A mission statement is created and goals set in the _____ management function.

• A. Planning
• B. Directing
• C. Organizing
• D. Controlling

Answer: (B)

The key idea is that defining why the organization exists and what it aims to achieve belongs to planning. Creating the mission statement expresses purpose and direction, and setting goals translates that purpose into specific targets and actions. Planning involves establishing objectives, choosing strategies, and outlining how to reach desired results. Directing is about leading people and carrying out the plans, Organizing focuses on structuring the organization and allocating resources, and Controlling involves monitoring performance and making adjustments. So the activity described—creating the mission and setting goals—fits best with planning.