10 Major Limitations of Planning in Management

We know that business planning is made in uncertain and unstable circumstances. So, the limitations of planning in any business is a very critical point. When the basis itself is uncertain, how it may be agreed that the things determined by planning will be cent percent true.

limitations of planning in management
limitations of planning in management

In this regard, “Planning will not provide the guarantee for the success of the business.”

Limitations of Planning in Management

Following are the limitations of planning in management:

1. Limitations of Forecasting

Forecasting is the basis of planning. We have studied that facts and data should be reliable and accurate, for successful planning, otherwise planning will not be successful.

Similarly, even if the timings of the forecasts will be lengthy, then the accuracy of planning will be much lesser and success will be doubtful.

2. Flexibility

Planning lacks sufficient flexibility.

So, the managers become non-enthusiastic and they do not take full interest in the business enterprise.

As comprehensive planning will be, it will be equally non-flexible, the reason being that necessary revision in planning, in consonance with the circumstances, becomes necessary.

Related: 14 Nature and Characteristics of Leadership in Management.

3. Time-Consuming and Expensive

Planning is regarded as a time consuming and expensive process, the reason being that facts and data are collected for planning, these are analyzed and tested also, on which a lot of time, energy and money are to be spent.

Besides, many times, the collection of data and forecast preparation takes so much of the time that the opportunities for profit slip from the hand.

Thus, the advantages of planning are low as compared to spending of time, energy, and money for it. And limitations of strategic planning are high.

Hence, the Cost of planning should not be more than its contribution.

4. Difficulty in Selection of Best Alternative

The best of the various alternatives is selected in the Planning process.

But, if viewed practically, it is difficult, the reason being that it is difficult to decide, which is the best among the available alternatives.

Who will decide? Not only that, the best today to us, may not possibly appear to be the best tomorrow, rather some work may appear the best tomorrow, in accordance with the changing circumstances.

Thus, many difficulties arise in the selection of the best alternatives in planning.

5. Stiffness Initiatives

The employers, stifle the feelings of initiation among the employees, due to rigidities of planning, which compels the managers and employers to follow and act, according to the decided systems, methods, programs, policies, rules and plans, in which they cannot make any type of changes and revisions, in their personal capacity.

As a result, the initiatives of officers and employees start stifling.

Planning chokes the throats of initiatives of the employees and compels the managers to act strictly.

Related: 8 Main Nature and Scope of Venture Capital (Explained).

6. Emergencies

During the occurrence of emergencies, planning is either not possible or else difficulties are faced in their implementation, due to which planning is to be left, the reason being that at such times, much of thinking and understanding is not possible and decisions are to be taken quickly.

advantages and disadvantages of planning
disadvantages of planning

So, the advantages and disadvantages of planning in an organization is a very essential role.

7. Frustrating Work

In real life, Preparing plans is frustrating to work.

Sometimes, planning remains unsuccessful, since this is a frustrating task.

Sometimes planning remains unsuccessful in difficult and frustrating works.

8. Opposition to Changes

It is a reality that managers often oppose changes in Planning.

Most of the managers give more importance to the present than the future, and they show disinterest towards changes, whereas planning is a dynamic process and regular changes are required, according to the circumstances.

Such an outlook of the managers also brings setbacks for future planning.

Related: 14 Principles of Planning in Management (With Examples).

9. Lack of Adequate Mental Ability or Intelligence

Planning is basically a mental system and intellectual function.

Hence, the special type of intellectual aptitude and memories are required for the formulation of plans.

But, it is beyond the capacity of an officer of General Intelligence and as a result success of planning becomes doubtful.

10. Physiological Barriers

An important barrier in formulation and implementation of plans take like most of the people, executives also give more importance to the present then the future, the reason being that present is more secure than the future and is more desired also.

Besides, several such things are included in plans, which are opposed by executives, on the plea that these are not implementable.

Thus, now you know the limitations of planning in management.

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