(i) Planning leads to rigidity A specific plan made in an organisation clearly indicates the objectives to be achieved and the ways of doing work. Since, a manager may not be able to change these plans, it leads to rigidity.
(ii) Planning may not work in a dynamic environment Business environment consists of social, economic, legal and other factors that keep on changing.
The organisation has to adapt itself to such changes. But, planning cannot assess future trends exactly and thus fails in a dynamic environment.
(iii) Planning reduces creativity It is an activity, which is done by the top management and the rest of the members just implement these plans.
They are neither allowed to deviate from plans nor are permitted to act on their own. Due to this, much of the initiative or creativity inherent in managers or other members gets lost or reduced.