Explain the following as limitations of planning :

Class 12th BUSINESS STUDIES, Question Paper 2023:Explain the following as limitations of planning :

Question :Explain the following as limitations of planning :

(i) Planning leads to rigidity.
(ii) Planning may not work in a dynamic environment.

The correct answer is -(i) Planning leads to rigidity: One of the limitations of planning is that it can lead to rigidity. When organizations make detailed plans, they may become overly attached to them and find it difficult to adapt to changing circumstances. This can result in missed opportunities or even failure if the plan does not account for unexpected events or changes in the market or business environment. Planning can also create bureaucracy and red tape, which can slow down decision-making and make it more difficult to respond quickly to changing conditions.

(ii) Planning may not work in a dynamic environment: Another limitation of planning is that it may not work well in a dynamic environment. In an environment where things are constantly changing, it may be difficult to create a plan that is flexible enough to adapt to these changes. This can lead to a situation where the plan becomes outdated or irrelevant, and the organization may need to start over or make major revisions to its plan. In addition, planning can be time-consuming and expensive, and if the environment changes rapidly, the resources spent on planning may be wasted.

Overall, while planning is an important tool for organizations to achieve their goals, it is not without its limitations. Organizations need to be aware of the potential drawbacks of planning, such as rigidity and incompatibility with dynamic environments, and take steps to mitigate these risks while still making use of planning as a valuable tool.