1. Fundamental Limitation
The fundamental limitation of planning lies in forecasting. Planning, as we know, is concerned with future, which is uncertain and unpredictable. Assumptions regarding future are forecasting which the essence of planning is. The fate of planning depends on the accuracy of the forecast. It is true that no forecast can be unreliable and inadequate information. There is some element of truth in the statement ‘the only certain thing about a forecast is that it will be wrong.’ After all, forecasting is not as exact science. This is the biggest hindrance for drafting a sound plan.
2. Other Limitations
Other limitations are as follow:
- Rapid change in environment: Rapid change in technology, fashion, consumer;s taste and preferences etc, are great constraints to planning. They change very frequently. In this situation, plans prepared in one period may not be suitable in another period.
- Attitudes of Management: Lower level managers not involved in a preparing plan may ignore the need of planning and exert minimal effort to make it a success. Plans imposed offer lead to resentment and resistance among those forced to execute. Managers prefer to sit through immediate problems because they offer instant feedback.
- Costly and Time Consuming: Planning is expensive in terms of time spent to formulate, manpower used and different resources needed for execution. Considerable time, money and effort are required for collecting information, evaluating alternatives, selecting the course of action. Such a time and money consuming exercise may not always be desirable.
- Rigidity: Another serious limitation of planning is its rigidity (inflexible). Planning sets the limit which may curb the initiative of managers. It may sometimes mean foregoing new opportunities and better options. That is why they do not whole hardly support the implementation of the plan.
- Lack of action-orientation and Training for Managers: Rapid fire decision making without having to think is more fun. Manager would prefer to fight fires, meet crisis than plan. It is not at all exciting to them. That is why most other well-prepared plans are never implemented.