Business Studies · Oct / Nov 2020 · Paper 11 · Question 1

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SRB is a bank which provides loans to business customers. SRB plans to make 100 managers’ jobs redundant from its 80 branches. This would remove one level of hierarchy. This is part of its plan to save $1m in costs over the next 2 years. The Managing Director said: ‘SRB is working with the trade union about this plan. SRB will make more use of delegation.The bank has to respond to increased competition from online banks. SRB could either advertise more or develop new products and services.’

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1(a)[2]
Define ‘trade union’. Award 2 marks for a full definition. Award 1 mark for a partial definition. Group of workers who join together to ensure their interests are protected [2]
Organisation that represents the workers and fights for improvements to pay and conditions [2]
An organisation that exists to provide workplace support for its members [2]
Partial definition – e.g. Group of workers who join together [1]
Group of people who act together to protect their rights [1]
2 Do not award pressure group as this does not answer the question.
1(b)[2]
Define ‘level of hierarchy’ Award 2 marks for a full definition. Award 1 mark for a partial definition. Managers/supervisors/other employees who are given a similar level of responsibility in an organisation [2]
A level of authority in a business structure [2]
Partial definition e.g. People all at the same rank [1]
2 Note: To gain 2 marks the answers should show that workers are on a similar level and are within one organisation. Notes
1(c)[4]
Outline two advantages of SRB using delegation. Award 1 mark for each relevant advantage. Award 1 mark for each relevant reference to this business. Points might include:
Workload spread more evenly/reduced workload for managers [k] in its 80 branches [app]
Management can focus on more important matters [k] such as responding to increased competition [app]
Motivates employees/gives sense of responsibility [k] so less problems with trade unions [app]
Improved efficiency/better quality of work (because workers are specialised)
Career opportunities [k] as able to do similar work to the 100 managers [app]
Management can measure the success of staff more easily [k]
Can assist with training [k] Other appropriate responses should also be credited. 4 Points can relate to employees or the business. Note: To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question:
Business customers
100 managers
80 branches
Removing one level of the hierarchy
Saving $1m in costs
Increased competition
Bank (services) or related words such as loans
Develop new products and services
Trade union Other appropriate examples in context can still be credited. Notes
1(d)[6]
Explain two factors SRB should consider when deciding which managers to make redundant. Award 1 mark for identification of each relevant factor (max 2). Award 1 mark for each relevant reference to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include:
Importance of the role being performed [k] to maintain contact with business customers [app] to ensure good customer service [an]
Performance/experience/skills/flexibility [k] such as not able to use delegation [app] so not able to do the job required [an]
Length of time worked/redundancy costs [k] may be cheaper to choose people who have not been there for a long time [an]
Attitude/attendance/disciplinary record [k] will want to lose poor/ bad workers [an] from the 80 branches [app]
Wages/salary [k] as removing higher paid employees would help reduce costs long term [an] helping to reach the cost reduction of $1m [app]
Which departments need to lose/retain workers [k]
Number of customers [k] at the branch [app]
The number of subordinates under each manager [k] as workers may become inefficient if poorly supervised [an]
Those who volunteer [k] Other appropriate responses should also be credited. 6 Note: To use words from the stem as application, the reference must be appropriate (i.e. Make sense) in relation to the point being made. The following words are likely to be appropriate for this question:
Business customers
100 managers
80 branches
Removing one level of the hierarchy
Saving $1m in costs
Increased competition
Bank (services) / give loans
Delegation. Other appropriate examples in context can still be credited. Do not accept reduced costs alone as [k] or [an] as this is [tv]. Notes
1(e)[6]

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