"Inspite of all efforts, company may fail to achieve dominant position in the market by the end of the next financial year."

Which limitation of the function of management, is referred in the above statement.

Does not guarantee success

The correct answer is option (4) : Does not guarantee success

The limitation of the function of management (planning) referred to in the above statement is Does not guarantee success. Management functions can be diligently performed, yet success is not always guaranteed due to various external factors beyond the control of the company.

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.

*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.

* 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.

* 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.