Question

“In an organisation, a well-defined plan is drawn up with specific goals to be achieved within a specific time frame. These plans then decide the future course of action and managers may not be in a position to change it. Following a pre-decided plan, when circumstances have changed, it may not turn out to be in the organisations interest”.
The above statement reflects which limitation of planning?

• A. Planning is a time-consuming process.
• B. Planning leads to rigidity.
• C. Planning may not work in a dynamic environment.
• D. Planning reduces creativity.

Hint:

When a scenario states that managers are “unable to modify” or are “locked into a pre-decided course”, it highlights that Planning leads to rigidity.

Answer 1

The Correct Option is B

Concept:
While planning provides strategic direction, reduces uncertainty, and establishes performance benchmarks, it has inherent operational limitations.
Recognizing these limitations prevents organizations from adhering to plans when circumstances require adaptation.

Step 1: Identifying the Limitation in the Scenario:
The case states that once a detailed plan is formulated, managers are bound to follow the predetermined course and may lack the authority or flexibility to alter it.
Continuing to execute a fixed plan when internal or external parameters have changed illustrates behavioral and procedural rigidity.

Step 2: Distinguishing Between Related Planning Limitations:
$\bullet$ Planning leads to rigidity: Occurs when employees adhere strictly to predetermined courses of action because administrative guidelines discourage unilateral changes.
$\bullet$ Planning may not work in a dynamic environment: Refers to the difficulty of accurately forecasting when the external business environment changes rapidly.
$\bullet$ Planning reduces creativity: Arises when middle managers simply execute directives without exercising individual initiative.
$\bullet$ The phrasing “managers may not be in a position to change it” directly illustrates rigidity.

Step 3: Verification of Options:
Option (B) directly reflects the limitation described in the text.

Step 4: Final Answer:
Thus, the correct answer is option (B).