EDEXCEL GCSE BUSINESS · PAPER 2
Exam Practice: Organisational Structures
Organisational structures · Making human resource decisions · Lesson 1 of 4 · 12 marks · 20 minutes
Name Date
Answer all questions. Use the context of the business in the question where one is given.
Question 1 DEFINE [1 mark]
Define the term 'span of control'.
Question 2 OUTLINE [2 marks]
Outline one benefit to a business of employing freelance workers.
Question 3 EXPLAIN [3 marks]
Explain one disadvantage to a business of having a hierarchical structure.
Question 4 ANALYSE [6 marks]
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SOURCE Nova Fitness PLC runs 60 gyms. Until now all decisions have been made at head office. It plans to decentralise, letting each gym manager decide on class timetables, local promotions and staff rotas. |
Analyse the impact of decentralisation on Nova Fitness PLC.
Answers
Check your answer only once you have written one.
Question 1 [1 mark]
The number of employees who report directly to one manager.
▸ Number of subordinates directly responsible to a manager 1 mark
Question 2 [2 marks]
The business only pays for specialist skills when it needs them (1), so it avoids the cost of employing a full-time specialist all year (1).
▸ A benefit identified 1 mark
▸ Developed 1 mark
Question 3 [3 marks]
Communication can be slow (1). Messages must pass down a long chain of command through many levels of management (1). This means decisions take longer and messages can be changed along the way, so the business may respond slowly to customers (1).
▸ A disadvantage identified, e.g. slow communication / high cost of managers / staff feel distant 1 mark
▸ First linked point of explanation 1 mark
▸ Second linked point of explanation 1 mark
Question 4 [6 marks]
Decentralisation would let each gym manager respond to local customers. A manager knows which classes are popular in their area and when members want to train, so timetables and promotions can be better suited to local demand, which could increase memberships. Managers given more responsibility are also likely to feel trusted and motivated, improving their performance. However, with 60 managers making their own decisions, gyms may become inconsistent - different standards and promotions could confuse customers and weaken the Nova brand. Some managers may also lack the experience to make good decisions, so head office would need to invest in training them.
▸ AO2 (Application, 3 marks): uses the context - 60 gyms, timetables, promotions, rotas Level 1-3
▸ AO3a (Analysis, 3 marks): chains of reasoning about benefits and drawbacks Level 1-3