Question

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

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Limitations of Planning: (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 that 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 and managers need to be given some flexibility to be able to cope with the changed circumstances. (ii) Planning may not work in a dynamic environment: ▪ The business environment is dynamic. The organization has to constantly adapt itself to changes in environment by making changes in its plans. ▪ It becomes difficult to accurately assess future trends in the environment if economic policies are modified or political conditions in the country are not stable or there is a natural calamity etc. (iii) Planning involves huge costs: ▪ When plans are drawn up huge costs are involved in their formulation both in terms of time and money. ▪ Detailed plans require scientific calculations to ascertain facts and figures. Or Q (b) Explain the following points of importance of planning: (i) Planning facilitates decision-making (ii) Planning establishes standards for controlling (iii) Planning promotes innovative ideas Importance of Planning: (i) Planning facilitates decision making: ▪ Planning helps the manager to look into the future and make a choice from amongst various alternative courses of action. ▪ The manager has to evaluate each alternative and select the most viable proposition. (ii) Planning establishes standards for controlling: ▪ Planning provides the goals or standards against which actual performance is measured. ▪ By comparing actual performance with some standard, managers can know whether they have actually been able to attain the goals. If there is any deviation it can be corrected. (iii) Planning promotes innovative ideas: ▪ Planning, being the first function of management, promotes innovative ideas as new ideas can take the shape of concrete plans. ▪ It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the business.

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

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