Cambridge Syllabus Notes

2.3 Management – Management and Managers

2.3.1 The Role of Managers

2.3.1.1 Core Management Functions (exam‑style definitions)

Planning – Setting objectives, analysing the internal and external environment and deciding the most appropriate actions to achieve the objectives. Example: A clothing retailer analyses last year’s sales data, forecasts demand for the winter collection and decides how much stock to order.
Organising – Arranging people, equipment, finance and information to implement the plan; establishing the organisational structure and allocating resources. Example: The retailer creates a store layout, appoints a visual‑merchandiser and allocates staff to each department.
Leading (Directing) – Motivating, communicating with and guiding individuals or teams to work towards the objectives. Example: The store manager holds a briefing, sets sales targets and recognises top performers.
Controlling – Monitoring performance, comparing it with standards and taking corrective action where necessary. Example: Weekly sales reports are checked against targets; if a store is under‑performing, the manager revises staffing levels or promotional activity.

2.3.1.2 Levels of Management

Top‑level managers – Set long‑term strategic direction, make high‑impact decisions and represent the organisation externally (e.g., CEOs, board directors).
Middle‑level managers – Translate strategic plans into operational plans, coordinate activities between departments and allocate resources (e.g., regional managers, department heads).
First‑line (operational) managers – Supervise day‑to‑day activities, ensure tasks are carried out efficiently and solve immediate problems (e.g., shop floor supervisors, team leaders).

2.3.1.3 Essential Managerial Skills

Technical skills – Knowledge of specific tools, processes or techniques required for the job (e.g., accounting software, production machinery).
Human (interpersonal) skills – Ability to work with, motivate and communicate effectively with people (e.g., conflict resolution, team building).
Conceptual skills – Ability to see the organisation as a whole, understand how its parts interrelate and think strategically (e.g., analysing market trends, long‑term planning).

2.3.2 Management Styles

Management style describes how a manager interacts with staff and makes decisions. The choice of style depends on the nature of the task, the organisational culture and the external environment.

Style	Definition	Contexts in which it is most effective	Brief example
Autocratic	Manager makes decisions alone and expects compliance.	High‑risk, safety‑critical or time‑pressured environments where rapid decisions are essential.	Factory floor supervisor issues exact instructions for a safety‑critical shutdown.
Democratic (Participative)	Manager seeks input from staff before deciding.	Creative, knowledge‑intensive work where employee buy‑in improves quality and innovation.	Marketing team leader runs a brainstorming session to develop a new campaign.
Laissez‑faire	Manager provides minimal direction; employees have high autonomy.	Highly skilled professionals who require little supervision.	R&D laboratory head lets scientists set their own research agendas.
Paternalistic	Manager looks after employees’ welfare and expects loyalty in return.	Family‑owned firms or organisations with a strong, caring corporate culture.	Owner‑manager offers on‑site childcare and expects long‑term employee commitment.
Transactional	Manager uses clear structures, rewards and penalties to achieve performance targets.	Routine, measurable tasks where short‑term goals dominate.	Sales manager links monthly bonuses to individual sales figures.
Transformational	Manager inspires and motivates staff to exceed expectations and embrace change.	Fast‑changing industries where innovation and employee empowerment are critical.	CEO articulates a visionary “green‑future” strategy and involves all staff in sustainability projects.

2.3.3 Henri Fayol (1841‑1925)

Fayol is regarded as the father of classical management theory. He identified five managerial functions and fourteen principles that were intended to provide a universal framework for organising work.

2.3.3.1 Fayol’s Five Functions of Management

Planning
Organising
Commanding (Leading)
Coordinating
Controlling

Note: Fayol’s “Commanding” and “Coordinating” map directly onto the modern “Leading” and “Controlling” functions, reinforcing the four‑function model used in the Cambridge syllabus.

2.3.3.2 Fayol’s Fourteen Principles – modern relevance & typical criticism

Principle	Key Idea	Modern Relevance	Typical Criticism
Division of Work	Specialisation increases efficiency.	Basis of job design, specialist roles and professionalisation.	Can lead to monotony, reduced flexibility and silo thinking.
Authority & Responsibility	Authority must be matched with responsibility.	Clarifies decision‑making rights and accountability.	In practice authority is often delegated without sufficient responsibility.
Discipline	Obedience and respect for agreements.	Supports codes of conduct, performance‑management systems.	Over‑emphasis may stifle creativity and employee autonomy.
Unity of Command	Each employee reports to one manager.	Simple reporting lines aid clarity and reduce conflict.	Difficult to maintain in matrix, project‑based or network organisations.
Unity of Direction	One plan for each group of activities with the same objective.	Ensures coordinated effort towards common goals.	May ignore the need for multiple, parallel strategies in diversified firms.
Subordination of Individual Interests	Organisational goals take precedence over personal interests.	Underpins performance‑based cultures and target‑setting.	Can demotivate staff if personal needs are ignored.
Remuneration	Fair compensation for work performed.	Basis for pay‑scales, incentive schemes and total‑reward strategies.	“Fair” is subjective; market rates may differ from internal notions of fairness.
Centralisation	Degree of decision‑making authority at top levels.	Guides delegation policies and empowerment initiatives.	Too much centralisation slows response; too little can cause chaos.
Scalar Chain	Clear line of authority from top to bottom.	Provides a formal communication route and chain of command.	Rigid chains hinder rapid information flow; modern firms often use “gangplank” shortcuts.
Order	A place for everything and everything in its place.	Supports efficient layout, inventory management and workflow design.	Over‑emphasis can create bureaucratic rigidity.
Equity	Fairness and kindness towards employees.	Foundation of modern HR policies, diversity & inclusion programmes.	Subjective; interpretations may vary across cultures.
Stability of Personnel	Low staff turnover improves efficiency.	Justifies investment in training, career development and succession planning.	In fast‑changing sectors high turnover can bring fresh ideas.
Initiative	Encourage employees to take initiative.	Promotes innovation, problem‑solving and continuous improvement.	Needs to be balanced with control mechanisms to avoid chaos.
Esprit de Corps	Team spirit and unity promote success.	Supports culture‑building activities, team‑building and shared vision.	Can lead to “groupthink” if dissenting views are suppressed.

