CIE IGCSE Business Studies - Unit 2 -
People in Business | Questions And
Answers | Latest Exam 2026-2027 |
Graded A+
Organisation -ANSWER The structure of a business, often split into 4 departments
covering the main areas of business
Line Managers -ANSWER Responsible for overseeing the work that other staff do
Tall Organisations -ANSWER Have many levels of hierarchy. The span of control is
narrow and there are opportunities for promotion. Lines of communication are long,
making the firm unresponsive to change.
Flat Organisations -ANSWER Have few levels of hierarchy. Lines of communication are
short, making the firm responsive to change. A wide span of control means that tasks
must be delegated and managers can feel overstretched.
Induction -ANSWER Introducing a person to a business so they can know how to do their
job properly
On-the-job Training -ANSWER Where staff with a lot of experience explain the job
Off-the-job Training -ANSWER Outside experts are paid to explain the job
Monetary (financial) factors -ANSWER Being offered more money
Non-monetary (non-(financial) factors -ANSWER Being offered incentives such as
promotion or holidays
Time Rate -ANSWER Payed for number of hours worked
Performance Related Pay -ANSWER Bonus for meeting a certain target within the job
Empowerment -ANSWER Staff are given more authority
Maslow's Hierarchy of Needs -ANSWER Suggests that only once the needs at the base
of the pyramid are met can the next step be achieved
Taylorism (Taylor's Theory) -ANSWER Suggests that staff do not enjoy work and can
only be motivated by threats and money
, Employment Rights -ANSWER Laws set by the government to prevent the unfair
treatment of workers e.g Discrimination Act and EU Working Time Directive
Health and Safety -ANSWER Laws put in place to prevent staff from being hurt or
becoming ill due to work. All businesses are required to have a Health and Safety
poster and do a Risk Assessment
Vertical Communication -ANSWER Messages sent to staff at a different level of hierachy
Horizontal Communication -ANSWER Messages sent between staff on the same level of
hierachy
Wage -ANSWER Payment to workers, usually paid weekly.
Salary -ANSWER Payment to workers, usually paid monthly.
Commission -ANSWER Payment related to the number of sales made.
Profit Sharing -ANSWER Proportion of the company's profits is paid out to employees.
Bonus -ANSWER Additional amount of payment above the employees wage/salary.
Performance-related pay -ANSWER Payment related to the effectiveness of the
employee where their output is easily measured.
Motivation -ANSWER The reason why employees want to work hard and effectively for
the business.
Share Ownership -ANSWER Where the shares in the company are given to employees
so they become part owners in the company.
Appraisal -ANSWER Is a method of assessing the effectiveness of an employee.
Fringe Benefits -ANSWER Are non-financial rewards given to employees.
Job Satisfaction -ANSWER It's enjoyment from feeling that you have done a good job.
Job Rotation -ANSWER Workers swapping round and doing each specific task for a
limited time.
Job Enlargement -ANSWER Where extra tasks of a similar level of work are added to a
worker's job description.
Job Enrichment -ANSWER Adding tasks that require more skill and/or on responsibility.
Self-actualisation -ANSWER Succeeding to your full potential.
People in Business | Questions And
Answers | Latest Exam 2026-2027 |
Graded A+
Organisation -ANSWER The structure of a business, often split into 4 departments
covering the main areas of business
Line Managers -ANSWER Responsible for overseeing the work that other staff do
Tall Organisations -ANSWER Have many levels of hierarchy. The span of control is
narrow and there are opportunities for promotion. Lines of communication are long,
making the firm unresponsive to change.
Flat Organisations -ANSWER Have few levels of hierarchy. Lines of communication are
short, making the firm responsive to change. A wide span of control means that tasks
must be delegated and managers can feel overstretched.
Induction -ANSWER Introducing a person to a business so they can know how to do their
job properly
On-the-job Training -ANSWER Where staff with a lot of experience explain the job
Off-the-job Training -ANSWER Outside experts are paid to explain the job
Monetary (financial) factors -ANSWER Being offered more money
Non-monetary (non-(financial) factors -ANSWER Being offered incentives such as
promotion or holidays
Time Rate -ANSWER Payed for number of hours worked
Performance Related Pay -ANSWER Bonus for meeting a certain target within the job
Empowerment -ANSWER Staff are given more authority
Maslow's Hierarchy of Needs -ANSWER Suggests that only once the needs at the base
of the pyramid are met can the next step be achieved
Taylorism (Taylor's Theory) -ANSWER Suggests that staff do not enjoy work and can
only be motivated by threats and money
, Employment Rights -ANSWER Laws set by the government to prevent the unfair
treatment of workers e.g Discrimination Act and EU Working Time Directive
Health and Safety -ANSWER Laws put in place to prevent staff from being hurt or
becoming ill due to work. All businesses are required to have a Health and Safety
poster and do a Risk Assessment
Vertical Communication -ANSWER Messages sent to staff at a different level of hierachy
Horizontal Communication -ANSWER Messages sent between staff on the same level of
hierachy
Wage -ANSWER Payment to workers, usually paid weekly.
Salary -ANSWER Payment to workers, usually paid monthly.
Commission -ANSWER Payment related to the number of sales made.
Profit Sharing -ANSWER Proportion of the company's profits is paid out to employees.
Bonus -ANSWER Additional amount of payment above the employees wage/salary.
Performance-related pay -ANSWER Payment related to the effectiveness of the
employee where their output is easily measured.
Motivation -ANSWER The reason why employees want to work hard and effectively for
the business.
Share Ownership -ANSWER Where the shares in the company are given to employees
so they become part owners in the company.
Appraisal -ANSWER Is a method of assessing the effectiveness of an employee.
Fringe Benefits -ANSWER Are non-financial rewards given to employees.
Job Satisfaction -ANSWER It's enjoyment from feeling that you have done a good job.
Job Rotation -ANSWER Workers swapping round and doing each specific task for a
limited time.
Job Enlargement -ANSWER Where extra tasks of a similar level of work are added to a
worker's job description.
Job Enrichment -ANSWER Adding tasks that require more skill and/or on responsibility.
Self-actualisation -ANSWER Succeeding to your full potential.
