Practise applying motivation theories and financial or non-financial methods to analyse employee behaviour, performance and cost before judging the best approach for a workforce.
'A motivated workforce is the most important factor for the success of a low-price airline.'
Evaluate this view.
'
&
Level AO1 Knowledge and
AO4 Evaluation understanding
6 marks 2 marks
11 mark Limited knowledge Limited application
1 mark 1-2 marks Limited analysis that identifies connections
- A judgement/ between causes, impacts and/or consequences. with limited
Limited evaluation of relevant key term(s) and/or factor(s) is used to conclusion is made answer the question. supporting comment/ evidence.
- An attempt is made to balance the arguments.
0 marks
No creditable response.
2 marks for
2 marks for
2 marks for
6 marks for
Indicative content
Responses may include:
AO1 Knowledge and understanding
- Motivation is about the factors that encourage individuals to be committed and interested in their job.
- Motivation is the internal and external factors that stimulate people to take actions that lead to achieving a goal.
- Business success can be measured in a number of ways - maximising shareholder returns, market share, profits, goodwill created, labour turnover, liquidity, sales growth, stakeholder engagement.
- Developed knowledge - a motivated workforce is important for a business which aims for high levels of customer satisfaction provided by committed employees. (2 marks ± 2 )
- Limited knowledge - another factor for business success is financial stability. (1 mark × 1)
AO2 Application
- Customer service agents and cabin crew deal directly with customers - therefore need to have a professional and friendly attitude.
- Motivated staff can better handle difficult passengers - if, for example, flights are delayed.
- Pilots need to be motivated to handle pressure - as they are responsible for potentially hundreds of passengers.
- Staff often get large discounts on flights as a fringe benefit - which means cheap holidays or city breaks.
- Demotivated baggage handlers may damage luggage when loading and unloading airplanes.
- Developed application - a successful business model for a low price airline will include a motivated workforce which makes travel fun and exciting to complement the aim of providing safe and punctual journeys. (2 marks ± ± )
- Limited application - a successful business model for a low price airline will include a motivated workforce which makes travel fun and exciting. (1 mark -r )
AO3 Analysis
- Motivated staff can have a direct impact on productivity and business efficiency - which might reduce business costs.
- Potentially lower labour turnover and absenteeism if staff are motivated in their jobs - which reduces the costs of recruitment.
- Employees are more likely to accept responsibility and take an active role in the workplace - which may lead to improved business practices and a better customer experience.
- Demotivated staff may be rude or not deal very well with customers- which might lead to customers leaving bad reviews and not using the business again in the future.
- Improved industrial relations with trade unions - therefore less chance of industrial action and disgruntled employees.
- Developed analysis - a motivated workforce is likely to engage more directly with customers and provide excellent customer service which encourages customer loyalty therefore they will continue to use this business rather than a competitor. (2 marks □×2 )
- Limited analysis - a motivated workforce is likely to engage more directly with customers and provides excellent customer service which encourages customer loyalty. (1 mark □ × 1)
AO4 Evaluation
Eval 6 - developed judgement/conclusion is made in context (low price airline) (6 marks )
Eval 5- developed evaluative comments given in context (low price airline) (5 marks )
Eval 4 - developed judgement/conclusion is made, not in the context of a low price airline. (4 marks)
Eval 3 - developed evaluative comments made, not in the context of a low price airline. (3 marks )
Eval 2 - judgement/conclusion is made but with little supporting evidence, again not in context. ( 2 marks )
Eval 1 - an attempt is made to balance arguments. (1 marks )
Eval 0 - no evaluation is attempted. (0 marks)
- It can be concluded that what motivates one employee might be different to another employee. One person might be
only motivated by money whereas another person seeks promotion or a more stimulating challenge.
- It might be concluded that highly motivated staff might be powerless to prevent angry passengers using a different
airline if flights are constantly late or unreliable.
- A judgement as to the reasons why the airline is competitive. For example, do they offer similar prices and destinations
to competitors? Is the booking system reliable? Do people use the airline because of the customer service?
- A judgement as to how important the customer experience is when customer's main reason for using the airline is its
cheap prices.
- It might be concluded that other elements are more important such as if the airline has been marketed effectively.
- It might be concluded that the business does not have a reliable fleet of airplanes which leads to cancelled flights-
something motivated staff may have no control over.
