Question

Explain the advantages and limitations of planning. How should you overcome the limitations?

Answer 1

☑ Advantages of Planning :

1. Planning leads to more effective and faster achievements in any organization.

2. Since planning foresees the future and also makes a provision for it, it gives an added strength to the business for its steady growth and continuous prosperity.

☑ Disadvantages or Limitations of Planning :

1. Time, money and effort are required in the collection and analysis of data and in the formulation and revision of plans. It is a time consuming process. It is an expensive process. Planning is useful only when the expected gains from it exceed its costs. Often it is remarked that the cost of planning is in excess of its actual contribution.

2. Planning takes time i.e., adequate time. Sometimes, it may cause delay in taking decisions. A manager may be bogged down by procedures, rules, etc., when quick decision is essential.