Every March, Meena Ltd. conducts its Annual Management Programme, where the top managerial personnel gather to formulate plans for the upcoming year. Their goal is to analyze and predict the future, enabling the organization to effectively navigate forthcoming events. Given their responsibility for steering the organization, these managers meticulously verify facts using scientific calculations. Thorough discussions with professional experts contribute to the preparation of detailed plans, and preliminary investigations are conducted to assess plan viability. Since this is an intellectual undertaking demanding intelligent imagination and sound judgment, it is primarily undertaken by the top management. The implementation of plans is generally carried out by the remaining team members, with middle-level managers expected to adhere to the plans without deviation or independent action. The top management oversees the entire process, ensuring that the expenses incurred in formulating the plans are justified by the benefits derived from them. This approach maintains a strategic and thoughtful approach to planning and execution within Meena Ltd.

Which of the following lines justify the limitation that planning involves huge costs?

Expenses incurred in formulating the plans are justified by the benefits derived from them

The correct answer is option 2 i.e. Expenses incurred in formulating the plans are justified by the benefits derived from them.

Planning involves huge costs: When plans are drawn up huge costs are involved in their formulation. These may be in terms of time and money for example, checking accuracy of facts may involve lot of time. Detailed plans require scientific calculations to ascertain facts and figures. The costs incurred sometimes may not justify the benefits derived from the plans. There are a number of incidental costs as well, like expenses on boardroom meetings, discussions with professional experts and preliminary investigations to find out the viability of the plan.