BASIC NOTES LIMITATIONS DRAWBACKS OF PLANNING BUSINESS STUDIES

BASIC NOTES LIMITATIONS DRAWBACKS OF PLANNING BUSINESS STUDIES

Here, we are trying to provide you with some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management classes.

Today, we are going to provide a business environment in management notes CBSE study material for commerce students to become great and better managers in any organization. Previously, we studied about BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSINESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT, BASIC NOTES INTRODUCTION OF BUSINESS ENVIRONMENT, BASIC NOTES FEATURES THE NATURE OF THE BUSINESS ENVIRONMENT, BASIC NOTES IMPORTANCE OF THE BUSINESS ENVIRONMENT, BASIC NOTES DIMENSIONS OF THE BUSINESS ENVIRONMENT, BASIC NOTES ECONOMIC ENVIRONMENT INDEPENDENCE IN INDIA, BASIC NOTES IMPACT OF CHANGES IN ECONOMIC POLICY ON THE BUSINESS, BASIC NOTES INTRODUCTION DEFINITIONS CONCEPT OF PLANNING BUSINESS STUDIES, BASIC NOTES IMPORTANT OF PLANNING BUSINESS STUDIES, BASIC NOTES FEATURES SCOPE NATURE CHARACTERISTIC OF PLANNING BUSINESS STUDIES, BASIC NOTES LIMITATIONS DRAWBACKS OF PLANNING BUSINESS STUDIES

BASIC NOTES LIMITATIONS DRAWBACKS OF PLANNING BUSINESS STUDIES
BASIC NOTES LIMITATIONS DRAWBACKS OF PLANNING BUSINESS STUDIES

LIMITATIONS OF PLANNING

We have seen how planning is necessary for business organizations. It is difficult to handle functions without formal planning. An organization requires to move towards executing its goals. But we have often seen in our everyday stamina also that things don’t permanently go according to plan.

Unexpected circumstances and differences, high costs, and prices, environmental changes, government interventions, legal regulations, all influence our business plans. Plans require to be modified. If we cannot here to our plans, then why do plan at all? This is what we need to analyze. Major limitations of planning are given below:

Planning Leads To Rigidity

In an organization, a well-defined plan is marked up with specific goals to be accomplished within a specific time frame. These plans decide the future course of action, and managers may not be kind of rigidity in plans may make difficult. Managers need to be given some flexibility to be able to manage the changed events. Following a pre-decided plan, when events have changed, may not turn out to be in the organization’s interest.

Once plans are made to decide the future course of action the manager may not be in a position to change them. Following a pre-decided plan when circumstances are changed may not bring positive results for the organization. This kind of rigidity plan may create difficulty.

Planning May Not work In A Dynamic Environment

The business environment is dynamic nobody is regular. The environment consists of several measurements are economic, political, physical, legal, and social. The organization has to continuously adjust itself to changes. It evolves difficult to accurately evaluate the future trends in an environment if economic policies are changed, political situations in the country are not regular, and there is a natural calamity. Competition in need can also concern economic plans in sales targets may have to be changed and, accordingly, cash budgets also need to be modified since they are based on sales formations. Planning cannot expect everything, and thus, there may be barriers to effective planning.

The business environment is very dynamic as there are continuous changes taking place in the economic, political, and legal environment. It become very difficult to forecast these future changes. Plans may forget if the changes are very regular. The environment consists of several segments and it becomes very difficult for a manager to assess future changes in the environment.

Planning Reduces Creativity

Planning is an action accomplished by the top management. Usually, the rest of the members just execute these plans. As a result, the middle management and other decision-makers are neither permitted to deviate from plans nor they are permitted to work on their own. Thus, much of the initiative or creativity inherent in them also get lost or diminished. Most of the time, employees do not even risk formulating plans. They only carry out orders. In a way decreases creativity since people tend to think along the exact lines as others. There is nothing new or innovative. 

With the planning, the managers of the organization start long rigidly and they become the blind followers at the plan only. The managers do not take any initiative to make changes in the plan according to the change prevailing in the business environment. They stop giving suggestions and new ideas to bring improvement in the working because the guidelines for working are given in planning only.

