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GCSE · Human resources

BUS.HR10 Organisational Change: Delayering, Centralisation and Decentralisation

AQA 8132 · Calculators not allowed · about 40 minutes

Total Marks

Name: _______________________________ Date: ____ / ____ / ______

Answer ALL questions in the spaces provided. Show working where requested. Use the Elm & Oak Bakers scenario in Q1 and the repeated figures in later prompts where shown. Write full sentences for the 9-mark recommendation question (Q14).

Elm & Oak Bakers, a fictional regional bakery chain in the UK, has grown from 6 to 25 shops in three years. The business currently has six management layers between the owner, Amelia, and shop floor supervisors. Elm & Oak is considering delayering to remove two middle layers to reduce costs and widen spans of control. It is also deciding whether to centralise decision-making at head office or decentralise decisions to area managers. Name the business and state the two structural changes Elm & Oak is considering.

(Total for Question 1 is 2 marks)

Which one of the following best describes 'delayering' in the context of Elm & Oak Bakers' proposed changes?

A) Removing one or more levels of management to reduce costs and widen spans of control
B) Creating more managerial layers so each manager supervises fewer employees
C) Moving all decision-making to each individual shop
D) Replacing managers with temporary contractors

(Total for Question 2 is 1 mark)

Identify two potential benefits to Elm & Oak Bakers of removing two middle management layers (delayering).

(Total for Question 3 is 2 marks)

Identify two disadvantages Elm & Oak Bakers might face after delayering and widening spans of control.

(Total for Question 4 is 2 marks)

Explain one advantage of Elm & Oak Bakers centralising decision-making at head office for product standardisation across the 25 shops. Use the scenario in your answer.

(Total for Question 5 is 4 marks)

Explain one disadvantage for Elm & Oak Bakers of decentralising decision-making to area managers for local pricing and promotions. Use the scenario in your answer.

(Total for Question 6 is 3 marks)

Which one of the following is a likely advantage of centralisation for a business such as Elm & Oak Bakers?

A) Faster local decision-making in individual shops
B) Lower costs through bulk buying and standard policies
C) Greater autonomy for area managers
D) Increased variety of products between shops

(Total for Question 7 is 1 mark)

Identify one feature Elm & Oak Bakers would change if it removed two management layers, referring to how supervisors or area managers would be affected.

(Total for Question 8 is 1 mark)

Which one of the following is a possible drawback of delayering for staff morale at Elm & Oak Bakers?

A) More promotion opportunities
B) Increased job security for middle managers
C) Reduced career progression and motivation
D) Improved individual attention from managers

(Total for Question 9 is 1 mark)

Identify two tasks that might be delegated to area managers if Elm & Oak Bakers decides to decentralise, using the scenario context of 25 shops.

(Total for Question 10 is 2 marks)

Explain one reason why removing middle managers at Elm & Oak Bakers might speed up decision-making. Use the scenario in your answer.

(Total for Question 11 is 3 marks)

State two ways in which decentralisation could improve Elm & Oak Bakers ability to respond to local customer tastes across different regions.

(Total for Question 12 is 2 marks)

Identify which structure, centralised or decentralised, is more likely to keep product quality identical across all Elm & Oak Bakers shops.

A) Centralised
B) Decentralised

(Total for Question 13 is 1 mark)

Elm & Oak Bakers needs to decide whether to remove two middle management layers and to what extent it should centralise decision-making versus decentralise to area managers. Recommend whether Elm & Oak Bakers should delayer and whether it should centralise or decentralise decision-making. Justify your answer using the scenario and consider costs, communication speed and local responsiveness. Write your answer in full sentences.

(Total for Question 14 is 9 marks)

Mark scheme · BUS.HR10 Organisational Change: Delayering, Centralisation and Decentralisation

Question 1

B1 identifies the business as Elm & Oak Bakers
B1 identifies delayering and centralisation/decentralisation as the two changes
Answer: Elm & Oak Bakers; delayering and the choice between centralisation and decentralisation.

Question 2

B1 A cao
Answer: A

Question 3

B1 lower wage costs from having fewer managers
B1 faster communication between Amelia/head office and shop floor staff
Answer: Any two, e.g. lower wage costs from fewer managers; faster communication between head office and shop floor.

