Planning is needed both in the business and non business organization.
Planning is not dedicated to object but it involves all difficulties in a way.
Planning creates rigidity
In case of need changes can be brought in, big changes are neither possible nor in the interest of the organization.
Limited flexibility in planning, both the internal as well as external factors are responsible. These facts are called internal and external inflexibility.
Internal inflexibility- At the time of planning the objectives of the organization, its policies, procedures, rules, programmes etc. are determined. It is very difficult to bring in changes time and again.
External Inflexibility-
Various external factors that cause limited flexibility in planning.
Beyond the control of the planners as political climate, economic changes, technical changes, natural calamities, policies of the competitors etc.
For example-
In political context
As a result of change
A new government brings up a new trade policy
Policy of taxation
Import policy etc.
2. Planning does not work in a dynamic environment
Future is uncertain and dynamic, therefore, the future anticipations are not always true.
A longer period of planning makes it less effective.
3. Planning reduces creativity
Under planning all the activities connected together to attain the objectives of the organization are pre- determined. Consequently, everybody works as they have been directed to do and as it has been made clear in the plans.
According to Terry,” Planning strangulates the initiative of the employees and compels them to work in an inflexible manner.”
4. Planning involves Huge Costs
Planning is a small work but its process is really big.
During this entire period the managers remain busy in collecting a lot of information and analysing it.
In this way, when so many people remain busy in the same activity, the organization is bound to face huge costs.
5. Planning is a Time-Consuming Process-
Planning is a blessing in facing a definite situation but because of its long process it cannot face sudden emergencies.
Sudden emergencies can be in the form of some unforeseen problem or some opportunity of profits and there has been no planning for all these situations beforehand and which now requires immediate decision.
6. Planning does not guarantee success
Sometimes the managers think that planning solves all their problems.
Planning offers the managers a false sense of security and makes them careless.
Planning does not ensure success rather efforts have to be made for it.
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