Certain raw materials, labor or manpower, capital or financing are almost always in limited supply. In order for an organization to prosper and grow, it must make the best use of its limited resources. If resources are squandered in an inefficient manner, such as working excessive overtime to make the car production goal or cutting price and profit margin to reach the sales goal, the organization will not flourish. A manager's duties can be summarized along functional lines. Planning Organizing Leading Controlling Planning is the process of establishing organizational objectives and providing a means for achieving those objectives.
Planning is the cornerstone of any manger's job because it dictates the other functions.
Planning might be as complex as deciding what new product lines a company might introduce. Or it might be a matter of what personnel will be scheduled to work the upcoming week. But managers, whatever their level, will accomplish little without planning. Lesson Four will address planning in great detail. Organizing is an extension of planning in the sense that it is the process of coordinating activities of individuals throughout the organization.