Lesson 3.6.3

3.6.3 Making HR decisions: organisational design and human resource flow Quiz: AQA Business, Unit 6

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 3.6.3, Making HR decisions: organisational design and human resource flow: 20 multiple choice questions for the AQA Business (7132), Unit 6: Human resource management, written with Revision Ninja.

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The 20 questions

  1. A functional structure organises the business by:

    • Individual product lines, each with its own team
    • Geographic region, such as north, south or overseas markets
    • Department or function, such as finance, marketing or operations
    • A mix of functions and products with two reporting lines

  2. A product-based structure organises the business by:

    • The age of the workforce in each team
    • Job title and seniority alone
    • Product or product group, with each team responsible for a range of goods
    • Each individual employee in a flat hierarchy

  3. A matrix structure means that:

    • Employees report to a single manager in a strict chain of command
    • Employees report to both a functional manager and a project or product manager
    • Every employee owns a share of the business
    • Teams are arranged around regional offices only

  4. Span of control refers to:

    • The number of subordinates a manager directly supervises
    • The total number of levels in the hierarchy
    • The amount of authority delegated to a team
    • The geographic area that a business covers with its sales

  5. Delegation means:

    • Giving all decisions to the board of directors for approval
    • Transferring legal ownership of the business to employees
    • Removing all responsibility from managers for their teams
    • Passing authority and responsibility for tasks to subordinates while the manager remains accountable

  6. Centralisation means:

    • Decision making is spread across regional and local managers
    • The business has no formal hierarchy at all
    • Decision making is concentrated at the top of the organisation
    • Each employee has the authority to make all decisions

  7. A redundancy is:

    • The dismissal of an employee because the job no longer exists
    • The transfer of an employee to a different job within the same business
    • A temporary contract ending on a fixed date
    • An employee leaving voluntarily to join a competitor

  8. A firm with several product lines and different customer needs wants each line to have its own marketing and production. Which structure fits best?

    • Regional
    • Functional
    • Flat team structure with no managers
    • Product-based

  9. A supermarket chain divides its stores into north, south and midlands divisions, each with a separate manager. Which structure is this?

    • Regional
    • Product-based
    • Matrix
    • Functional

  10. A business widens its span of control from six to twelve subordinates per manager. What is the likely effect on its hierarchy?

    • The business loses all of its managers
    • More management layers, making the hierarchy taller
    • The hierarchy is unchanged because span has no effect on layers
    • Fewer management layers, making the hierarchy flatter

  11. Which is an advantage of decentralisation?

    • Faster local decisions and greater motivation for managers closer to customers
    • Guaranteed uniform customer service across all sites
    • Lower need for communication across the business
    • Greater control by the board over every daily decision

  12. A firm forecasts a skills gap in three years and begins training existing staff. Which HR flow element is this?

    • Redundancy
    • Redeployment to a new location
    • Recruitment of external staff only
    • Training, as part of the human resource plan

  13. A business closes a factory but moves affected staff to another site. Which HR flow element is this?

    • Redundancy
    • Training
    • Redeployment
    • Recruitment

  14. A firm changes from a functional to a product structure to speed up decisions. What benefit is expected?

    • Higher costs, because no managers are needed
    • Faster decision making, because product teams control their own marketing and production
    • Less need for communication between teams
    • Fewer decisions made at the local level

  15. What is the main purpose of a human resource plan?

    • To set the prices of the business's products
    • To decide the business's legal structure
    • To calculate the business's gearing ratio
    • To match the future supply and demand for employees in terms of numbers, skills and location

  16. Evaluate: what is the strongest argument for a matrix structure over a functional structure in a firm running many projects?

    • Matrix structures are suitable only for very small businesses
    • Matrix teams combine specialist expertise with a project focus, though dual reporting can create confusion over authority
    • Matrix structures remove all need for communication
    • Matrix structures have no reporting lines at all

  17. A business has 96 operatives and a span of control of 12. How many first-line supervisors does it need?

    • 9 supervisors
    • 8 supervisors
    • 96 supervisors
    • 12 supervisors

  18. Why might a business find it hard to change its organisational design quickly?

    • Designs are fixed by law and cannot be altered
    • Organisational design can be changed in a single day with no effect on staff
    • Changes to design always increase productivity immediately
    • Changing reporting lines affects culture, roles and relationships, so resistance and disruption may slow the change

  19. If each of 20 redundant staff receives three months' pay at 2,400 a month, what is the total pay cost?

    • 288,000
    • 144,000
    • 48,000
    • 24,000

  20. Evaluate: what is the most valid argument for decentralisation in a fast-changing market?

    • Decentralisation is used only by government departments
    • Decentralisation removes all risk of poor decisions
    • Decentralisation means no decisions are ever made by managers
    • Local managers can respond quickly to customer needs, though central control of standards may weaken

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