DBG is a construction company. It builds hospitals, roads and schools. DBG has 2000 employees. Managers use a democratic leadership style. They know effective internal communication is important. DBG plans to change its organisational structure. This will lead to some employees being made redundant. The Managing Director has to decide how changes in government spending might affect business activity.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2022). The mark or mark type is shown in brackets.

1. Award 1 mark per reason (max 2).
2. Fewer mistakes / less waste (of resources)
3. Improve efficiency / better productivity / increase output
4. Improve co-ordination (between departments)
5. Enable faster/better decision-making
6. Better collaboration better between workers/manager
7. Improve motivation / job satisfaction
8. Other appropriate responses should also be credited.
9. Award 2 marks for a full definition. Award 1 mark for a partial definition.
10. [2] Refers to the levels of management and division of responsibility within an organisation
11. OR [2] The formal, internal framework of a business that shows how it is managed and organised
12. Partial definition e.g. shows who reports to who [1]
13. Award 1 mark per factor (max 4).
14. Importance of role being performed / whether job still needed
15. Performance / experience / skills / flexibility / qualities / qualifications
16. Length of time worked for business / redundancy costs
17. Attitude / behaviour / attendance / disciplinary record
18. Wages/salary paid
19. Which departments need to lose/retain workers
20. Whether anyone offers/volunteers to leave job
21. Other appropriate responses should also be credited.
22. Award 1 mark for identification of each relevant advantage (max 2).
23. Award 1 mark for each relevant reference to this business (max 2).
24. Award 1 mark for each relevant explanation (max 2).
25. Employees could be motivated [k] leading to increase in output/productivity [an] when constructing [app]
26. Helps keep employee loyalty / lower labour turnover [k] leading to lower recruitment costs [an] for a business of 2000 employees [app]
27. Workers may have more experience/understanding of problems [k] leading to better decisions [an]
28. More ideas / better communication [k]
29. Other appropriate responses should also be credited.
30. Award up to 2 marks for identification of relevant points.
31. Award up to 2 marks for relevant development of points.
32. Award up to 2 marks for a justified decision as to whether all businesses benefit from an increase in government spending.
33. Increase in demand/sales [k] leading to higher revenue [an]
34. Can create jobs [k] so able to maintain/increase output [an] but may be difficult for some businesses to recruit skilled workers [an]
35. May have to pay higher taxes (to pay for spending) [k] which increases costs [an] which could delay investment [an]
36. Obtain grants/subsidies [k] generating additional funds for the business to spend [an]
37. Can encourage business start-ups [k] increasing competition [an]
38. Other appropriate responses should also be credited.
39. Justification might include: An increase in government spending could increase sales [k]. However, it could increase taxes [k] which increases costs leading to higher prices [an]. Overall, I think all businesses can benefit. For example, if the government decides to build new roads, construction businesses are likely to benefit the most as can receive an increase revenue from the extra sales, but other businesses still benefit from better transport links which helps all businesses send or receive goods on time. [eval] [eval].