Question

Explain the following limitation of planning :
(i) Planning reduces creativity

Hint:

Planning centralizes decision-making power at the top. Rigidity in plans prevents managers from taking initiative in changing situations. To foster creativity, management should encourage "Bottom-Up" planning where possible.

Answer 1

Step 1: Identify the concept being tested.
The question asks how planning can reduce creativity in an organisation, one of the recognised limitations of planning.
Step 2: Explain the concept.
Plans are usually drawn up by top management, and the rest of the organisation is expected to simply carry them out as laid down, without much room for deviation.
Step 3: Explain the impact of this rigidity.
Because managers and employees at the middle and lower levels are told to stick to the plan, they stop experimenting with new ideas or better ways of doing things. Over time this discourages original thinking and turns people into mere implementers of someone else's decisions.
Step 4: Final answer.
Planning reduces creativity because it is largely made by top management, leaving little scope for others in the organisation to think independently or try out new approaches, since they are expected to just follow the predetermined course of action.