Organisation Structure & Employees (Edexcel IGCSE Business): Exam Questions

Exam code: 4BS1

1 hour23 questions
1
1 mark

Case Study

Saha is a small business in Türkiye (formerly known as Turkey) that opened in 2020 with 15 employees. It designs and manufactures robots which are used in hospitals, hotels and restaurants. In hospitals its robots are used to move medical supplies between departments. In hotels and restaurants, the robots are used to welcome customers as they arrive and deliver food and drinks to hotel rooms and restaurant tables. Saha provides a seven day a week customer service for all businesses buying its robots.

Many new businesses are entering the global robot market and are competing for market share. Competitors in Türkiye include NIO, Zoox and Vention.

Saha has ambitious growth plans and has started to design robots that will be used in the home to help people with cleaning, shopping, security and entertainment. It aims to become a multinational business within five years to manufacture robots in all continents of the world.

State one task that an employee working in the production department at Saha might do.

2
1 mark

Case Study

The first Premier Inn hotel was opened in 1987. Premier Inn now has over 820 hotels in the UK, United Arab Emirates (UAE) and India with over 83,000 rooms. It has recently expanded by opening the first Premier Inn in Germany and has plans to open more in other countries.

The majority of the hotels have restaurants with facilities for guests to buy meals and drinks.

State one reason why Premier Inn managers would delegate tasks to hotel employees.

3
1 mark

Case Study

The first Premier Inn hotel was opened in 1987. Premier Inn now has over 820 hotels in the UK, United Arab Emirates (UAE) and India with over 83,000 rooms. It has recently expanded by opening the first Premier Inn in Germany and has plans to open more in other countries.

The majority of the hotels have restaurants with facilities for guests to buy meals and drinks.

Premier Inn wants to retain its employees so it can continue to maintain the service it provides for guests.

State one activity carried out by the marketing functional area at Premier Inn.

4
1 mark

Which one of the following functional areas could help employees who had a problem with their wage?

Select one answer.

  • Production

  • Finance

  • Marketing

  • Sales

5
1 mark

Define the term span of control.

6
1 mark

Case Study

As We Grow (AWG) is a clothing business in Iceland. The social objective of the business is to use natural materials, such as wool, and produce environmentally friendly products. It aims to design clothes that will last a long time, to encourage families to buy fewer clothes and reduce waste in society.

AWG’s increasing product range now includes jumpers, dresses, shirts and baby clothes. These are produced in small workshops that employ family and friends. Waste is kept to a minimum and any leftover material is used to make scarves and hats. The business has one store in Iceland. It uses its website to advertise and sell its clothing online to customers in other countries. The business has received the Icelandic Design Award for its contribution to the environment.

State one task of an AWG employee working in the human resources department.

7
1 mark

Which one of the following is a role of the production function?

Select one answer.

  • Workforce planning

  • Quality control

  • Customer service

  • Staff welfare

8
1 mark

Which one of the following functional areas is responsible for the recruitment of new employees?

Select one answer.

  • Finance

  • Marketing

  • Production

  • Human Resources

9
1 mark

Case Study

The LEGO Group is a privately-owned business in Denmark. The business was founded in 1932 by the Kristiansen family. The family still owns it. The name LEGO is an abbreviation of two Danish words, ‘leg godt’ which means ‘play well’. It is now one of the world’s largest manufacturers of toys with 15 factories and over 18,000 employees around the world.

LEGO manufactures toys, games and art materials for boys and girls of all ages, and products from films such as Star Wars and Harry Potter. It believes that children are the role models of the future and playing with LEGO can support children in a developing and complex world.

State one benefit for LEGO of having a short span of control.

10
1 mark

Define the term delegation.

11
1 mark

Which one of the following departments would send an invoice to a supplier?

Select one answer.

  • Human resources

  • Marketing

  • Finance

  • Production

12
1 mark

Define the term hierarchical structure.

13
2 marks

Case Study

In 1985 Emirates started its airline business with just two aircraft. It is now a well‑known airline with over 265 aircraft flying to over 180 destinations around the world.

Emirates has won many awards for service and reliability. Until 2016 passengers rated Emirates the leading airline to travel with. However, in 2017 its rating dropped from first to fourth.

