Question

Explain any THREE Limitations of Planning Function of Management.

Answer 1

Limitations of Planning :

• Planning Leads to Rigidity: The existence of a Plan puts Managerial Activities in a Rigid Framework. One of the Limitations is Rigidity. Programmes are carried out according to the Plan and Deviations are considered to be highly undesirable . This Attitude makes Managers and Employees Inflexible in their operations. They become more concerned with observance of Rules and Procedures as **** down in the Plan rather than achieving the goals .
• Planning May Not Work in Dynamic Environment: Business Environment is very dynamic as there are continuously changes taking place in economic, political and legal environment. It become very difficult to *-cast these future changes. Plans may fail if the changes are very frequent. The environment consists of number of segments and it becomes very difficult for a manager to assess future changes in the environment. For example there may be change in economic policy, change in fashion and trend or change in competitor’ policy. A manager ** see these changes accurately and plan may fail if many such changes take place in environment.
• Planning Reduces Creativity: With the Planning the Managers of the organization start working rigidly and they become the ***** Followers of the Plan only . The Managers do not take any initiative to make changes in the plan according to the changes prevailing in the Business Environment . They Stop giving Suggestions and New Ideas to bring Improvement in Working because the guidelines for working are given in Planning only.