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CAIE IGCSE Business Studies 2.2 Organisation and Management Questions

Use this organisation-and-management page to interpret structures, explain delegation and justify leadership or workforce decisions.

Syllabus
2027–2029
Course
Business 0264

Exam points

  • Interpret hierarchy, span of control and chain of command from organisation structures.
  • Explain delegation, leadership or workforce changes using the named business context.
  • Justify decisions about leadership style, part-time workers or reducing the workforce.

Covered syllabus points

2.2.1—Simple organisational structures2.2.2—The functions of management2.2.3—Leadership styles2.2.4—Why reducing the size of the workforce may be necessary2.2.5—The role of trade unions

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:

Question 2

[Maximum number: 4]

RBG is an oil company. It has operations in 6 countries. RBG has 2000 employees including 60 managers. Some of its managers use a laissez-faire leadership style. All of RBG's internal communication uses information technology (IT) based methods. The Managing Director knows RBG's business activities can create external costs and external benefits. She says: 'Pressure groups often try to influence business decisions.'

Question (a)

(a)

Define 'laissez-faire leadership style'.

[ 2 ]

Question (b)

(b)

Identify two roles of a manager.

Role 1:
Role 2:

[ 2 ]

Question 3

[Maximum number: 12]

Using Appendix 2 and other information, consider the three employees that LB could make redundant. Which employee should LB choose? Justify your answer.

- Naga
- Reeta
- Amy

Question 4

[Maximum number: 2]

RBG is an oil company. It has operations in 6 countries. RBG has 2000 employees including 60 managers. Some of its managers use a laissez-faire leadership style. All of RBG's internal communication uses information technology (IT) based methods. The Managing Director knows RBG's business activities can create external costs and external benefits. She says: 'Pressure groups often try to influence business decisions.'

Identify two roles of a manager.

Role 1:
Role 2:

Question 5

[Maximum number: 2]

RBG is an oil company. It has operations in 6 countries. RBG has 2000 employees including 60 managers. Some of its managers use a laissez-faire leadership style. All of RBG's internal communication uses information technology (IT) based methods. The Managing Director knows RBG's business activities can create external costs and external benefits. She says: 'Pressure groups often try to influence business decisions.'

Define 'laissez-faire leadership style'.

Question 6

[Maximum number: 2]

WMH is a business which operates in the secondary sector. It makes furniture including tables and chairs. WMH's employees are all members of a trade union. The Managing Director knows the business is likely to remain small. She is considering introducing new technology into WMH's factory. She also knows it is important for a manufacturing business to choose a suitable location for a factory.

Define 'trade union'.

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