Class 12 Business Studies - Chapter Planning NCERT Solutions | Why is it that organisations are not alw
Why is it that organisations are not always able to accomplish all their objectives?
Planning is the most important activity as it tells where to go. And it provides direction and reduces the risk of uncertainty by preparing forecasts. And it is extremely important to invest enough time and money to formulate plans for the success of the organization. But due to the dynamic nature of the business environment the plans of the organization do not work accordingly. This is because it has various limitations and due to which the organizations would not be able to achieve its objectives. Followings are the limitations of planning:
1. Planning leads to rigidity: A specific plan made in an organization indicates the objective to be achieved and the ways of doing work. And a manager may not be able to change these plans, it leads to rigidity.
2. Planning may not work in a dynamic environment: Business environment consists of social, economical, legal, political, and technological factors which keep on changing. And the organization has to adapt these changes by itself. But planning cannot exactly assess the future trends and thus fails in a dynamic environment.
3. Planning reduces creativity: Planning is the activity which is performed by the top level of management and the members of middle and lower level of management are there just to implement these plans. They are neither allowed to participate in the planning process nor permitted to act on their own. And this leads to reduction in creativity and innovation.
4. Planning involves huge costs: Planning involves a lot of time, cost and efforts of the managers. It requires collection of data, boardroom meetings, investigation and discussion with experts and it involves a lot of expenditures of the organization. And sometimes the cost incurred may not justify the benefits derived from the plans.
5. Planning is a time consuming process: Sometimes the planning process takes a lot of time and due to which there is not much time left for their implementation. And this leads to failure of planning.
6. Planning does not guarantee success: The success of planning totally depends upon its implementation. And lack of proper implementation leads to failure of planning. Though the plan has worked earlier, it may not work again due to change in the external environment.
More Questions From Class 12 Business Studies - Chapter Planning
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What are the steps taken by management in the planning process?
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How does planning provide direction?
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An auto company C Ltd. is facing a problem of declining market share due to increased competition from other new and existing players in the market. Its competitors are introducing lower priced models for mass consumers who are price sensitive. C Ltd. realized that it needs to take steps immediately to improve its market standing in the future. For quality conscious consumers, C Limited plans to introduce new models with added features and new technological advancements. The company has formed a team with representatives from all the levels of management. This team will brainstorm and will determine the steps that will be adopted by the organisation for implementing the above strategy. Explain the features of Planning highlighted in the situation given below. (Hint: Planning is pervasive, Planning is futuristic and Planning is a mental exercise).
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Planning reduces creativity. Critically comment.(Hint: both the points - Planning promotes innovative ideas and planning reduces creativity – will be given).
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In an attempt to cope with Reliance Jio’s onslaught in 2018, market leader Bharti Airtel has refreshed its ₹ 149 prepaid plan to offer 2 GB of 3G/4G data per day, twice the amount it offered earlier. Name the type of plan is highlighted in the given example. ? State its three dimensions also.
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Rama Stationery Mart has made a decision to make all the payments by e-transfers only. Identify the type of plan adopted by Rama Stationery Mart.
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A company wants to increase its market share from the present 10% to 25% to have a dominant position in the market by the end of the next financial year. Ms Rajni, the sales manager has been asked to prepare a proposal that will outline the options available for achieving this objective. Her report included the following options - entering new markets, expanding the product range offered to customers, using sales promotion techniques such as giving rebates, discounts or increasing the budget for advertising activities. Which step of the planning process has been performed by Ms Rajni?
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What are the main aspects in the definition of planning?
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What kind of strategic decisions are taken by business organisations?
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Can planning work in a changing environment? Give a reason to justify your answer.
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