Environmental Scanning
Environmental Scanning
Environmental scanning is the process of monitoring, evaluating and disseminating information from internal and external environment. The changing environment creates both opportunities and threats in the capacity of business operation. Robbins and Coulter define environmental scanning as, “Environmental scanning is the screening of large amount of information to anticipate and interpret changes in the environment.” Studying environment factors is important in formulation and implementation of strategic plan. The main purpose of environmental scanning is to identify internal and external factors that determine the future of the organization. From the above definitions, we can say that environmental scanning is the process of collecting information through monitoring and evaluating environmental trend. The managers also anticipate and interpret environmental changes. The management collects environmental information from journal, reports, market survey, expert opinion etc.
Limitations of Planning
Limitations are the barriers which come from either internal or external environment of the organization. The following are the major limitations of planning.
Planning is a complex process that requires long time to collect information, analyze and select best alternative. So, if the management needs to take decision immediately, it will be difficult. It is not practical for emergency situations.
2. Costly process: Planning requires some extra funds and mental efforts to collect information, evaluate alternatives and forecast future anticipation. Generally, professionals, technicians and engineers are required to prepare an effective plan. The management has to compensate them.
3. Rigidity:
Planning fixes a way of doing work. It is a roadmap that is to be followed by each department and personnel. Employees cannot use their own ideas and logic to perform the work.
4. Inaccurate premises: Planning is based on certain assumptions. Future is uncertain and changeable. Future is forecast in the present and, in the case of inaccurate data and information, planning becomes incorrect. If the assumptions are wrong that help make fail planning and implementation as well.
5. Internal inflexibility:
It is concerned with internal factors of the organization such as capital investment, equipment, material etc. It is difficult to change these long term investments. Planning may not work properly due to the complexity of changing internal factors of the organization. Planning procedures also can be changed easily at the time of requirement.
6. External inflexibility: Unanticipated and sudden change in external environment may make organizational plans useless. Meaningful planning is not possible in a highly complex, diverse, and rapidly changing environment.