Planning

Planning is considered to be the central function of management because it sets the pattern for the other activities to follow. "Planning means defining goals for future organizational performance and deciding on the tasks and use of resources needed to attain them" (Richard Daft). Planning encompasses four elements:

• Evaluating environmental forces and organizational resources
• Establishing a set of organizational goals
• Developing strategies and plans to achieve the stated goals
• Formulating a decision-making process

These elements are concerned with organizational success in the near future as well as success in the more distant future. Planning to the future, the manager develops a strategy for getting there. This process is referred to as strategic planning. Chapters 2 and 3 address the topic of management strategy and strategic planning.

Organizing

Organizing is the managerial function of making sure there are available the resources to carry out a plan. "Organizing involves the assignment of tasks, the grouping of tasks into departments, and the allocation of resources to departments" (Richard Daft)�Managers must bring together individuals and tasks to make effective use of people and resources. Three elements are essential to organizing:

Determining the method of grouping these activities and resources is the organizing process.