Edexcel GCSE Business: Organisational structures and job roles (1BS0) – Revision Notes

These notes condense Topic 2.5 Making human resource decisions, items 2.5.1 (Organisational structures) and 2.5.2 (Effective recruitment), from the Pearson Edexcel Level 1/Level 2 GCSE (9-1) in Business (1BS0) specification, Issue 2, July 2022. For full explanations and worked examples, read the study guide. Then try the practice questions.

Course links: the Business hub, the printable checklist and the free diagnostics. All businesses named are invented.

Key terms

Term	Meaning in one line
Hierarchical structure	Many layers; small teams under each manager; messages pass through each layer
Flat structure	Few layers; larger teams; shorter route between staff and decision makers
Centralised	Important decisions made at the top (head office or owner)
Decentralised	Decisions passed down to branches, departments or teams
Effective communication	The right message reaches the right person at the right time and is understood
Barrier to communication	An obstacle that prevents a message arriving or being understood
Full-time	The standard full week of hours
Part-time	Fewer hours than a full week
Flexible hours	The worker has some choice over when the hours are worked
Permanent contract	No planned end date
Temporary contract	Fixed period or task
Freelance	Self-employed, paid for the job rather than as staff
Job description	Describes the job: title, duties, reporting line, place, hours
Person specification	Describes the person wanted: qualifications, skills, experience, qualities
Application form	Standard form designed by the business; same questions for all
CV	Written by the candidate; summarises education, experience and skills
Internal recruitment	Filling the post from current staff
External recruitment	Looking outside the business for candidates

Structures at a glance

	Advantages	Disadvantages	Appropriate when
Hierarchical	Clear authority; promotion steps; tight checking	Slow messages; more managers to pay	Large business; work needs checking
Flat	Quick messages; fewer managers; staff closer to decisions	Managers may be overloaded; few promotion steps	Small business; fast decisions matter
Centralised	Consistency; tight control	Slow response; local managers feel less trusted	Small business; mistakes costly; every branch must act alike
Decentralised	Quick local decisions; local knowledge; trusted managers	Inconsistency between branches; less control	Business has grown; locations differ; staff are skilled

Must-know distinction: hierarchical or flat describes the number of layers. Centralised or decentralised describes where decisions are made. A small flat business is usually centralised, but the two ideas are separate.

Communication in steps

1. State what is being passed on (instruction, news, request).
2. Choose a method and person that suit the message.
3. Check it was received and understood.

Problem	Effect on efficiency	Effect on motivation
Insufficient communication	Mistakes, duplicated or missed tasks, mixed messages to customers	Staff feel ignored or unsure of their role
Excessive communication	Time lost in meetings and messages; key messages missed	Staff feel their time is wasted

Barriers to remember: unclear wording or jargon, wrong method for the message, language differences, faulty technology, too many layers, noise or distraction.

Ways of working

Option	Advantage	Disadvantage
Full-time	Continuity; knows the business well	Higher total cost
Part-time	Matches staffing to busy times	More people to train and manage
Flexible hours	Helps work-life balance; supports motivation and retention	Cover and meetings harder to arrange
Permanent	Security; stable team	Pay continues if demand falls
Temporary	Flexible for short peaks or cover	May know less; less commitment
Freelance	Specialist skills only when needed	High hourly rate; may be unavailable later

Technology and ways of working:

• Efficiency: shared files, messaging and automated systems speed tasks up and cut errors. Costs: equipment, training, risk of system failure.
• Remote working: lower office costs, wider pool of recruits, less travel for staff. Costs: weaker team contact, harder supervision.

Job roles

Group	One-line responsibility
Directors	Set direction and aims; make major decisions
Senior managers	Turn plans into department plans; manage managers
Supervisors/team leaders	Organise and check the daily work of a team
Operational staff	Do the main work of the business
Support staff	Provide services that help others do their jobs

Recruitment in steps

1. Decide what the post involves: write the job description.
2. Decide who is needed: write the person specification.
3. Choose internal or external recruitment to suit the need.
4. Collect application forms or CVs.
5. Compare each candidate against the person specification.

Internal or external:

	Internal	External
Cost and speed	Cheaper and quicker	Dearer and slower
Skills	Known skills; no new ideas	Larger pool; new skills and ideas
Staff effect	Shows promotion is possible; leaves a gap elsewhere	May upset staff passed over; new person must learn the business

Calculation reminders

The quantitative skills the specification lists include percentages, percentage changes and averages. Show your workings.

Skill	Standard form	Example
Percentage change	(new - original) / original × 100	Applications up from 40 to 52: 12 / 40 × 100 = 30%
Share of a total	part / total × 100	9 part-timers among 30 staff: 9 / 30 × 100 = 30%
Mean	total / number	Hours 40, 40, 24, 16, 20: 140 / 5 = 28 hours
Wage cost	hours × hourly rate	22 hours × £11.80 = £259.60

The wage cost line is the standard form, not a formula the specification gives.

