Describe any five limitations of planning

CBSE Class 12 CBSE Class 12 Business Studies
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1

Why is it said that organisations are not always able to accomplish their objectives?
or
Explain briefly the limitations of planning as a tool of management.
or
Describe any five limitations of planning.
or
State any four limitations of planning.
Or
Though planning is an important tool of management, yet it is not a remedy for all types of problems’. Do you agree with this statement? Give any five reasons in support of your answer.

2

This statement is true because planning is only a means to an end.Internal Limitations of Planning :

  1. Planning Leads to Rigidity
    A specific plan made in an organisation clearly indicates the objective to be achieved and the ways of doing work. Since, a manager may not be able to change these plans, it leads to rigidity.
  2. 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.
  3. 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, and there is nothing new or innovative in the organisation.
  4. Planning Involves Huge Cost
    It usually involves a lot of time, effort and cost of the managers. Collection of data, boardroom meetings, investigations and discussions with experts involve a lot of expenditure of the organisation. Sometimes, the cost incurred may not justify the benefit derived from the plans.
  5. Planning is a Time Consuming Process
    Sometimes, plans to be drawn up take so much of time that there is not much time left for their implementation. This leads to failure of planning.
  6. Planning does not Guarantee Success
    Success of planning rests on its implementation. Lack of proper implementation may lead to failure of planning. Even if a plan has worked earlier, it may not work again, due to changes in the external environment.