Which of the following are the limitations of Planning?

(A) Planning leads to rigidity

(B) Planning reduces creativity

(C) Planning involves huge costs

(D) Planning does not work in a dynamic environment

Choose the correct answer from the options given below:

(A), (B), (C) and (D)

The correct answer is option 3- (A), (B), (C) and (D).

(A) Planning leads to rigidity- It is a limitation. 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.

(B) Planning reduces creativity- It is a limitation. 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.

(C) Planning involves huge costs- It is a limitation. 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.

(D) Planning does not work in a dynamic environment- It is a limitation. The business environment is dynamic, nothing is constant. The environment consists of a number of dimensions, economic, political, physical, legal and social dimensions. The organisation has to constantly adapt itself to changes.