Mr. Ram director of ABC Ltd., does the entire planning for the organisation. He instructed lower and middle level managers to strictly follow his plan and does not allow them to deviate from the set plan. He does not involve subordinates in decision making. The lower managers only follow the instructions of their superiors.
(a) Name the limitation of planning referred above.
(b) State any other two limitations.
(c) Name the concept of management followed by Mn Ram.

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Solution

(a) Planning reduces creativity
(b) (i) Planning leads to rigidity.
(ii) Planning involve huge cost
(c) Centralization.

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Similar questions

Santo Ltd. has to develop its organisational, plan for the current year and for this purpose they hire professional consultants from the United States. These consultants incurred a lot of money in a collection of facts, figures, surveys, etc., including the salaries of the consultants. This whole process of planning has already proved to be a very costly affair and the eventual total cost may exceed the gains expected from the plan. In addition, the top management did not involve a middle and supervisory level of management during the planning process. These two levels of management are neither allowed to deviate from their plans nor are they permitted to act on their own. They keep thinking along the same lines as others so that nothing new or innovative gets added to the process.

(i) Should Santo Ltd, continue with existing planning with consultants from the United States? Explain with reasons. Also explain, which limitation of planning is reflected in this case?

(ii) Which limitation of planning is reflected when top management does not involve a middle and supervisory level of management during the planning process the above case? What remedial steps can Santo Ltd., take to overcome this limitation?

The top management of Phospher Ltd. is engaged in organisation planning but they do not involve middle and supervisory level of management. These two levels of management are neither allowed to deviate from their plans nor are they permitted to act on their own. They keep thinking along the same lines as others so that nothing new or innovative gets added to the process.

(i) Which limitation of planning is reflected in above case?

(ii) What is the meaning of this limitation in the context of the case study?

(iii) What remedial step will Phospher Ltd., take to overcome this limitation?

Q. The management of ABC Ltd. set up the target of selling 10,000 products per week and made all their plans based on this target. But due to change in technology adapted by competitors which reduced their cost, the ABC Ltd, could not achieve their target.
(i) Identify the limitation of planning discussed in the above para.
(ii) State any other two limitations.

"The directors of XYZ Ltd are of the opinion that all decisions and plans are to be framed by them, and therefore, no planning is required at lower levels of management'. Refute this statement.

Q. Name the function of management:
(i) Finding out deficiencies in implementation of plans.
(ii) Establishing authority responsibility relationship between superior and subordinates.
(iii) Instructing and ordering employees.
(iv) Deciding policies, procedures, objectives of an organisation.

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(a) Planning reduces creativity (b) (i) Planning leads to rigidity. (ii) Planning involve huge cost (c) Centralization.

(a) Planning reduces creativity
(b) (i) Planning leads to rigidity.
(ii) Planning involve huge cost
(c) Centralization.