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

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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

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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

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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

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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

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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

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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

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TCH is a small bakery producing pastries and cakes. It operates in the secondary sector. The added value of TCH’s products has increased since it opened 3 years ago. TCH uses non-financial methods to motivate its 6 employees. TCH’s business objectives have changed since it started up. One of its new objectives is to expand. Many businesses use external recruitment when they expand. Define ‘added value’. Define ‘secondary sector’. Outline two reasons why TCH’s business objectives might have changed. Reason 1: Reason 2: 1 14 Explain two non-financial methods of motivation TCH could use. Method 1: Explanation: Method 2: Explanation: Explain two methods of external recruitment a business could use. Which is likely to be the best method to use? Justify your answer. [ 1 14

0450_m24_qp_12

THEORY

2024

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Ben owns a small gardening business, which he started 15 years ago. Ben believes providing a quality service is important to his success. Ben’s business has a number of stakeholder groups including 2 full-time and 4 part-time workers who have all been employed by him for a number of years. Each worker is expected to do any job that Ben orders them to do. All workers are paid an hourly wage rate. They also receive a bonus if customers recommend the business to other people. Ben is always thinking about other ways to improve the motivation of his workers. What is meant by ‘stakeholder group’? Identify two possible reasons why Ben’s business has remained small. Reason 1: Reason 2: Identify and explain two reasons why quality might be important for Ben’s business. Reason 1: Explanation: Reason 2: Explanation: [ 1 17 Identify and explain two advantages to Ben’s business of having part-time workers. Advantage 1: Explanation: Advantage 2: Explanation: 1 17 Explain two ways Ben could improve employee motivation. Recommend which way Ben should choose. Justify your answer. 1 17

0450_s18_qp_11

THEORY

2018

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Wesso is a large manufacturing business. Many workers complain about poor communication in the business. Wesso pays its factory workers a basic wage plus a bonus. The Human Resources Director wants to introduce new working practices in its factories, such as making workers more flexible in their jobs. The aim is to improve productivity and cut costs. The trade union leader is opposed to these changes. What is meant by the term ‘productivity’? Identify two reasons why communication within a large business is often difficult. Reason 1: Reason 2: Identify and explain two possible reasons why Wesso uses bonuses as a means of paying staff. Reason 1: Explanation: Reason 2: Explanation: Identify and explain three non-financial ways of motivating the staff in a business. Way 1: Explanation: Way 2: Explanation: Way 3: Explanation: How can the management at Wesso persuade the trade union to accept the proposed changes in working practices? Justify your answer.

0450_w11_qp_13

THEORY

2011

Paper 1, Variant 3

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