Question

Explain the following as limitations of planning:

1. Planning leads to rigidity.
2. Planning may not work in a dynamic environment.

Explain the following limitation of planning function of management: 

Planning may not work in a dynamic environment.

Explain the following limitation of planning function of management:

Planning leads to rigidity. 

Answer 1

Limitations of Planning are as follows:

1. Planning leads to rigidity: A well-defined plan is drawn up in an organization with specified goals to be reached within a specific time frame, but managers may not be able change it.
   1. Because the corporate environment is dynamic, managers must be given considerable leeway to adapt to changing circumstances.
   2. The plans are strict in character and must be followed throughout the organization.
   3. Plan rigidity can be both internal and external.
   4. Internal rigidity refers to plans, policies, programs, regulations, and processes, among other things.
   5. External rigidity is related to changes in politics, industry, technology, law, and economics, among other things.
      Example: A city has five branches of a super specialized hospital. Whatever the hospital's senior management decides, the head of the branch and their employees must obey. Though they recognize that they could have done better on their own, the strategy in place offers rigor to their approach.
2. Planning may not work in a dynamic environment: Planning is based on anticipating future events, and because the future is unknown and dynamic, the organization must react to changes. However, planning cannot adequately predict future events.
   1. The environment in which a firm operates is dynamic and ever-changing. The unpredictable environment can occasionally cause plans to fail. 
   2. It is difficult for an organization to gain access to future trends, customer preferences, natural disasters, competition practices, and the effects of changes in the many components of the environment.
      Example: Nestle, a prominent manufacturer, was proactive in developing tactics for Maggi noodles. Maggi noodles were in high demand, but they were unavailable due to political and legal constraints. This was owing to the high lead levels in Maggi noodles.