Business 0450 · IGCSE · Organisation and management
Organisation and management — practice question
SRB is a bank that lends to business customers. SRB plans to make 100 managers’ jobs redundant across its 80 branches. This would eliminate one level of hierarchy. This forms part of its plan to cut $1m in costs over the next 2 years. The Managing Director stated: ‘SRB is discussing this plan with the trade union. SRB will rely more on delegation. The bank must react to tougher competition from online banks. SRB could either increase advertising or create new products and services.’
(a)[2]
Define the term ‘trade union’.
(b)[2]
Define the term ‘level of hierarchy’.
(c)[4]
Outline two advantages SRB could gain from delegation.
(d)[6]
Explain two factors SRB should weigh up when deciding which managers to make redundant.
(e)[6]
Do you think that greater advertising is a better response to increased competition for a business than launching new products and services? 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: “A group of workers who unite so that their interests are safeguarded” …