Which managerial function involves setting goals and deciding how to achieve them?

The correct answer is planning. This managerial function is essential as it involves establishing objectives and determining the best course of action to achieve those objectives. In the planning phase, a manager assesses the current situation, forecasts future conditions, and outlines the steps necessary to reach desired outcomes. This process is fundamental because it provides a roadmap for the organization, ensuring that resources are allocated effectively and that everyone understands the priorities and targets.

In contrast, organizing focuses on arranging resources and tasks to implement the plan. Leading involves motivating and directing employees towards achieving the organizational goals established during the planning phase. Controlling is the process of monitoring performance, comparing it with established standards, and making necessary adjustments. While all these functions are interrelated and essential to effective management, planning specifically emphasizes goal setting and strategy development.