Planning

which is the process of formulating future courses of action (i.e. deciding in advance what needs to be done, how it is to be done, when it is to be done and by who.
When they plan, managers

1. Determine the goals of the organization and its units
2. Decide on the means of achieving the goals and
3. Formulate action planning.

Planning is necessary since organizations are started with a purpose(s) (goals) and planning serves as a tool for identifying these goals.

Planning is important as it gives the employees a sense of direction. Planning is also a prerequisite to other managerial functions, unless managers know what they want to accomplish in advance, they would not be able to organize activities, co-ordinate them or even measure performance.