- It might be concluded that business success can be subject to external conditions. The worldwide pandemic has had a
major impact on the airline industry.
Accept all valid responses.
Explain one of Jake's human needs that may be satisfied by operating JC.
Explain one of Jake's human needs that may be satisfied by operating JC.
Indicative content:
AO1 Knowledge and understanding
Knowledge of a factor that may satisfy a human need.
- Social connections
- Challenge
- Significance
- Certainty
- Maslow's hierarchy of needs
AO2 Application
Limited application ΔsF, applies knowledge of one factor that satisfies Jakes needs once.
Developed application ΔFe+[ΔFe applies knowledge of one factor that satisfies Jakes needs twice.
- via followers on social media
- unique cakes
- creating customer designed unique cakes/orders
- sole business owner/sole trader/owns 100% of business
- of praise from local celebrity (sharing JC social media posts
- garage conversion plan
- he is an entrepreneur
Accept all valid responses.
Analyse two ways a business could use employee participation in the management of business activity.
Indicative content
Responses may include:
AO1 Knowledge and understanding
- gain ideas about job / business / opinions.
- assist decision-making.
- increase motivation.
- reduce employee dissatisfaction.
- incorporate into organisation structure.
Some candidates have reversed K and APP - this is acceptable.
AO2 Application
- examples of use of type(s) of employee participation in business contexts - meetings, quality circles, work councils, worker directors, autonomous work groups, laissez faire / democratic management.
- might not name specific methods of participation but describe how they work.
Some candidates have reversed K and APP - this is acceptable.
AO3 Analysis
- taking part in meetings where the contribution of employees, their proposals and result of being allowed to take part in
voting can influence the objectives and activities of the business.
- to operate well, employee participation may need a laissez faire style of management. This gives employees the ability
to manage their own working practices and is a motivating factor.
- motivated employees are more likely to benefit the business in many ways. Employee participation is seen to some
extent in all the motivation theories, satisfying higher needs of self-esteem and self-actualisation.
- however, the management of business activities is often considered to be the role of senior managers and leaders
within a business. It may be difficult for them to relinquish some of their responsibilities to suitably experienced and
qualified employees.
- works councils - managers and employees meet to discuss issues such as working conditions, pay and training.
Employee representatives are elected by the workforce and may be appointed to the Board of Directors. Employee
concerns are raised and solutions are likely to be acceptable to employees.
- worker directors - can influence decision-making. Will seek actions to benefit employees and prolong decision-
making. In reality little notice may be taken of the worker director.
- employee shareholders - employees can buy shares in the company, often at discounted rates. Because employee
shareholders have a financial interest in the business' performance, their motivation levels and performance may
improve. If the business performs well, its share prices should increase, giving financial benefits to the employee.
- quality circles - groups of workers who meet regularly to identify methods of improving all aspects of the quality of their
work. They normally involve employees drawn from all levels within the organisation and focus on supplying
imaginative ideas. Their decisions can improve the production of the business as well as motivating them.
- autonomous work groups - teams of employees who are given a high level of control over their working lives (a form of
empowerment). Some groups elect their own leaders and can appoint new staff, as well as having considerable
authority over what tasks to complete and in what sequence. Those employees doing the job are often in a better
position to make appropriate decisions than senior managers.
Positives and/or negatives are acceptable for analysis.
Accept all valid responses.
Evaluate whether McClelland's three needs theory is the best way to meet employee needs in a software business.
Indicative content
Responses may include:
AO1 Knowledge and understanding
- McClelland - three needs theory - achievement motivation, authority / power motivation, affiliation motivation.
AO2 Application
- examples given of suitable application - software, video games, research, technology, quaternary sector.
- examples given of the different types of employees within a software business e.g. app developer, programmer, website developer, game developer, coding, data scientist.
- example of a software business e.g. Apple, Microsoft.
AO3 Analysis
- Achievement motivation - employees aim for excellence. Likely to avoid low-risk situations with unchallenging targets. Likely to avoid high-risk situations as they fear not achieving.
- Achievement motivation - employees need realistic but challenging goals. Should be given tasks which are demanding but achievable. Need regular positive feedback on achievement and progress to meet their need for accomplishment.
- Authority / power motivation - employees need personal power - to direct or control other employees.
