- Planning is quite a costly and time-consuming process. Unlimited amount of time is spent on forecasting, evaluating alternatives etc by the time a plan is established the environment might change and this requires a complete revision of the plan. Besides this, cost also increases.
- Planning is a future oriented activity, which is based on forecast. During the planning period, accuracy of forecasting must be ensured in order to reduce errors. Planning loses its value if reliable and adequate data is not available.
- Planning becomes rigid at times because of internal inflexibility. This reduces individual initiative and freedom, and causes delay in decision making. Internal inflexibility like rigid policies and procedures and limited resources affect planning process.
- External factors beyond the control of an organization affect the effectiveness of planning. These are very difficult to predict and this makes execution of plans very difficult. External factors like government control, technological change and trade unions affect the planning process.
- Another important limitation of planning is resistance to change. "The human element in organizations always resists change, for they are more concerned about the present rather than the future, which is uncertain. Planning being forward looking is always affected by this resistance to change.
- The entire planning process may fail, if people involved in it do not formulate correct plans. The reasons for failure of people in planning may be due to a number of reasons like, lack of commitment to planning lack of delegation of authority, excessive reliance on past experience tendency to overlook premises etc.
Kavungya answered the question on March 26, 2019 at 11:43
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