The diagram shows two possible structures for a new Starbucks drive-through outlet. Structure A has four layers between the store manager and most employees...
Question 1 Report
The diagram shows two possible structures for a new Starbucks drive-through outlet. Structure A has four layers between the store manager and most employees. Structure B gives the store manager a wider span of control and fewer layers. The business wants to keep labour costs low but must maintain quick service for customers during morning peak periods. The manager is considering which structure will give employees enough support while allowing decisions about customer complaints to be made quickly.
(a) Define the term span of control. [2]
(b) State three differences between Structure A and Structure B. [3]
(c) Calculate the number of management posts shown in Structure A and in Structure B. [5]
(d) Analyse which structure the Starbucks outlet should select. [10]
Answer Details
(a) Span of control is the number of employees directly supervised by one manager. [2]
(b) Structure A has four levels, whereas Structure B has two. Structure A has a narrower span of control and more management layers; Structure B has a wider span and more direct contact between the Store Manager and employees. Any three paired differences. [3]
(c) Structure A contains a Store Manager, Shift Manager and Team Leader:
\[3\text{ management posts}\]
Structure B contains only a Store Manager:
\[1\text{ management post}\]
Therefore A has 3 management posts and B has 1. [5]
(d) Structure B has fewer management posts, so it should reduce wage costs. Its fewer layers allow customer complaints and instructions to move more quickly, which is valuable during morning drive-through peaks. Employees may also feel trusted with greater responsibility.
However, the Store Manager directly supervises 12 employees, which may leave insufficient time to coach inexperienced staff. Structure A gives closer supervision and clearer support, potentially improving consistent service and food safety.
Structure B is suitable if employees are trained and experienced. If the outlet has many new employees, starting with Structure A may provide the support needed. [10]
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