Grenada makes meat products such as pies, burgers and ready-made meals. It employs 10000 workers. It operates in many countries, each with different laws and traditions. Its organisation structure is tall and hierarchical. Spans of control are narrow and there is little delegation. Some middle managers complain that they are not allowed to make important decisions. The directors want to improve communication with employees. [Figure 2: Organisational structure of Grenada]

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2014). The mark or mark type is shown in brackets.

1. [2] Knowledge [2 × 1] one mark per feature
2. Points might include:
3. Many layers (of management);
4. Decision making takes longer
5. Narrow span of control
6. Little delegation
7. Opportunities for promotion
8. Communication can take a long time
9. Clear lines of authority
10. Long chain of command.
11. [2] Clear application [2]: e.g. structure in an organisation which allows instructions to be passed down [1] from board of directors through middle managers to other employees [+1]
12. [1] Some understanding [1] e.g. way power and authority are passed down in an organisation
13. For 2 marks must refer to figure 2.
14. [2] Knowledge [2 × 1] - award 1 mark for each way identified
15. [2] Analysis [2 × 1] - award 1 mark for each relevant explanation
16. Points might include:
17. Letter [k] can contain a lot of information [an]
18. Meeting [k] allows opportunity for discussion / feedback [an]
19. Video conferencing [k] so less need to travel between different countries [an]
20. Phone / mobile [k] as can contact person straightaway [an]
21. Email / text [k] as able to send same message to everyone at same time [an]
22. Noticeboard [k].
23. Do not accept visual / written which are categories and not specific ways.
24. [2] Knowledge [2 × 1] – award 1 mark for each disadvantage identified
25. [2] Application [2 × 1] – award 1 mark if relevant reference made to this business
26. [2] Analysis [2 × 1] – award 1 mark for each relevant explanation (show how or why it might be a disadvantage to a business)
27. Points might include:
28. Communication / language problems [k] as many timezones [app] which could lead to delays or mistakes in decisions [an]
29. Different Legal controls [k] e.g. different food laws [app] so hard to organise the production process [an] OR Different employment laws / work practices [k] so not able to have same rules in all its factories [app]
30. Different market conditions [k] people have different tastes / traditions [app] so it is might be difficult to sell / market the same products everywhere [an]
31. Impact of exchange rates [k] which may make it difficult to set budgets [an]
32. Difficulty in ensuring quality / standard [k] for meals made in each location [app] which could damage image / reputation [an]
33. Problems with control / management [k]
34. Long distances involved [k] as difficult to use same supplier [an] to provide all the ingredients [app].
35. Do not accept 'countries' as application as stated in question.
36. [2] Knowledge [2 × 1] award 1 mark for each issue identified
37. [1] Application [1] – award 1 mark if relevant reference made to this business
38. [1] Analysis [1] – award 1 mark for relevant development of point(s)
39. [2] Evaluation [2] – justified decision made as to whether Grenada would benefit from greater delegation in its decision making
40. Advantages of delegation include:
41. Decision making closer to 'the ground' [k] as likely to understand the laws / traditions [app] to have better idea what customers want [an]
42. Quicker decisions [k] as don't have to wait for response [an] which could take time due to being in different countries [app]
43. Increased motivation/involvement [k] as if able to make important decisions [app] might be more productive/efficient [an]
44. Lighten workload for senior managers [k] so Directors have more time [app] to focus on strategic decisions [an]
45. New ideas [k].
46. Disadvantages might include:
47. Loss of control at the top [k] so could lead to duplication of work [an]
48. Disagreements/different decisions made [k] as middle managers can now make important decisions [app] so no consistency of approach [an]
49. Skills of managers [k] middle managers can't cope with extra responsibility [app] leading to mistakes [an].
50. Application might include: pies, ready meals, burgers (food), taste, many countries, different laws and traditions, narrow spans of control, little delegation, cannot make important decisions, want to improve communications.
51. Developed answer:
52. Workers will feel more motivated [k] as they can make important decisions [app]. Better decisions could be made [k] as managers in each country are likely to know what their customers want [an] so more delegation could be very beneficial leading to higher sales and profits [eval].