Caliana, when she sets the department goals for the next 12 months at the beginning of each year, is performing the management function known as planning. Planning is one of the four basic functions of management, which include planning, organizing, leading, and controlling. Specifically, planning involves establishing organizational goals and creating a course of action to achieve them. It is the foundational function of management where managers set objectives and decide on the best strategies to reach them. This function is critical because it sets the direction for the organization or a department, such as a warehouse in Caliana's case, for a defined period (e.g., the next 12 months).