Ruby is a sole trader. She produces handmade, individually designed greetings cards using job production. High quality cards are important to Ruby’s customers. Ruby has 3 part-time employees who are paid an hourly wage rate. Ruby is thinking of changing from an hourly wage rate to a piece rate system, where the employees are paid depending on the quantity of products they make. Ruby thinks this will help to improve the motivation of her workforce. During festivals and celebrations she receives a higher number of orders. What is meant by ‘motivation’? Identify two disadvantages to Ruby of using job production. Disadvantage 1: Disadvantage 2: Identify and explain two advantages to Ruby of having part-time employees. Advantage 1: Explanation: Advantage 2: Explanation: 1 15 Identify and explain two non-financial methods of motivation which Ruby could use. Method 1: Explanation: Method 2: Explanation: Do you think Ruby should change the payment method she uses for her employees? Justify your answer. [ 1 15

0450_m18_qp_12

THEORY

2018

Paper 1, Variant 2

View

WTB is a private limited company. It manufactures breakfast cereals. WTB has 600 production workers in its factory. Many of its employees are part-time. All employees receive training and managers use delegation. The Human Resources Director is interested in using motivational theories to help improve employee motivation. The directors plan to expand the business and are considering whether to convert WTB into a public limited company. Define ‘delegation’. Identify two motivational theories. Theory 1: Theory 2: Outline two benefits to WTB of having part-time employees. Benefit 1: Benefit 2: [ 1 19 Explain two reasons why training might be important to WTB. Reason 1: Explanation: Reason 2: Explanation: Do you think a public limited company is a better form of business organisation for a growing business than a private limited company? Justify your answer. 1 19

0450_m22_qp_12

THEORY

2022

Paper 1, Variant 2

View

Steppa is a shoe manufacturer in the private sector. Steppa has 200 employees who all receive a high hourly wage rate. The Human Resources Director said: ‘We use a democratic leadership style. Employees are an important stakeholder group. Happy workers are good for business. Revenue increased by 10% last year.’ The director cannot understand why a high number of workers leave the business each year. She is looking at other non-financial methods to motivate employees. What is meant by a ‘stakeholder group’? What is meant by ‘private sector’? Identify and explain two effects on Steppa of a high number of workers leaving the business each year. Effect 1: Explanation: Effect 2: Explanation: 1 2 Identify and explain two possible advantages for Steppa of using a democratic leadership style. Advantage 1: Explanation: Advantage 2: Explanation: Explain two methods of non-financial reward that Steppa might use to increase employee motivation. Recommend which method Steppa should use. Justify your answer. 1 2

0450_s17_qp_12

THEORY

2017

Paper 1, Variant 2

View

GCF is a public limited company. It provides a range of computer services to businesses including designing websites and creating apps. The Human Resources Director use ideas based on Maslow’s Hierarchy of Needs to help keep GCF’s 250 employees well-motivated. An extract of methods used is shown in Table 4.1. GCF plans to expand by taking over one of its competitors. This will cost $50m. To finance the takeover, GCF is considering issuing new shares. Table 4.1 Extract of methods used at GCF to motivate employees ‘Employee of the month’ award Organises team building courses Identify two features of a public limited company. Feature 1: Feature 2: Identify the level of Maslow’s Hierarchy of Needs each of the following methods belongs to. ‘Employee of the month award’: Organises team building courses: Outline two advantages to GCF of having well-motivated employees. Advantage 1: Advantage 2: [ 1 10 Explain one advantage and one disadvantage to GCF of issuing new shares as a source of finance. Advantage: Explanation: Disadvantage: Explanation: Do you think the number of employees is the best way to measure the size of a tertiary sector business? Justify your answer. 1 10

0450_w21_qp_12

THEORY

2021

Paper 1, Variant 2

View

EGT produces many teas of different flavours. It uses batch production. Tea leaves, the main raw materials, are grown by local farmers. Factory space is limited so EGT is unable to use an automated production line. The old machines used in the factory often break down. One worker is responsible for quality control. EGT does not benefit from economies of scale. The Human Resources manager knows that low motivation is a problem with its 80 employees. She plans to use her knowledge of Maslow’s hierarchy of needs to improve motivation. The owners would like to increase the level of output but cannot afford to move EGT to a new location. What is meant by ‘economies of scale’? What is meant by ‘quality control’? Identify and explain two reasons why EGT uses batch production. Reason 1: Explanation: Reason 2: Explanation: 1 9 Identify and explain two ways in which the Human Resources manager could use her knowledge of Maslow’s hierarchy of needs to motivate employees. Way 1: Explanation: Way 2: Explanation: Recommend the best way, other than by improving motivation, EGT could use to increase its level of output. Justify your answer. [ 1 9

