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Cambridge IGCSE0450

Organisation and management

Business Studies 0450 Chapter Notes

What this chapter covers

Organisation and management - Draw, interpret and understand simple organisational chartsOrganisation and management - The role of managementOrganisation and management - Leadership stylesOrganisation and management - Trade unions
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In this chapter

  1. 1The organisational chart and levels of hierarchy
  2. 2Chain of command
  3. 3Span of control
  4. 4Tall and short structures
  5. 5Directors and managers
  6. 6Supervisors, other employees and how the roles link
  7. 7The functions of management
  8. 8Applying a function to a business
  9. 9What delegation means
  10. 10Why a business delegates
  11. 11The risks of delegating
  12. 12Trust versus control
  13. 13Autocratic leadership
  14. 14Democratic leadership
  15. 15Laissez-faire leadership
  16. 16Choosing a style for a business
  17. 17Justifying a recommendation
  18. 18What a trade union is
  19. 19Effects on employees: what members gain
  20. 20Applying union benefits to a business
  21. 21Effects on the employer

1. The organisational chart and levels of hierarchy

An organisational chart shows the levels of hierarchy in a business, the span of control of each manager and the responsibilities of employees.

Each position sits on a level. Managers report to the directors, supervisors report to the managers, and the other employees report to the supervisors.

In an exam, use the chart you are given, but do not just describe it. Count the levels and the people who report to each manager, then say what this means for the business.

Examiner insight

“Most candidates recognised that the organisational structure shows the levels of hierarchy or span of control but did not mention that it also indicates the responsibilities of employees.” “Weaker candidates just described what the organisation chart showed without any attempt to relate this to chain of command or span of control.”

Worked example 14 marks

Harbour Bakery has an owner, two shop managers and eight sales assistants. Four sales assistants report to each shop manager. Outline two things that an organisational chart shows about Harbour Bakery.

  1. 1

    Knowledge: the levels of hierarchy. [1]

  2. 2

    Application: Harbour Bakery has three levels: the owner, the shop managers and the sales assistants. [1]

  3. 3

    Knowledge: the span of control of each manager. [1]

  4. 4

    Application: four sales assistants report to each shop manager, so each shop manager's span of control is four. [1]

2. Chain of command

The chain of command is how instructions and information are passed down through the levels of hierarchy, from the top of the chart to the bottom. It is not the same as hierarchy. The hierarchy is the levels. The chain of command is how messages pass through them.

A business with few levels has a short chain of command. Messages pass through few levels, so communication is quick. Four levels is a short chain of command.

Many levels make a long chain of command. Messages can be distorted as they pass through each level.

Examiner insight

“A common error was to define hierarchy rather than chain of command.” “Weaker candidates that did recognise the levels as 4 then went on to interpret this as a long chain of command and so the development of their answer also became incorrect.”

Worked example 14 marks

Kestrel Couriers has a managing director, two depot managers, six team leaders and forty drivers. Outline two advantages to Kestrel Couriers of its short chain of command.

  1. 1

    Knowledge: communication is quick. [1]

  2. 2

    Application: Kestrel has only four levels, from the managing director to the forty drivers. [1]

  3. 3

    Knowledge: messages are less likely to be distorted. [1]

  4. 4

    Application: a new route passes through only the depot managers and team leaders. [1]

3. Span of control

Span of control is the number of employees who report directly to one manager. Count only the people on the level directly below that manager.

A manager with few people reporting to them has a narrow span of control. A manager with many has a wide span. A span of three is narrow. Write narrow or wide, never lower or higher.

A narrow span allows close contact and good communication with each person. A wide span allows faster communication but gives less control over each employee, so mistakes are more likely.

Examiner insight

“Common errors were that some candidates interpreted a span of control of 3 as wide which caused development of their points to be in the wrong context.” “Others made vague statements which attempted to reuse the word control without linking it to the number of employees.”

Worked example 16 marks

Orchard Print prints posters. Its production manager has 18 machine operators reporting directly to her. Explain one advantage and one disadvantage to Orchard Print of this span of control.

