Explain any three limitations of ‘Planning’.
Three limitations of planning:
i. Inflexibility: Since all the other steps in the process of management depend on planning, it becomes quite inflexible to alter a plan once it gets in the process of being implemented. In scenarios of unplanned external changes, it often becomes a cost and time burden on the organisation to change the course of a plan. It is therefore suggested to companies to keep a certain degree of flexibility in their plan to cooperate with unforeseen circumstances.
ii. Inability to deal with potential business changes: At times, planning fails to accommodate changes in business functioning due to its predefined assumptions about business. It therefore becomes a tedious task to alter the plan according to forthcoming changes.
iii. Hindrance to new initiatives: Planning often reduces the scope of new initiatives due to the required structural adjustments demanded by those initiatives. Hence, it sometimes becomes a hindrance in efficiency and effectiveness of organisational procedures. It is therefore advised to make necessary structural adjustments while formulating a plan every time to put new initiatives into action.