Business 0450 · IGCSE · Organisation and management

Organisation and management — practice question

ADN operates as a food retailer. It owns 5 shops and employs 300 full-time workers. Every one of ADN’s employees is given off-the-job training. ADN uses a tall hierarchical structure. Its managers have a narrow span of control and all apply an autocratic leadership style. ADN’s directors are intending to grow the business and are unsure whether internal growth or external growth is the more suitable option for a business.
(a)[2]

What does ‘span of control’ mean?

(b)[2]

What is meant by ‘autocratic leadership style’?

(c)[4]

Outline two advantages to ADN of employing full-time workers. Advantage 1: Advantage 2:

(d)[6]

Explain one benefit and one limitation to ADN of using off-the-job training. Benefit: Explanation: Limitation: Explanation:

(e)[6]

Do you think it is better for a business to use internal growth or external growth when planning to expand? Justify your answer.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: The number of subordinates who report directly to a manager

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