Business 0450 · IGCSE · Organisation and management

Organisation and management — practice question

MTO is a bank that offers loans and other financial services to 1 million customers. It operates 70 branches and employs 2800 people. Many members of staff work part-time. The business has a tall organisational structure and its managers have a narrow span of control. Effective internal communication matters. One of MTO’s objectives is growth, and the Human Resource Director has been told to recruit a new manager. Details about applicant A are given in Table 4.1.
(a)[2]

Identify two advantages to a business of employing part-time workers.

(b)[2]

Define the term ‘organisational structure’.

(c)[4]

Identify four reasons why effective internal communication is important within a business.

(d)[6]

Using Table 4.1, explain two reasons why MTO should choose applicant A for the new manager job.

(e)[6]

Explain two reasons why a business may wish to grow. Which reason is probably the most important? Justify your answer.

Worked solution & mark scheme

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