It is deciding in advance what to do and how to do? It is one of the basic managerial functions. It requires that before doing something, the manager must formulate an idea of how to work on a particular task. This function is closely connected with creativity and innovation. It seeks to bridge the gap between where we are and where we want to go and is performed at all levels of management.
In spite of this the function of management referred above has a number of limitations. Explain any two such limitations.

 

The managerial function stated here is planning function. Planning is a systematic process of deciding in advance what is to be done in future. Planning has some limitations and they are:
(i) Planning leads to rigidity: 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. This kind of rigidity in plans may create difficulty.
(ii) Planning involves huge costs: When plans are drawn up huge costs are involved in their formulation. These may be in terms of time and money. Detailed plans require scientific calculations to ascertain facts and figures. The costs incurred sometimes may not justify the benefits derived from the plans.