Saving the environment in which we all live is important. The Chairman ensures that Emirates works hard to recycle many of the materials it uses and to reduce atmospheric pollution from the fuel that powers its aircraft. Water consumption for washing aircraft has been reduced, newspapers and other paper products collected from Emirates aircraft cabins are recycled. Emirates uses a variety of methods to monitor its employees when carrying out these jobs. For these roles Emirates uses a short chain of command.

Outline one reason why Emirates has a short chain of command for monitoring its employees when recycling.

1
3 marks

Explain one reason why many businesses have a human resource function.

2
6 marks

Case Study

Raft is an outdoor adventure equipment retailer with 45 stores across the UK and Ireland. It sells a wide range of products, including hiking gear, camping equipment, climbing supplies and water sports kit. Each store employs a team of specialist staff with expertise in different outdoor activities. Raft's head office is based in Edinburgh.

Analyse the benefits for Raft of delegating tasks to its store employees.

3
3 marks

Explain one benefit to a business of having a short chain of command.

4
6 marks

Case Study

Alloy is a UK-based manufacturer of precision metal components used in the aerospace and automotive industries. It employs 800 workers across three large production facilities. Alloy is known for the high quality and accuracy of its products and has strict quality control processes in place at every stage of production.

Analyse why Alloy has a tall organisational structure.

5
3 marks

Explain one benefit to a business that has a decentralised organisational structure.

6
3 marks

Explain one benefit to a business of having a flat organisational structure.

7
6 marks

Case Study

Hearth is a growing restaurant chain with 60 restaurants across the UK, founded in 2010. It serves a seasonal menu using locally sourced ingredients. Each restaurant has its own head chef and management team who are encouraged to adapt the menu to reflect local produce and customer preferences. Hearth is planning to open a further 20 restaurants over the next three years.

Analyse the benefits for Hearth of having a decentralised organisational structure.

1
12 marks

Case Study

Pillar is a UK construction company founded in 1995. It employs 2,500 workers, including site managers, engineers, surveyors and labourers, across 30 active construction sites nationwide. Workers range from highly experienced engineers and surveyors to newly recruited labourers who require close guidance. Each site operates independently with its own management team responsible for ensuring projects are completed safely, on time and to specification.

Construction work is subject to strict health and safety regulations, and errors on site can be costly and dangerous. Pillar has recently won several major contracts to build new housing developments and office complexes, significantly increasing its workforce and the number of sites it manages. Senior managers at Pillar's head office are finding it increasingly difficult to maintain oversight of all 30 sites and are considering changes to the way the business is structured and managed.

Evaluate the view that Pillar should move to a flatter organisational structure.

2
12 marks

Case Study

Mosaic is a creative design agency based in London, founded in 2016. It employs 35 designers, copywriters and project managers who work on branding, advertising and digital campaigns for clients across the UK and Europe. Staff are highly skilled professionals who value creative freedom and the opportunity to take ownership of their work. Mosaic prides itself on its collaborative culture and has won several industry awards for its campaign work.

The agency has grown rapidly and is currently managing more client projects than ever before, placing increasing demands on its staff. Employee feedback has suggested that some staff feel undervalued and are considering leaving for rival agencies that offer greater responsibility and recognition. Mosaic's directors are keen to find effective ways to improve motivation and retain their most talented employees.

Evaluate the view that delegation is the most effective way for Mosaic to motivate its employees.

3
9 marks

Case Study

Vesta is a UK estate agency founded in 2008. It now has 55 branches across England and Wales, each employing a team of sales negotiators, valuers and administrative staff who work with buyers, sellers and landlords in their local area.Branch managers have strong local knowledge and well-established relationships with clients in their communities.

Vesta has grown quickly in recent years, and its directors are finding it increasingly difficult to make all key decisions from head office while also planning for future growth. Vesta is planning to open a further 15 branches over the next two years.

Vesta is considering how best to structure decision-making across the business. It is considering two options:

  • Option 1: centralised decision-making — all key decisions are made by Vesta's directors at head office

  • Option 2: decentralised decision-making — branch managers are given the authority to make key decisions for their own branch

Justify which one of these two options Vesta should choose.