Limitations Or Constraints Of Planning

Planning is the main, primary and basic function of management. It is a forecasting process. To achieve the objective, it plays a vital role in directing the organizational activities. All the managerial functions are basically depended upon planning. Observing the rationale and need of planning no one can ignore or deny this planning. Despite of many benefits and importance of planning there are several limitations such as time consuming, high cost, less flexible, false sense of security etc.

Limitations or constraints of planning can be pointed out as follows:

1. Costly process

The planning procedure involves too much expenditure.Money and effort both are required in the process of planning such as collecting information, preparing estimates, forecasting and evaluating the alternatives. The service of experts in the process is necessary and it is marked that relatively their salaries and allowances are very high. Thus, planning has been accepted as a costly process by small and medium sized business organization.

2. Time consuming

Planning is a time consuming process. It delays the business unit to come in action. In the process of planning, every step may consume a lot of time.

3. Unsuitable in emergency situation

This is another major limitation of planning. As planning is time consuming, it is not suitable in emergency situation. Planning delays the emergency demand in organization. In emergency situation, quick decision is desirable because, in such a situation there will be no time to think but to come in action will be desirable.

4. Problem of rapid change

Planning is to be done in advance. It is the game of prediction. However, future events cannot be predicted accurately. In future, changes may occur in technology, consumer tastes and fashion and in so many aspects. These changes may present constraints to planning.

5. Internal inflexibility

Internal inflexibility or rigidity may be related to organizational and human psychology, policy and procedures and capital investment which create problems in the process of implementation of plans. Staffs may not like to change the procedure of works frequently, the policy of the organization cannot be changed frequently, and the capital investment policy and its size also cannot be changed suddenly, when planners ask for the same.

6. External inflexibility

These are related to technology, government policy, legal formalities, consumers tastes, fashion and preference and industrial unrest. Any change in above can influence much and these are uncontrollable variables. These cannot be influenced by planning but plans are be influenced by these external factors.

7. Encourages a false sense of security

Planning encourages false sense of security against future risks and uncertainty. The future is uncertain. The happening of future events depends upon contingency. So, planning cannot be give accurate and reliable results.


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