limitations of "planning" in management are:

>Lack of accuracy: planning relates to future and future is always uncertain and so
prediction about future is so much difficult. Moreover planning are based on
data/information relating to past and as such planning based on any wrong information may
not be useful to the organisation.

>Costs: formulation of plans involves too much cost which are in the form of time spend,
money spent etc. but some times there is little benefit from in plan and than it becomes a
burden for the institution. If the plan is not useful than the amount or time spent on its
formulation is a waste.

>Advance effect on decisions: some plans are rigid and a manager faces difficulty while
making any changes where as there may be continuous change in environment where as the
quick decision is required as per the changed environment.

>Delay in actions: planning requires some time for thinking, analyzing the situation and
designing the final plan and so in case emergency decision is required it will take time and
business will lose its opportunity. Moreover delay in decision will further delay the action.

>Psychological barrier: people in organisation have to work strictly according to plan

where as they may be able to give better performance in a way decided by themselves.
Secondly they do not think beside the plan and performs their activities like a machine
without using their psychology.

>Limited flexibility: there may be some changes in planning only up to some extent
because measure changes in plan will further attract the changes in supporting plans also
and as such the whole system is disturbed moreover changes in plans time and again will
prove a wastage of time and money spent on previous plan (pre-changed plan).

>Human elements: planning are the results of thinking of human being. Information on the
basis of which plan is formulated may not be free form bias or there may be some other
errors which will further Reebok (problem) the better plan.

>Limited practical value: planning is too much theoretical and have a less practical use
planning is more suitable when environment is suitable but due to unsuitability of
environment business has to take various quick steps/decision time and again and as such
the importance of other resources which are used according to changing environment, is
more than that of planning.

>Improper plan: planning/target set at the lower side than the capability of or resources and
target on over side than the capacity of the resources both are termed as improper planning
because lower target will be easily achieved and we will feel false sense of security. On the
other hand over planned target beyond resources cannot be achieved even all effort both are
the situation of improper plan.
>Planning is a time-consuming and costly process: this may delay action if certain cases.
But it is also true that, if sufficient time is not given to the planning process, the plans so
produced may prove to be unrealistic. Similarly, planning involves costs of gathering and
analyzing information and evaluation of various alternatives. If the management is not
willing to spend on planning, the result may not be good.

>Planning is a forward-looking process: the planner must possess the required initiative.
He should be an active planner and should take adequate follow up measures to see that
plans are understood and implemented properly.

>Resistance to change is another important factor, which puts limits on planning: It is

commonly experienced phenomenon in many organisations. Sometimes, planners
themselves do like change and on other occasion, they do not think it desirable to bring
change, as it will create resistance on the part of the workers. This attitude makes the
planning process ineffective.

>Psychological factors also limit the scope of planning: some people consider present as
more important than future because present is less uncertain. Such persons are
psychologically opposed to planning. But it should not be forgotten that dynamic managers
always look ahead. Long-term well being of the enterprise cannot be achieved unless
proper planning is done for future.

>The effectiveness of planning is sometimes limited: because of external factors, which are
beyond the control of the planners. External stringencies are very difficult to predict.
Sudden breakout of war, government controls, natural havocs and may other factors are
beyond the control of management. They make the execution of plans very difficult.

OR

Planning is an important function of management. However, the

planning may fail if the following limitations.

Lack of accuracy: planning relates to future and future is always uncertain and so
prediction about future is so much difficult. Moreover planning are based on
data/information relating to past and as such planning based on any wrong information may
not be useful to the organisation.

Costs: formulation of plans involves too much cost which are in the form of time spend,
money spent etc. but some times there is little benefit from in plan and than it becomes a
burden for the institution. If the plan is not useful than the amount or time spent on its
formulation is a waste.
Advance effect on decisions: some plans are rigid and a manager faces difficulty while
making any changes where as there may be continuous change in environment where as the
quick decision is required as per the changed environment.
Delay in actions: planning requires some time for thinking, analyzing the situation and
designing the final plan and so in case emergency decision is required it will take time and
business will lose its opportunity. Moreover delay in decision will further delay the action.

Psychological barrier: people in organisation have to work strictly according to plan

where as they may be able to give better performance in a way decided by themselves.
Secondly they do not think beside the plan and performs their activities like a machine
without using their psychology.

Limited flexibility: there may be some changes in planning only up to some extent
because measure changes in plan will further attract the changes in supporting plans also
and as such the whole system is disturbed moreover changes in plans time and again will
prove a wastage of time and money spent on previous plan (pre-changed plan).

Human elements: planning are the results of thinking of human being. Information on the
basis of which plan is formulated may not be free form bias or there may be some other
errors which will further Reebok (problem) the better plan.

Limited practical value: planning is too much theoretical and have a less practical use
planning is more suitable when environment is suitable but due to unsuitability of
environment business has to take various quick steps/decision time and again and as such
the importance of other resources which are used according to changing environment, is
more than that of planning.

Improper plan: planning/target set at the lower side than the capability of or resources and
target on over side than the capacity of the resources both are termed as improper planning
because lower target will be easily achieved and we will feel false sense of security. On the
other hand over planned target beyond resources cannot be achieved even all effort both are
the situation of improper plan.

Planning is a time-consuming and costly process: this may delay action if certain cases.
But it is also true that, if sufficient time is not given to the planning process, the plans so
produced may prove to be unrealistic. Similarly, planning involves costs of gathering and
analyzing information and evaluation of various alternatives. If the management is not
willing to spend on planning, the result may not be good.

Planning is a forward-looking process: the planner must possess the required initiative.
He should be an active planner and should take adequate follow up measures to see that
plans are understood and implemented properly.

Resistance to change is another important factor, which puts limits on planning: It is

commonly experienced phenomenon in many organisations. Sometimes, planners
themselves do like change and on other occasion, they do not think it desirable to bring
change, as it will create resistance on the part of the workers. This attitude makes the
planning process ineffective.

Internal inflexibility in the organisation may compel the planners to make rigid plans: this
may deter the managers from taking initiative and doing innovative thinking. So, the
planners must have sufficient discretion and flexibility in the enterprise. They should not
always be required to follow the procedures rigidly.

Psychological factors also limit the scope of planning: some people consider present as
more important than future because present is less uncertain. Such persons are
psychologically opposed to planning. But it should not be forgotten that dynamic managers
always look ahead. Long-term well being of the enterprise cannot be achieved unless
proper planning is done for future.

The effectiveness of planning is sometimes limited: because of external factors, which

are beyond the control of the planners. External stringencies are very difficult to predict.
Sudden breakout of war, government controls, natural havocs and may other factors are
beyond the control of management. They make the execution of plans very difficult.