Management Notes

Reference Notes for Management

Limitations of Planning – Concept of Planning | Principles of Management

Limitations of Planning 

In some cases, planning does not produce the results expected. In practice, planning can fail for a number of reasons. Listed below are some of them:

Lack of Reliable Data 

  • In some cases, there is a lack of reliable data upon which plans can be based. Without reliable information or if the planner fails to utilize the reliable information, planning loses its value.
  • For successful planning, the planner must assess the reliability of facts and figures and base his plans on reliable information only.

Lack of Initiative 

  • Successful planning requires initiative. Making good plans is impossible if a manager follows rather than leads. Planning must therefore be an independent effort.
  • It is important that he be a proactive planner and take adequate measures to ensure that plans are understood and implemented correctly.

Costly Process 

  • Planning takes a lot of time and money. In some cases, this may delay action. It is also true that if the planning process is not given sufficient time to complete, the plans that result may be unrealistic.
  • In the same way, planning involves gathering, analyzing, and evaluating information and alternatives. Management may not get good results if they are unwilling to spend on planning.

Rigidity in Organizational Working 

  • Planners’ rigidity may be compelled by internal inflexibility in the organization. The managers are thereby discouraged from assuming initiative and coming up with new ideas.
  • Thus, enterprises should give planners sufficient flexibility and discretion. It shouldn’t be mandatory that they follow their procedures rigidly

Non-Acceptability of Change 

  • Another factor which limits planning is resistance to change. Many businesses experience it on a regular basis.
  • Planners themselves despise change and do not consider it desirable to bring about change in some cases because it diminishes the effectiveness of the planning process.

External Limitations 

  • It is often difficult for planners to maximize the effectiveness of their plans due to external factors outside their control. Predicting external strategies is nearly impossible.
  • Management can’t control the sudden outbreak of war, government control, natural disasters and many other factors. This makes it very difficult for plans to be implemented.

Psychological Barriers 

  • People also have psychological limitations. People might think that the present is more important than the future because it is certain. Such people are psychologically resistant to planning.
  • Dynamic managers never overlook the future. In order to achieve long-term wellbeing, proper planning for the future must be undertaken.

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