1
2 marks
Define the term 'span of control'.
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Organisational Structure (A Level) (Cambridge (CIE) A Level Business): Exam Questions
Exam code: 9609
2 hours20 questions
2
3 marks
Case Study
Rosemont (RM)
Rosemont (RM) manufactures skincare products in country H. It employs 260 people and sells to pharmacies and department stores.
RM is organised into four departments: production, marketing, finance, and human resources. Each is led by a director who reports to the managing director.
Staff in each department work only within their own specialism. RM's chemists all sit within production, and its designers all sit within marketing.
RM's managing director says the arrangement means she always knows who is responsible for what.
Explain one benefit to RM of a functional structure.
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3
2 marks
Define the term 'delegation'.
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4
3 marks
Case Study
Fairstone (FS)
Fairstone (FS) is an insurance company in country Y employing 2,400 people. It has nine levels of hierarchy between the chief executive and the staff who deal with customers.
A customer wanting to claim more than $5,000 must have the claim approved at four separate levels.
FS's average time to settle a claim is 34 days. Two newer insurance companies in country Y settle claims in under a week, and have taken 6% of FS's market share in three years.
Explain one drawback to FS of its hierarchical structure.
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5
2 marks
Define the term 'authority'.
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6
3 marks
Case Study
Greenway (GW)
Greenway (GW) maintains parks and business grounds in country F. It employs 140 people working in 18 teams across the country.
GW's owner, Marcus, requires every team leader to send him photographs of completed work and to telephone him before buying materials costing more than $50.
Team leaders say the calls waste time, particularly when a job needs a part urgently. Three team leaders have left in the past year, two of them saying they were not trusted to do their jobs.
Marcus says he has seen work done badly in the past and cannot risk GW's reputation.
Explain one conflict between control and trust in the way Marcus delegates.
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7
2 marks
Define the term 'matrix structure'.
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8
2 marks
Define the term 'decentralisation'.
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9
3 marks
Explain one difference between a line function and a staff function.
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10
3 marks
Explain one reason why a business might change its organisational structure.
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1
8 marks
Read the following extract before answering
Analyse two possible advantages to DL of centralisation as the business continues to expand.
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2
8 marks
Read the following extract before answering
Analyse two benefits of changing to a decentralised organisational structure as AC continues to expand.
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3
8 marks
Read the insert (opens in a new tab)before answering this question.
Analyse two problems that MT might face as a result of centralising its management structure.
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4
8 marks
Read the insert (opens in a new tab)before answering this question.
Analyse two effects of decentralisation on KB's business.
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5
8 marks
Case Study
Chapter House (CH)
Chapter House (CH) owns 31 bookshops in country W and employs 380 people.
CH's founder, Mira, still approves every stock order, every price reduction and every request for local advertising. Shop managers must email her and wait for a reply.
Table 1.1: CH selected data
Shops | 31 |
Employees | 380 |
Average time for a shop manager to receive a decision from Mira (working days) | 6 |
Shop manager turnover in the past year (%) | 29 |
Shops whose manager has more than five years' experience | 22 |
Mira works around 70 hours a week and says she no longer has time to plan CH's expansion into two new cities.
Several shop managers have said they could choose local stock better than head office, because they know which authors sell in their own town.
Analyse two benefits to CH of Mira delegating more decisions to her shop managers.
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1
12 marks
Read the following extract before answering
Evaluate the extent to which the organisational structure of the Design Division contributes to the success of HD.
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2
16 marks
Read the following extract (line 89) before answering
Recommend appropriate changes to WTZ’s organisational structure to ‘support growth and drive innovation’. Justify your recommendation.
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3
16 marks
Read the following extract before answering
JGS is planning to increase the number of employees. Recommend an appropriate organisational structure for JGS. Justify your recommendation.
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4
16 marks
Read the following extract before answering
Discuss whether introducing a decentralised organisational structure will benefit HBG.
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5
20 marks
Read the following extract before answering
Evaluate whether successful implementation of a new strategy requires NH to change its organisational structure.
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