- Authority / power motivation - employees need institutional power - to organise other employees, to have control and status, to influence the business' objectives.
- Authority / power motivation - employees can be given supervision / control of other workers by promotion to higher position e.g. manager. A strong need for authority may lead to an autocratic leadership style.
A junior employee could be given a supervisory role, while more senior employee may manage a large team of employees.
- Affiliation motivation - employees need good relationships and social interaction with other employees. They need to feel accepted and are motivated to work with other people.
- Affiliation motivation - employees should be employed as a member of a team.
- McClelland believed that these three needs exist, to differing extents, in all employees, regardless of their role or status within the business.
- the combination of these three needs determines: each employee's behaviour in terms of what motivates them; how they manage and motivate other employees.
- McClelland's theory of needs has implications for leaders and managers. They must treat each employee as an individual as each employee may require different roles and tasks to meet their individual needs.
- reward comments regarding the overlap between McClelland's theory and others. Motivation theorists show a range of employee needs, some of which overlap.
- Taylor - money for basic needs. Mayo - social needs. Maslow's hierarchy of needs - physiological, security, social, self-esteem, self-actualisation. Herzberg - two factor theory of hygiene factors and motivators, meeting the needs above.
These theories can also be used to influence the motivation of employees once McClelland's theory has been applied.
Accept all valid responses.
AO4 Evaluation
| Developed evaluation in context: | Developed / Supported judgement in context | 6 marks |
| Developed evaluation in context: | Developed / Reasonable evaluative comments in context | 5 marks |
| Developed evaluation not in context: | Developed / Supported judgement without context | 4 marks |
| Developed evaluation not in context: | Developed / Reasonable evaluative comments without context | 3 marks |
| Limited supported judgement | Limited supported judgement | 2 marks |
| Limited supported judgement | An attempt to balance the arguments / Weak attempt at evaluative comments | 1 mark |
A judgment/conclusion is made as to whether McClelland's three needs theory is the best way to meet employee needs in a software business.
These judgements/conclusions may be made at any point in the essay, not only in a concluding section.
- evaluative comments may compare the usefulness of McClelland's theory with that of other theorists.
- how easy is it to identify the relative strength of the three needs in McClelland's theory in all employees? Will this involve specialist designed questionnaires which can be expensive and time consuming to carry out by the HRM function?
- it depends on the individual needs of the employees which are influenced by their experience, current status and ambitions.
- can the business act on what it finds by using appropriate methods, maybe those shown in other theories?
- it depends on the types of leaders / managers in the business as to how well they recognise and are willing / able to meet these needs.
- it depends on the type of business being considered and the types of employees within it.
- a judgment will be made relating to the employees in a software business e.g. there may be many types of employees e.g. web developer, computer programmer, database administrator, software designer. Employees in the functions of marketing, finance, production and human resources may have very different needs to those in the technical and creative roles.
Accept all valid responses.
Evaluate whether McClelland's three needs theory is the best way to meet employee needs in a software business.
Indicative content
Responses may include:
AO1 Knowledge and understanding
- McClelland - three needs theory - achievement motivation, authority / power motivation, affiliation motivation.
AO2 Application
- examples given of suitable application - software, video games, research, technology, quaternary sector.
- examples given of the different types of employees within a software business e.g. app developer, programmer, website developer, game developer, coding, data scientist.
- example of a software business e.g. Apple, Microsoft.
AO3 Analysis
- Achievement motivation - employees aim for excellence. Likely to avoid low-risk situations with unchallenging targets. Likely to avoid high-risk situations as they fear not achieving.
- Achievement motivation - employees need realistic but challenging goals. Should be given tasks which are demanding but achievable. Need regular positive feedback on achievement and progress to meet their need for accomplishment.
- Authority / power motivation - employees need personal power - to direct or control other employees.
- Authority / power motivation - employees need institutional power - to organise other employees, to have control and status, to influence the business' objectives.
- Authority / power motivation - employees can be given supervision / control of other workers by promotion to higher position e.g. manager. A strong need for authority may lead to an autocratic leadership style.
A junior employee could be given a supervisory role, while more senior employee may manage a large team of employees.
- Affiliation motivation - employees need good relationships and social interaction with other employees. They need to feel accepted and are motivated to work with other people.
- Affiliation motivation - employees should be employed as a member of a team.
