traditional manager functions: planning, organising, directing and controlling

2.3 Management – Management and Managers

Learning Objective

Understand the traditional managerial functions (planning, organising, directing and controlling) and how they relate to key management theories, styles, business objectives, decision‑making and stakeholder impact as set out in the Cambridge IGCSE/A‑Level Business (9609) syllabus.

Key‑point Box – Core Definitions (Cambridge wording)

1. The Four Managerial Functions

The classic view, first articulated by Henri Fayol, divides managerial work into four inter‑related functions that form a continuous cycle.

Planning → Organising → Directing → Controlling

1.1 Planning

• Key Activities
  • Establish short‑ and long‑term objectives.
  • Analyse the internal and external environment (SWOT, PESTLE).
  • Formulate strategies and detailed action plans.
  • Allocate resources and set realistic timelines.
• Typical Tools / Techniques
  • SWOT analysis – links strengths/weaknesses with opportunities/threats.
  • PESTLE analysis – examines political, economic, social, technological, legal and environmental factors.
  • Gantt chart – visualises the schedule of tasks.
  • Budgeting software – translates plans into financial targets.
  • Management by Objectives (MBO) – sets measurable goals agreed by manager and employee.
• Example – A retail chain plans to open 10 new stores in the next 12 months; the plan specifies site‑selection criteria, capital required, staffing needs and a monthly rollout timetable.
• Stakeholder Impact – Determines expectations of shareholders (profit targets), employees (job security), suppliers (order volumes) and customers (product availability).

1.2 Organising

• Key Activities
  • Design the organisational structure (hierarchical, flat, matrix).
  • Define roles, responsibilities and reporting relationships.
  • Allocate resources and assign specific tasks.
  • Establish procedures, processes and information flows.
• Typical Tools / Techniques
  • Organisational chart – visualises hierarchy and reporting lines.
  • Job description – clarifies duties and authority.
  • Workflow diagram – maps the sequence of activities.
  • RACI matrix – clarifies who is Responsible, Accountable, Consulted and Informed.
• Example – Following the store‑opening plan, the company adopts a matrix structure, appointing a project manager, regional managers and store‑level teams, each with clearly defined responsibilities.
• Stakeholder Impact – Influences employee morale (clear roles), supplier relationships (defined procurement processes) and customer service quality (efficient workflow).

1.3 Directing (Leading)

• Key Activities
  • Communicate goals, expectations and performance standards.
  • Motivate staff through incentives, empowerment and recognition.
  • Provide leadership – choose an appropriate style (autocratic, democratic, transformational, etc.).
  • Resolve conflicts and foster teamwork.
• Typical Tools / Techniques
  • Leadership style frameworks – e.g., Theory X/Y, transformational leadership.
  • Motivational theories – Maslow’s hierarchy, Herzberg’s two‑factor theory.
  • Performance appraisals and feedback systems.
  • Team‑building activities and communication channels.
• Example – The project manager holds weekly briefings, adopts a participative style to involve store managers in decision‑making, and rewards teams that meet opening milestones.
• Stakeholder Impact – Shapes employee engagement (internal stakeholder) and can improve customer satisfaction through better service delivery (external stakeholder).

1.4 Controlling

• Key Activities
  • Set performance standards and key performance indicators (KPIs).
  • Measure actual performance (financial reports, sales data, quality audits).
  • Analyse variances between expected and actual outcomes.
  • Implement corrective measures and report to senior management.
• Typical Tools / Techniques
  • KPIs and balanced scorecards.
  • Variance analysis – e.g., budget vs. actual.
  • Dashboards – visual display of real‑time performance data.
  • Quality‑control tools (Six Sigma, ISO audits).
• Example – Monthly sales reports show that three of the new stores are 15 % below forecast; the controlling function triggers a review of marketing spend and staff training.
• Stakeholder Impact – Reassures shareholders (financial performance), regulators (compliance) and customers (consistent quality).

2. Management Theories & Thinkers (Syllabus Requirement)

3. Management Styles (Syllabus Requirement)

4. Linking the Functions to Business Objectives & Decision‑Making

Business objectives (e.g., profit growth, market share, sustainability) provide the why behind each managerial function:

• Planning translates objectives into measurable targets and selects the strategic route to achieve them.
• Organising allocates the resources required to meet those targets, ensuring the right people and assets are in place.
• Directing aligns staff behaviour with the objectives through communication, motivation and leadership.
• Controlling checks whether the decisions made (resource allocation, leadership approach, etc.) are delivering the intended outcomes, feeding information back to the planning stage for future decisions.

Each function both informs and is informed by the decision‑making cycle: identify problem → analyse options → choose solution → implement → review.

5. Stakeholder Impact of Managerial Decisions

6. Updated Summary Table of Managerial Functions

7. The Management Cycle in Practice

Managers rarely finish one function before moving to the next. Instead, they operate in a dynamic loop, revisiting each stage as circumstances change. The cycle can be visualised as a continuous circle with feedback arrows from controlling back to planning, and with overlapping zones where organising and directing interact.

8. Quick Revision Questions

1. Define each of the four managerial functions in your own words and give a real‑world example for each.
2. Identify one analytical tool used in the planning stage and explain how it helps managers make decisions.
3. Why is the controlling function essential even after a plan has been fully implemented? Illustrate with an example.
4. Discuss how the directing and organising functions overlap in practice, referring to a specific management style.
5. Compare Fayol’s view of the four functions with Mintzberg’s ten managerial roles.
6. Explain how a manager’s choice of style (e.g., transformational vs. autocratic) can affect stakeholder confidence.

9. Further Reading (Suggested Topics)

• Modern approaches to management – systems theory, contingency theory, and their impact on the four functions.
• Differences between managers and leaders – why both are needed in contemporary organisations.
• The influence of digital technology (e.g., ERP systems, data analytics) on planning, organising, directing and controlling.
• Case studies of successful implementation of the four functions in multinational companies.