ELYON CHRISTIAN HIGH SCHOOL

1st SEMESTER
TERM 1
ACADEMIC YEAR 2023/2024

Subject : Business Grade 9 Score:

Student’s Name :

Class / No :

Day / Date :

Organisation and Management

I. The table sets out different jobs in an organisation. Complete the table by stating which
functional department the job is in. The activities are:

● finance

● marketing

● operations

● human resources

● research & development

Job type Functional department

Product line workers Operations
Management accountant Finance
Technicians involved in testing new products Research & Development
The employees that manage workers’ contracts Human Resources
The team of staff that work on promotional campaigns Marketing

II. Hot Crust bakery operates in a large city in South Africa and in the surrounding region. It
is a medium-sized family business that has seen the number of layers in its hierarchy increase
over time as the business has grown. The new CEO Karabo wants to reduce the layers in the
hierarchy. This has implications for managers who will see their span of control increase.

a. Define the term ‘span of control’.

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 [2]
The number of subordinates reporting to each supervisor/manager.

b. State two factors that might determine the span of control of a manager.
[2]
The business size & the management style.

c. Explain why the span of control tends to widen as Hot Crust reduces the layers in its
hierarchy.
[6]
The span of control tends to widen when an organisation delayers because the managers of
the old managers now have to manage the subordinates below the old manager. Given that
the old manager used to manage several people and the current manager likely used to
manage several people too, this means that they need to manage more people, hence, the span
of control widens. Companies with flat organizational structures frequently have a wide
breadth of control. This is due to the fact that there are fewer layers between top and bottom
levels. The chain of command is therefore short.

III. Pug Gym is a chain of gyms managed by Wen and Jackson, who are brother and sister.
Wen is the CEO and Jackson is the financial director. They have contrasting management
styles. Wen likes to make all the significant decisions and rarely delegates. Jackson is much
more consultative and likes to involve the people in his team in decision making. Wen’s and
Jackson’s contrasting leadership styles are seen as a weakness and a major investor would
like Pug Gym to adopt a more democratic approach.

a. Outline ways that a manager might delegate a decision at Pug Gym.

[4]
- They could allow an employee to handle complaining customers who request for a
manager.
- They could allow the employees to help decide what new gear should be provided.
- They could allow the employees to decide what services should be provided from the
gym.
- They could allow employees to ask for feedback from customers so that they know
what to improve on.

b. Outline two characteristics of the autocratic leadership style of management.

[4]
- The higher-ups make all the decisions without discussion with others. The instructions
are passed down and the leader will just check if they have been carried out or not.
- Decisions are made quickly and this is a useful method for emergency situations.

c. Consider why Pug Gym might benefit from a more democratic style of management
through the organisation. Justify your answer.
[6]
A gym is a service that heaving relies on the people who use the equipment and services
provided, so it is very important for this business to have input/feedback from the customers
who actually use the service. This can be done by allowing employees to partake in
discussions in decision making, just like in the democratic leadership style.

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Leaders should discuss the decisions with employees before carrying them out, which can
improve the final decision. Communication is also better this way and employees will feel
respected and valued.

IV. Match the examples of the work of managers with each of the functions in the table.

● planning

● organising

● commanding

● coordinating

● controlling

Example Function
A team of employees have to report their monthly sales Planning
figures to a manager.
A manager holds a team meeting because they feel that the Commanding
team is under-performing.
Managers hold a meeting to work out a strategy to achieve the Controlling
coming year’s profit target.
A manager puts together the resources that each team will need Organising
when they are going out to sell to customers.
The sales manager works with the production manager to Coordinating
make sure that enough of the final product will be available to
meet customer demand.

V. The board of directors at Asprilla Engineering Ltd are struggling with poor industrial
relations between the company’s management and the workforce. Several industrial disputes
have been costly in terms of the firm’s loss of output and their reputation amongst customers.
The directors have created a strategy that will decentralise decision making, allow more
democratic leadership and provide better relationships with the trade union that represents
many of its workers.

a. State two functions of company directors.

To provide leadership to ensure the success of the business and make sure the business has
enough resources to achieve its objectives.
[2]

b. Outline two characteristics of democratic management.

The decisions are made through discussions between leaders and employees where their
feedback is considered and delegation is common in this management style.
[4]

c. Explain one problem associated with decentralised decision making.

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There is potential for a lack of accountability, due to the difficulty of determining who is
responsible for a particular decision.
The decisions taken may not be in the best interest of the entire business, this is because
decisions are not made by top management.
With decentralization, individual teams are more likely to be successful, but overall corporate
performance may suffer. This is a result of a lack of coordination between units and
departments as well as a potential focus on team performance at the expense of the larger
corporate strategy and objectives. When multiple departments in an organization require
access to the same data or resources, decentralization causes a gulf of distance between them.
[6]

d. Why might a better relationship between Asprilla Engineering’s management and the trade
union benefit the company? Justify your answer.
This is because, with the existence of good industrial relations between workers and
companies, peace will be created in trying and working, so that there will be an increase in
work productivity and workforce skills, which will be able to increase company production
and company profits.

[6]

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