Limitations of Planning in Management - Disadvantages

Twelve demerits, disadvantages or limitations of planning in management.

Image Credits © Manoj Patil.

1. Time Consuming

Planning involves the collection of data, analysis of data, forecasting, etc. All this consumes a lot of precious time. Therefore, planning is a time-consuming activity.

2. Costly

Planning is the work of experts. They get paid very high salaries to make good plans. Companies spend an enormous amount of money in collecting and analysing data. Therefore, planning is a costly affair.

3. Rigid

Most plans are very rigid. They don't change as per the changing environment. They neither get revised nor modified. The non-flexibility of plans creates many problems for the organisation.

4. Gap between Plans and Achievement

The workers do not make any plans. The managers make plans. The workers only execute these plans. So the workers are not entirely interested in achieving these plans. Therefore, there is a gap between plans and achievement.

5. Problem for Technical Staff

The technical or creative staff do not like planning. They feel it is only paperwork. It is so, since, it limits their creativity.

6. Resistance to Change

Planning brings many changes in the organisation. However, people do not like changes. So, they do not give full cooperation. Without their cooperation, the plans cannot succeed.

7. Paperwork

Planning requires a lot of paperwork. The plans are made and again remade. Copies of finalised plans are given to the top management and subordinates. There is also a need to prepare many reports.

8. Causes Frustration

Sometimes managers fail to achieve the planned targets despite putting their best efforts. This failure can frustrate them and lower their level of motivation. It can cause the managers to lose their initiative.

9. Dangers of Over-Targeting

Some managers do over-targeting. That is, they fix very high targets that are almost impossible to achieve. Such over expectations cause many problems.

10. Dangers of Under-Targeting

Some managers do under-targeting. That is, they fix lower targets that are easy to achieve. Such under expectations hinders the growth and performance of the organisation. The under targeting happens in the government institutions.

11. Danger of Human Error

Plans depend on forecasts. Forecasting requires a lot of experience and judgement. If the manager has less experience and is poor in judgement, then the predictions will be wrong. If the forecasts are wrong, it is obvious that the plans will fail. Even experienced managers make errors while forecasting and planning. So, there is a danger of human error.

12. Inter-Departmental Rivalries

Planning requires coordination and cooperation of all the departments. If there exist any inter-departmental rivalries and disputes, then the plans will fail. For example, Production Department wants to produce Product A, but the Marketing Department insists on selling Product B.