm, or even death. However, you can only kill the attacker without drawing liability or punishment if certain conditions are met. For example, if you believe the attacker is about to rape, kill, or kidnap you, lock you in a room, or throw or attempt to throw acid at you, you can kill that person and the law will protect you.

Gold hits all time high.

Indian gold futures hit a record high on Friday, tracking gains in overseas market, but the price rise dampened demand in the world’s second biggest consumer of the precious metal, dealers said.

Local gold futures rose to 56,245 rupees ($691.45) per 10 grams, surpassing the previous record of 56,191 rupees hit in August 2020.

Fears of recession and rising interest rates led to a fall in stock prices in the developed world. At the same time, the fall of cryptocurrencies prompted investors to move toward safe haven. That spurred the demand for gold.

Gold hits all time high.

Indian gold futures hit a record high on Friday, tracking gains in overseas market, but the price rise dampened demand in the world’s second biggest consumer of the precious metal, dealers said.

Local gold futures rose to 56,245 rupees ($691.45) per 10 grams, surpassing the previous record of 56,191 rupees hit in August 2020.

Fears of recession and rising interest rates led to a fall in stock prices in the developed world. At the same time, the fall of cryptocurrencies prompted investors to move toward safe haven. That spurred the demand for gold.

Start-up India Innovation to boost the entrepreneurial ecosystem in the country

 On Day 4 of the Start-up India Innovation Week 2023, several events were successfully conducted to boost the entrepreneurship ecosystem in the country.

Startup India with the support of Zone Startups today organized a MAARG Mentorship Masterclass for Mentors mentoring the startups in their entrepreneurial journey. MAARG (Mentorship, Advisory, Assistance, Resilience, and Growth), the National Mentorship Platform is a one stop platform to facilitate mentorship for startups across diverse sectors, functions, stages, geographies, and domains. The objective of the workshop was to equip the attendees with effective ways of mentoring startups, by enhancing their capacities and knowledge. More information on MAARG Portal can be accessed at https://maarg.startupindia.gov.in/

Startup India also organised the webinar on – “Decoding the Seed: Understanding Seed Funding Mechanism” with speakers from various prominent incubators in the country.

The webinar can be viewed here:

https://www.youtube.com/watch?v=PVkMyJHJF9A&ab_channel=StartupIndia

Kerala Startup Mission hosted KTIZ Innovation Day and a workshop for startup founders and ecosystem players to mark the occasion of National Startup Day.  

Atal Incubation Centre – Pondicherry Engineering College Foundation (AIC) organised a one-day event, Puduvai Startup Sprint, a unique initiative to promote an innovative, and supportive ecosystem through pro-active initiatives. The event included knowledge sharing sessions on Startups and Team Building.

UASB Agri Innovation Center, Bengaluru, organised a series of workshops surrounding the theme ‘Role of Startups in Sustainable Agriculture’. The event included informative sessions on ‘Organic Farming for Agri Startups’, ‘Agroforestry Dependent Integrated Farming for Sustainable Income of Farmers’, and ‘Innovation in Agriculture by Startup’.

International Institute of Information Technology-Hyderabad Foundation organised ‘Mentor Cafe’, an offline event in collaboration with Startup India. The event included a ‘One-on-One Discussion forum between Industry Experts and Startups on Overall Strategy’ for budding and aspiring entrepreneurs.

AIC Raise Business Incubator Pvt Ltd in Coimbatore, organised a three-day event, ‘Startup Odyssey. A knowledge sharing Webinar was hosted on ‘How and When to Approach to Investors’, with special focus on inspiring and educating young innovators and students.

Marathwada Accelerator for Growth and Incubation Council in Aurangabad, Maharashtra in association with GIZ & Govt ITI has taken a unique initiative for fostering the spirit of Skills based Entrepreneurship amongst the ITI Students. Session on My Skill, My Business was conducted to create awareness & develop the much-needed mindset for establishing an enterprise.

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