CAIE IGCSE Business Studies 2.2.1 simple organisational structures
Practise structure questions by defining hierarchy terms, reading charts and judging tall or flat structures for a business.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- Define a level of hierarchy as a layer of authority or responsibility in an organisation.
- Use chain of command and span of control to explain tall or flat structures.
- Justify whether many hierarchy levels suit a large business or slow decisions.
2.2.1—Simple organisational structures question 1
[Maximum number: 2]
Amir and Carla are business partners. They own a luxury hotel which operates in a niche market. The business has a short hierarchical structure. Amir and Carla use Herzberg's theory of motivation to keep their 5 employees well motivated. Amir and Carla are considering opening another hotel in a different city. They will need to identify a suitable source of finance if they decide to expand. Secondary market research can be used to help a business decide whether it should expand.
Identify two features of a short hierarchical structure.
Feature 1:
Feature 2:
Award 1 mark for each relevant feature [max 2].
Points might include:
- Short(er) chain of command
- Wide(r) span of control
- Quick(er)/fast(er) communication
- Top managers are less remote from employees
Other appropriate responses should be credited.
Only award the first two responses given.
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