2.3.4 Henry Mintzberg (1943‑ )

Mintzberg’s (1973) observational research identified ten managerial roles that describe what managers actually do on a day‑to‑day basis. The roles are grouped into three categories.

2.3.4.1 Role Categories and Individual Roles

Interpersonal Roles

Figurehead – Performs ceremonial and symbolic duties (e.g., signing contracts, representing the firm at official events).
Leader – Directs and motivates staff; conducts performance reviews, coaching and training.
Liaison – Maintains a network of contacts outside the immediate organisation (e.g., suppliers, industry bodies).

Informational Roles

Monitor – Scans the internal and external environment for information; reads reports, analyses data.
Disseminator – Transmits useful information to team members (e.g., newsletters, briefings).
Spokesperson – Communicates on behalf of the organisation to external audiences (e.g., media interviews, conference presentations).

Decisional Roles

Entrepreneur – Initiates change, launches new projects, improves processes.
Disturbance Handler – Deals with unexpected problems, conflicts or crises.
Resource Allocator – Decides where to apply financial, human and material resources.
Negotiator – Represents the organisation in negotiations with suppliers, unions, customers, etc.

2.3.4.2 Summary Table of Mintzberg’s Roles

Category	Role	Typical Activities
Interpersonal	Figurehead	Attending ceremonies, signing official documents, representing the firm at public events.
	Leader	Motivating staff, setting performance targets, conducting appraisals, coaching.
	Liaison	Building external networks, meeting suppliers, joining industry forums, maintaining stakeholder contacts.
Informational	Monitor	Reading market reports, analysing sales data, keeping abreast of competitor activity, attending briefings.
	Disseminator	Sending internal newsletters, briefing teams on policy changes, updating staff on performance results.
	Spokesperson	Speaking to the media, presenting at conferences, issuing press releases, representing the firm at stakeholder meetings.
Decisional	Entrepreneur	Launching a new product line, redesigning a workflow, proposing a cost‑saving initiative.
	Disturbance Handler	Resolving a labour dispute, managing a sudden supply‑chain disruption, handling a PR crisis.
	Resource Allocator	Preparing the annual budget, assigning staff to projects, approving capital expenditure.
	Negotiator	Negotiating a contract with a major supplier, discussing terms with a union, securing a partnership agreement.

2.3.5 Linking Theory to Practice (exam tips)

Use Fayol’s principles to explain why an organisation adopts a particular structure (e.g., Unity of Command in a traditional hierarchy).
Apply Mintzberg’s roles to illustrate the day‑to‑day activities of a manager at any level (e.g., a first‑line manager acting as Leader, Monitor and Disturbance Handler).
Choose an appropriate management style for a given scenario and justify it with reference to the task environment, organisational culture and required speed of decision‑making.
Show the connection between the four core functions and Mintzberg’s roles (e.g., the “Leader” role supports the “Leading” function; the “Resource Allocator” role underpins “Controlling”).
When answering a case‑study, reference at least two of Fayol’s principles and discuss how they influence the manager’s choice of style and the way the ten Mintzberg roles are performed.

2.3.6 Quick Revision Checklist

Define the four core management functions and give a concise real‑world example for each.
List Fayol’s five functions and be able to explain two of them in detail.
Recall at least five of Fayol’s fourteen principles; for each, state its modern relevance and one common criticism.
Identify the three categories of Mintzberg’s roles and name at least one role from each category.
Describe the four (or six) main management styles, the contexts in which they are most effective, and provide a brief example.
Explain how a chosen management style or Fayol principle might influence the way a manager performs Mintzberg’s roles.
Be able to match each of the four core functions with the most relevant Mintzberg roles (e.g., Planning ↔ Entrepreneur, Controlling ↔ Resource Allocator).

2.3.7 Suggested Diagram

Visual idea: A three‑tier pyramid (Top‑level, Middle‑level, First‑line) on the left. Arrows from each tier point to Fayol’s five functions (Planning, Organising, Commanding, Coordinating, Controlling). On the right side, arrows from each tier point to Mintzberg’s ten roles, grouped by category. The diagram demonstrates how static managerial responsibilities (functions) link with dynamic day‑to‑day activities (roles) at every level of the hierarchy.

the role of managers, including the contributions of Fayol and Mintzberg