CAIE A-Level Business AS 2.1.5 Morale and Welfare Questions

Evaluate the impact on RP of diversity and equality in the workplace.

1(d)

Indicative content

AO1 Knowledge and understanding

Knowledge of diversity and equality (max 2 marks), including:

- Equality - Ensuring a fair organisation so everyone has the opportunity to fulfil their potential.

- Diversity - Creating a mixed workforce, placing a positive value on diversity in the workplace.

Knowledge of an impact of diversity and equality in the workplace (max 2 marks), including:

- May be required by legislation

- Good employer reputation

- Easier to attract new employees

- May get the best applicants

- Introduce new ideas/innovation

AO2 Application

Context applied to an impact of diversity and equality in the workplace □ (max 2 marks), including

- Outsourcing company so other businesses most likely to require a diverse work organisation so better fit with customers

- Businesses more likely to use them if good equality practices

- Adverse variance of $ 500 per hire - indicates need to ensure efficiency

- Dynamic market environment requires creative employees

- Uses social media to attract customers - variety of languages help global expansion

- Won an award for good equality and diversity practices

- Use of Table 1.1

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.

- Change of working culture may be required - increasing costs/unsettled environment

- Training in equality and diversity for existing employees - higher costs/lower profit

- Costs of recruiting - additional requirement leading to higher costs

- Need to employ diverse ways of working and thinking to bring in new ideas and increase competitiveness

- Increase productivity - employees motivated by good working practices/leading to increased profit

- Better able to operate in a global marketplace - attracting more customers/businesses/- leading to increased sales/revenue

1(d)

AO4 Evaluation

Limited evaluation - unsupported judgement and/or a weak attempt at evaluative comment

Developed evaluation - supported judgement and/or reasonable evaluative comment

Developed evaluation in context ${ }^{\text {□ }}$ - supported judgement in context and/or reasonable evaluative comment in context.

- Weighing up of risks vs. reward of diversity

- Short term costs vs. long term benefits

- Judgement of consequences to RP impact on stakeholders it will most likely impact

- Challenges posed to company culture

Accept all valid responses.

2(a)(i)

Identify one fixed cost.

Indicative content

Fixed cost

- rent

- interest

- salaries

- wages

Accept all valid responses.

2(a)(ii)

Explain the term mass customisation.

Indicative content

AO1 Knowledge and understanding

Mass customisation is the use of flexible computer-aided technology on production lines to make products that meet individual customers' requirements for customised products.

Knowledge of mass customisation □ (max 1 mark), including:

- Bulk production

- Flexible

- Made to order

- Customer preferences

AO2 Application

Explanation of a characteristic of mass customisation □ , including:

- Lower unit costs combined with personalisation / Increased product choice

- Higher customer retention/loyalty

- Customers prepared to pay a higher price

- Higher profit margins

2(a)(ii)

Context applied to mass market(s) □ , including:

- Relevant example of mass customisation (including the T-shirt market)

Application can be made to FW or any other scenario/context/business/person.

Accept all valid responses.

Guidance in awarding marks

Knowledge & understanding & Knowledge of mass customisation & 1 mark

Explanation & Explanation of a characteristic of mass customisation & 1 mark

Context & Applied to a business context/ business environment & 1 mark
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