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Edexcel GCSE Business · 1BS0
Edexcel 1BS0 · 2.5.1 Organizational Structures Check the specification (PDF) (opens in a new tab)
As a business grows, it needs enough people to serve customers without paying for more staffing than it needs. It can organise work in several ways, but these choices describe different things: hours describe how much or when someone works; contracts describe the employment arrangement; and location describes where the work takes place.
For example, an employee working 16 hours each week with no agreed end date is both part-time and permanent. Working from home would describe their location, not their hours or contract duration.
Full-time work means working the business’s normal full working week, commonly around 35–40 hours. Full-time staff provide regular cover and have more time to develop knowledge of the business’s products, systems and customers. This can improve service and make training worthwhile. However, their agreed wages still have to be paid during quiet periods, which can reduce profit when demand falls.
Part-time work means working fewer hours than the business’s normal full-time week. It can help a shop add staff for busy evenings or weekends without employing another person for a whole week. Employees may find it easier to combine work with study or caring responsibilities, although fewer paid hours usually mean lower total earnings.
Employing several part-timers can mean more people to train and more complicated rotas and handovers. Part-time does not mean having no employment benefits: part-time employees are entitled to benefits such as paid holiday, with the amount reflecting their working pattern.
Flexible hours give employees some choice over their start and finish times within agreed limits. They still complete their required hours. For instance, an employee might start earlier and finish earlier, while attending a core period when everyone must be available.
This can improve work–life balance and help the business retain experienced employees. Overlapping early and late schedules may also extend customer cover. The trade-off is coordination: the business must ensure that deliveries, customer enquiries and meetings are covered rather than letting everyone choose the same time off.
A permanent contract has no agreed end date. It offers employees greater job security and a more predictable income, although it does not guarantee a job for life. For the business, keeping experienced staff supports continuity: customers may see familiar people, and knowledge gained through training stays within the organisation. The drawback is an ongoing staffing commitment even when demand declines.
A temporary contract lasts for a specified period or until a particular job is finished. A retailer might employ temporary staff for the months leading up to Christmas. This supplies extra cover during the peak without maintaining those posts throughout the year. However, the business may need to recruit and train new staff each season, and the worker has less security because the job has an endpoint.
A freelancer is self-employed and provides services on a job-by-job basis, often to several businesses. For example, a business could hire a freelance designer to rebuild its website rather than employ a designer permanently. It buys specialist expertise only when needed, but the fee is still a cost. The freelancer may be unavailable for future work, and the business generally has less control over their working arrangements than over an employee’s.
The best mix depends on demand, skills, affordability and the importance of continuity. A business with steady demand may benefit from permanent staff, while seasonal peaks may justify temporary cover. A specialist task needed only occasionally may suit freelance work. These decisions can be combined with either full-time or part-time hours.
Technology can reduce the time and resources needed to complete work. Email and messaging allow information to reach colleagues quickly at low cost. Shared online files allow staff in different locations to access the same documents, while electronic signatures can avoid delays caused by posting paperwork. Video meetings reduce the need for travel, saving working time and travel expenses.
Automation uses software or machines to perform tasks previously done by people. For example, software can send routine invoices, freeing employees to deal with customers or other work requiring judgement. Completing repetitive tasks faster can increase output without a matching increase in labour costs.
These gains are not automatic. Equipment and software cost money, staff need training, and breakdowns or internet failures can interrupt work. Training may initially reduce productive working time before the new system improves efficiency. A business therefore needs to compare the likely savings with the costs of introducing and maintaining the technology.
Remote working means working away from the employer’s usual workplace, often at home. Laptops provide access to work; cloud storage makes files available online; and video calls and messaging connect workers with colleagues and customers. Hybrid working combines remote work with time at the workplace.
If fewer employees need office space each day, a business may use smaller premises and reduce rent, heating and cleaning costs. It may also recruit people who live beyond normal commuting distance. Employees save commuting time and expense, and greater flexibility may improve motivation and encourage them to stay.
However, managers may find supervision harder, and new employees can miss informal learning from experienced colleagues. Remote workers may feel isolated or struggle to separate work from home life. The business also needs suitable equipment and secure access to customer information.
Remote working is therefore most useful where tasks can be completed digitally. An accounts employee may work effectively from home, whereas someone cutting hair must be physically present with the customer. The decision depends on the tasks involved, not simply on whether remote working is popular.
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A job can be part-time and permanent. Remote working does not automatically mean flexible hours.
Choose according to demand, skills, cost and continuity.
Messaging, shared files, electronic documents and automation can save time and improve efficiency. Balance these gains against equipment, software, training and failure risks.
Remote working can reduce premises costs, widen recruitment and remove commuting. Balance these gains against supervision, teamwork, isolation and data-security difficulties. Its suitability depends on whether the tasks require physical presence.
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Keep hours and contract duration separate: a part-time employee can have a permanent contract.
Develop a chain of reasoning: arrangement or technology → effect on staffing, costs or output → consequence for the business.
Apply your judgement to the work involved. Remote working may suit office administration, but not serving customers at a bakery counter.
Do not assume that flexible hours mean fewer hours, or that remote workers can choose any working hours.
When evaluating a choice, weigh its benefits against its drawbacks and explain which matters most for that business.
Part-time work
Working fewer hours than the normal full-time working week in that business.
Full-time work
Working the normal full working week in a business, commonly around 35–40 hours.
Flexible hours
An arrangement allowing employees some choice over when they complete their required working hours, within limits agreed with the employer.
Permanent contract
An employment contract with no agreed end date, continuing until the employee leaves or the employment is ended.
Temporary contract
An employment contract lasting for a specified period or until a particular job is completed.
Freelancer
A self-employed person who provides services to businesses on a job-by-job basis rather than being their employee.
Remote working
Working away from the employer’s usual workplace, often from home, using technology to access work and communicate.
Cloud storage
Keeping files online so that authorised users can access and share them from different devices and locations.
Automation
Using software or machines to carry out tasks previously performed by people, often repetitive tasks.
Efficiency
Using resources effectively to minimise waste, such as completing work with less time or cost while maintaining quality.
Put your knowledge into practice — try past paper questions for Business
Part-time work
Working fewer hours than the normal full-time working week in that business.
Full-time work
Working the normal full working week in a business, commonly around 35–40 hours.
Flexible hours
An arrangement allowing employees some choice over when they complete their required working hours, within limits agreed with the employer.
Permanent contract
An employment contract with no agreed end date, continuing until the employee leaves or the employment is ended.
Temporary contract
An employment contract lasting for a specified period or until a particular job is completed.
Freelancer
A self-employed person who provides services to businesses on a job-by-job basis rather than being their employee.
Remote working
Working away from the employer’s usual workplace, often from home, using technology to access work and communicate.
Cloud storage
Keeping files online so that authorised users can access and share them from different devices and locations.
Automation
Using software or machines to carry out tasks previously performed by people, often repetitive tasks.
Efficiency
Using resources effectively to minimise waste, such as completing work with less time or cost while maintaining quality.