IB Business Management SL 2.4.7 Non-financial rewards Question Bank
Practise IB Business Management SL/HL 2.4.7 by applying non-financial rewards concepts to exam-style questions.
- Syllabus
- First assessment 2024
- Course
- Business management SL
- Level
- SL
Exam points
- identify the relevant model, concept or evidence
- apply the correct subject framework to the question
- evaluate the result using clear evidence and subject terminology
2.4.7—Non-financial rewards question 1
[Maximum number: 4]
Martin and Susan were internal stakeholders with a conflict over Martin’s appointment, Susan’s resentment, her task-oriented and increasingly autocratic management, and Martin’s laissez-faire style, empowerment and delegation. The Imperial’s fixed costs could include the salaries of hotel staff, fixed electricity or internet charges, local property taxes and contracted promotional costs; under Option 2, fixed costs and variable cleaning and maintenance costs would be lower because apartments would be serviced weekly rather than rooms daily. Martin considered three Ansoff choices: Option 1 would renovate and relaunch the existing hotel for similar customers, Option 2 would transform rooms into apartments for business travellers, and Option 3 would form a strategic alliance with KenSafar to reach package-tour customers. Empowerment could give employees authority, responsibility and autonomy, increasing job satisfaction and motivation and encouraging better productivity. Susan was efficient, hard-working and committed but bureaucratic, formal, cold and autocratic; Martin was warm, friendly and laissez-faire, allowing supervisors to resolve problems. Martin’s leadership could support empowerment, while Susan’s task focus could protect housekeeping standards but damage morale.
Explain how being empowered by Martin Kimathi can positively affect the job satisfaction, motivation and productivity of the employees at The Imperial.
Empowerment refers to the fact that Martin readily gives his employees some autonomy and some responsibility about their working arrangements (for example if a guest has a problem in the restaurant about a disappointing dish, the hotel manager could directly offer them a free dessert to apologize). Being empowered can affect staff in several ways:
- It may increase their level of job satisfaction, as they rightfully feel that they are trusted and, as such, appreciate their job more, as opposed to being micro
managed in a bureaucratic way.
- It may motivate them more, as they become aware of other forms of non
financial motivation that they could enjoy as well, for example through job enrichment and job enlargement, as they realize that their employer supports them and gives them some control over some areas of their work.
- It could make them more productive, as they are able to make decisions faster, without having to refer to their line manager every time.
- It could however be unsuitable for some workers who start abusing this new power that they have, and adopt unprofessional attitudes, for example if some office staff are allowed to use online social networking websites, they might use it too much and lose focus on their work, thereby becoming unproductive, although their level of job satisfaction would be very high (so this would still be positive, but with a negative dimension too).
Accept any other relevant point.
Candidates are not asked to define "empowerment"; they may do so as the beginning of their answer. A candidate whose answer solely consists of a definition of "empowerment" would still be awarded [1 mark] to credit the fact that they have some knowledge of the concept being examined here ("empowerment").
Candidates are not expected to refer separately to (i) job satisfaction, (ii) motivation and (iii) productivity, though they are likely to do so, as the question is worded that way.
Award [1 mark] for each basic point; award an extra [1 mark] for the development of that point. Award up to a maximum of [4 marks].
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