4 main Limitations of Planning in an organisation

4 main Limitations of Planning in an organisation:

1. Time-consuming and expensive:

The formulation of plans takes time. This itself is expensive. Further, the collection of data necessary for planning has to be made on a continuing basis. This requires separate organisation for planning.

However, the costs of planning operation can be more than compensated if the plan is drafted in right time and manner.

2. Internal rigidity:

In an organisation which does not move an inch without planning, the hands of subordinates including junior managers are tied. They lose their initiative. Sometimes the best results may be obtained when individuals are allowed to tackle each problem as it arises and in their own way i.e., to do what is expedient.

3. Uncertainty:

The future is uncertain. However efficiently future trends may be forecast, there is no guarantee that what is expected will always happen. So planning cannot be infallible. There will be an element of uncertainty in all plans. This has increased with persistent inflation as well as rapid technological change in the recent past.

4. Limited scope:

There are some businesses of which the related situation changes so rapidly that it is not possible to cope with the most sophisticated plan.