Barriers of effective planning:-

Difficulty of accurate premising:- planning exercise is undertaken under

certain assumptions of future events which are determined by a large number of factors in the environment.

Problem of rapid change:- The problem of change is more complex

in long-range planning than in short range planning.

Internal Inflexibility:- Manager while going through the planning

process have to work in a set of given variables. The major internal inflexibility are psychological, policies & procedures, capital investment.

psychological:- Resistance to change. policy & procedural:- Capital investment:-

External Inflexibilities:-

Three environmental factors generate inflexibilities for an organizational planning:

political climate, trade unions, technological changes.

Political climate:- Attitude of govt. towards business.

Trade unions:- The existence of trade unions Technological changes:- it has to face

numerous problems.

Time & cost factors:- Planning process is quite a costly & time

consuming process. Planning cost increases if planning becomes more elaborate & formalized.

Failure of people in planning:- lack of clear & meaningful objectives, lack

of top mgt. support, lack of delegation of authority, lack of adequate control techniques etc.

How to overcome to Barriers:-Establishing climate for planning:- Manager should create climate where ever

person in the organization takes planning action. Initiative at top level:- planning to be effective must originate at top

level. because role of top mgt. is unique & important.

Participation in planning process:- Effective planning can take place by the

participation of subordinate managers.

Communication of planning elements:-

If planning division has been created, it can communicate planning aspects to various level managers.

Integration of long & short term plans:-

It is necessary that both long term &short term plans are fully integrated in which short term plans should be taken as contributing to long term plans.