Business 0450 · IGCSE · Organisation and management

Organisation and management — practice question

DBG is a construction company. It constructs hospitals, roads and schools. DBG employs 2000 workers. The managers adopt a democratic leadership style. They understand that effective internal communication is important. DBG is planning to alter its organisational structure. As a result, some employees will be made redundant. The Managing Director must decide how changes in government spending could influence business activity.
(a)[2]

Identify two reasons why effective internal communication matters in a business.

(b)[2]

Define what is meant by ‘organisational structure’.

(c)[4]

State four factors a business should take into account when choosing which employees to make redundant.

(d)[6]

Explain two advantages to DBG of managers adopting a democratic leadership style.

(e)[6]

Do you think all businesses benefit from an increase in government spending? Support your answer with justification.

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