AS-level CIE Business Studies revision notes - adapted

This is a very unique revision guide that has helped me a lot with my exam last year. I made this mostly based on the actual information and definitions from the CIE mark scheme, and of course from the official textbook as well. So I think the structure and the wording would be more specific to the exam and that it would help you to gain marks more easily because these key words are what the examiners are searching for.

I hope this will be useful to your studies!

Best of luck to all! 

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  • Created by: Cherrie.T
  • Created on: 07-06-12 00:34

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Business Studies Revision Notes
· Organisaional structure ­ The internal, formal structure of a
business that shows the way in which management is organized
and linked together and how authority is passed through the
It indicates formal relationship between different people
and departments
It shows the chain of command…

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projects or tasks; reduce layers in hierarchy; combine line
departments with project task teams
Encourages team approach
Staff are assigned by ability and skill, not rank or position
Allows total communication between all members of the
team and traditional departmental barriers broken down
More varied work
Greater motivation for…

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Feedback of ideas from the workers will be more
It requires a higher level of management skill to control a
greater number of employees, so there is less
management skill required

· Economies of Scale ­ The benefits gained through increased size and
output. An increase in output leading…

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More hierarchy and bureaucracy as organisation expands and
Chain of command lengthens
Efficiency reduced resulting in an increase in output that causes
a more than proportionate increase in average costs
Decision-making becomes more complex
Communication slows
Too many middle managers
Spans of control become ambiguous
Too much diversification…

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Can lead to higher productivity + output level
But may lead to low quality and safety levels as
workers rush to complete units
Workers may be settle after certain pay level,
therefore will not be motivated anymore after that
Provides little security over pay level
Not appropriate if each product…

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· Profit Sharing ­ Bonus paid to staff based on profits of the
business. Staff would feel more committed to the success
of the business and strive to achieve higher performance
and cost savings
Conflicts between owners and workers are reduced
as everyone now has an interest in higher profits…

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· Job enrichment ­ Organising and improving the work
processes and environment so they are more satisfying to
employees. Often involves reduction in supervision and
give more control and responsibilities to workers.
Give workers complete units of work so their efforts
can be identified and more challenging work is

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Increase productivity and reduce Training may be needed which is
labour turnover expensive
Better solutions to the problems as Can be conflicts within teams and
workers help each other lead to lower productivity
Reduce management costs because Teams can develop attitudes
fewer managers will be required against business so appraisal…

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· Maslow ­ The Hierarchy of Needs

Human needs start at the lowest level of the hierarchy
Once one level of needs has been satisfied, human will
strive to achieve the next level
Once a need has been satisfied, it will no longer motivate
individuals to action
Reversion is possible…

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Level of need Business conditions to satisfy
Self-actualisation - feeling of Give workers more challenging
satisfaction or happiness when tasks ­ this gives a sense of
learned or achieved something achievement and opportunities to
develop new skills and increase
Esteem needs Recognition for work done well ­


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