“Planning is an activity which is done by the top management. Usually, the rest of the members just implement these plans.”
The limitation of Planning stated above is related to:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Planning reduces creativity
Option (1) Planning leads to rigidity — Incorrect. Rigidity means managers must follow a plan already fixed, even when conditions change. The statement is about who makes the plan, not about the plan being hard to change.
Option (2) Planning does not guarantee success — Incorrect. This limitation says a plan works only when it is properly drawn up and carried out. It says nothing about who does the planning.
Option (3) Planning reduces creativity — Correct. Planning is done by top management, and the others only implement the plans. Middle managers and other staff are neither allowed to depart from the plans nor to act on their own. So much of their initiative and creativity is lost.
Option (4) Planning may not work in a dynamic environment — Incorrect. This limitation is about the business environment changing faster than the plan can foresee.
NCERT (2026-27 Edition): “Limitations of Planning … (iii) 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. Thus, much of the initiative or creativity inherent in them also gets lost or reduced. …” |