CAIE A-Level Business AS 2.1.5 Morale and Welfare Questions
Practise evaluating human resource management factors including morale, welfare, work-life balance and equality.
- Syllabus
- 2026–2028
- Course
- Business 9609
- Level
- AS
Practise evaluating human resource management factors including morale, welfare, work-life balance and equality.
Bear Bears (BB)
BB is a business partnership owned by Sade and Chika. BB produces personalised teddy bears (toys) for children.
The toys are made using mass customisation targeted at specific market segments. Each toy has the same shape and size but it is customised with names and words provided by the customer. These are hand-stitched onto the toy and the employees are paid using piece rate. Customers receive their products within a week of ordering.
Each toy is sold for $ 50 and has a unit contribution of $ 6. Last month BB sold 4000 units with a margin of safety of 120 units.
BB currently holds a large amount of inventory in a temperature-controlled warehouse (see Table 2.1).
Table 2.1 BB's current inventory
Sade thinks that BB should adopt a just in time (JIT) approach to inventory management. However, Chika is concerned about the possible impact on BB.
The stitching department is managed by Chika. She has recently received a complaint from David who is the only male employee in the stitching department (see Fig. 2.1).
I feel that I am being discriminated against because I am a man. There are no washroom facilities for me on the ground floor but there are for the women. I have to go up two floors for a washroom which takes me a lot of time.
I am given all the tasks which require heavy lifting. I am often asked to fix problems with other people's stitching machines, and this slows my production. I earn less money than anyone else in the stitching department.
After some further investigation, Chika believes there needs to be increased equality in the stitching department.
Evaluate the most likely impact on BB of increased equality in its stitching department.
Evaluate the most likely impact on BB of increased equality in its stitching department.
2(d)
Indicative content
AO1 Knowledge and understanding
Knowledge of equality (max 2ks ), including:
- Equality in the workplace means equal job opportunities and fairness for employees and job applicants.
- Equality means that a business must not treat people unfairly because of protected characteristics. For example, because of sex, age, race, religion, culture - allow any acceptable protected characteristic.
- Equality means having an inclusive and fair working environment.
No further marks can be gained without knowledge and understanding
AO2 Application
Limited application 口e 土 applies knowledge of equality to BB once.
Developed application ⩽Fe+Δ⩽Fe applies knowledge of equality to BB twice.
- Personalised products (toys) using mass customisation - stitching (where David works) department does the customisation.
- Employees paid using piece rate.
- David is only man in stitching department - possible inequality in recruitment process.
- Stitching employees
- Lack of male washroom facilities on ground floor.
- David given tasks which require heavy lifting.
- David asked to fix problems with machines - limits his ability to earn (piece rate).
AO3 Analysis
Limited analysis - candidate shows one link in the chain of analysis.
Developed analysis → candidate shows two or more links in the chain of analysis.
Positive impacts, including:
- BB may gain a reputation as a better employer which may improve their recruitment - reduce business costs of recruitment and/or lead to better employees.
- Owners may avoid being sued for discrimination in the workplace (unlimited liability) by an employee.
- May increase motivation of the current workers which could increase productivity - decrease sales, increase profitability.
- May improve the quality of the work which could allow BB to increase prices - increased profitability.
2(d)
Negative impacts,including:
-Costs of increasing equality,including:
-cost of recruiting more men to the stitching department
-cost of building a men's washroom on the ground floor
-costs of retraining other employees to fix machines
-costs of employing someone/training someone to do the heavy lifting and/or capital expense of equipment to do this.
-If BB admit to inequality in the stitching department(by improving it)then they may be open to allegations of discrimination-legal issues,poor reputation,customer reaction.
-Possibility that other departments/groups in BB will demand equality.
AO4 Evaluation
Limited evaluation ⿴囗大 -unsupported judgement and/or a weak attempt at evaluative comment
Developed evaluation E-supported judgement and/or reasonable evaluative comment
Developed evaluation in context se -supported judgement in context and/or reasonable evaluative comment in context.
-A judgement over the most likely/important impacts of increased equality in the stitching department.
-What the judgement might depend upon,including;the legal rights/responsibilities of businesses in BB's home country, the legitimacy/accuracy of David's claims about inequality in the stitching department,the level of equality in the other departments of BB ,other HRM /operational issues facing BB .
-Weighing up of the relevant impacts of increased equality in the stitching department.
Accept all valid responses.
Exemplars for awarding evaluation
2(d)
L1 № (limited supporting
evidence)
L2 ± (developed supporting
evidence)
L3 EE (developed supporting
evidence with context)
Motivation will have the biggest
impact
Motivation will have the biggest
impact because the employees will
have a big effect on the amount of
products that can be produced,
limiting the output.
Motivation will have the biggest
impact because BB uses mass
customisation so the they will have a
big effect on the amount of products
produced, limiting the output,
The most important impact will be
lower labour turnover.
The most important impact will be
lower labour turnover because BB's
business model relies on employing
people, some of whom are not happy
at the moment.
The most important impact will be
lower labour turnover because BB's
business model relies on employing
people in the factory, some of whom
are not happy at the moment, like
David who is the only male in
department.
All of this may depend upon what the
owners want.
All of this may depend upon whether
the owners care about happiness of
all their employees or just see them
as a cost burden on BB .
All of this may depend upon whether
the owners care about happiness of
all their employees, including David
the only male in department, or just
see them as a cost burden on BB .
It will be different in the short term,
compared with the long term.
In the short term, equality will have a
negative impact due to the increased
costs incurred by BB, but in the long
term it will have a beneficial impact
because labour turnover will
decrease.
In the short term, equality will have a
negative impact due to the increased
costs incurred by BB of building a new
bathroom, but in the long term it will
have a beneficial impact because
labour turnover will decrease.
Some stakeholders will see it as a
positive impact.
Employees may see it as a positive
impact because they are getting equal
rights, which might lead to better pay
for some and make them feel more
secure in their job.
Employees may see it as a positive
impact because they are getting equal
rights, which might lead to David
getting equal access to a bathroom
and not have to do all of the
traditionally 'male' job roles.