Question

State any four limitations of planning.

Hint:

Planning is essential, but businesses should remain flexible to adapt to dynamic changes in the market. A combination of structured planning and adaptability ensures success.

Answer 1

(i) Rigidity: Once established, plans are difficult to modify, even when necessary.
(ii) Ineffectiveness in a Dynamic Environment: Plans assume stability, but the constantly changing business landscape can render them obsolete.
(iii) Reduced Creativity: Rigid plans can stifle employee innovation and independent thought.
(iv) High Costs: Comprehensive planning demands significant investment of time, effort, and financial resources.