Practise applying workforce planning, recruitment, training, diversity, welfare and employee relations to analyse HRM choices and evaluate their effects on performance and cost.
Analyse two benefits to a business of low labour turnover.
4 marks for each of the two benefits to a business of low labour turnover.
These 4 marks consist of :
1 mark for
1 mark for
2 marks for
Indicative content
Responses may include:
AO1 Knowledge and understanding
1 mark for identifying one benefit to a business of low labour turnover
- Lowers cost of recruiting new staff.
- Less employee training required
- Staff loyalty and morale likely to be high
- Less risk of work building up with gaps when staff leave
- Consistency of production
- Production quality maintained
- Customer contact retained
- Reputation of business high
AO2 Application
1 mark for application of one benefit to a business of low labour turnover
- Less people leave the business, low replacement costs
- Fewer employees require induction or other training
- Staff content to stay in business
- Sufficient numbers of staff maintained
- Experienced workers remain in the business
- Product quality maintained
- Customers relate to known staff
AO3 Analysis
2 marks for developed analysis of one benefit to a business of low labour turnover L2
1 mark for limited analysis of one benefit to a business of low labour turnover L1
- Lower recruitment and training costs - means more money to reinvest in other areas of the business.
- Consistent customer relationships - means less chance of losing customers - maintain or even increase sales.
- Consistent quality of products and services - less errors - less waste/complaints - decreased costs /improved image
- Low turnover might make business attractive when business does need to recruit - attract better quality workers.
- Better morale and team spirit - can lead to higher productivity
- Less risk of being short staffed - so build reputation with customers for meeting orders
- Knowledge and skills kept within the business - can increase goodwill and value of the business - if it were to be sold.
Accept all valid responses.
'Work-life balance is the most important human resource management (HRM) factor for employee welfare in a local bus service.'
Evaluate this view.
2 marks for □
2 marks for □
2 marks for □
6 marks for □
Indicative content
Responses may include:
AO1 Knowledge and understanding
2 marks for developed knowledge L2
1 mark for limited knowledge L1
- Work-life balance is about creating and maintaining supportive and healthy work environments that enable employees to have balance between work and other aspects of life - family, friends, community, personal growth.
- Employee welfare is overseen by HRM departments who may offer counselling and other services to staff who are in need of support, perhaps because of family or financial problems.
- HRM is the strategic approach to the effective management of organisations workers so that they help the business gain a competitive advantage.
AO2 Application
2 marks for developed application L2
1 mark for limited application L1
- Bus drivers and conductors have stressful jobs
- Bus drivers are required to drive safely
- They need to be alert and not over tired
- Bus drivers and conductors are close to passengers
- They need to work regularly to guarantee a bus timetable
AO3 Analysis
2 marks for developed analysis L2
1 mark for limited analysis L1
- WLB could lead to bus drivers feeling more optimistic about responsibilities - better able to meet timetable targets
- Potentially lower labour turnover and absenteeism reduced if staff feel they have a good WLB
- Bus drivers might have more energy and be less tired with good WLB - leading to better customer experience
- Stressed and overworked bus staff may be rude or not deal very well with angry passengers - which might lead to customer complaints and demotivated/demoralised drivers
- WLB could reduce negative effects of work-life conflict - such as health risks - smoking, drinking, weight gain, depression - on employees - business will build good image for business as a caring employer - leading to healthier drivers
- Strengthen employee loyalty and productivity - which means buses might run on time - increase reputation and esteem for drivers
- Duty of care to employees - means it will reduce likelihood of paying compensation to employees/customers if accidents occur to elderly passengers due to speeding drivers.
AO4 Evaluation
6 marks for Evaluation
A judgement/decision as to whether WLB is the most important HRM factor for employee welfare in a local bus service. These judgements/decisions may be made at any point in an essay, not just in the concluding section of an essay.
- A judgement is made as to the importance of HR concern for WLB for the welfare of those working for a local bus service.
- How might WLB be an important HRM factor for employee welfare? - improve performance, improve morale of staff, prevent over tiredness, signal concern for and confidence in staff
- Might other HRM factors be equally/more important than WLB for welfare of bus service staff such as training, shorter work hours, more pay, or better quality management/supervision, better canteen facilities, better holiday entitlements?
Accept all valid responses.
Explain the term employment agency.
Indicative content
AO1 Knowledge and understanding
Knowledge of employment agency may include:
- provides recruitment services to other business
- a business outsources recruitment of employees to another business
- find ideal candidates for a specific job role
AO2 Application
Explanation of employment agency may include:
- customer provides details of job roles and numbers required: the agency selects and recruits employees
- specialist recruiters used: providing expertise which may not exist in a business
- increased efficiency/lower cost: especially where many and varied roles/employees required.
- Can provide training/manuals: reducing costs for other business
Context applied to a business □ , including:
- An example of a business using an employment agency
Application can be made to RP or any other scenario/context/business/person.
Accept all valid responses.
Guidance in awarding marks
Refer to Table 1.1 and other information. Calculate RP's actual cost per hire for the customer contract in March 2024.