0450_s19_qp_13

THEORY

2019

Paper 1, Variant 3

View

MBH is a business organisation in the public sector. It controls 5 hospitals and has 5600 employees including 440 doctors. External recruitment is used when recruiting skilled employees. The Human Resources Director uses ideas from Herzberg’s theory to improve employee motivation. He is worried about communication barriers within MBH. The business has a tall organisational structure and a long chain of command. Most of MBH’s internal communication is by email and phone calls. Identify two objectives for a business organisation in the public sector. Objective 1: Objective 2: Define ‘chain of command’. Outline two ways MBH can use ideas from Herzberg’s theory to motivate its employees. Way 1: Way 2: 1 13 Explain how MBH might reduce or remove each of the following communication barriers: Messages lost: Explanation: Use of jargon: Explanation: Do you think an organisation should always use external recruitment when recruiting skilled employees? Justify your answer. 1 13

0450_s22_qp_11

THEORY

2022

Paper 1, Variant 1

View

DZD is a large parcel delivery business. Many of its employees work part-time. DZD’s directors are planning to expand the business and have to decide on a suitable source of finance for 20 new vehicles. DZD will also recruit 60 new employees. The Human Resources Director is preparing a job description for the new employees. She is considering using Maslow’s hierarchy of needs to increase the motivation of DZD’s employees. Define ‘job description’. Identify two levels from Maslow’s hierarchy of needs. 1: 2: Outline two factors DZD should consider when deciding which applicants to recruit. Factor 1: Factor 2: 1 14 Explain two sources of finance DZD might use for the new vehicles. Source of finance 1: Explanation: Source of finance 2: Explanation: Do you think a service business should only employ part-time workers? Justify your answer. [ 1 14

0450_s23_qp_11

THEORY

2023

Paper 1, Variant 1

View

GCN makes a wide range of clothing including shirts and trousers for men and women. Its small factory employs 75 skilled workers. The Operations manager thinks employees enjoy working at the factory as few leave each year. He said: ‘Who needs to offer financial bonuses when I can use Herzberg’s theory to motivate employees?’ He would like to improve efficiency in the factory as he thinks this is the best way to increase GCN’s low level of profit. He is not sure whether to introduce new technology into the production process. What is meant by a ‘financial bonus’? Identify two motivational theories (other than Herzberg’s). Theory 1: Theory 2: Identify and explain two ways in which GCN could use Herzberg’s theory to motivate its employees. Way 1: Explanation: Way 2: Explanation: 1 21 Identify and explain two possible problems for GCN of introducing new technology. Problem 1: Explanation: Problem 2: Explanation: Do you think improving efficiency is the best way for GCN to increase its profit? Justify your answer. [ 1 21

0450_s16_qp_13

THEORY

2016

Paper 1, Variant 3

View

TFN is a travel business which sells holidays. It has 37 shops and 1000 employees. Last year TFN’s profit increased to $46 million. The Managing Director knows that good customer service has helped maintain customer loyalty. He said: ‘TFN’s managers use ideas from Herzberg’s two-factor theory to help motivate employees. All employees are provided with off-the-job training and each manager has a wide span of control.’ Identify two advantages to a business of maintaining customer loyalty. Advantage 1: Advantage 2: Identify two hygiene factors from Herzberg’s two-factor theory. Hygiene factor 1: Hygiene factor 2: Outline two reasons why profit might be important to TFN. Reason 1: Reason 2: 1 11 Explain one advantage and one disadvantage to TFN of its managers having a wide span of control. Advantage: Explanation: Disadvantage: Explanation: Do you think off-the-job training is the best method of training for a service sector business to use? Justify your answer. 1 11

0450_w23_qp_12

THEORY

2023

Paper 1, Variant 2

View

Singh Foods (SF) makes a range of pickles and preserves . The business has expanded quickly even though the economy is in recession. The Human Resources manager believes employees have helped SF to become successful by accepting new ways of working. She uses both profit sharing and non-financial methods to motivate the 200 full-time employees. Few employees leave each year. Most communication is done through a weekly printed newsletter. She is not sure if this is still the best way to communicate with employees. What is meant by ‘economy is in recession’? Identify two non-financial methods that SF might use to motivate employees. Method 1: Method 2: Identify and explain two advantages to SF of using profit sharing. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two advantages to SF of few employees leaving each year. Advantage 1: Explanation: Advantage 2: Explanation: Do you think a newsletter is the best way for SF to communicate with employees? Justify your answer.

0450_m16_qp_12

THEORY

2016

Paper 1, Variant 2

View

---