12 marks
Define ‘trade union’.
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Organisation & People Management (Cambridge (CIE) IGCSE Business)
Exam Questions
2 hours21 questions24 marks
Case Study
GHT is a public limited company. It produces steel products including gates and garage doors. GHT has a flat organisational structure and a short chain of command. GHT has many stakeholder groups including 600 employees. The Managing Director is considering introducing job rotation to improve employee motivation. He has also been analysing some financial data. An extract is shown below.
Extract of revenue and cost data for one of GHT’s products (product X) | |
Units sold in 2020 | 30 000 |
Price per unit | $100 |
Variable costs per unit | $60 |
Fixed costs | $900 000 |
Break even output (units) | 22 500 |
Outline two advantages to GHT of having a short chain of command.
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32 marks
Define ‘chain of command’.
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42 marks
Define ‘organisational structure’.
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52 marks
Define ‘delegation’.
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62 marks
Identify two functions of management.
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74 marks
Case Study
Kolo owns a successful hairdressing salon in the city centre. He has 4 part-time employees. The business has made a profit in each of the last 3 years. Kolo wants to expand by opening another hairdressing salon to take advantage of the economic boom. He plans to recruit a manager for the second salon using external recruitment. Kolo has identified 2 possible candidates for the position. Information about them is shown below.
Extract from Kolo’s information on the two candidates | ||
Candidate 1 | Candidate 2 | |
Experience: | 5 years experience | 20 years experience |
Qualifications: | Advanced hairdressing certificate | Basic hairdressing certificate |
Other information: | Never managed a salon | Uses autocratic leadership style |
Outline two possible advantages to Kolo of recruiting a manager
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84 marks
Case Study
MRN is a food retailer. It has 490 shops and 70 000 employees. MRN has announced plans to close 80 of its shops. The Human Resources Director said: ‘20% of management jobs will be removed. We want to encourage delegation. MRN will continue to follow legal controls over employment.’ MRN’s directors know it is important that businesses respond to increased competition.
Outline two functions of MRN’s shop managers.
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91 mark
Case Study
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 $1m 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.’
Outline two advantages of SRB using delegation.
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18 marks
Explain four functions of management carried out by Kaari.
Refer to the following insert when answering the question.
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26 marks
Case Study
Alex started APB as a sole trader business 4 years ago. APB provide printing services for local businesses such as leaflets and brochures. Alex thinks having a good location is important to any business. All APB’s 6 employees receive on-the-job training. Alex has a democratic leadership style and uses job rotation to help keep employees motivated. To meet an increase in demand, Alex plans to buy an additional printing machine. This will cost $1 800. Alex has to decide on an appropriate source of finance.
Explain one advantage and one disadvantage of Alex having a democratic leadership style.
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36 marks
Case Study
AHG is an established business as it has been operating for a long time. It sells garden products including plants and flowers. AHG uses competitive pricing. The business has 4 managers and 30 other employees. All AHG’s managers use delegation. The Finance Manager is analysing AHG’s statement of financial position as she is interested in its liquidity. An extract is shown below
Extract from AHG’s statement of financial position at 30 March 2022 ($000) | |
Non-current assets | 800 |
Current assets | 660 |
Current liabilities | 600 |
Explain two advantages to AHG of its managers using delegation.
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48 marks
Explain one advantage and one disadvantage of Yasin using a democratic leadership style.
Refer to the following insert when answering the question
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56 marks
Case Study
DBG is a construction company. It builds hospitals, roads and schools. DBG has 2000 employees. Managers use a democratic leadership style. They know effective internal communication is important. DBG plans to change its organisational structure.This will lead to some employees being made redundant. The Managing Director has to decide how changes in government spending might affect business activity.
Explain two advantages to DBG of its managers using a democratic leadership style.
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68 marks
Explain four benefits to employees of being members of a trade union.
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78 marks
Explain two leadership styles that Zane and Zaara could use when managing ET’s employees.
Refer to the following insert when answering the question.
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88 marks
Explain two advantages and two disadvantages of VP’s Restaurant Managers delegating tasks to their Assistant Managers.
Refer to the following insert when answering the question.
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96 marks
Case Study
TFN is a travel business which sells holidays. It has 37 shops and 1000 employees. Last year TFN’s profit increased to $46 million. The Managing Director knows that good customer service has helped maintain customer loyalty. He said: ‘TFN’s managers use ideas from Herzberg’s two-factor theory to help motivate employees. All employees are provided with off-the-job training and each manager has a wide span of control.’
Explain one advantage and one disadvantage to TFN of its managers having a wide span of control.
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108 marks
Explain two benefits of PH's employees becoming members of a trade union.
Refer to the following insert when answering the question.
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112 marks
Consider how the following three changes to Lavelle Manoir Ltd's organisational structure could improve communication between departments.
Introducing a matrix structure
Implementing more formal communication channels
Delayering the organisation
Which change would be the most effective? Justify your choice.
Refer to the following insert when answering the question
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212 marks
Consider the advantages and disadvantages of the following two leadership styles Alex could adopt when implementing changes at SwiftLink Logistics.
Democratic leadership style
Autocratic leadership style
Which leadership style do you think would be most appropriate? Justify your answer.
Refer to the following insert when answering the question
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