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Question
Explain any three limitations of ‘Planning’.
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Solution
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.
RELATED QUESTIONS
An auto company C Ltd. is facing a problem of declining market share due to increased competition from other new and existing players in the market. Its competitors are introducing lower priced models for mass consumers who are price sensitive. C Ltd. realized that it needs to take steps immediately to improve its market standing in the future . For quality conscious consumers, C Limited plans to introduce new models with added features and new technological advancements. The company has formed a team with representatives from all the levels of management. This team will brainstorm and will determine the steps that will be adopted by the organisation for implementing the above strategy. Explain the features of Planning highlighted in the situation given below.(Hint: Planning is pervasive, Planning is futuristic and Planning is a mental exercise).
Which of the following statements is not true with reference to planning?
Planning cannot foresee everything, and thus, there may be obstacles to effective planning. Identify the related limitation of planning.
It is not always true that just because a plan has worked before it will work again. Identify the related limitation of planning.
Planning cannot foresee everything, and thus, there may be obstacles to effective planning. Identify the related limitation of planning
It is not always true that just because a plan has worked before it will work again. Identify the related limitation of planning.
Why are rules considered to be plans?
Explain the following as limitations of planning:
- Planning leads to rigidity.
- Planning may not work in a dynamic environment.
Though planning is an important function of management, it may not always give desired results. Justify this statement by explaining any four limitations of Planning.
What makes planning lead to rigidity?
Which business elements need frequent revision in a dynamic environment?
What may happen to ideas when planning reduces creativity?
Why does planning involve huge costs?
What often disturbs planning even though planning is essential?
Which combination is a limitation of planning?
