CAIE A-Level Business AS 2.1.6 Training and Development Questions
Practise comparing induction, on-the-job and off-the-job training and their effects on employees.
- Syllabus
- 2026–2028
- Course
- Business 9609
- Level
- AS
Practise comparing induction, on-the-job and off-the-job training and their effects on employees.
Office Furniture Designs (OFD)
Markus is an entrepreneur and is planning to set up a private limited company called OFD in four weeks' time. OFD will be an online retailer selling office furniture directly to business customers. Products will be sent directly to customers from OFD's warehouse. OFD's product range will include office chairs, desks and filing cabinets.
Markus will have limited start-up funds. OFD will operate in a competitive market and Markus is keen to offer high-quality customer service. He also will have to think carefully about opportunity cost.
As part of his business planning, Markus has prepared a cash flow forecast (see Table 1.1).
Table 1.1 OFD's cash flow forecast June - August 2023 (\$ 000)
Markus plans to offer all customers one month trade credit. However, as OFD is a new business, suppliers may insist on payment on delivery. Markus is currently researching sources of finance to improve OFD's cash flow.
OFD will need five employees who will work in the warehouse and three customer service assistants. Markus plans to offer two weeks of induction training to all employees.
Analyse two benefits to OFD of offering induction training to all employees.
Analyse two benefits to OFD of offering induction training to all employees.
Annotate the first benefit in the left-hand margin and the second benefit in the right-hand margin.
1(c)
Indicative content
AO1 Knowledge and understanding
Knowledge of the benefits of induction training (max 2 s), may include:
- Understanding workplace issues
- Knowing who you are working with;
organisational structure
- Information about basic terms and conditions, e.g. holiday entitlement
- Information about the goods/services sold, e.g. desks and office chairs
- IT training to help new employee use the IT system
- Basic customer service training/expectations
- How to ensure that the products are fit for purpose
AO2 Application
Max one for application in the first benefit and max one for application in the second benefit, including;
- OFD is a new business (do not reward repetition of the question)
- Entrepreneur
- Private limited company
- Opening in four weeks' time
- Business took several months to set up
- Limited start-up funds
- Eight employees;
five employees in warehouse, three in customer service
- All employees are new / undergo induction together
- Two-week induction training
- Competitive service
- High-quality customer service
- Operate in a warehouse (but does not manufacture furniture)
- Sell direct to customers (online retailer).
1(c)
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 or a two-sided analysis.
- All of the five employees are new and undergo induction together. It will help to 'build' the new team by helping them get to know each other so they will start to work productively quicker.
- As it is a new business, the employees can agree the processes/procedures to operate and solve any potential issues before opening.
- Markus is keen to offer a high-quality customer service. The induction training is an ideal time to embed a high-quality culture throughout the business.
- The employees will become familiar with the technology used to operate the online retail business.
- The training will motivate the employees as they will feel valued by their new employer which will encourage them to work hard.
- The employees will settle in quicker as a result of the induction training, reducing labour turnover. This will save recruitment costs as Markus will not have to replace employees.
Accept all valid responses.
Exemplar and annotations