The Role of Management (Cambridge (CIE) O Level Business Studies)

Revision Note

Danielle Maguire

Written by: Danielle Maguire

Reviewed by: Steve Vorster

Roles, Responsibilities and Organisational Relationships

  • The organisational structure of a business determines the roles, responsibilities and relationships in an organisation 

    • Individuals at the top of the structure usually have more authority

    • Middle managers will have relationships with senior managers, other middle managers, and their subordinates

    • These hierarchies determine the formal routes through which communication often flows in a business

Diagram: possible business roles

business-roles-cie-igcse-business-rn
Many larger firms are arranged into functional departments such as Finance and marketing, which are led by directors who carry the final responsibility for the work of everyone in the department

Managers

  • Managers have many responsibilities in the business and help it to operate effectively on a day-to-day basis

  • Types of managers include directors, line managers and supervisors

Roles and Responsibilities of Managers in an Organisation

Job Roles

Responsibilities

Owners/Directors

  • Establish the business’ overall goals

  • Set long-term plans and targets for the business

Managers

  • Work to achieve the short and long-term targets set by the owners or directors

  • May be responsible for a function within the business, e.g. marketing or finance

  • Use employees and other resources in the best possible ways

Supervisors/Team Leaders

  • Help managers achieve their targets by reporting any problems and passing on instructions

  • Take simple decisions, such as allocating jobs among different employees

Role and Functions of Management

  • The responsibilities of managers are similar, no matter the organisation in which they work

    • In schools

      • Headteachers organise the school's overall curriculum and staffing

      • Heads of Department manage teaching staff and subject course planning

      • Pastoral Managers focus on pupil behaviour and reward systems

      • Site Managers oversee the safety and maintenance of buildings and equipment

Diagram: manager roles

Managers organise, plan, command, control and coordinate within a business
Managers roles commonly include planning, organising, commanding and controlling

Planning

  • Setting targets or aims for the organisation or department to achieve which provide a clear sense of purpose and direction

  • Managers also plan and budget for resources required to achieve targets

    • The number of people required

    • Finance and capital resources needed

Organising

  • Once targets have been set, managers should then organise the resources including

    • Allocate tasks and delegate responsibility to employees 

    • Make changes to ways of working to improve efficiency

Commanding

  • Managers need to guide, lead and supervise employees in the tasks they do

    • Make sure staff meet deadlines and achieve individual or team targets

    • Provide feedback and direct staff to tasks 

Controlling

  • Evaluate the performance of employees and teams

  • Investigate reasons for missed targets and implement changes

  • Manage budgets and report to senior leaders

  • Ensure effective coordination between departments to achieve the organisation’s aims

Delegation

  • Delegation is a process where responsibility for specific tasks is given to subordinates by managers 

    • Delegation usually involves transferring authority from manager to subordinate

    • E.g. the Human Resources Director of a large company delegates authority for recruitment and training to the Recruitment and Training Manager

The Advantages of Delegation

Advantages for Managers

Advantages for Workers

  • Allows managers to concentrate on important tasks

    • Managers do not have the time to do complete every task themselves

  • Delegation allows workers to feel empowered in decision making

    • This can motivate as staff are trusted to perform a job well

  • Helps managers to measure the performance of their staff as they can judge how well subordinates carry out these tasks

  • Provides a form of training as workers learn on the job thus increasing job opportunities to progress within the organisation

  • Can help to reduce errors if managers delegate

    • Workers may be skilled in certain areas and have sufficient time to complete the task to a higher standard

  • Makes employees work more interesting and rewarding

    • This could reduce absenteeism and labour turnover

  • Some managers are reluctant to delegate as they lose some control over decision-making

    • Managers may need support to be able to balance trust and control to delegate appropriate tasks

    • Autocratic leaders may not be willing to give authority to others

    • Some managers may feel threatened by highly skilled subordinates seeking promotion

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Danielle Maguire

Author: Danielle Maguire

Expertise: Business Content Creator

Danielle is an experienced Business and Economics teacher who has taught GCSE, A-Level, BTEC and IB for 15 years. Danielle's career has taken her from across various parts of the UK including Liverpool and Yorkshire, along with teaching at a renowned international school in Dubai for 3 years. Danielle loves to engage students with real life examples and creative resources which allow students to put topics in a context they understand.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.