Limitations of Planning

1 Mark Questions

1. State how planning 'leads to rigidity'? (All India 2010)

Ans. The existence of plan puts managerial activities in a rigid framework. Programmes are carried out according to plans. Managers become more concerned with observing the rules and procedures as laid down in the plan rather than achieving the goals.

2. State how planning reduces creativity? (Delhi 2010c)

Ans. Planning makes managers and workers a puppet. They are expected to follow the guidelines laid down in plans. Everything is pre-determined. This discourages the creative thinking and initiative on the part of people working at various levels in the organisation.

1. 'Planning always leads to success'. Do you agree? Give reasons in support of your answer. (HOTS; Delhi 2009C) Ans. No, sometimes planning fails because of:
2. Rigidity (ii) Time consuming

4. List any two limitations of planning. (Ail India 2009)

or State any one limitation of planning. (Delhi 2008C)

Ans. Limitations of planning are as follows:

1. Planning does not work in dynamic environment.
2. It involves huge costs.
3. Inspire of many advantages, state how planning can be detrimental? (HOTS; All India 2008)

Ans. Business environment is dynamic in nature, i.e. nothing is constant. Sometimes planning fails to foresee the changes and there are obstacles in effective planning. Hence, planning can be detrimental.

3 Mark Questions

1. How does planning lead to rigidity and reduce creativity?

Explain.(Compartment 2014) or

State any two limitations of planning. (Delhi 2012)

Ans. Two limitations of planning are as follows:

1. 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.

1. Planning reduces creativity Plans are usually formulated at the top level. Middle

and lower level managers are expected to follow them. Therefore, much of initiative and creativity inherent in them gets lost. They do not take any initiative to make changes in the plans according to the changes prevailing in the business environment.

1. How does planning not work in a dynamic environment and does not guarantee success. Explain. (Compartment 2014)

Ans. (i) Planning does not work in dynamic environment The environment is not static. It keeps on changing. The organisation has to constantly adapt itself to such changes. It becomes difficult to access future trends in the environment. Hence, planning cannot foresee everything and fail to work in dynamic environment.

1. Planning does not guarantee success When plans are drawn, they need to be

properly implemented. Mere drawing plans does not lead to success. Also, a plan which had been successful earlier may not work out next time, since there are many factors which may change for the next planning period and make the plans ineffective.

1. Rahul, a worker, is given a target of assembling two computers per day. Due to

his habit of doing things differently, an idea struck him which would not only reduce the assembling time of computers but would also reduce the cost of production of the computers. Rahul's supervisor instead of appreciating him, ordered him to complete the work as per the methods and techniques decided earlier as nothing could be changed at that stage.

The above para describes one of the limitation of planning function of management. Name and explain that limitation.

(HOTS; All India 2011; Delhi 2011c)

Ans. The para given in the question expresses the limitation of planning which is explained as unde(1)

Planning reduces creativity Plans are usually formulated at the top level. Middle and lower level managers are expected to follow them. Therefore, much of initiative and creativity inherent in them gets lost. They do not take any initiative to make changes in the plans according to the changes prevailing in the business environment.

10. Define planning. List any two limitations of planning. (All India 2010)

Ans. Planning is the process of thinking before doing. It is the process of determination of a course of action to achieve the desired results.

1. 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.