Limitations of Planning:
(i) Planning Reduces Creativity: Planning is mostly done by the top management and other members. Like middle and lower levels of management have to follow these plans. They can't deviate or change the plans made by their seniors. Under such circumstances, employees become orders following machines and don't involve creative thinking from their side. Such rigidity to comply with the laid plans kills the creativity of some talented persons.
Example: The need for a branch of a renowned shoe manufacturing company sees a lot of scope in customised shoes. The top management is not interested in this idea as the company manufactures standardised shoes.
(ii) Planning Involves Huge Cost: Formulation of plans can be too much costly because there is a lot of time and money is involved. Some costs are incidental in nature like-expenses on boardroom meetings, discussions with professional experts and preliminary investigations to find out the feasibility of the plan. Checking the accuracy of facts and scientific calculations may involve lots of time. Sometimes, cost incurred may not justify the benefits derived from the plans; it may leave a harmful effect on the enterprise.
Example: Companies like IBM spend a lot on research. Many world-class levels give their advice to this company and charge their fee. However, without so much of painstaking such a huge company won't be able to sustain itself. So planning in case of IBM becomes necessary.