- Lack of Reliable Data: Planning is based on various facts and figures supplied to the planners. If the data on which decisions are base are not reliable then decisions base on such information will also be unreliable.
- Time Consuming Process: Practical utility of planning is sometimes reduce? by the time factor. Planning is a time consuming process and actions on various operations may be delayed because proper planning has not yet been done. Under certain circumstances an urgent action is needed then one cannot wait for the planning process to complete.
- Expensive: The planning process is very expensive. The gathering of information and testing of various courses of action involve greater amounts of money. Sometimes, expenses are so prohibitive that small concerns cannot afford to use planning
- External factors may reduce Utility: Besides internal factors these are external factors too which adversely affect planning. These factors may be economic, social, political, technological or legal. The general national and international climate also acts as limitation on the planning process.
- Sudden Emergencies: In case certain emergencies arise then the need of the hour is quick action and not advance planning. These situations may not be anticipated. In case emergencies are anticipated or they have regularity in occurrence then advance planning should be undertaken for emergencies too.
- Resistance to Change: Most of the persons, generally, do not like any change. Their passive outlook to new ideas becomes a limitation to planning. McFarland writes, “The principal psychological barrier is that the future. The present is not only more certain than the future, it is also more desirable. Resistance to change is commonly experienced phenomenon in the business world. Planning often implies changes which the executive would like to ignore, hoping they would not materialize.”
11 Comments