Planning is one of the four functions of management. It plays an important role in the way managers do their jobs. The basics of planning are presented in this chapter. Planning involves defining the organization's objectives or goals, establishing an overall strategy for achieving those goals, and developing a comprehensive hierarchy of plans to integrate and coordinate activities. The term planning as used in this chapter refers to formal planning.
Planning is important and serves many significant purposes.
A. Planning gives direction to the organization. B. Planning establishes coordinated effort. C. Planning reduces uncertainty by anticipating change. D. Planning clarifies the consequences of actions managers might take. E. Planning reduces overlapping and wasteful activities.