Planning is an important function of management which involves defining the following: (A) Setting objectives (B) Deciding on plans, actions and strategies to achieve organisational goals (C) Allocating and arranging resources (D) Motivating and inspiring people to perform better Choose the correct answer from the options given below:

Option 1 -> Incorrect because (D) relates to leading/directing function, not planning. Option 2 -> Planning involves setting objectives (A) and deciding on plans, actions and strategies (B) to achieve goals - these are core planning activities. Option 3 -> Incorrect because (C) allocating and arranging resources belongs to the organizing function, not planning. Option 4 -> Incorrect because it excludes (B) which is essential to planning, and includes (C) which is part of organizing function. Hence, Option 2: (A) and (B) only -> Planning is the first function of management that focuses on defining objectives and determining the course of action, strategies, and plans to achieve organizational goals. Allocating resources (C) falls under organizing function, while motivating people (D) is part of leading/directing function -> correct