Planning is the correct answer for the management function that involves setting goals and determining the best way to achieve them. Planning is a crucial function of management as it sets the foundation for all the other management functions to follow. It involves the process of defining organizational goals and objectives and determining the most effective course of action to achieve them.

Importance of Planning
- Provides a sense of direction: Planning helps in defining the purpose and goals of an organization. It provides a roadmap for the organization to follow and guides decision-making at all levels.
- Reduces uncertainty: By setting goals and determining the best way to achieve them, planning helps in reducing uncertainties and ensures that the organization is prepared for future challenges and changes.
- Enhances efficiency: Planning helps in allocating resources effectively and efficiently. It allows managers to identify potential bottlenecks and address them in advance, leading to improved productivity and performance.
- Facilitates coordination: Planning involves the coordination of various activities and resources within an organization. It ensures that different departments and individuals work towards common goals, leading to better coordination and synergy.
- Promotes innovation and creativity: Through the planning process, managers can identify new opportunities and innovative approaches to achieve organizational goals. It encourages creativity and fosters a culture of innovation within the organization.

Steps in the Planning Process
- Setting objectives: The first step in planning is to define clear and specific objectives that the organization wants to achieve. These objectives should be SMART (Specific, Measurable, Achievable, Relevant, and Time-bound).
- Developing alternative courses of action: Once the objectives are set, managers need to identify different ways or strategies to achieve them. This involves brainstorming and evaluating various options.
- Evaluating alternatives: After identifying the alternatives, managers need to evaluate their pros and cons, considering factors such as cost, feasibility, and potential risks.
- Selecting the best course of action: Based on the evaluation, managers need to choose the most appropriate and feasible alternative to pursue.
- Implementing the plan: Once the best course of action is selected, managers need to develop a detailed plan and allocate resources accordingly. This involves assigning tasks, setting deadlines, and establishing performance measures.
- Monitoring and controlling: The final step in planning is to monitor the progress of the plan and make necessary adjustments if required. This ensures that the plan is on track and any deviations are addressed in a timely manner.

Conclusion
Planning is a fundamental management function that involves setting goals and determining the best course of action to achieve them. It provides a sense of direction, reduces uncertainty, enhances efficiency, facilitates coordination, and promotes innovation. The planning process involves setting objectives, developing alternatives, evaluating them, selecting the best course of action, implementing the plan, and monitoring and controlling its progress.