"When plans are drawn up, huge money and time are involved in their formulation."

Identify the limitation of planning.

Planning involves huge costs

The correct answer is option (2)- Planning involves huge costs.

Planning involves huge costs is the limitation highlighted in the given statement.

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.

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.

• 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.

• 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.