- McClelland believed that these three needs exist, to differing extents, in all employees, regardless of their role or status within the business.
- the combination of these three needs determines: each employee's behaviour in terms of what motivates them; how they manage and motivate other employees.
- McClelland's theory of needs has implications for leaders and managers. They must treat each employee as an individual as each employee may require different roles and tasks to meet their individual needs.
- reward comments regarding the overlap between McClelland's theory and others. Motivation theorists show a range of employee needs, some of which overlap.
- Taylor - money for basic needs. Mayo - social needs. Maslow's hierarchy of needs - physiological, security, social, self-esteem, self-actualisation. Herzberg - two factor theory of hygiene factors and motivators, meeting the needs above.
These theories can also be used to influence the motivation of employees once McClelland's theory has been applied.
Accept all valid responses.
AO4 Evaluation
| Developed evaluation in context: | Developed / Supported judgement in context | 6 marks |
| Developed evaluation in context: | Developed / Reasonable evaluative comments in context | 5 marks |
| Developed evaluation not in context: | Developed / Supported judgement without context | 4 marks |
| Developed evaluation not in context: | Developed / Reasonable evaluative comments without context | 3 marks |
| Limited supported judgement | Limited supported judgement | 2 marks |
| Limited supported judgement | An attempt to balance the arguments / Weak attempt at evaluative comments | 1 mark |
A judgment/conclusion is made as to whether McClelland's three needs theory is the best way to meet employee needs in a software business.
These judgements/conclusions may be made at any point in the essay, not only in a concluding section.
- evaluative comments may compare the usefulness of McClelland's theory with that of other theorists.
- how easy is it to identify the relative strength of the three needs in McClelland's theory in all employees? Will this involve specialist designed questionnaires which can be expensive and time consuming to carry out by the HRM function?
- it depends on the individual needs of the employees which are influenced by their experience, current status and ambitions.
- can the business act on what it finds by using appropriate methods, maybe those shown in other theories?
- it depends on the types of leaders / managers in the business as to how well they recognise and are willing / able to meet these needs.
- it depends on the type of business being considered and the types of employees within it.
- a judgment will be made relating to the employees in a software business e.g. there may be many types of employees e.g. web developer, computer programmer, database administrator, software designer. Employees in the functions of marketing, finance, production and human resources may have very different needs to those in the technical and creative roles.
Accept all valid responses.
Festival Wear (FW)
FW is a partnership started by two friends, Maz and Jane. FW manufactures and sells high quality T-shirts at $ 40 each. The business can manufacture 35000 T-shirts per month using mass customisation. The T-shirts are only sold at music festivals and concerts and are customised to each event. FW has never advertised the T-shirts, relying on a sales team to attend a festival or concert and personally sell the T-shirts.
Current costs:
- variable: $ 10 per T-shirt
- fixed: $ 200000 per month.
Sales average 27000 T-shirts per month. Currently the sales team is paid a monthly salary, but Maz is proposing a new payment method in order to increase sales volume. This will mean a lower monthly salary but a commission of $ 2 per T-shirt will be paid. Maz estimates that sales volume would increase to 30000 per month.
Costs if the new payment method is introduced:
- variable: $ 12 per T-shirt
- fixed: $ 182000 per month.
Explain one advantage to FW's employees of the new payment method.
Indicative content
AO1 Knowledge and understanding - Note: Must be linked to employees NOT FW
Knowledge of an advantage of lower salary + commission □ , including:
- Payment made according to number of sales - commission
- Possibility of higher monthly pay
- Incentive so motivating
Do not accept disadvantages.
AO2 Application
Explanation of an advantage of lower salary + commission →, including:
- If sales forecast correct employees would earn more
- Can choose to work harder/longer for increased pay
- Investment could expand sales possibilities so higher pay
- Rewards successful selling
Context applied to a limitation of using break-even analysis □ including:
- Maz estimates sales volume to increase to 30000 per month
- Commission $2 per T-shirt
- Business is expanding
- Diversification of product portfolio - baseball caps
- OFR from Q2(b)(i)
Accept all valid responses.
Guidance in awarding marks
| Knowledge & understanding | Knowledge of an advantage of the change in payment method | 1 mark |
|---|---|---|
| Explanation | Explanation of an advantage of the change in payment method | 1 mark |
| Context | Context linked to an advantage of the change in payment method | 1 mark |