Apply management functions and delegation
Explain planning, organising, coordinating, commanding and controlling, then weigh delegation.
Section 2 · People in business
Exam scope and assessment notes
Cambridge IGCSE Business Studies 0450, 2026 syllabus, Version 2. Use the 2026 A*–G route; this qualification changes to 0264 for first assessment in 2027. Candidates are not assessed on constructing income statements or statements of financial position, nor on price-elasticity or exchange-rate calculations. Simple cash-flow forecast construction is assessed. Written practice is self-checked, not an official Cambridge grade; timed-paper evidence and human subject-teacher review remain outstanding.
Before you begin
- No previous business study is assumed. Read each scenario for the people affected, the business objective and any limits on time, cost or information.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
Which management function arranges people and resources for a plan?
What you will learn
- Recognise the five management functions
- Explain delegation
- Evaluate delegation in context
Management connects goals to action
The syllabus lists planning, organising, coordinating, commanding and controlling. Managers set plans, arrange resources and responsibilities, align work, direct activity and compare results with intended standards.
The functions overlap in practice. A manager planning a launch may organise staff, coordinate marketing and operations, give instructions and monitor sales and service measures.
Delegate responsibility with support
Delegation gives a subordinate responsibility or authority to carry out a task while the manager retains overall accountability. It can develop skills, speed routine decisions and free managers for other work.
It can also create inconsistent decisions or errors if the employee lacks training, information or authority. Define the task, limits and reporting arrangements, then provide support appropriate to the risk.
Pause and explain
What remains with a manager after delegating a task?
Worked example
A store manager asks a trained supervisor to create the weekly rota within a fixed payroll budget. Identify the management action and one control.
Show the worked solution
- Responsibility for a task is passed to a subordinate.
- The budget is a boundary for the decision.
- The manager can review the finished rota.
Answer This is delegation. The supervisor has authority to arrange shifts within the payroll limit; the manager can review coverage and cost before publication.
Try a topic test
Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.
Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
A manager delegates customer refunds up to $50 to trained staff. Explain one benefit and one safeguard.
Give me a hint
Consider response speed and the limits of authority.
Compare my reasoning
- Staff can resolve small problems quickly.
- A maximum refund limit bounds the financial risk.
- Training and a record of decisions support consistency.
Delegation can speed customer service and free the manager for other work. A $50 limit, training and a refund log help staff make consistent decisions while keeping larger cases for review.
Look for these in your work
- Benefit linked to task
- Authority boundary named
- Safeguard explained
A supervisor delegates a machine changeover to a new employee who has not been trained. Identify the problem and a better management response.
Give me a hint
Check whether responsibility is matched with capability and support.
Compare my reasoning
- The employee may lack knowledge to do the task safely.
- Delegation without training may increase errors or risk.
- Provide instruction and supervision before independent responsibility.
The supervisor delegated before confirming competence. They should provide suitable training and supervised practice, then expand responsibility when the employee can follow the procedure safely.
Look for these in your work
- Capability gap identified
- Risk explained
- Development response proposed
A manager's launch plan is missing because marketing, operations and finance made separate decisions. Name two management functions that could improve coordination.
Give me a hint
Think about aligning teams and monitoring a shared plan.
Compare my reasoning
- Planning can set the launch objectives and sequence.
- Coordinating aligns the departments' tasks.
- Controlling can compare progress with agreed milestones.
Planning can set shared objectives and deadlines, while coordinating aligns department decisions. The manager can also control progress by reviewing agreed milestones and resolving gaps.
Look for these in your work
- Functions identified
- Effect linked to coordination
- Monitoring added
Common mistakes
- Saying delegation transfers all accountability
- Giving responsibility without needed authority
- Using control only after a problem occurs
What can you explain now?
Which management function arranges people and resources for a plan?
Compare with the explanation
Organising
Organising assigns resources and responsibilities.
After trying it yourself, choose your next review. This is your self-assessment.
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Make it stick
How is delegation different from transferring a manager's overall accountability?
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.