Limitations of planning:
1. Uncertain future:
- Planning is based on assumptions and forecasting i.e. it talks about future. But, no one knows future and so it is uncertain.
- So, one may make assumptions and frame plans based on these assumptions. But it should be well noted, that assumptions can be wrong. Hence, uncertainties prevail in planning.
2. Expensive process:
- In a large unit, experts are engaged in the planning function.
- Since these experts are highly experienced and knowledgeable they charge high consultation fees for assisting in framing the plans.
- While planning several resources are also to be gathered like holding meetings, conducting surveys, gathering data and performing analysis, etc. All these activities require .time, effort and money. Hence, planning incurs huge expenses to the unit.
3. Time consuming: Planning involves collection of necessary information, its classification, analysis and interpretation to decide alternatives for the business. Thus it is a lengthy and time-consuming process.
4. Planning is irrelevant:
- Although planning is extremely important but future is uncertain. There are chances of changes in government policies, tax slabs, price, demand, supply, etc.
- Any major change can fail even a solid plan and hence planning becomes irrelevant in such a situation.
