It is extremely important for an organisation to invest enough time and money to formulate plans for the success of the organisation. Planning is the most important activity and sets the foundation for its working. But at times due to certain unpredictable changes in the business environment both internal and external the plans of the organisation may not turn out as they had hoped to be. This is because of the various limitations of planning due to which the organizations would not be able to accomplish all of their objectives. These limitations are explained below:

a. Once the plans are made to decide the future course of action of the form it is not easy for the manager to change them. It is not feasible to alter a pre-decided plan. This type of rigidity may hamper the progress of the organisation.

b. The business environment is dynamic in nature and uncertain. It is not easy to predict the changes which may happen even in a short duration of time. Planning cannot oversee everything and may prove to be a hindrance.

c. Formulation of the plan requires a lot of money and time. It involves a lot of scientific calculation, analyzing and detail study of subjects. The cost incurred may not be justified with the benefit of the plans.

d. Planning is usually done by the top management level in a firm. The middle management and lower management is not allowed to take part in this planning process. This leads to a reduction in creativity and innovation.

e. A lot of time is consumed by the managers to formulate plans. This is because of the time involved in research and evaluation.

f. The planning process depends on various assumptions. These assumptions may not be accurate and me not guarantee success.