Management Functions (Cambridge (CIE) A Level Business): Revision Note

Traditional management functions

• A manager is an individual within an organisation who is responsible for overseeing a team or a specific function

• Large businesses usually have several layers of management with distinct responsibilities

  • Directors or owners establish the business’s overall goals and set long-term targets for the business

    • They are ultimately responsible for business performance

  • Senior managers work to achieve the targets set by the owners or directors

    • They are often responsible for a function within the business, e.g. marketing or finance

  • Supervisors and team leaders support senior managers to achieve their targets

    • They report problems and pass on instructions

    • They may make simple decisions, such as allocating jobs among different employees

Managerial functions

The role of managers: Fayol

• Fayol identified five functions of management that provide a framework to help managers determine how to best allocate their time

Fayol's five functions of management

1. Planning

   • Managers assess the future and make sure the organisation is prepared for it

   • They should develop flexible business plans that consider available resources and future market trends

2. Organising

   • Managers define team members' roles and responsibilities and make sure that everyone understands what is expected of them

   • They should hire, train and allocate staff so that every role is covered

3. Commanding

   • Managers get the most from their staff

   • They should be familiar with team members' strengths and delegate tasks that match them

   • They should also set a good example by "walking the talk" to build a strong and dependable team

4. Coordinating

   • Managers ensure that every department understands its responsibilities and knows what other teams need from them

   • They should aim to create a smooth workflow, prevent disruptions and solve problems

5. Controlling

   • Managers regularly check that everything is running as it should be

   • They should be prepared to amend rules, plans and processes if necessary

   • They should always be alert for areas for growth and improvement

Evaluation of Fayol's five functions

• Fayol's ideas promote skills such as teamwork and agility, which are important in modern workplaces

• However, some have criticised his ideas for being too inhuman for modern management

  • One man's observations cannot possibly apply to all organisations

The role of managers: Mintzberg

• Henry Mintzberg argued that Fayol's five functions do not fully describe the activities that managers undertake in their roles

• He identified ten roles that are common to all managers, categorised into three groups

  • Interpersonal roles

  • Informational roles

  • Decisional roles

Mintzberg's ten managerial roles

Interpersonal roles

• A manager's interpersonal roles are those which focus on motivation and dealing with employees and, sometimes, other external stakeholder groups

• The three roles are

  • Acting as a figurehead

    • E.g. Appearing in press conferences, hosting product launches and being the 'face' of the business

  • Being a leader and enthusing others

    • E.g. Be available to meet staff, encourage and praise employees

  • Liaison with others inside and outside of the business

    • E.g. Communicate with stakeholders, participate in events, respond to complaints

Informational roles

• These roles involve the collection, communication and presentation of information within and outside of the business

• The three roles are

  • Being a monitor and collector of information relevant to business circumstances

    • E.g. Attend conferences, keep up-to-date with industry research

  • Acting as a disseminator of information to both subordinates and other key stakeholder groups

    • E.g. Share key developments with staff, calm fears and communicate positively

  • Being the business spokesperson 

    • E.g. Lead seminars, communicate with the media and government

Decisional roles

• These roles are focused on making decisions and organising resources so that business objectives can be met

• The four roles are

  • Being an entrepreneur on behalf of the business

    • E.g. Bring new ideas and empower others to become intrapreneurs

  • Acting as a disturbance handler during periods of upheaval or change

    • E.g. Determine rapid responses in crisis situations, act as a key point of contact

  • Being a resource allocator to ensure adequate financial and physical resources are available

    • E.g. Determine budgets and source finance, staff and equipment

  • Representing the business as a negotiator with external stakeholders

    • E.g. make deals with significant suppliers and customers, network with key business allies

Evaluation of Mintzberg's ten managerial roles

• Mintzberg emphasises the importance of interpersonal roles in effective management, which Fayol's five functions overlook

• However, his informational and decisional roles are largely the same as those identified by Fayol, albeit more defined and of more practical use to managers

The contribution of managers to business performance

• Managers contribute to business performance by planning, leading, organising, and making appropriate decisions

  • Good managers help businesses run smoothly, adapt to change and meet objectives effectively

  • Poor management can lead to confusion, low morale and missed opportunities