IGCSE Business Studies 2.2.1—Simple organisational structures Topic Practice

• the main functional areas of a business, e.g. operations, marketing, finance, human resources

• simple hierarchical structures: tall and flat levels of hierarchy, long and short chains of command, wide and narrow spans of control

• interpret simple organisational charts

• different ways of flexible working, e.g. home working and flexible hours

• advantages and disadvantages of part-time employees and full-time employees

[Maximum number: 12]

Explain the benefits to BW of employing part-time employees and full-time employees. Do you think Bob should continue to employ only part-time employees? Justify your answer.

Part-time employees:
Full-time employees:
Conclusion:

[Maximum number: 2]

SRB is a bank which provides loans to business customers. SRB plans to make 100 managers' jobs redundant from its 80 branches. This would remove one level of hierarchy. This is part of its plan to save $\$ 1 \mathrm{~m}$ in costs over the next 2 years. The Managing Director said: 'SRB is working with the trade union about this plan. SRB will make more use of delegation.The bank has to respond to increased competition from online banks. SRB could either advertise more or develop new products and services.'

Define 'level of hierarchy'.

[Maximum number: 6]

FBW manufactures watches using job production. It employs 5 full-time production employees. Each worker is offered regular training. Last year FBW sold 600 watches. The Managing Director plans to use break-even analysis to help decide whether to increase the price of its products. FBW's current break-even chart is shown in Fig. 1.1.

Break-even chart for FBW's watches

Explain two benefits to FBW of having full-time employees.

Benefit 1:
Explanation:
Benefit 2:
Explanation:

[Maximum number: 8]

Explain two drawbacks for EP of having a tall organisational structure.
Drawback 1:
Explanation:
Drawback 2:
Explanation:

[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:

[Maximum number: 8]

Explain four responsibilities of AD's Operations Director.

Responsibility 1:

Responsibility 2:

Responsibility 3:

Responsibility 4:

[Maximum number: 8]

Explain two benefits and two limitations for JJ of employing part-time workers in its factory.
Benefit 1:

Benefit 2:
Limitation 1:
Limitation 2:

[Maximum number: 8]

Explain two effects of BB having a short chain of command.
Explanation:

\section*{Effect 1: \\ Effect 1:}
Effect 2:
Explanation:

L

[Maximum number: 12]

Consider the benefits to SA of having part-time and full-time employees in its factory. Should SA only have part-time employees in the future? Justify your answer.

Part-time employees:
Full-time employees:
Conclusion:

2 (b) Consider the benefits to SA of having part-time and full-time employees in its factory. Should

SA
art-time employees.
Full-time employees:

T

Part-time employees:

[Maximum number: 8]

Explain two benefits of ES having a short chain of command.
Benefit 1:

Explanation:

Benefit 2:
Explanation:

0 selected

Question 1(b)

Question 1(b)

Question 1(d)

Question 1(a)

Question 1(b)

Question 2(a)

Question 2(a)

Question 2(a)

Question 2(b)

Question 2(a)