1.       Uncertain Nature

The element of uncertainty cannot be totally eliminated in planning. Plans are meant for future use but future happenings cannot be accurately foreseen. Provision can be made for certain contingencies. A sudden change in the policy of the Government, loss due to natural calamities like earthquake, floods, etc., can destroy even carefully prepared plans.

2.       Expensive

Preparation and Implementation of any plan is expensive not only in terms of time but also in terms of efforts and money required. Formulation of plans requires collection of data from different sources, analysis and evaluation of the various courses of action in order to take a decision on the best course of action. Planning is going to be useful only when the benefits from it exceed the cost. Even before a plan becomes ready several changes take place both in the internal and external environment. As a result, the plan needs to be revised each time certain changes take place.

3.       Rigidity

It is always necessary to strictly adhere to the plan in so far as the daily work routine in an enterprise is concerned. Lack of flexibility in plans leads to monotony and boredom.

4.       Loss of Initiative

The staff in an enterprise shall perform their duties in the way they are expected to do in the plans. As a result, they are reduced to machines. There is no scope for the display of skills by individuals and this leads to loss of initiative.

5.       Ignorance of Subordinates’ Interests

Plans are prepared to attain the organizational goal in the most effective manner. In doing so, often, the interests, preferences, capabilities and attitudes of the employees are ignored. As a result, the subordinates do not give their wholehearted support to the implementation of the plans. Even when they work, they work without any interest or involvement. This is bound to affect the quality of work.

6.       Complacent Attitude

There is always a feeling that once the plan is prepared, the target of the enterprise can be easily be attained. The success of every plan depends much on the effectiveness with which it is implemented. A plan is only a means to the end and not the end itself.

For More Business Articles, Visit Here..