Test 1

Question 1

What is delayering?

Answer 1

This involves removing levels of management within the organisation in order to flatten the structure.

Question 2

Advantages of delayering?

Answer 2

1. Can save the cost of employing a whole level of management, which will make it more competitive and increase its chances of survival.
2. The business is more responsive to change and communication is better.
3. Decision making process is quicker.

Question 3

What are operational decisions?

Answer 3

These are the day-to-day routine decisions that are most often made by lower level managers and supervisors.
They are made in response to problems that arise weekly or daily (e.g deciding on how to cover for staff absence).

Question 4

Role of a manager

Answer 4

COMPDCC
C - Command
O - Organise
M - Motivate
P - Plan
D - Delegate
C - Co-ordinate
C - Control

Question 5

Describe what Commanding means in terms of the roles of a manager

Answer 5

Leading and directing the workforce.

Question 6

Describe what Organising means in terms of the roles of a manager

Answer 6

Making sure the resources the business need are in the right place at the right time.

Question 7

Describe what Motivating means in terms of the roles of a manager

Answer 7

Making sure that the workforce is satisfied and engaged with their jobs and building good team working as well as inducing a positive environment in the workplace

Question 8

Describe what Planning means in terms of the roles of a manager

Answer 8

Looking ahead and making decisions on what is needed in the future.

Question 9

Describe what Delegating means in terms of the roles of a manager

Answer 9

Assigning the authority to
carry out tasks to appropriate subordinates
whilst maintaining overall responsibility.

Question 10

Describe what Co-ordinating means in terms of the roles of a manager

Answer 10

Making sure everyone is pulling together to try to achieve the same objectives.

Question 11

Describe what Controlling means in terms of the roles of a manager

Answer 11

Checking that work is being done as instructed and that the business is moving forward.

Question 12

What is vertical integration?

Answer 12

Occurs when 2 businesses operating at different
stages of production join together (eg a
manufacturer and a supplier or a manufacturer and
a retailer)

Question 13

Why use vertical integration?

Answer 13

1. Eliminate the middleman and his profit
2. Benefit from economies of scale
3. Control where products are sold
4. Control source and cost of supplies

Question 14

What are the two types of vertical integration?

Answer 14

Backward Vertical Integration:
Occurs when a business merges with or takes over a
business at an earlier stage in production eg a
manufacturer and a supplier.

Forward Vertical Integration:
Occurs when a business merges with or takes over a
business at a later stage in production eg a manufacturer and a retailer

Question 15

What are the external factors?

Answer 15

PESTEC
P - Political
E - Economical
S - Social
T - Technological
E - Environmental
C - Competitors

Question 16

How is technology used in HR?

Answer 16

Can be used in:
Recruitment and selection - Preparing job adverts, using recruitment websites, collecting application forms, drawing up a short leet, preparing for the interview and the interview itself, candidate testing.

Staff training - Training events can be hosted online, or e-learning on the business computer network.

Staff record keeping - databases storing basic information about employees.

Question 17

What is Maslow’s hierarchical of needs?

Answer 17

The needs at the bottom of the pyramid were basic needs (Physiological Needs like food, drink, clothing, shelter and warmth) ​

Next would come Safety Needs eg having Job security.​

Next would come Social/Emotional Needs eg ​a feeling of being part of a team at work, being trusted and accepted.​

Next would come Esteem Needs met by being given rewards like promotion or perks.​

Finally, at the top of the pyramid are Self-Actualisation Needs where the person would reach their fullest potential via promotion and possibly ownership of the business.

Question 18

Advantages of using a retailer as a channel of distribution

Answer 18

Provide a source of market research​

Often located close to the customer​

Provide an after-sales service ​

Retailer may offer credit facilities​

Retailer may already have an established customer base ​

Retailer incurs cost of store, sales staff and retail premises ​

Selling to a retailer is more direct than through a wholesaler (higher percentage profit for the manufacturer)

Question 19

Disadvantages of using a retailer as a channel of distribution

Answer 19

May not have specialist product knowledge ​

Product is more expensive to buy for the customer