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CAIE A-Level Business 2.1.5 Employee Morale and Welfare

Practise analysing how work-life balance, diversity and equality influence morale, welfare and business outcomes, then evaluating their importance against other HRM priorities.

Syllabus
2026–2028
Course
Business 9609
Level
AS

Exam points

  • link poor work-life balance to stress or absence and then to productivity, quality or labour cost
  • analyse how diversity or equality changes ideas, recruitment reach, conflict or employee retention
  • evaluate welfare as an HRM priority using the workforce, industry and financial constraints

2.1.5—Morale and welfare question 1

[Maximum number: 12]

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

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.

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