Question

Answer the following question.
Mega Ltd. holds an Annual Management Programme every year in the month of March in which the top managerial personnel formulates plans for the next year by analyzing and predicting the future to meet future events effectively. As they are responsible for providing direction to the organization, facts are thoroughly checked using scientific calculations. Detailed plans are prepared after discussion with professional experts. Preliminary investigations are also undertaken to find out the viability of the plan. Since it is an intellectual activity requiring intelligent imagination and sound judgment so it is mainly done by the top management. Usually, rest of the members just implement the plans. Middle-level managers are neither allowed to deviate from the plans nor are they permitted to act on their own. The top management ensures that the expenses incurred in formulating the plans justify the benefits derived from them.

State any two limitations and any two features of planning discussed above.

Answer 1

The features of planning which are discussed in the given situation are:

1. Planning is a mental exercise - "Since it is an intellectual activity requiring intelligent imagination and sound judgement so it is mainly done by top management". It requires the application of mind and sound judgement. Since planning defines what is to be done in future, it requires sound thinking rather than doing.
2. Planning is futuristic - "The top management formulates plans for the next year by analyzing and predicting the future to meet future events effectively". Planning is futuristic in the sense that it foresees the future, thereby helping to prepare for uncertain future events.
   
   Limitations:

1. Planning reduces creativity - "Middle-level managers are neither allowed to deviate from the plans nor are they permitted to act on their own". Plans are made by only the top management, and the lower levels of management are not allowed to deviate from the pre-defined course. Thus, in the process, lower-level managers tend to lose their creativity.
2. Planning involves huge costs - "The top management ensures that the expenses incurred in formulating the plans justify the benefits derived from them". As planning is based on future predictions, it requires much thought, analysis, scientific calculations, etc., which are to be used for formulating a course of action. This involves high costs.