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How plaaning leads to rigidity?

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How plaaning leads to rigidity?

Posted by Aman Gupta 6 years, 8 months ago

CBSE > Class 12 > Business Studies

1 answers

Sia ? 6 years, 8 months ago

(i) Rigidity of planning mismatches the current performance with prevailing environment and thus, planning suffers from inflexibility in meeting its targets.
(ii) Policies and programmes of the enterprise have to be established in course of the preparation of the plan. Once these are finalised it is difficult to change them.
(iii) Secondly, commitments have to be made for long-term capital investment. This is done at the time of preparing the plan. Thus, capital investment is planned for future in terms of the forecasts made now.

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