Planning is an important function of management which involves defining the following:

(A) Setting objectives

(B) Deciding on plans, actions and strategies to achieve orqanisational qoals

(C) Allocating and arranging resources

(D) Motivating and inspiring people to perform better

Choose the correct answer from the options given below:

The correct answer is (A) and (B) only.

Step-by-step Explanation:

1. Understanding the Concept of Planning in Management:
Planning is the primary and fundamental function of management. It involves looking ahead, anticipating future opportunities and challenges, and preparing for them. Essentially, planning determines in advance what is to be done, how it is to be done, when it is to be done, and who is to do it. It bridges the gap between where an organization is today and where it wants to be in the future.

2. Analyzing the Given Statements:
Let us evaluate each of the given functions to see if they fall under the scope of planning:

* (A) Setting objectives: This is the starting point of planning. An organization must identify its core objectives and goals before it can lay down any course of action. Therefore, statement (A) is a key part of planning.

* (B) Deciding on plans, actions and strategies to achieve organizational goals: Once the objectives are established, management must develop alternative courses of action, evaluate them, and formulate strategies or concrete plans to achieve those objectives. Thus, statement (B) is also a central aspect of the planning process.

* (C) Allocating and arranging resources: Organizing and distributing resources (both physical and human) to implement the plans is a characteristic function of Organizing, which is the management function that follows planning.

* (D) Motivating and inspiring people to perform better: Activating, motivating, and directing people toward achieving goals are core components of the Directing function of management, not planning.

Conclusion:
Since only statements (A) and (B) directly constitute the planning function, the correct option is (A) and (B) only.