Step 1: Break the question phrase into its two parts.
The question describes a process with two components, setting goals, and establishing guidelines to reach them, so we need the management function that covers exactly these two activities together.
Step 2: Walk through the basic management functions.
Management is usually broken down into planning, organising, directing or supervising, and controlling or evaluating, each of these has a distinct job, supervising is about overseeing people already at work, evaluating is about checking results after the fact, and managing is the broad umbrella term covering everything.
Step 3: See which function specifically covers goal setting.
Only planning is defined as the forward looking function where an organisation decides what it wants to achieve and lays down the roadmap or guidelines to get there, before any actual work or supervision begins.
Step 4: Conclude.
So the process of setting goals and establishing guidelines to fulfil them is called planning.
\[ \boxed{\text{Planning}} \]