Which management function is involved when a company sets goals and objectives?

The correct answer is planning. This management function is integral to establishing the direction of an organization. Planning involves setting both short-term and long-term goals and outlining the steps necessary to achieve those objectives. It is the foundational aspect of management; without effective planning, a business cannot effectively allocate its resources or respond to changes in its environment.

In the planning process, managers assess the current situation, envision desired outcomes, and develop strategies to bridge the gap between the two. This proactive approach helps organizations to anticipate challenges and opportunities, and it directs efforts towards achieving specific targets.

While other management functions like leading, controlling, and organizing play vital roles in the overall management process, they do not directly involve the act of setting goals. Leading focuses on motivating and guiding team members, controlling is concerned with monitoring performance and making adjustments as necessary, and organizing involves arranging resources to implement the plans. Each function is essential, but planning specifically addresses the goal-setting aspect within the management framework.