What is the process of setting goals and determining actions to achieve them called?

The process of setting goals and determining actions to achieve them is known as planning. This process involves defining specific objectives that an organization aims to achieve and outlining the steps necessary to reach those objectives. Planning helps to allocate resources efficiently, establish priorities, and create a structured approach to decision-making.

Effective planning is crucial as it provides direction and fosters better coordination within an organization. It allows leaders to anticipate challenges and opportunities in the marketplace and to devise appropriate strategies that align with the organization’s mission and vision. This forward-looking aspect of planning is what differentiates it from other functions such as leading, controlling, and organizing, which focus on implementation, monitoring performance, and structuring activities, respectively.