CMA Foundation · Fundamentals of Business Economics and Management · Planning, Organizing, Staffing and Leading
Which of the following is a recognised limitation of planning?
Rigidity is a limitation of planning, because managers may keep following a fixed plan even after conditions change. Providing direction, improving coordination and reducing uncertainty are advantages of planning rather than limitations.
- AIt provides direction to employees
- BIt may lead to rigidity, as managers may stick to the plan even when conditions changeCorrect
- CIt helps in coordination across departments
- DIt reduces the risk of uncertainty
Explanation
Rigidity is a recognised limitation: a fixed plan may not be revised when the environment changes. The other three options are advantages of planning, namely direction, coordination and reduced risk.
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