  1. 1

    Knowledge (advantage): a wide span of control allows faster communication. [1]

  2. 2

    Application: the production manager speaks to all 18 machine operators herself. [1]

  3. 3

    Analysis: so a decision about a poster order is made and acted on sooner. [1]

  4. 4

    Knowledge (disadvantage): a wide span gives less control over each employee. [1]

  5. 5

    Application: one production manager cannot watch 18 operators at their machines. [1]

  6. 6

    Analysis: so mistakes are more likely, posters are wasted and costs rise. [1]

4. Tall and short structures

A tall structure has many levels of hierarchy, a long chain of command and narrow spans of control. A short structure has few levels, a short chain of command and wide spans of control.

A tall structure gives potential for promotion and a clear chain of command. Its drawback is that messages pass through many levels, so they are slow and can be distorted.

A short structure gives quick communication. Its drawback is less control over each employee.

Examiner insight

“The strongest candidates were aware that a hierarchy gives potential for promotion and a clear chain of command.” “Others made vague statements about communication being easier or effective when they needed to highlight the speed of communication.”

Worked example 16 marks

Luma Hotels has a tall structure with seven levels of hierarchy, from the owner at the top to the cleaners at the bottom. Explain one advantage and one disadvantage to Luma Hotels of this structure.

  1. 1

    Knowledge (advantage): a tall structure gives potential for promotion. [1]

  2. 2

    Application: a cleaner has six levels above to be promoted into. [1]

  3. 3

    Analysis: so staff are motivated to stay, which lowers the cost of recruiting for the hotels. [1]

  4. 4

    Knowledge (disadvantage): a long chain of command makes messages slow. [1]

  5. 5

    Application: the owner's instruction passes through five levels to reach the cleaners. [1]

  6. 6

    Analysis: it arrives late, so rooms are not ready for guests. [1]

5. Directors and managers

Directors are on the top levels of the chart. Each has specific responsibilities for one part of the business. An operations director oversees the production methods used and liaises with the other directors.

A manager reports to a director and carries out the functions of management: planning, organising, commanding, controlling and coordinating. An operations manager plans how many components to order and controls the quality of the products.

A question about a director needs that director's own responsibilities, not the functions of a manager.

Examiner insight

“Candidates frequently described functions of a manager rather than the specific responsibilities of a director.” “Only the strongest responses explained each responsibility and also explained each one in the context of this business.”

Worked example 16 marks

Delta Cycles makes bicycles. It has an operations director, a factory manager, supervisors and 60 production workers. Explain one responsibility of the operations director and one function of the factory manager.

  1. 1

    Knowledge: the operations director oversees the production methods used. [1]

  2. 2

    Application: the director chooses whether bicycles are built by hand or on a production line. [1]

  3. 3

    Analysis: the right method keeps the cost of each bicycle low. [1]

  4. 4

    Knowledge: the factory manager organises the work. [1]

  5. 5

    Application: the factory manager decides which of the 60 workers build each bicycle. [1]

  6. 6

    Analysis: so orders are finished on time. [1]

7. The functions of management

Managers carry out set functions. The syllabus lists five: planning, organising, coordinating, commanding and controlling.

In an answer, name the function first. A description of a manager's day is not a function. Neither is a job skill such as communication.

The function and its explanation must match.

Examiner insight

“A significant minority gave very general functions that could apply to any job role, such as communication. Such answers could not be rewarded.” “Weaker responses confused the explanation with a different function.”

Worked example 12 marks

SDY sells hats and scarves. Identify two functions of management.

  1. 1

    Knowledge: one function named, such as planning. [1]

  2. 2

    Knowledge: a second function named, such as organising or controlling. [1]

8. Applying a function to a business

A named function earns the knowledge mark. The application mark needs a reference to this business.

Say what the manager does, for this business, under that function. Use the function's own word, such as 'plans' or 'controls'. An account of the manager's role, such as running the shop, is not a function.

Examiner insight

“Weak responses gave the role of a manager instead of the function.”

Worked example 14 marks

Nairn Bikes sells cycles from one shop. The owner, Ewan, is opening a second shop across town. Explain two functions of management that Ewan will carry out.

