CAIE IGCSE Business Studies 2.4 Motivating Employees Questions
Use this employee-motivation page to explain financial and non-financial methods, then judge which option fits the workforce.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- State motivation methods such as bonuses, fringe benefits, job rotation or promotion.
- Explain problems caused by employees leaving, including recruitment cost and lost skills.
- Justify the best motivation method for workers after comparing benefits and limits.
Covered syllabus points
Question 1
[Maximum number: 2]
Amir and Carla are business partners. They own a luxury hotel which operates in a niche market. The business has a short hierarchical structure. Amir and Carla use Herzberg's theory of motivation to keep their 5 employees well motivated. Amir and Carla are considering opening another hotel in a different city. They will need to identify a suitable source of finance if they decide to expand. Secondary market research can be used to help a business decide whether it should expand.
Identify two motivators from Herzberg's theory of motivation.
Motivator 1:
Motivator 2:
Award 1 mark for each relevant motivator [max 2].
Points might include:
- Achievement
- Recognition
- Personal growth
- Advancement
- The work itself
Other appropriate responses should be credited.
Only award the first two responses given.
Question 2
[Maximum number: 6]
TCH is a small bakery producing pastries and cakes. It operates in the secondary sector. The added value of TCH's products has increased since it opened 3 years ago. TCH uses non-financial methods to motivate its 6 employees. TCH's business objectives have changed since it started up. One of its new objectives is to expand. Many businesses use external recruitment when they expand.
Explain two non-financial methods of motivation TCH could use.
Method 1:
Explanation:
Method 2:
Explanation:
Award 1 mark for each relevant method (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Award 1 mark for each relevant explanation (max 2).
Points might include:
- Job rotation [k] increases the variety of the work / which can reduce boredom of workers [an] at the bakery [app]
- Job enrichment [k] for the 6 employees [app] as they are being given more responsibility / as can use their full range of abilities [an]
- Training [k] so employees have a higher level of skills [an] when making pastries/cakes [app]
- Delegation [k] which allows employees to make decisions / as workers feel empowered [an] so TCH's manager(s) can focus on expansion [app]
- Praise [k] which is no cost/free [an] for this small business [app]
- Teamworking [k] can increase sense of belonging/loyalty [an] so less need to use external recruitment [app]
- Opportunities for promotion [k] so are given a role higher up in the hierarchy [an]
- Recognition / Employee of the month [k]
Other appropriate responses should be credited.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- Bakery
- Pastries/cakes
- Small (business)
- 3 years
- Secondary sector
- 6 employees
- Expand/expansion
- External recruitment
- Business objectives
Other appropriate examples can be credited.
Analysis can focus on explaining what the method is or how it can increase motivation. The same analysis can be used for different points, but only award once.
Question 3
[Maximum number: 6]
RWB manufactures buses. 1200 people work in its factory. All employees receive off-the-job training. RWB uses financial rewards to motivate its employees. Last year RWB made a $ 1.7 million loss. The Managing Director said: 'There are many external influences affecting our business, including changes in the level of unemployment and new legal controls over business activities which affect the environment.'
Question (a)
(a)
Identify two reasons (other than financial) why people work.
Reason 1:
Reason 2:
[ 2 ]
Award 1 mark per reason (max 2).
Points might include:
- Job satisfaction / feeling you have done a good job / enjoyment
- Social or examples such as feel part of a group / meeting people / making friends at work
- Esteem / recognition / status / feel important
- Opportunity to reach your potential / challenge yourself to do new things / improve use skills / gain experience
- Help others
Other appropriate responses should also be credited.
Only award the first two responses
given.
Question (b)
(b)
Outline two methods of financial rewards RWB might use to motivate its employees.
Method 1:
Method 2:
[ 4 ]
Award 1 mark for each relevant method (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Points might include:
- High(er) wages / wage rates / time-based rates [k] for workers in the factory [app]
- Piece rate [k] paid to its 1200 employees [app]
- High(er) salary [k] for making buses [app]
- Bonuses [k] but this may be difficult as business has made a loss [app]
- Profit sharing/share ownership schemes [k]
- Performance related pay [k]
Other appropriate responses should also be credited.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- Buses
- 1200 (employees)
- Factory
- ($1.7 million) loss
Other appropriate examples in context can still be credited.
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