Business 7115 · O Level · Organisation and management

Organisation and management — practice question

DBG is a construction firm. It constructs hospitals, roads and schools. DBG employs 2000 people. Its managers adopt a democratic leadership style. They understand that effective internal communication matters. DBG intends 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 to a business.

(b)[2]

Define the term ‘organisational structure’.

(c)[4]

State four factors a business ought to take into account when deciding which employees to make redundant.

(d)[6]

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

(e)[6]

Do you think all businesses gain from an increase in government spending? Justify your answer.

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