Decision Making: Principle of Limiting Factor

(It will be a good idea to read the previous posts on the subject for better understanding).

Principle of Limiting Factor

Limiting factors stand in the way of accomplishing a desired objective. If these factors are clearly recognized, managers will confine their search for alternatives to those, which will overcome the limiting factors.

For example, for turning around a manufacturing organization, the means could be to acquire some capital equipment. Then, limiting factor could be cash and credit. Consequently, the manager’s alternatives would be confined to those, which would overcome these limiting factors.

(Refer our High Quality Management Encyclopedia “Management Universe” at: http://management-universe.blogspot.com/)