2.3. Recruitment, selection and training of employees
A subsection of Business Studies, 0450, through 2. People in business
Listing 10 of 47 questions
CFE makes high quality steel used in shipbuilding. 40% of its output is exported. CFE’s equipment is old and often breaks down. CFE plans to downsize its workforce and 1200 of its 2100 skilled employees could be made redundant. The Managing Director blames reduced demand because of recession in some economies. A trade union spokeswoman said: ‘Where are the opportunities from globalisation? This decision will affect many stakeholder groups. There must be another way for CFE to reduce costs.’ What is meant by a ‘trade union’? Identify two possible reasons (other than reduced demand for steel) that could make it necessary to downsize the workforce. Reason 1: Reason 2: Identify and explain two opportunities for CFE of globalisation. Opportunity 1: Explanation: Opportunity 2: Explanation: 1 17 Identify two external stakeholder groups. Explain how each group might be affected by CFE’s decision to downsize the workforce. External stakeholder group 1: Explanation: External stakeholder group 2: Explanation: Do you think that reducing the number of employees is the best way for CFE to reduce costs? Justify your answer. [ 1 17
0450_s17_qp_13
THEORY
2017
Paper 1, Variant 3
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AUC is a bank. Its organisational structure has a tall hierarchy and long chain of command. Most of its customers are small businesses in the tertiary sector. Last year AUC made a loss of $60m. The new Managing Director has to improve employee motivation as well as reduce costs. 20% of its 19000 employees will be made redundant. She said: ‘Maintaining customer loyalty is important. We will need to inform our customers that 500 of our 2000 retail bank branches will be closed.’ What is meant by ‘chain of command’? Identify two examples of business activity in the tertiary sector. Example 1: Example 2: Identify and explain two reasons why maintaining customer loyalty is important to AUC. Reason 1: Explanation: Reason 2: Explanation: 1 13 Identify and explain two factors that AUC should consider when deciding which employees to make redundant. Factor 1: Explanation: Factor 2: Explanation: Explain two methods of communication that AUC could use to inform customers about the planned closures. Recommend which one AUC should use. Justify your answer. [ 1 13
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THEORY
2018
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NCE manufactures cars in 4 factories using flow production. NCE’s Human Resources Director thinks good induction training helps achieve high productivity. Factory X is its most efficient factory. Last year the size of the new car market fell by 20%. NCE now has to make 400 workers redundant at one of its other factories. ‘I am pleased NCE is a large business’, said the HR Director, ‘I think a small business cannot survive in this competitive market.’ Table 2: NCE operations data for 2014 Number of cars made Number of employees 168 000 What is meant by ‘flow production’? Calculate the output per employee in 2014. Identify and explain two ways in which induction training might benefit NCE. Way 1: Explanation: Way 2: Explanation: Identify and explain two factors that NCE would need to consider in deciding which workers to make redundant. Factor 1: Explanation: Factor 2: Explanation: The HR Director thinks that ‘a small business cannot survive in this competitive market’. Do you agree with this view? Justify your answer.
0450_w15_qp_12
THEORY
2015
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UDig is a large mining company in the private sector. It supplies businesses in country B with 30% of the coal they need. UDig now has eight mines but plans to close two of them and this will threaten 1800 employees with redundancy. The Managing Director said: ‘I blame the appreciation of country B’s exchange rate and new legal controls including those to protect the environment. The Government should help UDig keep these mines open.’ What is meant by ‘private sector’? What is meant by ‘redundancy’? Identify and explain two ways an appreciation of country B’s exchange rate might affect UDig. Way 1: Explanation: Way 2: Explanation: 1 11 Identify and explain two ways in which legal controls might affect UDig. Way 1: Explanation: Way 2: Explanation: The Managing Director thinks ‘the Government should help UDig keep these mines open’. Do you agree? Justify your answer. [ 1 11
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THEORY
2016
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ALB is a large bank. It has 300 branches and 5000 employees. ALB provides a range of financial services to its business customers. As it operates in a competitive market, ALB aims to maintain customer loyalty. Last year ALB’s profit decreased to $3000m. The Managing Director is analysing ways to reduce ALB’s costs. She also has to decide how new legal controls over employment issues might affect the business. The Government plans to improve protection of employees by changing laws on the minimum wage and health and safety. Define ‘profit’. State two problems of using the number of employees to measure the size of a business. Problem 1: Problem 2: Outline two possible ways ALB can try to reduce its costs. Way 1: Way 2: 1 13 Explain two ways ALB could improve customer loyalty. Way 1: Explanation: Way 2: Explanation: Do you think changes in legal controls over employment issues will always reduce business profits? Justify your answer. 1 13
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THEORY
2020
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Tebo has recently been made redundant from his job as a car mechanic. He is thinking of setting up his own business. Even though he has no management experience, he knows that managing cash flow will be important to the success of the business. Tebo is considering whether to apply for a FIXIT franchise. This franchise would cost $15 000, which would use all of his savings. FIXIT is a car repair franchise, with 36 franchisees. What is meant by ‘made redundant’? Identify two functions of management that Tebo might have to perform. Function 1: Function 2: Explain why managing cash flow will be important for Tebo’s business. Identify and explain two factors Tebo should consider when deciding where to locate his business. Factor 1: Explanation: Factor 2: Explanation: Do you think that buying a FIXIT franchise is the best way for Tebo to start his business? Justify your answer.
0450_w15_qp_11
THEORY
2015
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MRN is a food retailer. It has 490 shops and 70000 employees. MRN has announced plans to close 80 of its shops. The Human Resources Director said: ‘20% of management jobs will be removed. We want to encourage delegation. MRN will continue to follow legal controls over employment.’ MRN’s directors know it is important that businesses respond to increased competition. Define ‘delegation’. Identify two legal controls over employment. Legal control 1: Legal control 2: Outline two functions of MRN’s shop managers. Function 1: Function 2: [ 1 12 Explain two factors MRN should consider when deciding which shops to close. Factor 1: Explanation: Factor 2: Explanation: Explain two ways a retail business could respond to increased competition. Which would be the best way to use? Justify your answer. 1 12
0450_w23_qp_11
THEORY
2023
Paper 1, Variant 1
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Questions Discovered
47