Business Studies Topic 4

Question 1

Why have a structure in a business ? Give three reasons .

Answer 1

1. All businesses have to organise what they do
2. A clear structure makes it easier to see which part of the business does what .
3. Males communication easier acrosss the company .

Question 2

What is a chain of command ?

Answer 2

This is the flow of information , power and authority through ghe business. Those at the top have more power and authority .

Question 3

What is a span of control ?

Answer 3

A number of subordinates a manager can delegate tasks to .

Question 4

What is delegation ?

Answer 4

Delegation is where a task is given to a subordinate employee in the hierachy .

Question 5

What is meant by delayering ?

Answer 5

Delayering is when one or more of the layers of management are removed from the business therefore it saves more money .

Question 6

What is a hierachal structure ?

Answer 6

A heirachal structure is a structure in a business that has many layers .

Question 7

What are three advantages of a heirachal structure ?

Answer 7

1. Lost of opportunities for promotion
2. Supervisors normally have a small span of control so they can get to know their subordinates really well .
3. Knowing subordinates means they can delegate the right tasks and make sure their team is well trained.

Question 8

What are three disadvantages of a hierachal structure ?

Answer 8

1. Lots of layers and long chain of command can mean that the business is very inflexible.
2. It can also mean that communications within the organisation are slow .
3. This is expensive as there are more managers and supervisors .

Question 9

What is a flat structure ?

Answer 9

A flat structure in a business is one that has a wide span of control and a short chain of command .

Question 10

What are the advantages of a flat structure ?

Answer 10

1. Fewer layers of hierachy between the bottom and the top of the organisation may mean that communication is fadt .
2. Lots of delegation means that staff are given greater responsibility, which might mean more opportunities to use their abilities .

Question 11

What are three disadvantages of a flat structure ?

Answer 11

1. Staff can be overworked in a flat structure as there is less supervision , this can cause stress and demotivation .
2. Can create a power struggle if the managaged is rarely around as subordinates jostle for roles and responsibilities
3. Wide span of control means managers have too many staff to manage and may loose touch with them .

Question 12

What is decentralisation ?

Answer 12

Where a business divides up the organisation of its business into areas .

Question 13

What is centralisation ?

Answer 13

Where a business has its organisation of management and adminstration at one central head office . The business has one central shared budget .

Question 14

What is communication like in a flat structure ?

Answer 14

Communication is a lot faster

Question 15

What is communication like in a tall hierachy ?

Answer 15

Slow communication because of the amount of layers there are .

Question 16

What is the definition of recruitment ?

Answer 16

The process of finding and hiring the best qualified candidate for the job opening, in a timely and cost effective manner .

Question 17

What are the two reasons why a business will recruit people ?

Answer 17

1. Growth
2. Fill skill gaps

Question 18

What is internal recruitment ?

Answer 18

Attracting staff already working within the business to apply for the new job .

Question 19

Why is internal recruitment good ?

Answer 19

Internal candidates are favoured because they record and skills are already known , they are also loyal to the business .

Question 20

What is external recruitment ?

Answer 20

Recruitment that is advertised for people who are outside of the business .

Question 21

How might external recruitment be done ?

Answer 21

Adverts , newspapers , online adverts and even recruitment agencies .

Question 22

Why is external recruitment good ?

Answer 22

Fresh candidates bring new ideas and enthusiasim to the business and they might not become bored or tired eith the business which might make them work harder

Question 23

What are the four steps to recruitment ?

Answer 23

1. Business identifies the need to recruit a new member of staff .
2. Business writes a job description .
3. Business writes a person specification
4. Business advertises the job and interviews the candidates .

Question 24

What is job analysis ?

Answer 24

A process to indentify and determine in detail the particular job duties and requirments .

Question 25

What is person specification ?

Answer 25

When a business wants to recruit a new member of staff they will write a person specification . This outlines the :
. Personal wualities
. Qualifications
. Work experience
. Skills

Question 26

What is a job description ?

Answer 26

This describes the duties and responsibilities of the role , it also describes what the new employee would do on a day to day basis .

Question 27

What is staff rentention ?

Answer 27

The ability of a business to keep its employees .

Question 28

What is full time work ?

Answer 28

A person who works 35 hours or more a week .

Question 29

What are the advantages of full time work ?