JGS is planning to increase the number of employees. Recommend an appropriate organisational structure for JGS. Justify your recommendation.

Mark scheme

Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.

1. [2] Two or more relevant points (Knowledge)
2. [2] Application of two or more points to JGS (Application)
3. [6] Good use of theory to answer question (Analysis)
4. [6] Good judgment shown (Evaluation)
5. Knowledge:
6. Any/all from: flexibility/advantages/disadvantages of temporary or flexible contracts, objectives of structure, types of structure, formal and informal structures, delegation and accountability, control, authority, trust, centralisation.
7. Application:
8. Change from self-employed to employed
9. Regional managers and extra office employees
10. Jan and Gorl have different approaches
11. Nature of business: tourism, walks, village accommodation, international customers
12. Government change to employment regulations
13. Analysis (Change from self-employed to employed - Advantages):
14. May bring security to and commitment from villagers
15. Easier to administer
16. Easier to plan ahead as number of employees known
17. Analysis (Change from self-employed to employed - Disadvantages):
18. Less flexible
19. More expensive in administration – pensions, tax
20. Short run loss of certainty while contracts negotiated
21. Analysis (Centralising by owners means):
22. Clear goals/guidelines
23. Faster decision making
24. Better consistency and coordination of activities
25. Formal hierarchy means clear chain of command and communications
26. Managers have good knowledge of the workforce and can detect promotion candidates and direct customers to appropriate houses/guides
27. Employees have clear set objectives, structure and guidance
28. Customers have clear expectations that will be met hence satisfaction is increased
29. Analysis (Delegation to employees means):
30. Employees feel valued and will be creative, faster decision taking
31. Employees increase confidence and skills
32. Easier to detect promotion candidates
33. Managers freed to focus on strategic thinking
34. Employees freer to develop relationships with customers based on their individual strengths
35. Evaluation:
36. Still a small business so Jan and Gorl are able to know office and regional employees. Means either approach is beneficial
37. Employee guides and hosts will be dealing directly with customers so must have some trust and authority to act in accordance with conditions as they see them
38. Necessary to have control via expectations, contractual requirements and JGS policy
39. Is it worth considering a change to JGS as a company to better deal with expansion and possible need for finance?
40. Combination of approaches e.g. possible to have tight control of office and regional managers but more trust for villagers
41. Employment contracts will inevitably mean more formality and control