  1. 1

    Knowledge: planning. [1]

  2. 2

    Application: Ewan plans the opening date and the stock the second shop will need. [1]

  3. 3

    Knowledge: controlling. [1]

  4. 4

    Application: Ewan controls each shop by checking its weekly sales against his targets. [1]

9. What delegation means

Delegation is a manager giving tasks to a subordinate. The authority to carry out those tasks passes down too.

Delegation is not the same as democratic leadership, where employees give opinions on a decision. It is not recruitment, and it is not specialisation.

Examiner insight

“Some candidates were not aware that the authority to carry out tasks is also passed down.” “The most common errors confused democratic leadership with delegation.”

Worked example 12 marks

Define 'delegation'.

  1. 1

    Knowledge: a manager gives tasks to a subordinate. [1]

  2. 2

    Knowledge: the authority to carry out the tasks is passed down as well. [1]

10. Why a business delegates

Delegation can allow managers time to focus on other tasks. It can also increase employee motivation, because the employee feels trusted.

Develop each point to a result for the business, such as better decision making or higher productivity. Say whose time or motivation is meant: the manager's or the employee's.

Examiner insight

“A common mistake was to forget to identify who the point related to.” “Some candidates stated, incorrectly, that delegation would lead to improved communication.”

Worked example 16 marks

Hana runs a garden centre with 12 staff. She plans to delegate the weekly stock order to her assistant, Piotr. Explain two benefits to Hana's business of delegating.

  1. 1

    Knowledge: Hana, the manager, has time to focus on other tasks. [1]

  2. 2

    Application: she no longer spends hours on the weekly stock order. [1]

  3. 3

    Analysis: she can use that time to plan new product lines, which could raise sales. [1]

  4. 4

    Knowledge: employee motivation may increase. [1]

  5. 5

    Application: Piotr feels trusted with the garden centre's stock order. [1]

  6. 6

    Analysis: a motivated Piotr is more productive in his work. [1]

11. The risks of delegating

A manager who delegates still carries the responsibility. If the employee makes mistakes, the manager answers for them.

A lack of experience may mean extra training, which costs time and money. Answer from the point of view the question gives. If it asks about the owner, do not write about the employees.

Examiner insight

“The restaurant manager would still carry the responsibility of the quality of food served and the reputation of the restaurant, whilst lack of experience on the part of the assistant manager might require extra training in customer service or food hygiene knowledge.”

Worked example 16 marks

Calder Print makes posters for local events. The owner, Isla, will delegate customer orders to a junior employee. Explain one advantage and one disadvantage to Isla of delegating.

  1. 1

    Knowledge: delegation gives Isla more time for other work. [1]

  2. 2

    Application: she is free to find new customers for the posters. [1]

  3. 3

    Analysis: more customers could raise sales and profit. [1]

  4. 4

    Knowledge: the employee may make mistakes. [1]

  5. 5

    Application: a wrongly priced poster order could lose Calder Print money. [1]

  6. 6

    Analysis: Isla remains responsible, so her reputation with the customer suffers. [1]

12. Trust versus control

Delegating shows trust. The employee feels trusted, which can raise motivation. The manager loses some control, and the employee may make mistakes.

A question on trust and control asks for a decision. Weigh the two sides, then choose and justify with a reason from the business. A decision that only repeats earlier points does not earn evaluation.

Examiner insight

“Only the best responses used the material to support points made and help justify their decision.”

Worked example 16 marks

Lena owns a bakery with six staff. She orders all the flour herself. Do you think Lena should delegate the ordering to her assistant manager? Justify your answer.

  1. 1

    Knowledge: Lena, the manager, has time to focus on other tasks. [1]

  2. 2

    Analysis: she can use the time to develop new products, which could raise the bakery's sales. [1]

  3. 3

    Knowledge: Lena loses some control, and the assistant may make mistakes. [1]

  4. 4

    Analysis: a wrong flour order could leave the bakery with nothing to bake, so sales are lost. [1]

  5. 5

    Evaluation: a decision, such as yes, delegate. [1]

  6. 6

    Evaluation: justified from the business, such as ordering flour is a weekly routine, so Lena can check the first orders and keep some control while gaining the time. [1]

Recap

  • The five functions: planning, organising, coordinating, commanding, controlling.
  • Name the function, then refer to the business. Communication is not a function.
  • Delegation = tasks given to a subordinate, with the authority to carry them out.
  • Delegation is not democratic leadership, recruitment or specialisation.
  • Benefits: manager's time freed, employee motivation. State whose.
  • Risks: mistakes, extra training, the manager keeps the responsibility.
  • Trust versus control: weigh both, then decide and justify with a reason from the business.

