Planning Function: Defining Objectives and Strategies

Planning is a fundamental function of management that involves looking ahead and preparing for the future. It's about deciding in advance what needs to be done, how it should be done, when it should be done, and by whom. This process helps organizations set their course towards achieving their goals.

Analyzing Components of Planning

Let's break down each component mentioned in the question to see if it fits the definition of planning:

• (A) Setting objectives: This is a crucial first step in planning. Objectives define what the organization aims to achieve. Without clear objectives, effective planning is impossible.
• (B) Deciding on plans, actions and strategies to achieve organisational goals: This is the core of the planning function. It involves outlining the specific steps, methods, and approaches (strategies) needed to reach the set objectives.
• (C) Allocating and arranging resources: While planning identifies the need for resources, the actual allocation and arrangement are typically considered part of the organizing function of management. Organizing deals with structuring the resources effectively.
• (D) Motivating and inspiring people to perform better: This activity falls under the directing or leading function of management. It focuses on influencing employee behavior and performance, which is distinct from the forward-looking nature of planning.

Identifying the Correct Combination

Based on the analysis, setting objectives (A) and deciding on plans, actions, and strategies (B) are integral parts of the planning function. Resource allocation (C) belongs to organizing, and motivation (D) belongs to directing/leading.

Therefore, the components that correctly define planning are (A) and (B) only.