Total cost/total hires (1)
or
1260 000/450 (1) = 2800 (1)
or
1260/450 = 2.8 (OFR)
or
1260 000/450 (1) +500 (1)
= 2800 +500 = $3 300 (3) OFR
Note: Correct answer 3300 ($ not required) required for full marks.
Analyse two methods RP could use to select sales employees.
Indicative content
AO1 Knowledge and understanding
Knowledge of first selection method (max 2 marks - annotate first method on left and second method on right), may include:
- Curriculum vitae
- Résumé
- application forms
- interview
- references
- testing
- assessment centres
Note: Must be selection NOT recruitment
AO2 Application
Context applied to relevance of each selection method to sales employees (max 1 mark per method):
- Requires customer contact and selling skills so assessment centre
- 225 required but only 3 recruiters so simple, quick method best
- Most relevant probably application form and references
- Sales staff will need to be personable so may interview to make sure character and personality fit with the job role, but could be an inefficient way to recruit for this many employees
- Already showing adverse variance
- 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 or a two-sided analysis.
- High cost of selection - could lower profits
- May attract lots of applicants - so need a quick/efficient method
- What time scale is required for hiring - may not have time to interview all
- Most relevant probably application form and references
- Need to ensure equality and diversity in selection process - what is best way to do this?
Accept all valid responses.
Evaluate the impact on RP of diversity and equality in the workplace.
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
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 □ - 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 |
Define the term dismissal.
Indicative content
Responses may include:
AO1 Knowledge and understanding
Clear understanding of the term dismissal is worth 2 marks.
- the act of removing or terminating the job or contract of employment of an employee
- usually means that the termination was done by the employer and not a voluntary action by the employee
- employee is dismissed for breaking contract/poor conduct
Partial understanding of the term dismissal is worth 1 mark.
- dismissal may also be referred to as termination, firing/fired or discharge
- employee leaves the business (1)
- an employee's job is lost/finished (1)
Accept all valid responses.
Explain one impact on employees of being trade union members.
Indicative content
Responses may include:
AO1 Knowledge and understanding - 1 mark 踣 for identifying one impact on employees of being trade union members.
- better working conditions
- improved pay
- job security
- ensure equality
- information and support
- empowerment
- motivation
- cost
AO2 Application - 2 marks ΔFP e for developed explanation of one impact on employees of being trade union members. 1 mark LFeFe for limited explanation of one impact on employees of being trade union members.
- improved facilities, breaks, lighting, heating, safe and secure working conditions
- collective bargaining on behalf of all their members
- protect workers against unfair dismissal and equality and equity in how redundancy is carried out
- support for people claiming compensation for workplace injuries
- provide relevant information regarding established workplace regulations and procedures
- involvement in business decisions
- Maslow safety and security/social needs
- cost of membership/industrial action can result in lost pay
Accept all valid responses.
Analyse two benefits to a business of low labour turnover.
4 marks for each of the two benefits to a business of low labour turnover.
These 4 marks consist of :
1 mark for
1 mark for
2 marks for
Indicative content
Responses may include:
AO1 Knowledge and understanding
1 mark for identifying one benefit to a business of low labour turnover
- Lowers cost of recruiting new staff.
- Less employee training required
- Staff loyalty and morale likely to be high
- Less risk of work building up with gaps when staff leave
- Consistency of production
- Production quality maintained
- Customer contact retained
- Reputation of business high
AO2 Application
1 mark for application of one benefit to a business of low labour turnover
- Less people leave the business, low replacement costs
- Fewer employees require induction or other training
- Staff content to stay in business
- Sufficient numbers of staff maintained
- Experienced workers remain in the business
- Product quality maintained
- Customers relate to known staff
AO3 Analysis
2 marks for developed analysis of one benefit to a business of low labour turnover L2
1 mark for limited analysis of one benefit to a business of low labour turnover L1
- Lower recruitment and training costs - means more money to reinvest in other areas of the business.
- Consistent customer relationships - means less chance of losing customers - maintain or even increase sales.
- Consistent quality of products and services - less errors - less waste/complaints - decreased costs /improved image
- Low turnover might make business attractive when business does need to recruit - attract better quality workers.
- Better morale and team spirit - can lead to higher productivity
- Less risk of being short staffed - so build reputation with customers for meeting orders
- Knowledge and skills kept within the business - can increase goodwill and value of the business - if it were to be sold.
Accept all valid responses.
Define the term dismissal.
Indicative content
Responses may include:
AO1 Knowledge and understanding
Clear understanding of the term dismissal is worth 2 marks.
- the act of removing or terminating the job or contract of employment of an employee
- usually means that the termination was done by the employer and not a voluntary action by the employee
- employee is dismissed for breaking contract/poor conduct
Partial understanding of the term dismissal is worth 1 mark.
- dismissal may also be referred to as termination, firing/fired or discharge
- employee leaves the business (1)
- an employee's job is lost/finished (1)
Accept all valid responses.
Evaluate the impact on RP of diversity and equality in the workplace.