Question 4

B1 remaining managers may become overstretched with larger spans of control
B1 loss of promotion routes may reduce staff motivation or increase turnover
Answer: Any two, e.g. managers overstretched with more direct reports; fewer promotion opportunities reducing motivation.

Question 5

B1 identifies advantage, e.g. consistent product recipes and quality across all shops
B1 develops point, e.g. head office sets and enforces standard recipes and presentation that all 25 shops must follow
B1 links to outcome, e.g. customers get the same product in any shop, protecting brand reputation
B1 applies to the scenario, e.g. as Elm & Oak expands regionally this helps build a reliable brand image
Answer: Centralisation allows head office to ensure consistent recipes and quality across all 25 shops, so customers experience the same products everywhere, protecting Elm & Oak Bakers' brand as it expands regionally.

Question 6

B1 identifies a disadvantage, e.g. inconsistent pricing and promotions between shops
B1 develops the point, e.g. different area managers may set different prices or run different offers
B1 links to outcome, e.g. customers could be confused or view the brand as unfair, damaging reputation and sales
Answer: Decentralisation may lead to inconsistent pricing and promotions because area managers could set different prices or offers, which can confuse customers and damage Elm & Oak Bakers' reputation and sales.

Question 7

B1 B cao
Answer: B

Question 8

B1 identifies wider span of control for remaining managers or supervisors
Answer: A wider span of control for remaining managers or supervisors, who would supervise more shop staff directly.

Question 9

B1 C cao
Answer: C

Question 10

B1 setting local prices or running local promotions
B1 hiring and rostering shop staff for their area
Answer: Any two, e.g. setting local prices and promotions; hiring or rostering shop staff in their area.

Question 11

B1 identifies reason, e.g. fewer management layers to pass information through
B1 develops point, e.g. messages and approvals go directly between head office and supervisors without middle managers
B1 links to scenario outcome, e.g. decisions about stock or promotions can be implemented more quickly across 25 shops
Answer: With fewer management layers, information and approvals move more directly between head office and shop supervisors, so decisions about stock or promotions can be implemented more quickly across the 25 shops.

Question 12

B1 local managers can adapt product range to suit regional tastes
B1 local managers can run tailored promotions that match local demand patterns
Answer: Allowing local managers to adapt the product range to regional tastes; running tailored local promotions to match local demand.

Question 13

B1 A cao
Answer: A

Question 14

Level 1 (1-3): Makes simple, undeveloped comments about delayering or centralisation/decentralisation with little or no use of the pack figures and no clear recommendation.
Level 2 (4-6): Gives a developed argument for or against delayering and for centralisation or decentralisation, using some scenario detail, but does not fully weigh both sides or give a clear justified conclusion.
Level 3 (7-9): Weighs advantages and disadvantages of delayering and of centralisation versus decentralisation, using the scenario to analyse costs, communication speed and local responsiveness, and reaches a clear, justified recommendation.
Indicative content:
- Arguments for delayering: reduced wage costs from fewer managers, faster communication and decision-making with fewer layers, and simpler management structure as the chain between Amelia and supervisors shortens.
- Arguments against delayering: remaining managers may be overstretched with larger spans of control, potential loss of promotion pathways reducing staff motivation, and possible short-term disruption and redundancy costs when removing layers.
- Arguments for centralisation: consistent recipes, quality and pricing across all 25 shops, lower costs through bulk buying and standard policies, and easier control for the owner as the chain of command is concentrated.
- Arguments for decentralisation: area managers can respond quickly to local customer tastes and run local promotions, improving sales in different regions and giving faster local decision-making.
- Balanced judgement: a mixed approach could be recommended, for example delayering to remove unnecessary bureaucracy while keeping strategic control centralised for brand and cost decisions, but decentralising operational choices such as local promotions, staffing and small product variations to area managers to preserve local responsiveness. A justified recommendation should weigh the cost savings and faster communication against the risk of overstretching managers and the need to maintain product standards.

Organisational Change: Delayering, Centralisation and Decentralisation - Worksheets, Questions and Revision