6 Major Limitations of Planning in Management

Limitations of Planning

We all know how planning is most important for any kind of organization. Without planning, the organization is hard to manage work-force activities.

But, we often see in our life, everything is not going according to the planning because planning is always for the future or the future is uncertain.

Unforeseen events and changes, rise in costs and prices, environmental changes, government interventions, legal rules and regulations, etc all affect planning. Then, planning needs some change.

If always we are not going according to the plan, so we should know what are the limitations of planning.

So, today we discuss the limitations of planning which are given below.

Let’s dive in.

6 Major Limitations of Planning

1. Leads to Inflexibility:

In an organization, managers are defined as well-organized plans according to organizational objectives effectively and efficiently.

These plans decide the future actions, managers are not in a position to change it. This kind of inflexibility makes trouble for an organization.

Managers need some time and flexibility to cope with these changing situations. The organization faces difficulty, in turn, out of this troubling situation.

2. May not be Work in a Dynamic Environment:

If you see a successful businessman or a successful organization, I am sure that one question popup in your mind how they are successful. One of the best answers is they are dynamic.

Business environment is like a flowing river. It is not stagnant, it is dynamic.

This environment has a number of dimensions likes economic, political, legal, physical, social, etc. The organization has to cope up these dimensions very quickly to be successful.

Organization has various difficulties, when the dimensions of a country are not stable.

The market environment upsets the financial plans, sales targets, and marketing objectives of the organization.

A manager can’t predict everything in-market events, so for this reason you may not totally believe in planning.

3. Reduces Creativity:

Planning is an act by the top-level managers of an organization. Generally, the rest of the members-only just work on the following pre-determined functions.

In an organization, middle and low-level managers are neither allows working on their own plans. When some have a creative idea, then they get lost these ideas. Most of the time workers do not able to formulate plans, they take orders from the superiors.

So, planning is a way reduces creativity.

4. Involves Huge Costs:

Planning is a huge cost consuming process. It is an intellectual and creative process and the base of every successful organization depends on this so specialized people must be staffed for the job.

At sometime the cost of planning is bigger than the revenue of it.

5. Time-consuming Process:

Sometimes planning involves a lot of time to analyze or research the past facts and market environment. Everyone knows that time is more expansive than money because you can’t buy time.

In the business world, time is one of the most important things. You can’t wait for your best day. The founder of Amazon, Jeff Bezos said that pick up 70% of information and work on it.

6. Does not Guarantee Success:

The success of a business is only possible when plans implement in a real or practical world. Plans have to convert into action otherwise it is useless.    

The perfect accusation of a plan depends on the top-level management of an enterprise. If top-level managers of an organization have top leaders quality and bring in the real world then the success of this company is not a dream.

Conclusion:

What did you think of this? Do I miss something? Come on! Let us know if you want to add something to the list.

Limitations of Planning FAQ:

What are the limitations of planning?

These are the limitations of planning (1) Leads to Inflexibility, (2) May not Work in a Dynamic Environment, (3) Reduces Creativity, (4) Involves Huge Costs, (5) Time-consuming Process, (6) Does not Guarantee Success, etc.

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