13. Autocratic leadership

In the autocratic style the manager makes the decisions. Employees are not involved in making them.

The advantage is quick decision-making, so the business can respond quickly to opportunities. State that advantage, not just who makes the decision. The disadvantage is that employees who are never asked may have low motivation, and that can mean higher labour turnover.

With many employees, asking everyone would take too long. This is when autocratic decisions can suit a business.

Examiner insight

“Some answers included mirror points which should be avoided, such as democratic leadership results in more motivated employees/autocratic leadership style leads to employees being less motivated.” “Some weaker candidates mixed up the explanation of the leadership style, for example they explained autocratic under the heading of democratic.”

Worked example 16 marks

Karim owns Karim’s Coaches, a firm with 40 drivers. He decides every route and timetable himself and never asks the drivers. Explain one advantage and one disadvantage to Karim’s Coaches of this leadership style.

  1. 1

    Knowledge: an advantage is quick decision-making. [1]

  2. 2

    Application: Karim can change a route or timetable without first asking 40 drivers. [1]

  3. 3

    Analysis: the firm responds quickly to a new booking, so it wins the customer and revenue rises. [1]

  4. 4

    Knowledge: a disadvantage is that employees who are never asked may have low motivation. [1]

  5. 5

    Application: the drivers have no say in the routes and timetables they work every day. [1]

  6. 6

    Analysis: drivers may leave, so labour turnover rises and Karim’s Coaches pays more for recruitment and training. [1]

14. Democratic leadership

A democratic leadership style involves employees in the decision-making process. The manager asks for employees’ opinions and listens to their ideas, and employees may vote on decisions.

Employees welcome the chance to offer ideas, so they feel valued and their motivation increases. That can lower labour turnover. The cost is slow decision-making, because consulting takes time.

Democratic does not mean the owner loses control of the business. It is not delegation either.

Examiner insight

“Many candidates stated incorrectly that democratic leadership would mean the owner loses all control over the business.” “The most common errors confused democratic leadership with delegation.”

Worked example 12 marks

SDY sells hats and scarves. All its shop managers use a democratic leadership style. Define ‘democratic leadership style’.

  1. 1

    Knowledge: involves employees in the decision-making process. A full definition earns both marks. [2]

  2. 2

    A partial definition earns 1 mark, such as ‘the manager asks for employees’ opinions’ or ‘employees vote on decisions’.

15. Laissez-faire leadership

In the laissez-faire style employees are left to make their own decisions. This can bring increased motivation, but employees may hold different opinions about what to do.

Laissez-faire differs markedly from democratic leadership. A democratic manager asks for employees’ opinions and involves them in the decision. A laissez-faire manager leaves the decision to them. Make clear which of the two you are explaining.

Identify the style by name, then say what it means for the business in the question. The spelling of laissez-faire is not penalised if the meaning is clear.

Examiner insight

“Laissez-faire was the least well understood of the three leadership styles.” “The most popular choice in the recommendation was democratic leadership, although some candidates needed to be clear about how this differs markedly from laissez-faire.”

Worked example 12 marks

Sofia runs Loop Design, a studio of six designers. She gives each designer a client and lets them make every design decision without asking her. Identify the leadership style Sofia uses and state one feature of it.

  1. 1

    Knowledge: laissez-faire leadership. [1]

  2. 2

    Knowledge: employees are left to make their own decisions, as the six designers are here. [1]

16. Choosing a style for a business

No style is best for every business. The right style depends on the circumstances: how many employees there are, how quickly decisions must be made, and what employees can do.

A large workforce makes consulting slow. A small business may lose little time by consulting, and listening to ideas can raise motivation and lower labour turnover.

