Question

State any four limitations of planning.

Hint:

Planning is essential, but businesses should remain flexible to adapt to dynamic changes in the market. A combination of structured planning and adaptability ensures success.

Answer 1

(i) Rigidity: Once a plan is set, it becomes difficult for managers to alter it, even if changes are required.
(ii) Ineffectiveness in a Dynamic Environment: Planning assumes stable conditions, but the business environment is always changing, making some plans irrelevant.
(iii) Reduced Creativity: Employees may feel constrained by a structured plan, leading to a lack of innovative thinking.
(iv) High Costs: Planning requires extensive resources, including time, effort, and financial investments.