Building answers

Explain (statement plus two expansion points, no context). Example: “A flat structure speeds up communication. Messages pass through fewer layers, so staff get instructions sooner. This lets the business react quickly to a customer problem.”

Outline (two linked points, in context). Example for a cafe that hires a freelance baker: “The cafe pays only for the loaves it needs, so its costs do not rise in a quiet month. The hourly rate is high, so a busy month may cost more than a permanent employee.”

Analyse (extended, in context). Use a chain: point, evidence from the case, effect on the business, then a consequence for efficiency, motivation or cost.

Justify (recommend one of two options). Compare both using the numbers or facts given, then choose one and say why the other is weaker.

Evaluate (supported conclusion). Weigh both sides, then give a judgement and state the condition it rests on, for instance business size, staff skills or cost.

Applying the ideas to a case

When a case gives a business, ask four questions before writing.

1. How big is it, and is it growing? Growth often pushes a business from centralised towards decentralised, and from flat towards more layers.
2. How skilled and trusted are the staff? Skilled staff suit more freedom and flexible hours.
3. Is demand steady or seasonal? Steady demand suits permanent contracts. Seasonal demand suits temporary or part-time staff.
4. Does the post need new skills or existing knowledge? New skills suggest external recruitment. Existing knowledge suggests internal.

Link every answer to one of these facts. A general list of advantages gains less than a point tied to the case.

Quick self-test

1. How does a hierarchical structure differ from a flat one?
2. A shop’s owner takes every decision. Is it centralised or decentralised?
3. Give one effect of insufficient communication on motivation.
4. Name two barriers to effective communication.
5. A manager cuts a decision from 5 days to 2 days. Calculate the percentage fall.
6. Which contract is for a self-employed person paid for the job?
7. Five staff work 40, 40, 24, 16 and 20 hours. Calculate the mean hours worked.
8. Staff commute 36 minutes each way, 5 days a week. How many hours a week does remote working save?
9. A freelancer is paid £25 an hour for 40 hours. Calculate the cost.
10. Which document describes the qualities wanted in a candidate?
11. Which job role group organises the daily work of a small team?
12. An agency charges 10% of a £24,000 salary and the advert costs £350. Calculate the total external cost.

Answers

1. Hierarchical has many layers and small teams. Flat has few layers and larger teams.
2. Centralised.
3. Staff feel ignored or unsure of their role, so motivation falls.
4. Any two: unclear wording or jargon, wrong method, language differences, faulty technology, too many layers.
5. (5 - 2) / 5 × 100 = 60% fall.
6. Freelance.
7. 140 / 5 = 28 hours.
8. 5 × 2 × 36 = 360 minutes = 6 hours.
9. 25 × 40 = £1,000.
10. The person specification.
11. Supervisors/team leaders.
12. 0.10 × 24,000 = £2,400, plus £350 = £2,750.

Where marks are usually lost

• Writing “flat” for any small business instead of describing few layers.
• Mixing up centralised (decisions at the top) with hierarchical (many layers).
• Giving a general benefit of decentralisation with no link to the case.
• Treating communication as always good. Excessive communication also harms efficiency.
• Confusing freelance workers (self-employed) with temporary staff.
• Mixing up the job description and the person specification.
• Saying internal recruitment is best without noting it needs a suitable person already employed.
• Leaving out workings, units or the percentage sign in a Calculate answer.
• On Explain, giving one point with no expansion. On Evaluate, giving no supported conclusion.

Frequently asked questions

What is the difference between a hierarchical and a flat structure? A hierarchical structure has many layers, with each manager looking after a small number of people. A flat structure has few layers, with managers looking after larger teams and staff closer to the decision makers.

What is the difference between centralised and decentralised decision making? In a centralised structure, important decisions are made at the top, giving consistency and control. In a decentralised structure, decisions are passed down to managers and teams in each branch or region, which suits a larger business where local knowledge matters.

What is the difference between a freelance and a temporary worker? A temporary worker is employed for a fixed period or task, such as a seasonal rush. A freelance worker is self-employed and paid for the job, giving specialist skills only when needed.

What are the advantages of internal recruitment? Internal recruitment is cheap and quick, the person already knows the business, and it motivates others by showing promotion is possible. It brings no new ideas and leaves a gap elsewhere.

Official syllabus

Pearson Edexcel Level 1/Level 2 GCSE (9-1) in Business (1BS0), Specification, Issue 2, July 2022, published by Pearson Education Limited. Theme 2: Building a business, Topic 2.5 Making human resource decisions, items 2.5.1 and 2.5.2.