Question

Explain the following limitations of planning:

1. Planning reduces creativity.
2. Planning involves huge costs.

Explain the following limitation of planning function of management:

Planning reduces creativity.

Explain the following limitation of planning function of management:

Planning involves huge costs.

Answer 1

Limitations of Planning:

1. Planning Reduces Creativity: The top management and other members are primarily responsible for planning. These strategies must be followed by middle and lower levels of management. They are not permitted to diverge from or amend the plans made by their seniors. Employees become order-following machines in such situations and do not engage in creative thinking. Such rigidity in adhering to predetermined plans destroys the creativity of some gifted individuals.
   Example: A unit of a well-known shoe manufacturing company sees a lot of potential in customized shoes. Because the company creates uniform shoes, the senior management is uninterested in this concept.
2. Planning Involves Huge Cost: Plan formulation might be too costly due to the amount of time and money involved. Some costs are incidental in nature, such as those incurred at board meetings, discussions with professional experts, and preliminary research to determine the feasibility of the plan. It may take a long time to check the veracity of data and scientific computations. Sometimes the costs incurred do not justify the advantages gained from the plans; this can be detrimental to the organization.
   Example: IBM, for such as invests heavily in research. Many world-class levels provide guidance to this company for a fee. However, such a large organization cannot survive without such meticulous efforts. So, in the case of IBM, planning is required.