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. 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.