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
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 □ - 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 |
Cobblestone Shoes (CS)
Yazeem is a highly skilled shoemaker. He opened CS in 1975, as a sole trader, to design and repair shoes. When Yazeem set up CS the main target market was professional people who wanted shoes to wear to work or to dress smartly. He produced the shoes using batch production and sold them in his own shop. Each design of shoe was made in a range of sizes and colours.
Abir has suggested that CS should adopt a just in time (JIT) approach to inventory management. By using JIT, she argues, CS would be able to increase its working capital and avoid having money tied up in inventory that might not be used or sold. CS currently has a large number of shoes on display in the shop. There is also a large amount of their main raw material, which is leather and must be kept in a climate-controlled storage area.
Recently there has a been an increase in low-priced shoes produced for the mass market, which has reduced Yazeem's sales of new shoes. It has also reduced the demand for shoe repairs.
Yazeem's daughter, Abir, is keen to take over the running of CS. She has been fully trained in making shoes and feels that it is time for Yazeem to retire.
Abir thinks that the business should be targeting niche markets. She would like to design and produce unique shoes and use price skimming to increase the profitability of the business.
Abir is also concerned about the contribution made on each batch of shoes. Table 2.1 shows some break-even data for a recent batch of shoes.
Table 2.1 Break-even data about a recent batch of shoes
Abir has already found a new local supplier which is happy to deliver inventory as required.
Identify one type of training.
Indicative content
Types of training are:
- Induction
- On the job
- Off the job
Evaluate whether cooperation between management and the workforce is the most important factor in the success of a car manufacturer.
OR
2 marks for □
2 marks for □
2 marks for □
6 marks for □
Indicative content
Responses may include:
AO1 Knowledge and understanding
2 marks for developed knowledge L2 □
1 mark for limited knowledge L1
- Cooperation is the action or process of working together to achieve the same goal.
- A state of relations where employee and management work together to accomplish certain goals using mutually acceptable means.
- It is the outcome of a continuous process of enhancing mutual trust and respecting through sharing information, discussion, consultation and negotiation.
- Success can be defined by a number of factors;
market share, profits, share value, productivity, labour turnover, employee relations, environmental credentials, brand image.
AO2 Application
2 marks for developed application L2
1 mark for limited application L1
- Need to cooperate in different teams that work on different parts of the car such as chassis
- Companies like Nissan have Kaizen that involves cooperation between management and workers
- Car manufacturer related terms e.g. tyres, chassis, robots, assembly, quality circles, quality assurance, production
targets, safety, car designs, TQM
- Named businesses e.g. Ford, BMW, Skoda, Audi, Nissan
AO3 Analysis
2 marks for developed analysis L2
1 mark for limited analysis L1
- Cooperation can lead to a more harmonious workplace - It can improve productivity - reduce labour turnover.
- A strong ethos of cooperation and teamwork - where ideas are shared - means objectives and goals can be achieved
successfully - customers are satisfied.
- A sense that everyone is pulling in the same direction - and are invested in the business success - can increase
productivity - increase morale - attract the best workers.
- Training and resources may be required to ensure effective cooperation - which can increase costs.
- Goals that ensure different teams, including managers need to cooperate - can improve productivity and morale.
- Communication channels between all related parties, including unions - need to work - ensure harmonious industrial
relations.
- Employees need to be empowered to contribute - as creative ideas could give the business a competitive edge - or
help streamline production - become more efficient.
- The less employee conflicts the manager has to deal with the more they can focus on helping the team achieve its
objectives - production could increase - more cars made in shorter period of time.
- When a mutual level of respect exists between managers and workers - willingness to perform well - then goals can be
achieved.
- Cooperation can enable a trusting environment - where employees feel able to take risks - increase engagement
levels of employees - improve retention rates.
- Workers may need to feel they are valued financially before cooperating - if not could lead to industrial action -production stops.
AO4 Evaluation
6 marks for evaluation
A judgement/conclusion is made that cooperation between managers and the workforce is the most important factor in the success of a car manufacturer.
These judgements/conclusions may be made at any point in the essay, not only in a concluding section.
- A conclusion that cooperation between workers and managers should be seen as just one factor in the success of a business - and other factors are just as important - such as marketing or product quality.
- A judgement that other business activities are more important, such as marketing strategies - as they need to make the right car or it won't sell as well as competitors.
- A conclusion about what the car manufacturer hopes to achieve in the long and short term (what are its corporate goals and values) and whether this is dependent on cooperation between managers and workers.
- A judgement that the onus lies on good leadership to make cooperation work or that it depends on what the employees motivations are - not everyone is interested in cooperation.
- A judgement that cooperation may solely depend on how well represented workers are by a union.
- A judgement that enhanced productivity is key to a successful car manufacturer - and should be achieved by any means necessary.
- A judgement that car manufacturers operate in an internationally competitive market - so it is essential to do everything possible to foster cooperation.
- A judgement about the environment in which the car manufacturer exists and that it is subject to factors beyond its control e.g. economic downturn or worldwide pandemic - so job security cannot be guaranteed.
- A judgement about cooperation depending on factors such as - the strength/role of trade unions - location factors such as the EU or where labour is cheapest - or how successfully the business changes to electric car production in comparison to its competitors.
Accept all valid responses.