Business Studies
People in business — Topic 2
- 1.
On an organisation chart, the number of people directly managed by one supervisor is called: A The chain of command B The span of control C Delegation D Job production
[1 mark] · no calculatorMarking points
- Selects B: span of control, the number of subordinates reporting directly to one manager.
Examiner tip: Span of control counts direct reports at one level; chain of command describes the full line of authority from top to bottom.
- 2.
Explain one advantage to a manager of delegating a task to a trusted employee.
[2 marks] · no calculatorMarking points
- States that delegation frees the manager's time to focus on higher-priority or more strategic tasks.
- Explains that it can also develop the employee's skills and motivation by giving them greater responsibility.
Examiner tip: Delegation passes authority for a task, not accountability for the overall outcome, which the manager still holds.
- 3.
Explain one advantage and one disadvantage to a business of recruiting a new manager internally rather than externally.
[2 marks] · no calculatorMarking points
- States an advantage such as the candidate already knowing the business, saving induction time and cost, and motivating other staff who see promotion opportunities.
- States a disadvantage such as missing out on fresh ideas or a wider pool of external talent, and creating a new internal vacancy that still needs filling.
Examiner tip: Internal recruitment is usually faster and cheaper; external recruitment usually brings wider experience and new perspectives.
- 4.
Paying a sales assistant a fixed amount for each product sold, in addition to a basic wage, is an example of: A Salary B Fringe benefits C Commission D Job rotation
[1 mark] · no calculatorMarking points
- Selects C: commission, a financial reward directly linked to the amount an employee sells.
Examiner tip: Commission and bonuses reward specific results directly; a salary is a fixed periodic payment regardless of individual output that day.
- 5.
Explain one way, other than pay, that a business could motivate its employees.
[2 marks] · no calculatorMarking points
- Identifies a non-financial method such as training, praise and recognition, job enrichment, or improved working conditions.
- Explains how this method could increase an employee's motivation or job satisfaction.
Examiner tip: Non-financial motivators work on job satisfaction and recognition rather than directly on income.
- 6.
A manager who makes all decisions alone and expects staff to follow instructions without consultation is using which leadership style? A Democratic B Autocratic C Laissez-faire D Delegative
[1 mark] · no calculatorMarking points
- Selects B: autocratic leadership, where the manager retains control and does not consult employees before deciding.
Examiner tip: Autocratic leaders decide alone; democratic leaders consult staff; laissez-faire leaders let staff make most decisions themselves.
- 7.
Explain the difference between on-the-job training and off-the-job training.
[2 marks] · no calculatorMarking points
- States that on-the-job training takes place at the workplace while the employee continues working, often shadowing an experienced colleague.
- States that off-the-job training takes place away from the normal workplace, such as a college course, and usually stops the employee's output during training.
Examiner tip: On-the-job training is usually cheaper and keeps some output going; off-the-job training often teaches more transferable, formal skills.
- 8.
A factory has recently introduced strict, unpopular new rules with no employee input. Analyse two likely effects on employee motivation and productivity.
[3 marks] · no calculatorMarking points
- Explains that employees may feel a lack of control or recognition, reducing job satisfaction and motivation.
- Explains a resulting consequence such as higher absenteeism, higher staff turnover, or reduced effort and output.
- Links this to the autocratic, non-consultative style of introducing the rules as the underlying cause.
Examiner tip: Motivation problems usually trace back to how a decision was made (consultation or its absence), not only what the decision was.
- 9.
Discuss whether paying employees a higher basic wage is likely to be more effective than offering non-financial benefits, such as more responsibility and recognition, at motivating a skilled workforce.
[4 marks] · no calculatorMarking points
- Explains that higher pay directly addresses financial needs and can be a strong, immediate motivator for many employees.
- Explains that for skilled employees whose basic needs are already met, recognition and responsibility can motivate more strongly and more sustainably than pay alone.
- States a limitation, such as the cost to the business of a permanently higher wage bill, or the risk of pay increases being taken for granted over time.
- Reaches a judgement depending on employees' existing pay level, the nature of the work, and the business's ability to afford higher wages.
Examiner tip: Pay tends to matter most when income needs are unmet; recognition and responsibility often matter more once pay is already adequate.