Business Studies Pearson Edexcel GCSE Topic 2.5 Questions & Answers
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Business Studies Pearson
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Business Studies Pearson
Discuss the impact on a business of giving employees permanent contracts - ANSWERSWorkers employed on permanent contracts are more likely to be feel secure in their job (1). Therefore, motivation may be higher, which may increase the productivity of the business (1). This will reduce the cost per u...
Business Studies Pearson Edexcel
GCSE Topic 2.5 Questions & Answers
Discuss the impact on a business of giving employees permanent contracts -
ANSWERSWorkers employed on permanent contracts are more likely to be feel secure
in their job (1). Therefore, motivation may be higher, which may increase the
productivity of the business (1). This will reduce the cost per unit (3).
Workers employed on permanent contracts are less likely to leave the business (1).
Therefore, the business may save money on recruiting and training new workers (1).
This may allow money to be spent in other areas of the business to improve
competitiveness (1).
Explain one advantage of having a flat organisational structure -
ANSWERSCommunication may be faster than hierarchical structures (1), because
there are fewer layers (1). This may increase productivity (1).
Staff are given greater responsibilities (1), because of more delegation (1). Therefore,
they may be more motivated to show off their abilities (1).
Explain one disadvantage of having a flat organisational structure - ANSWERSStaff can
be overworked (1), because there is less supervision (1). This can reduce their
efficiency because of the subsequent stress (1).
Managers may have too many staff to manage (1), because flat structures create a wide
span of control (1). This can decrease communication, and thus, efficiency (1).
Explain one advantage of having a centralised organisational structure -
ANSWERSCustomer experience will be uniform (1), because consistency will exist
amongst branches (1). This may increase customer satisfaction (1)
Decisions are taken for the benefit of the whole business (1), because divisions cannot
enforce inefficient decisions (1). This can maximise profits for the company (1)
Explain one advantage of having a decentralised organisational structure -
ANSWERSReact quicker (1), because they don't have to check with HQ (1). This
adapts to products quicker (1).
Lower fixed costs (1), because the business will no longer require a head office (1).
Instead, decisions are made in individual branches (1).
Explain one disadvantage of having a centralised organisational structure -
ANSWERSLocal management are likely to be much closer to customer needs (1)
, because they interact (1). Therefore, the best decisions for the local area may not be
adopted by the whole business (1).
Staff may become demotivated (1), because of their lack of authority (1). This can
reduce productivity (1).
Explain one disadvantage of having a decentralised organisational structure -
ANSWERSHarder to control costs (1), which means the business may end up over-
spending (1), and creating a negative cash flow (1).
It is difficult to ensure consistent practices and policies (1), because each location has
different ideas (1). Customers, who prefer consistency, may not be satisfied (1).
Explain one advantage of having a hierarchical organisational structure - ANSWERSIf
there are lots of workers (1), it can be harder to control/manage workers (1). With more
managers, the business can become more efficient (1).
Hierarchical structures can motivate employees (1), because the layers provide more
opportunities for promotion (1). Therefore, staff may work more productively (1).
Explain one disadvantage of having a hierarchical organisational structure -
ANSWERSHierarchical structure can be expensive (1) because there are more high
ranking employees (1). Therefore, labour costs rise (1).
Hierarchical structure can mean slow communication within the company (1), because
there are lots of layers separating departments (1). This can create a competitive
disadvantage if they are slow to adapt (1).
Explain one possible barrier to effective communication within a business - jargon (3) -
ANSWERSUsing technical language or jargon can be a barrier to communication (1),
because it may confuse employees (1). As a result, productivity is wasted if staff
misunderstand their task (1).
Long chains of command mean that messages have to pass through too many
employees (1). Therefore, it makes it difficult for the business to respond quickly to
change (1), creating a competitive disadvantage (1).
Explain the impact of excessive communication - ANSWERSEmployees can become
demotivated (1), because they are overloaded with too much information and become
stressed (1), which may lead to inefficiencies and a reduction in productivity (1).
Staff may miss important information (1), because there is a lot to get through (1). This
can lead to mistakes - a waste of time and money (1).
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