planning, organising, coordinating, commanding and controlling

2.2.1 The Role of Management – Functions (Planning, Organising, Coordinating, Leading, Controlling)

Managers are responsible for ensuring that an organisation achieves its objectives (profit, growth, market share, stakeholder satisfaction, etc.) efficiently and effectively. The Cambridge IGCSE Business Studies syllabus describes five inter‑related functions that form a continuous cycle:

• Planning
• Organising
• Coordinating
• Leading
• Controlling

Each function is explained below with: why it matters, key activities, a practical example, Key Points (delegation, span of control, chain of command where relevant), Limitations / Challenges, and a brief link to typical business objectives (AO1‑AO2).

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1. Planning

Why it matters: Provides direction and a roadmap that enable the business to meet profit, growth and stakeholder targets.

• Set clear, measurable objectives and targets (e.g., 10 % sales growth in the next year).
• Forecast future conditions – market trends, demand, costs, competition.
• Develop alternative courses of action and select the most appropriate strategy.
• Identify the resources (human, financial, physical) required to implement the chosen strategy.
• Establish timetables, milestones and deadlines.

Example: A clothing retailer plans to launch an online store, sets a target of £500 000 sales in the first 12 months and creates a step‑by‑step plan covering website development, marketing and staffing.

Link to business objectives: Sets the direction for profit, growth and stakeholder satisfaction (AO1, AO2).

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2. Organising

Why it matters: Creates the structure and allocates resources so that the plan can be turned into action efficiently.

• Design the organisational structure (hierarchy, departments, teams).
• Allocate human, financial and physical resources to the appropriate departments or projects.
• Define clear roles, responsibilities and lines of authority.
• Establish procedures, systems of communication and reporting channels.
• Ensure the right people are in the right jobs (job design, recruitment, training).

Example: The retailer creates a new “E‑commerce” department, appoints a manager, hires web developers and allocates a £150 000 budget.

Link to business objectives: Provides the framework needed to achieve efficiency, cost‑control and growth (AO1, AO2).

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3. Coordinating

Why it matters: Synchronises the activities of different parts of the organisation, preventing duplication and ensuring inter‑dependent tasks are completed in the correct order.

• Synchronise activities across departments or teams.
• Facilitate the flow of information and encourage teamwork.
• Resolve conflicts, overlaps and bottlenecks.
• Ensure inter‑dependent tasks are performed in the proper sequence.
• Use tools such as Gantt charts, regular meetings and liaison officers.

Example: The marketing team’s promotional calendar is aligned with the IT team’s website launch schedule to avoid a “launch‑without‑promotion” problem.

Link to business objectives: Helps achieve timely delivery, quality and customer satisfaction (AO1, AO2).

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4. Leading

Why it matters: Motivates and directs people, turning plans and structures into actual performance and helping the business achieve its objectives.

• Give clear instructions, guidance and direction.
• Motivate staff through incentives, effective communication and appropriate leadership styles.
• Delegate tasks and authority, balancing trust with the need for control.
• Develop staff skills through training, coaching and performance feedback.
• Build a positive organisational culture and promote teamwork.
• Facilitate decision‑making at appropriate levels (empowering lower levels where suitable).

Example: The e‑commerce manager delegates website content updates to a junior staff member, while retaining authority to approve final designs.

Link to business objectives: Drives performance, improves productivity and enhances stakeholder satisfaction (AO1, AO2).

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5. Controlling

Why it matters: Monitors progress, identifies deviations from the plan and triggers corrective action, ensuring the business stays on track to meet its objectives.

• Set performance standards, benchmarks and key performance indicators (KPIs).
• Measure actual performance against these standards (e.g., sales figures, cost reports).
• Identify deviations and analyse their causes.
• Implement corrective measures to realign activities with the plan.
• Review performance data to inform future planning and decision‑making.

Example: Monthly sales reports show the online store is 15 % below target; the manager investigates, discovers a website loading issue, and orders a technical fix.

Link to business objectives: Ensures resources are used efficiently and targets (profit, growth, stakeholder expectations) are met (AO1, AO2).

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Summary Table of Management Functions

Function	Key Activities	Typical Business Objective(s) Linked
Planning	• Set objectives & targets • Forecast market & resource needs • Develop strategies & alternatives • Allocate resources • Set timetables & milestones	Profit, growth, market‑share, stakeholder satisfaction
Organising	• Design organisational structure • Allocate human, financial & physical resources • Define roles, responsibilities & authority • Establish procedures & communication systems	Efficiency, cost‑control, rapid response to market change
Coordinating	• Synchronise departmental activities • Facilitate information flow & teamwork • Resolve conflicts & overlaps • Ensure correct sequencing of inter‑dependent tasks	Timely delivery, quality, customer satisfaction
Leading	• Give clear instructions & guidance • Motivate through incentives & leadership style • Delegate authority & responsibility • Develop staff via training & coaching • Foster a positive culture & teamwork	Productivity, employee morale, stakeholder confidence
Controlling	• Set standards & KPIs • Measure actual performance • Identify & analyse deviations • Take corrective action • Review data for future planning	Profit maximisation, cost reduction, achievement of targets

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Practice Question (AO2 – Apply knowledge)

Question: A small retailer is planning to open an online store. Identify two ways in which the controlling function could help the business stay on target during the first six months of operation.

Suggested points (full marks):

1. Set a monthly sales KPI (e.g., £40 000 per month) and compare actual sales against this target.
2. Monitor website performance metrics (e.g., loading speed, bounce rate); if figures fall below the set standard, arrange a technical fix to avoid loss of sales.

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