Identify and explain one advantage and one disadvantage of Peter delegating tasks to the new Operations manager.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

1. [1] Advantage of delegation: Allows Peter to focus on main tasks
2. [1] Explanation of advantage: Peter cannot do every job himself / Peter can spend time on important issues like expanding into overseas markets
3. [2] Application mark for advantage (contextual reference to Peter's role or PP's expansion)
4. [1] Advantage of delegation: Managers are less likely to make mistakes if some of the tasks are being performed by subordinates
5. [1] Explanation of advantage: Peter is less likely to make mistakes if he has more time to spend on important decisions
6. [2] Application mark for advantage (contextual reference to pottery manufacturing / fewer faulty items)
7. [1] Advantage of delegation: Managers can measure the success of their staff more easily
8. [1] Explanation of advantage: Measuring performance can motivate staff
9. [2] Application mark for advantage (contextual reference to Operations manager's team)
10. [1] Advantage of delegation: The work becomes more interesting for subordinates/subordinates may be more motivated
11. [1] Explanation of advantage: Increased responsibility can boost morale and productivity
12. [2] Application mark for advantage (contextual reference to Operations manager's team)
13. [1] Advantage of delegation: The operations manager feels more important and trusted
14. [1] Explanation of advantage: Empowerment can increase job satisfaction and commitment
15. [2] Application mark for advantage (contextual reference to new Operations manager's role)
16. [1] Advantage of delegation: Allows PP to expand as Peter will need more free time to focus on the expansion
17. [1] Explanation of advantage: Delegation frees up Peter's time for strategic growth
18. [2] Application mark for advantage (contextual reference to exporting to other countries)
19. [1] Disadvantage of delegation: Still responsible if there are errors/some managers are reluctant to delegate/checking and/or monitoring takes time
20. [1] Explanation of disadvantage: Peter remains accountable for the new Operations manager's mistakes
21. [2] Application mark for disadvantage (contextual reference to quality of pottery items)
22. [1] Disadvantage of delegation: Senior managers lose some control
23. [1] Explanation of disadvantage: Less direct involvement can lead to loss of oversight
24. [2] Application mark for disadvantage (contextual reference to manufacturing process)
25. [1] Disadvantage of delegation: Tasks may not be carried out effectively/makes mistakes/manager might not carry out the tasks effectively so quality may suffer
26. [1] Explanation of disadvantage: Inexperience of new manager could lead to errors in pottery production
27. [2] Application mark for disadvantage (contextual reference to faulty pottery items)
28. [1] Summary of financial information for PP: Revenue is $30m
29. [1] Summary of financial information for PP: Revenue is higher by $10m than competitor
30. [2] Summary of financial information for PP: The gross profit is $22m
31. [1] Summary of financial information for PP: The gross profit margin is lower at 73% (22m/30m × 100)
32. [1] Summary of financial information for PP: Profit margin is higher by 3% than competitor
33. [2] Summary of financial information for PP: The profit for PP is $7m
34. [1] Summary of financial information for PP: The expenses are $15m
35. [1] Summary of financial information for PP: Expenses are $3m higher than the competitor
36. [1] Summary of financial information for PP: The acid test ratio is 1
37. [2] Summary of financial information for PP: PP can pay all its short-term liabilities (no liquidity problem)
38. [2] Summary of financial information for PP's competitor: The gross profit is $16m
39. [2] Summary of financial information for PP's competitor: The gross profit margin is 80% (16m/20m × 100)
40. [2] Summary of financial information for PP's competitor: The profit for the competitor is $4m
41. [1] Summary of financial information for PP's competitor: Expenses are lower for competitor
42. [1] Summary of financial information for PP's competitor: The acid test ratio is 1.5
43. [2] Summary of financial information for PP's competitor: The acid test suggests this liquidity is possibly too high and they have too much working capital tied up in cash and trade receivables.