Then follow the effect through. Poor motivation leads to high staff turnover and higher recruitment and training costs. It can also lead to low quality work, dissatisfied customers and falling revenue.

Examiner insight

“Better answers pointed out that poor motivation leads to high staff turnover and increased recruitment and training costs, or to low quality work, dissatisfied customers and falling revenues.” “The best responses used the contrast between the different styles as the basis for their evaluation.”

Worked example 16 marks

Tidal Textiles has 300 employees and must finish a large order for a new customer in one week. The managing director uses an autocratic style. Explain two reasons why this style might suit Tidal Textiles at present.

  1. 1

    Knowledge: autocratic leadership gives quick decision-making. [1]

  2. 2

    Application: the order must be finished in one week, so decisions cannot wait. [1]

  3. 3

    Analysis: the managing director can act at once, so the order is more likely to be finished on time and the new customer kept. [1]

  4. 4

    Knowledge: with many employees, asking for opinions can lead to disagreements. [1]

  5. 5

    Application: Tidal Textiles has 300 employees who could each want the order organised differently. [1]

  6. 6

    Analysis: one person deciding gives a single plan, so work on the order is not held up while disagreements are settled. [1]

17. Justifying a recommendation

A recommendation question asks for a justified decision. Explain each style in the context of the business, choose one, and say why the other styles are less suitable.

Evaluation uses the circumstances. A style that works for a small team may fail in a large one. State the decision and the reason it beats the alternatives.

Do not repeat earlier points as the justification. Weigh the styles against each other.

Examiner insight

“Recommendations usually did contain some justification for the chosen leadership style but often did not include discussion of why the alternative styles were rejected as less suitable for this business.” “The strongest responses included the implications for the business of each leadership style which enabled candidates to include a justified recommendation of the best style to choose and why the other styles were less suitable.”

Worked example 112 marks

Brightwater Cleaners has 20 cleaners who work in pairs at customers’ homes. The owner, Imran, is deciding between an autocratic, a democratic and a laissez-faire leadership style. Recommend which style he should use. Justify your answer.

  1. 1

    Knowledge: autocratic leadership gives quick decision-making. [1]

  2. 2

    Application: Imran could reassign pairs at once when a customer cancels. [1]

  3. 3

    Analysis: the pair is sent to another home straight away, so no working time is wasted and Brightwater keeps its revenue. [2]

  4. 4

    Knowledge: democratic leadership involves employees in decisions and raises motivation. [1]

  5. 5

    Application: cleaners know which customers and homes need more time, so their ideas improve the work. [1]

  6. 6

    Analysis: motivated cleaners stay, so labour turnover falls and customers receive a steady, high quality service and keep booking. [2]

  7. 7

    Knowledge: laissez-faire leaves employees to decide for themselves. [1]

  8. 8

    Analysis: cleaners with no direction may work to different standards, so some customers are dissatisfied and revenue falls. [1]

  9. 9

    Evaluation: democratic is best for Brightwater because its small workforce means consulting takes little time. Autocratic is less suitable because with only 20 cleaners its speed gains little, and laissez-faire because standards could vary between pairs. [2]

Recap

  • Autocratic: the manager makes the decisions. Quick decision-making, but low motivation and higher labour turnover.
  • Democratic: involves employees in the decision-making process. More motivation, but slower decisions.
  • Laissez-faire: employees are left to make their own decisions. Not the same as democratic.
  • The right style depends on the circumstances: size of workforce, speed needed, what employees can do.
  • Follow the effect through: motivation, labour turnover, recruitment and training costs, quality, revenue.
  • A recommendation needs a decision and a reason the other styles are less suitable.
  • Identify the style by name, then apply it to the business in the question.

18. What a trade union is

A trade union is an organisation of workers formed to protect their rights at work. Its members are workers, not businesses and not the general public.

A union is not a pressure group. A pressure group is formed by people with a common interest.

A union is not a trade organisation either. Its role is not to promote international business.

Examiner insight

“A common mistake was to confuse the term with a pressure group.” “Some answers confused the term with a trade organisation so incorrectly assumed its role was to promote international business.”

