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Explain any THREE Limitations of Planning Function of Management. 

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Limitations of Planning : 

  • Planning Leads to Rigidity: The existence of a Plan puts Managerial Activities in a Rigid Framework. One of the Limitations is Rigidity. Programmes are carried out according to the Plan and Deviations are considered to be highly undesirable . This Attitude makes Managers and Employees Inflexible in their operations. They become more concerned with observance of Rules and Procedures as laid down in the Plan rather than achieving the goals . 
  • Planning May Not Work in Dynamic Environment: Business Environment is very dynamic as there are continuously changes taking place in economic, political and legal environment. It become very difficult to fore-cast these future changes. Plans may fail if the changes are very frequent. The environment consists of number of segments and it becomes very difficult for a manager to assess future changes in the environment. For example there may be change in economic policy, change in fashion and trend or change in competitor’s policy. A manager fore see these changes accurately and plan may fail if many such changes take place in environment.
  • Planning Reduces Creativity: With the Planning the Managers of the organization start working rigidly and they become the Blind Followers of the Plan only . The Managers do not take any initiative to make changes in the plan according to the changes prevailing in the Business Environment . They Stop giving Suggestions and New Ideas to bring Improvement in Working because the guidelines for working are given in Planning only.

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