The Limitations of Planning are:

(A) It reduces creativity

(B) It works in a dynamic environment

(C) It involves huge costs

(D) It is time-consuming

Choose the correct answer from the options given below:

(A), (C) and (D) only

The correct answer is option 4- (A), (C) and (D) only.

Except (B) It works in a dynamic environment, all others are limitations of planning as Planning does not work in a dynamic environment.
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.

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. 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.

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.

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.