Worked example 12 marks

Rufford Bakery has 30 employees. Some of them have joined a trade union. Define 'trade union'.

  1. 1

    Knowledge: an organisation of workers. [1]

  2. 2

    Knowledge: formed to protect the rights of its members at work. [1]

19. Effects on employees: what members gain

Members who join a union gain strength in numbers. The union represents all of them at once, so the employer is more likely to listen.

The benefits examiners saw most often were possibly higher wages, improved working conditions, job security, advice and representation. Each one earns a knowledge mark.

The second mark is for explaining the benefit for the employee. Say what changes for the member, not only what the union does.

Examiner insight

“The most popular benefits included possibly higher wages, improved working conditions, providing job security such as if unfairly dismissed, providing advice, representing employees and giving strength in numbers when representing employee issues with employers.” “Weaker responses often remained at one mark for each benefit whereas stronger answers gained the second mark for explanation of the benefit for the employee.”

Worked example 14 marks

Lowe Print employs 25 machine operators. Many of them have joined a trade union. Explain two benefits to employees of being a member of a trade union.

  1. 1

    Knowledge: possibly higher wages. [1]

  2. 2

    Analysis: the union negotiates for all its members together, so a rise is more likely than when one worker asks alone. [1]

  3. 3

    Knowledge: job security. [1]

  4. 4

    Analysis: a member who is unfairly dismissed has the union to advise and represent them. [1]

20. Applying union benefits to a business

Most candidates know what a union is for. Marks are lost when the answer could describe any business.

Use the facts in the question. Link each benefit to a problem the workers have, such as low pay or poor conditions. Then explain how the union would help with that problem.

If a question asks for two reasons, use two different pieces of application. Repeating the same point twice earns once.

Examiner insight

“The highest credit for this response was, as always, given to candidates who successfully related their explanation to the car company in the case study rather than provide a generic answer.” “Weaker candidates often did not explain how the trade union could help improve these issues for workers, such as there being strength in numbers being more effective in pressuring for improvements.”

Worked example 16 marks

Harbour Freight has 60 lorry drivers. They are paid the minimum wage and often work late without a break. Explain two reasons why the drivers might join a trade union.

  1. 1

    Knowledge: a union can negotiate higher wages. [1]

  2. 2

    Application: the 60 drivers are paid only the minimum wage. [1]

  3. 3

    Analysis: together they have more power to ask for a rise than one driver alone. [1]

  4. 4

    Knowledge: a union can press for better working conditions. [1]

  5. 5

    Application: drivers work late without a break. [1]

  6. 6

    Analysis: the union can ask for set rest periods, so drivers are less tired. [1]

21. Effects on the employer

Union membership also changes things for the employer. If the union succeeds in negotiating a new wage agreement, the business may face increased costs.

Members feel able to stand up for their rights, which can improve worker motivation.

When a question asks about the employer, keep to the employer. Benefits to members are a different answer.

Examiner insight

“Strong answers relating to the effect of trade union membership on GT as employers, explained that GT might face increased costs if the union was successful in negotiating a new wage agreement.” “The range of answers which identified and explained the benefits of union membership for the employees often referred to health and safety protection in a factory environment, and employees feeling empowered to stand up for their rights, thus resulting in improved worker motivation.”

Worked example 18 marks

Tern Foods packs vegetables for supermarkets in a factory with 80 packers. Most of them have joined a trade union. The union has asked for a 6% pay rise. Explain two effects on Tern Foods of its packers being trade union members.

  1. 1

    Knowledge: costs may rise if the union negotiates a new wage agreement. [1]

  2. 2

    Application: the union has asked for a 6% pay rise. [1]

  3. 3

    Analysis: a rise for all 80 packers lifts Tern's wage bill. [1]

  4. 4

    Analysis: profit falls unless Tern raises its prices. [1]

  5. 5

    Knowledge: workers who feel able to stand up for their rights may be more motivated. [1]

  6. 6

    Application: the packers prepare vegetables for supermarkets. [1]

  7. 7

    Analysis: motivated packers take more care, so fewer boxes are packed badly. [1]

  8. 8

    Analysis: Tern wastes less, so more of its output can be sold. [1]

Recap

  • A trade union is an organisation of workers, formed to protect their rights.
  • It is not a pressure group and not a trade organisation.
  • Benefits to members: higher wages, better conditions, job security, advice, representation.
  • Strength in numbers: the union represents every member at once.
  • Explain the benefit for the employee, then apply it to the business.
  • Two reasons need two different facts from the business.
  • Effects on the employer: increased costs from a wage agreement, and possibly better motivation.
  • A justified decision needs a reason not already used.

