Question

Explain the following limitations of the planning function of management:
(b) Planning may not work in a dynamic environment.

(ii) Planning leads to rigidity.

(iii) Planning is time-consuming.

Hint:

While planning is essential, organizations should incorporate flexibility and efficiency to adapt to dynamic environments and reduce delays.

Answer 1

(i) Planning may not work in a dynamic environment: The business environment is dynamic, and organizations must constantly adapt to changes. It becomes difficult to accurately assess future trends due to the unpredictable nature of the environment, making planning less effective in such situations.
(ii) Planning leads to rigidity: A well-defined plan may lead to rigidity as managers may lack the flexibility to adapt to changing circumstances.
(iii) Planning is a time-consuming process: Planning requires significant time to gather information, analyze options, and make decisions, leaving little time for actual implementation.