CBSE 2025, Set 2

Question

Explain the following limitations of 'Planning' function of management:
(i) Planning may not work in dynamic environment.
(ii) Planning reduces creativity.
(iii) Planning does not guarantee success.

Edvaya · Accepted Answer

The correct answer is Subjective. **(i) Planning may not work in a dynamic environment:**
The business environment is highly volatile and consists of economic, political, and social dimensions. Planning cannot adequately foresee everything, and if sudden, drastic changes take place, well-drafted plans may fail completely.

**(ii) Planning reduces creativity:**
Planning is an activity done by top management. The rest of the members merely implement these plans. Middle and lower management are neither allowed to deviate from plans nor permitted to act on their own, restricting their initiative and killing creativity.

**(iii) Planning does not guarantee success:**
The success of an enterprise is possible only when plans are properly drawn up and implemented. Managers sometimes rely on previously tried and tested successful plans, but it is not always true that a plan that worked before will work again. False security can lead to failure.

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Business Studies > Principles And Functions Of Management > Planning

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