End-of-chapter exercise

Test yourself on the whole chapter. Work through these before moving on.

  1. Define ‘span of control’.2 marks
  2. Roper Tiles draws an organisational chart. Identify two things that the chart shows.2 marks
  3. Define ‘chain of command’.2 marks
  4. Zest Juice has a managing director, three managers and twelve production workers. Four production workers report to each manager. Outline the managing director's span of control and the chain of command at Zest Juice.4 marks
  5. Brisa Cafes has 500 cafes and eight levels of hierarchy. Outline two problems that this long chain of command could cause for Brisa Cafes.4 marks
  6. Ferndale Biscuits has a packing line with 20 workers and one supervisor. Outline two roles of the supervisor at Ferndale Biscuits.4 marks
  7. Nordic Sleep makes beds in one factory with 100 production workers. It plans to start selling its beds in other countries. Explain two responsibilities of Nordic Sleep's operations director.6 marks
  8. Page One sells books in 90 shops. It has a tall structure with eight levels of hierarchy, and each manager has two or three people reporting to them. Explain two advantages to Page One of this structure.6 marks
  9. Tavola Foods makes ready meals in one factory. The table gives part of its organisational chart. Tavola plans to remove the supervisors. The 144 production workers would then report directly to the factory managers, in equal numbers. Explain two advantages and two disadvantages to Tavola Foods of this change. | Position | Number of people | Who they report to | | --- | --- | --- | | Operations director | 1 | Managing director | | Factory managers | 3 | Operations director | | Supervisors | 9 | Three report to each factory manager | | Production workers | 144 | Sixteen report to each supervisor |8 marks
  10. Solara Travel sells holidays in 36 shops. It has six levels of hierarchy: a managing director, a sales director, 4 regional managers, 12 area managers, 36 shop managers and the shop assistants. Three area managers report to each regional manager, and three shop managers report to each area manager. Last month a price change reached some shops a week late, and customers were quoted the wrong prices. Option 1: remove the regional managers and the area managers. The 36 shop managers report directly to the sales director. Option 2: remove the regional managers only. The 12 area managers report directly to the sales director. Consider both options and recommend which one Solara Travel should choose. Justify your answer.12 marks
  11. Name two functions of management.2 marks
  12. Define 'delegation'.2 marks
  13. Zara owns a bakery. Each morning she decides how many loaves to bake that day. Each evening she compares the day's sales with her target. Identify the two functions of management Zara is carrying out.2 marks
  14. Hillcrest Hotel has 40 rooms. Its manager, Dara, is preparing for the busy summer season. Outline two functions of management Dara will carry out.4 marks
  15. Kofi owns a print shop. He asks his staff which new machine to buy, then makes the decision himself. A friend says this is delegation. Outline two reasons why the friend is wrong.4 marks
  16. Patel Garage has one owner and eight mechanics. The owner will delegate the booking of repairs to one of the mechanics. Outline two benefits to Patel Garage of delegating.4 marks
  17. Marla's Cafe has a new trainee. Marla will delegate the weekly food order to the trainee. Explain two disadvantages to Marla of delegating.6 marks
  18. Rosa owns a florist shop. She is opening a second shop in the next town. Explain two functions of management that Rosa will carry out.6 marks
  19. Okoro Marine repairs fishing boats in a harbour. The owner, Ngozi, works 70 hours a week and prices every repair herself. She has decided not to recruit a manager. Instead she will delegate the pricing to Sam, a welder who has been with the business for ten years but has never priced a repair. Explain one advantage and one disadvantage to Ngozi of delegating the pricing to Sam.8 marks
  20. Sunrise Dental has four clinics. The owner, Mei, approves every purchase herself, and the clinics wait up to two weeks for supplies. She is considering two options. Option A: delegate purchasing to the manager of each clinic. The four managers are experienced dentists with no training in finance. Option B: keep approving every purchase herself, and ask the managers each month for their opinions on what to buy. Recommend which option Mei should choose. Justify your answer.12 marks
