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 4 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 4

7115_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 2 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 2

7115_w21_qp_12

THEORY

2021

Paper 1, Variant 2

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 2 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 2

7115_s23_qp_11

THEORY

2023

Paper 1, Variant 1

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 1 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 1

7115_s22_qp_11

THEORY

2022

Paper 1, Variant 1

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 2 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 2

7115_w23_qp_12

THEORY

2023

Paper 1, Variant 2

View

A2Z is a small but successful airline company in country B, providing flights for business people. The management of A2Z wants the business to expand. It will have to buy more aeroplanes and recruit more airline pilots. The Human Resources manager has produced a job description for the pilots. She is now ready to advertise for the new pilots. She believes the best way for A2Z to motivate its pilots is to use financial rewards. Identify two possible reasons why A2Z might want to expand. Reason 1: Reason 2: Identify two factors that A2Z should consider when choosing a source of finance to buy more aeroplanes. Factor 1: Factor 2: Identify and explain two advantages to A2Z of producing a job description. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two suitable ways A2Z could use to advertise the new jobs. Way 1: Explanation: Way 2: Explanation: Do you think that using financial rewards is the best way for A2Z to motivate its pilots? Justify your answer.

7115_s15_qp_12

THEORY

2015

Paper 1, Variant 2

View

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 1 Identify and explain two advantages to Ben’s business of having part-time workers. Advantage 1: Explanation: Advantage 2: Explanation: 1 1 Explain two ways Ben could improve employee motivation. Recommend which way Ben should choose. Justify your answer. 1 1

7115_s18_qp_11

THEORY

2018

Paper 1, Variant 1

View

RWB manufactures buses.1200 people work in its factory. All employees receive off-the-job training. RWB uses financial rewards to motivate its employees. Last year RWB made a $1.7 million loss. The Managing Director said: ‘There are many external influences affecting our business, including changes in the level of unemployment and new legal controls over business activities which affect the environment.’ Define ‘off-the-job training’. Identify two reasons (other than financial) why people work. Reason 1: Reason 2: Outline two methods of financial rewards RWB might use to motivate its employees. Method 1: Method 2: 1 1 Explain two ways RWB might be affected by new legal controls over business activities which affect the environment. Way 1: Explanation: Way 2: Explanation: Do you think a reduction in the level of unemployment always benefits businesses? Justify your answer. [ 1 1

7115_s22_qp_12

THEORY

2022

Paper 1, Variant 2

View

Callow is a large retail business based in country X. ‘Our employees are an important stakeholder’, said the Managing Director. ‘To make sure we stay profitable we need to motivate them.’ Callow trains all of its shop employees by using off the job training. Fig. 1: Callow Organisation Structure Managing Director HR Director Finance Director West Region Manager South Region Manager North Region Manager East Region Manager Operations Director Marketing Director Shop Managers × 6 Department Managers × 4 Supervisors × 2 Sales Assistants × 8 Identify two stakeholder groups, other than employees. Stakeholder group 1: Stakeholder group 2: Identify two functions of management that each shop manager will have to perform. Function 1: Function 2: Identify and explain two features of Callow’s organisational structure. Feature 1: Explanation: Feature 2: Explanation: Identify and explain two possible methods that Callow could use to improve the motivation of its employees. Method 1: Explanation: Method 2: Explanation: Do you think it is a good idea for Callow to use off the job training for all its shop employees? Justify your answer.

7115_s14_qp_11

THEORY

2014

Paper 1, Variant 1

View

Zola is the general manager of a hotel. He believes that customer service is important if guests are to enjoy their stay at the hotel. Zola manages his staff by a mixture of financial incentives, such as bonuses, and by threats. The staff are paid on a time rate basis. What is meant by a financial bonus? Identify two reasons why customer service is important. Reason 1: Reason 2: Identify and explain one advantage and one disadvantage of paying staff by time rate. Advantage: Explanation: Disadvantage: Explanation: The hotel has a high staff turnover with a large number of employees leaving their job each year. Identify and explain three consequences of a high staff turnover to the business. Consequence 1: Explanation: Consequence 2: Explanation: Consequence 3: Explanation: Do you think that financial incentives are likely to be effective in motivating staff? Justify your answer.

7115_s10_qp_11

THEORY

2010

Paper 1, Variant 1

View

---