"Following a pre-decided plan, when circumstances have changed, may not turn out to be in the organisations interest."

Identify the limitation of planning highlighted in the aforesaid statement.

Planning leads to rigidity

The correct answer is option 3- Planning leads to rigidity.

The statement focuses on following a pre-decided plan even when circumstances change. This shows lack of flexibility, meaning the organisation becomes rigid and unable to adapt. That is exactly what is meant by planning leads to rigidity.

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. These plans then decide the future course of action and managers may not be in a position to change it. This kind of rigidity in plans may create difficulty. Managers need to be given some flexibility to be able to cope with the changed circumstances. Following a pre-decided plan, when circumstances have changed, may not turn out to be in the organisations interest. 

Why Option 4 is incorrect: While planning does indeed face challenges in a dynamic environment, that limitation refers to the unpredictability of external factors (like a sudden change in government policy) that makes a plan fail. The statement in the question focuses on the internal behavior of sticking to a plan despite changes, which is the definition of rigidity.

OTHER OPTIONS

• Planning reduces creativity-  Planning is an activity which is done by the top management. Usually the rest of the members just implements these plans. As a consequence, middle management and other decision makers are neither allowed to deviate from plans nor are they permitted to act on their own. Thus, much of the initiative or creativity inherent in them also gets lost or reduced. Most of the time, employees do not even attempt to formulate plans. They only carry out orders. Thus, planning in a way reduces creativity since people tend to think along the same lines as others. There is nothing new or innovative.

• Planning does not guarantee success: The success of an enterprise is possible only when plans are properly drawn up and implemented. Any plan needs to be translated into action or it becomes meaningless. Managers have a tendency to rely on previously tried and tested successful plans. It is not always true that just because a plan has worked before it will work again.