Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Planning

Question:

"Plans once drawn with specific goals, the managers may not be in position to change it". Which limitation of planning is discussed in the above statement.

Options:

Planning does not guarantee success

Planning leads to rigidity

Planning reduces creativity

Planning does not work in a dynamic environment

Correct Answer:

Planning leads to rigidity

Explanation:

The correct answer is option (2) : 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.

Planning does not guarantee success :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 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 does not work in a dynamic environment : It becomes difficult to accurately assess future trends in the environment if economic policies are modified or political conditions in the country are not stable or there is a natural calamity.