Limitations of planning:
(i) Planning leads to rigidity: A plan is a norm or blueprint to achieve the desired objective. The employees and manager become accustomed to a set method of doing work. So there is no scope for manager or worker to use their experience and ability, which results in rigidity.
(ii) Planning may not work in dynamic environment: The rapidly changing situation present a serious difficulty in the task of planning. There are continuous changes in business environment, so forecaste in difficult to forecaste in such dynamic environment.
(iii) Involves huge cost and expensive: Planning involves collection and analysis of data, setting planning premises, application of various forecasting techniques like trend analysis, correlation, etc. determining alternative course of action and so on. All these make planning a costly process.
(iv) Planning reduce creativity: It is the activity which is done by the top management and rest of the employees have to implement it. They are neither allowed to deviate from plan or permitted to act their own. Due to this the creativity in managers and employees are lost.
(v) Planning does not guarantee success: Success of planning rest on its implementation. Lack of proper implementation lead to failure of planning even if the plan has worked earlier may not work again due to no change in external environment.