  21. Pia manages a call centre with 50 staff. She uses an autocratic leadership style. Define ‘autocratic leadership style’.2 marks
  22. Dev owns a design studio with five designers. He uses a laissez-faire leadership style. Define ‘laissez-faire leadership style’.2 marks
  23. Sunrise Bakery has 12 employees. The owner asks them for ideas about new bread and lets them vote on opening hours. Outline two advantages to Sunrise Bakery of this leadership style.4 marks
  24. Fresh Fields garden centre has eight skilled workers and two unskilled workers. The manager uses a laissez-faire leadership style. Outline one advantage and one disadvantage to Fresh Fields of this style.4 marks
  25. Inka owns a small printing firm with four employees. Customers often want leaflets printed the same day. Inka uses a democratic leadership style. Explain one advantage and one disadvantage to Inka’s firm of this style.6 marks
  26. Ozzy’s Taxis has 30 drivers. Ozzy decides every price and rota himself and does not ask the drivers. Explain one advantage and one disadvantage to Ozzy’s Taxis of this leadership style.6 marks
  27. Mason Metals has 300 employees. Its managing director says an autocratic leadership style is the best style for a business with many employees. Do you think he is right? Justify your answer.6 marks
  28. Tamsin owns Tamsin’s Tours. Her four guides each lead walking tours of the city alone. Tamsin plans which tours run each month. Explain two leadership styles Tamsin could use to manage her guides.8 marks
  29. Delta Software has nine experienced programmers and one trainee. They work from home in three countries. The owner, Ravi, uses a laissez-faire leadership style. Last month two projects were delivered late because the programmers chose different methods. Should Ravi change to an autocratic leadership style? Justify your answer.12 marks
  30. Orbit Foods makes ready meals. It has 60 production workers and five skilled food scientists who create new recipes. Every production worker must follow the same hygiene steps. Last year 24 of the production workers left. The new manager is choosing between an autocratic, a democratic and a laissez-faire leadership style. Recommend which style she should use. Justify your answer.12 marks
  31. Define 'trade union'.2 marks
  32. Pell Hotel has 20 staff. Some have joined a trade union. Identify two benefits to the staff of union membership.2 marks
  33. Residents near Fenn Textiles have formed a group to campaign against the noise from its factory. Is this group a trade union? Explain your answer.2 marks
  34. Cato Cleaners employs 25 cleaners. They are paid low wages and work night shifts in office blocks. Outline two benefits to the cleaners of being trade union members.4 marks
  35. Dunn Cars has 150 assembly workers. All are trade union members. The union is in talks with Dunn Cars about a new wage agreement. Outline two effects on Dunn Cars of its workers being trade union members.4 marks
  36. Vale Call Centre has 100 staff. They complain about long shifts and low pay. Explain two reasons why the staff might join a trade union.6 marks
  37. Oakes Bakery employs 40 bakers. All of them belong to a trade union. Explain one advantage and one disadvantage to Oakes Bakery of this.6 marks
  38. The 300 nurses at Arden Hospital are deciding whether to join a trade union. Explain two benefits to employees of being trade union members. Which benefit is likely to be the more important? Justify your answer.6 marks
  39. Brink Ferries carries passengers to three islands. Most of its revenue is earned in summer, which starts next month. All 200 crew are trade union members. Pay talks between Brink and the union have been delayed for three months. Explain one effect on Brink Ferries and one effect on its crew of the crew being trade union members.8 marks
  40. Kell Metals makes steel parts for car makers, who reject any faulty part. Its 100 workers are paid the minimum wage. There have been 9 accidents in the factory this year. Most of the workers have now joined a trade union. Consider the effects of this on the workers, on Kell Metals' costs and on the quality of its parts. Is union membership likely to be good for Kell Metals overall? Justify your answer.12 marks

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