A planned economy occurs when the state is the owner of the means of production, so it is up to the government to decide the quantity of production and the price. In this model, there are no private companies or competition. Then production resources are allocated by the state according to production needs. Labor is a productive resource, as are capital and inputs. Therefore, by saying that work is allocated in a command economy, it is understood that the labor force, as a productive resource, will be allocated (directed) to the sector that the government considers strategic.
