Question

Explain any five Limitations of planning.

Answer 1

Limitations of Planning:

1. Corporate Planning is not Integrated into the Total Management System: The top management fails to identify and associate properly the formal planning with the central concept of the organisation’s mission.

2. There is a Lack of Understanding of the Different Steps of the Planning Process: The management may not be knowledgeable or skilled in understanding all steps of the planning requirements.

3. Non-Availability of Correct Information and Data: Planning is made by having information and data available. Generally correct information and data not available.

4. Management at Different Levels in the Organisation has not Properly Contributed to Planning Activities: Generally all strategic planning are made and conducted at top management. So sometimes middle level and lower level of management, which are closer to the operation, may not understand all aspects of planning. This will affect their fullest contribution.

5. Costly or Uneconomical: Planning is expensive. The cost of planning should not be in excess of its contribution and managerial judgement is necessary to balance the expenses of preparing the plans against the benefits derived from them.