Identify, which of the following is not a limitation of planning:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Planning may not work in a static environment

Option (1) Planning reduces creativity — A limitation of planning (Incorrect). Plans are made by top management. Others only carry them out, so they get little chance to bring in new ideas.
Option (2) Planning leads to rigidity — A limitation of planning (Incorrect). Once a plan is fixed, managers may not be free to change it when conditions change.
Option (3) Planning involves huge costs — A limitation of planning (Incorrect). Collecting facts, making forecasts and checking alternatives take time and money. The cost may be more than the benefit.
Option (4) Planning may not work in a static environment — Not a limitation of planning (Correct). The real limitation is that planning may not work in a dynamic environment. There, economic, political, legal and social conditions keep changing, and a plan made today may not fit tomorrow. In a static environment nothing changes, so a plan would work well. NTA swapped one word, ‘dynamic’ for ‘static’, and a limitation turned into its opposite. Match the option word by word with what you learnt before you tick it.

NCERT (2026-27 Edition): “Limitations of Planning … The major limitations of planning are given below:
(i) 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. …”

“(ii) Planning may 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. …”

“(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. …”

“(iv) 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. …”

Identify, which of the following is not a limitation of planning:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Planning may not work in a static environment

Option (1) Planning reduces creativity — A limitation of planning (Incorrect). Plans are made by top management. Others only carry them out, so they get little chance to bring in new ideas.
Option (2) Planning leads to rigidity — A limitation of planning (Incorrect). Once a plan is fixed, managers may not be free to change it when conditions change.
Option (3) Planning involves huge costs — A limitation of planning (Incorrect). Collecting facts, making forecasts and checking alternatives take time and money. The cost may be more than the benefit.
Option (4) Planning may not work in a static environment — Not a limitation of planning (Correct). The real limitation is that planning may not work in a dynamic environment. There, economic, political, legal and social conditions keep changing, and a plan made today may not fit tomorrow. In a static environment nothing changes, so a plan would work well. NTA swapped one word, ‘dynamic’ for ‘static’, and a limitation turned into its opposite. Match the option word by word with what you learnt before you tick it.

“(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. …”