Planning by Inducements
Planning by inducement is often referred to as
'indicative planning'
or
'market incentives'
. In such type of planning, the market is manipulated through incentives and inducements. Accordingly, in this system there is persuasion rather than compulsion or deliberate enforcement of orders. Here the consumers are free to consume whatsoever they like, producers are free to produce whatsoever they wish. But such freedom of consumption and production are subject to certain controls and regulations. The consumers, producers and other factors of production are induced with the help of various fiscal and monetary devices. For example, if the planning authority wishes to boost the production of corn oil in Pakistan it will provide subsidies, tax holidays and loans to the firms involved in production of corn oil. To encourage savings and investment and discourage consumption a suitable package of fiscal and monetary policies can be introduced in the market. Therefore, the desirable results can be attained with the help of incentives and without the imposition of orders and instructions. Moreover, in such planning there is less sacrifice and less loss of liberty - economic as well as non-economic.
Merits of Planning by Inducements:
(a)
Consumers' sovereignty
remain intact. Planning by inducements is more democratic as compare to planning by directions.
(b)
There is a
freedom of choice of profession
.
(c)
In planning by inducements, there is
freedom of enterprise
. Produces are free to produce whatever they like but within in the capacity of given rights.
(d)
Planning by inducements is
smooth and flexible
. It is more popular because it enables to incorporate the changes in resources, technology and taste etc. even after the finalisation and implementation of plan.
(e)
Under this sort of planning, the inertia attached with standardisation can be put to an end and producers are free to produce in accordance with the desire of consumers. Therefore, there is a
variety of goods and services
in the market.
(f)
There are
less administrative costs
involved in planning by inducements.
(g)
The problem of shortages and surpluses is solved as there is an existence of
automated market system
. The demand and supply is automatically adjusted and remain in balance under market economy.
Demerits of Planning by Inducements:
(a)
It also
fails to achieve 100% targets
of economic planning.
(b)
Under planning by inducements, there are
profit motives more than welfare
of public. Private entrepreneurs care for those products which yield high profits. Products or services with less profit or no profit do not attract private entrepreneurs. Such products or services include education, health, defence, security, etc.
(c)
The producers may find the
government policies regarding economic affairs not attractive enough to follow
.d)
There may be disputes among entrepreneurs and the government regarding tax rates, investment policies, interest rates, etc
The mechanism of market economy
may cause the prices to inflate
esp. withreference to under-developed countries or in case of oligopoly where there is ashortage of certain products like petroleum and gas.
(e)
There may be
disharmony between labour and producer
, and there may beserious industrial disputes.
Planning by Directions
This type of planning is practised in socialist countries like China, Former USSR, Cuba, North Korea, etc. Under planning by direction, there is one central authority which plans, directs and orders the execution of the plan in accordance with the pre-determined targets and priorities. It determines the production figures, delivery schedules, quotas regarding the production of the goods, price controls, use of foreign exchange and allocation of resources like labour, etc. amongst different competing uses. Thus, such planning is comprehensive and encompasses the whole economy. Planning by directions is similar to military or defence plans which are carried through orders and instructions. Thus the strategy of planning through directions coincides with the military strategy. Along with the disintegration of former Soviet Union, the methodology of planning by directions has received certain serious setbacks. Now most of the UDCs are tend to adopt market economic system.
Demerits of Planning by Directions:
(a)
Planning by direction is
undemocratic
since the people are ignored all along.
(b)
It is
bureaucratic and totalitarian
. Under bureaucratic system, the individual's sovereignty is completely abolished. Corruption, red tapism, VIP system, tyranny and austerity are the byproducts of bureaucracy.
(c)
Rationing and control result in
black marketing.
(d)
There are shortages of some goods and as well as surpluses of other goods. That is, there is an
imbalance in production output
.
(e)
This sort of planning is
inflexible
. Once the plan is prepared, there is no room for alterations in later phases of planning. A part of the plan cannot be changedwithout simultaneous changes in many interconnected activities. Planning bydirection is so complex that it is impossible to change even a part of it as it willinvolve in altering the whole plan.
(f)
The
fulfilment of plan cannot be guaranteed
, as the planning by direction ishampered by black marketing and corruption.
(g)
Planning by direction also leads to
excessive standardisation
which impinges on consumer sovereignty. In other words, under planning by direction the goods produced are standardised lacking the variety. As in case of USSR, the produced TV, Fridges and Automobiles were identical having no differentiation.
(h)
It also involves
huge administrative costs
, as the planning by direction involves in elaborate census, numerous forms and army of clerks.
adaptive
direction
= nswering "Define and discuss the need of human resource planning take an account of the human resource planning in your organisation or an organisation you are familiar with and give brief note on that?" =
The importance of planning is in the value of having goals or a direction for the organisation. Having a plan also means you can document it and therefore communicate with and thus work with all those with an interest in the organisation.
Career planning is important for those who are in high school or college. It is important for a person to have a plan for where they are going in life. A succession plan can be used to put goals in order and plan how the career goals can be met.
stem direction does not affect note duration
Situational inducement is an attempt to influence a behavior by using occasions and social settings to control it.
The commander assessment provides direction and focus.
The commander assessment provides direction and focus.
What is statutory inducements
A statutory inducement refers to a provision in a law or statute that encourages certain behavior or actions. It is a legal incentive offered by the government to influence individuals or organizations to act in a desired way, such as offering tax breaks for investing in certain industries.
Type your answer here... write detail note on hospital planning
An allurer is a person or thing which allures.
Right now One Direction is not planning on going Arkansas, sorry
adaptive
direction
the root is -ment