Question

(a) Explain the following limitations of planning: (i) Planning leads to rigidity (ii) Planning may not work in a dynamic environment

Accepted Answer

(i) Planning leads to rigidity § In an organisation, a well-defined plan is drawn up with specific goals to be achieved within a specific time frame, these plans then decide the future course of action and managers may not be in a position to change it. § This kind of rigidity in plans may create difficulty. Following a pre-decided plan, when circumstances have changed, may not turn out to be in the organisation’s interest. (ii) Planning may not work in a dynamic environment § The organisation has to constantly adapt itself to changes taking place in the business environment. § It becomes difficult to accurately assess future trends in the environment. Planning cannot foresee everything and thus, there may be obstacles to effective planning.

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