Which of the following is not a Limitation of Planning?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Planning can work in a dynamic environment
Option (1) Planning leads to rigidity — A limitation of planning (Incorrect). Once a plan is fixed, managers may feel they must follow it even when things have changed. The plan leaves little room to adjust.
Option (2) Planning can work in a dynamic environment — Not a limitation of planning (Correct). The real limitation says the opposite: planning may not work in a dynamic environment. The environment keeps changing, so it is hard to judge future trends correctly. A statement that planning can work there is not a limitation at all.
Option (3) Planning reduces creativity — A limitation of planning (Incorrect). Plans are usually made by top management, and the others only carry them out. This leaves little scope for new ideas from below.
Option (4) Planning involves huge costs — A limitation of planning (Incorrect). Collecting facts, making forecasts and holding meetings all cost time and money.
NCERT (2026-27 Edition): “Planning may not work in a dynamic environment: The business environment is dynamic, nothing is constant. The environment consists of a number of dimensions, economic, political, physical, legal and social dimensions. The organisation has to constantly adapt itself to changes. …” “Limitations of Planning … (i) Planning leads to rigidity: In an organisation, a well-defined plan is drawn up with specific goals to be achieved within a specific time frame. …” “(iii) Planning reduces creativity: Planning is an activity which is done by the top management. …” “(iv) Planning involves huge costs: When plans are drawn up huge costs are involved in their formulation. …” |
Note: The same/similar question has been asked in different years by NTA as per the details given below:
| 2026 | 2025 | 2024 | 2023 | 2022 |
| 23-05 S2 | – | – | 28-05 S3 | – |