Step 1: Understanding the question.
The question asks about the function that involves setting objectives and planning how to achieve them.
Step 2: Analyzing the options.
- Planning: Planning is the management function that involves setting objectives and determining the best course of action to achieve them.
- Organising: Organising involves arranging resources and tasks but does not directly involve setting objectives.
- Coordination: Coordination is about ensuring that different parts of the organisation work together efficiently, not about setting objectives.
- Controlling: Controlling involves monitoring progress and taking corrective actions, but it is not about setting objectives.
Step 3: Conclusion.
The correct answer is Planning, as it directly involves setting objectives and creating strategies to achieve them.
Final Answer:
\[
\boxed{\text{The correct answer is (1) Planning.}}
\]