Page 99 - Cambridge IGCSE Business Studies

7: Organisation and management

Supervisors and other workers
In a large department where there are many workers, supervisors may be
KEY TERM
responsible for giving out tasks to the workers, making sure they carry out the tasks
Supervisor: an individual who and checking the quality of the work.
checks and controls the work of
Other workers in a business must work together and with their manager to:
subordinates.

■ complete their tasks efficiently and at the required quality standard set by
managers
■ work towards achieving individual, group or departmental targets.

TEST YOURSELF
1 What is the purpose of an organisation chart?
2 Why are managers important?

ACTIVITY 7.6

Read the following example and then answer the questions that follow.
Mohinder is the owner of three restaurants. Each restaurant has a manager and employs one full-time chef and other

full-time and part-time kitchen and front-of-house staff. Mohinder has produced the following organisation chart for his
business.

Mohinder 97

Manager of Manager of Manager of
Restaurant A Restaurant B Restaurant C

1 chef 1 chef 1 chef

2 full‐time and 1full‐time and
4 full‐time staff
3 part‐time staff 5 part‐time staff
Figure 7.7 Organisation chart for Mohinder’s business

The manager of each restaurant is responsible for recruiting his/her own workers, but all other decisions are made by
Mohinder. Mohinder prefers to have a centralised organisation structure.
Mohinder has an individual weekly meeting with each manager and a monthly meeting with all three managers together.
These meetings are used to compare and discuss the performance of the restaurants.
1 What is meant by ‘manager’?
2 Use the organisation chart produced by Mohinder to explain the meaning of the following terms:
a hierarchy
b span of control
c chain of command
3 Identify and explain one advantage to Mohinder’s employees of the organisation chart.
4 Explain two benefits to Mohinder and his business of ‘delegation’.
5 Do you think Mohinder is right in preferring a centralised organisation structure? Justify your answer.