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Internal operations of a large business · Part 2 of 6
9 exam-style questions with model answers, plus 15 quick multi-choice questions — every question on this part of the standard, grouped by the 3 pages of notes they come from.
Write a full answer before you reveal the model one. That comparison is where the learning happens.
Explain what is meant by a span of control.
A supermarket chain moves from centralised to decentralised decision-making, allowing store managers to choose part of their own product range.
Fully explain ONE advantage of this change and how it could positively impact the business.
The same supermarket chain is deciding whether to decentralise product range decisions to store managers, or keep them centralised at head office.
Referring to costs and brand consistency, justify, with TWO reasons, which approach would be more appropriate for the business.
Explain ONE advantage to a business of using a flat organisational structure.
A large business with a tall structure removes two levels of middle management.
Fully explain ONE disadvantage of this change and how it could negatively impact the business.
An invented Bay of Plenty kiwifruit packhouse employs 40 permanent staff and up to 250 seasonal workers during harvest. It is deciding whether to run a tall or a flat structure through the harvest season.
Referring to product quality and labour costs, justify, with TWO reasons, which structure would be more appropriate.
Explain why using a shamrock organisational structure could be an advantage to a business.
Fully explain why using a matrix structure could be a disadvantage to a business, and how this could negatively impact the business.
An invented New Zealand engineering consultancy of 90 staff wins work as separate client projects, each needing a different mix of specialists. It currently uses a traditional departmental structure and is considering moving to a matrix structure.
Referring to project delivery and staff wellbeing, justify, with TWO reasons, whether it should make the change.