LIMITATIONS OF PLANNING

Planning is, and should be, the primary function of management. It sets the frame of organization, direction, control and co-ordination of activities in any enterprise.

  1. a.                 Uncertainty
  • Planning concerns the future, and nothing about the future is certain, except that it must be different from the present.
  • Assessment of future can only be in terms of guesswork, probabilities, speculations, assumptions and conjectures.
  • Uncertainty preferring the certainty of the present and past.
  1. b.                Action – Packed Routine 
  • Managers are ever pre-occupied of rapping with day-to-day problems.
  • This leaves them little time to think and plan about the problems of tomorrow.
  • It is common to be over-concerned with the issues at hand which, if left unattended, might cause an immediate Joss.
  • Planning for the future does not appear to have the same urgency and can be conveniently postponed without fear of any loss for the present.

c. Abstraction 

  • The planning process involves thinking about vague alternatives and concern with ‘what if question.
  • Almost every conceivable thing is included in the realm of possibility.
  • There seems to be nothing hard and fast, just assumptions, estimates, speculation and guess work, which can be tested only when the thing to which they relate actually take place.
  • This often brings in distortion in planning.
  1. d.                Rigidity 
  • Planning involves setting of objectives, and determination of the ideal course of action for their implementation.
  • It implies that there will be no deviation from the chosen path.
  • However, pursuit of vague, though predetermined, goals is against the very concept of business.
  1. e.                  Costly 
  • Planning is an expensive exercise both in terms of time and money.
  • It necessitates the formulation of estimates, collection of necessary information and facts, and a careful analysis and evaluation of the various courses of action.
  • To decide on the best and the most economical course of action for the enterprise, as also for each of its workers and departments.