Business 7115 · O Level · Organisation and management
Organisation and management — practice question
SRB is a bank that lends to business customers. SRB is planning to make 100 managers’ jobs redundant across its 80 branches. This would eliminate one layer of hierarchy. It is part of the plan to cut costs by $1m over the next 2 years. The Managing Director said: ‘SRB is consulting the trade union on this plan. SRB will rely more heavily on delegation. The bank must react to greater 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 benefits to SRB of using delegation.
(d)[6]
Explain two factors SRB ought to consider when choosing which managers to make redundant.
(e)[6]
Do you think that more advertising is a better response to increased competition for a business than introducing 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: “Workers who band together so that their interests are safeguarded” …