Planning Involves A Huge Cost

When the plans are marked up huge costs are involved in their formulation. These may be in times of time and money example, checking the accuracy of facts may involve a lot of time. Exact plans need scientific calculations to verify facts and figures. The costs incurred sometimes may not explain the advantages derived from the plans. There are several incidental costs as well, like expenses on boardroom meetings, discussions with professional experts, and preliminary investigations to find out the viability of the plan.

The planning process affects a lot of costs because it is an intellectual process and companies require to hire experienced experts to carry on this method. Along with the earnings of the experts the company has to spend a lot of time and money to gather accurate facts and figures. So, it is a cost-consuming process. If the benefits of planning are not more than it cool then it should not be carried on.

Planning Is A Time-Consuming Process

Sometimes plans to be removed uptake so much time that there is not much time left for their performance.

The planning process is time-consuming because it carries a long time to consider the options and select the best one. A lot of time is needed in developing planning assumptions. So, because of this, the activity gets delayed. And whenever there is a tired for a prompt and immediate decision then we have to avoid planning.

Planning Does Not Guarantee Success

The victory of a company is possible only when plans are suitably drawn up and executed. Any plan requires to be solved into action and it becomes pointless. Managers tend to depend on before attempted and tested successful plans. It is not constantly real that just because a plan has functioned before it will work again. Similarly, there are multiple other anonymous elements to be evaluated. This type of complacency and the false sense of protection may lead to defeat instead of win. However, despite its restrictions, planning is not a useless activity. It’s meant to be used with warning. It provides a base for studying future courses of action. But, it is not an answer to all troubles.

Sometimes managers have a false sense of security that plans have worked successfully in past to these will be working in the future also. There is a trend in managers to trust pretested plans. It is not true that if a plan has worked successfully in past, it will bring success in the future also as there are so many unknown factors that may lead to failure of the plan in the future. Planning provides a base for examining the future. It is not a solution for a future course of action.

Lack Of Accuracy

In planning, we are always thinking in advance, and planning is concerned with the future only and the future is always uncertain. In planning many beliefs are made to select the coming course of action. But these assumptions are not 100% accurate and if these assumptions do not hold in the present situation or future conditions the whole planning will fail.

External Limitations Of Planning:

Periodically planning fails due to the following limitations on which executives have no authority. 

Natural Calamity

Natural calamities such as floods, earthquakes, famine, etc. may fail the plan.

Change In Competitors’ Policies

Sometimes plans may fail due to better policies, products, and strategies of competitors which were not expected by the manager.

Change In Taste/Fashion And Trends In The Market

Sometimes plans may fail when the taste/fashion or trend in the market goes against the expectation of planners.

Change In Technologies

The introduction of new technologies may also lead to the failure of plans for products using old technology.

Change In Government/Economic Policy

Managers have no control over government decisions. If govt., economic or industrial policies are not framed as expected by the manager then also plans may fail.

Here, we are trying to provide you with some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management classes.

Today, we are going to provide a business environment in management notes CBSE study material for commerce students to become great and better managers in any organization. Previously, we studied about BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSINESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT, BASIC NOTES INTRODUCTION OF BUSINESS ENVIRONMENT, BASIC NOTES FEATURES THE NATURE OF THE BUSINESS ENVIRONMENT, BASIC NOTES IMPORTANCE OF THE BUSINESS ENVIRONMENT, BASIC NOTES DIMENSIONS OF THE BUSINESS ENVIRONMENT, BASIC NOTES ECONOMIC ENVIRONMENT INDEPENDENCE IN INDIA, BASIC NOTES IMPACT OF CHANGES IN ECONOMIC POLICY ON THE BUSINESS, BASIC NOTES INTRODUCTION DEFINITIONS CONCEPT OF PLANNING BUSINESS STUDIES, BASIC NOTES IMPORTANT OF PLANNING BUSINESS STUDIES, BASIC NOTES FEATURES SCOPE NATURE CHARACTERISTIC OF PLANNING BUSINESS STUDIES, BASIC NOTES LIMITATIONS DRAWBACKS OF PLANNING BUSINESS STUDIES

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