CAIE IGCSE Business Studies 2 People in Business Questions
Use this People in Business hub to connect HRM decisions, organisation structures, communication methods and employee motivation in cases.
- Syllabus
- 2027–2029
- Course
- Business 0264
Covered syllabus points
Question 1
[Maximum number: 12]
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.
Question (a)
(a)
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 (b)
(b)
Explain two methods of external recruitment a business could use. Which is likely to be the best method to use? Justify your answer.
Award up to 2 marks for identification of relevant points.
Award up to 2 marks for relevant development of points.
Award up to 2 marks for a justified decision as to which method of external recruitment a business should use.
Points might include:
- Specialist magazines [k] can target potential employees interested in this industry/type of work [an]
- Online recruitment sites / social media / website [k] which can reach large numbers of people / include detailed information [an] but not everyone has access to the internet [an]
- Recruitment agencies [k] which saves administration time [an] but recruitment agencies charge a fee for their services [an]
- (Government-run) job centres [k] as no cost to the business [an] but only reach those people who are actively looking for a job [an]
- Local newspapers [k] which people could ignore [an]
- National newspapers [k] but must pay to advertise [an] which increases costs [an]
Other appropriate responses should be credited.
Justification might include:
Recruitment agencies [k] which saves administration time [an]. Another method is online recruitment sites [k] which can reach many people [an]. An online recruitment site is the best method because having access to a wider pool of people can make it easier to find the right person for the role [eval] which may reduce the need to readvertise in future [eval].
This is a general question so there are no marks for application.
The same analysis can be used for different points, but only award once e.g. many people will see / not many people will see.
Do not award:
- Methods of selection e.g. interviews
Question 2
[Maximum number: 4]
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.
Question (a)
(a)
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 (b)
(b)
Identify two features of a short hierarchical structure.
Feature 1:
Feature 2:
Award 1 mark for each relevant feature [max 2].
Points might include:
- Short(er) chain of command
- Wide(r) span of control
- Quick(er)/fast(er) communication
- Top managers are less remote from employees
Other appropriate responses should be credited.
Only award the first two responses given.
Question 3
[Maximum number: 10]
RBG is an oil company. It has operations in 6 countries. RBG has 2000 employees including 60 managers. Some of its managers use a laissez-faire leadership style. All of RBG's internal communication uses information technology (IT) based methods. The Managing Director knows RBG's business activities can create external costs and external benefits. She says: 'Pressure groups often try to influence business decisions.'
Question (a)
(a)
Define 'laissez-faire leadership style'.
Award 2 marks for a full definition. Award 1 mark for a partial definition.
Makes the broad objectives of the business known to employees, but then they are left to make their own decisions and organise their own work [2]
OR
A style of leadership that supports employees in achieving targets at the same time as allowing them the freedom to decide how to meet the targets [2]
Partial definition e.g. managers do not tell workers what to do/how to organise work [1]
For both marks need the idea that it links to decision making
- and it is the employees/workers who make them.
Question (b)
(b)
Identify two roles of a manager.
Role 1:
Role 2:
Award 1 mark per role (max 2).
Points might include:
- Planning
- Controlling
- Organising
- Leading/commanding/directing/give instructions/tasks
- Coordinating
- Motivating/inspiring others
- Decision-making/solve problems
- Communicating/give feedback
- Delegating
Other appropriate responses should be credited.
Only award the first two responses given.
Accept any tasks that managers are likely to do.
Do not award:
- Managing activities on own e.g. managing finance
Question (c)
(c)
Explain two methods of IT based communication RBG might use with its employees.
Method 1:
Explanation:
Method 2:
Explanation:
Award 1 mark for identification of 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:
- Email [k] written record [an] for all 2000 employees [app]
- Text messages/SMS/DM [k] saves time/quick [an] for the 60 managers [app]
- Website/social media or examples e.g. Facebook/X/Twitter [k] seen by many people at once [an] in the 6 countries [app]
- Video conferencing or examples e.g. Zoom/Teams/ online meeting [k] as can see body language [an]
- Phone/mobile (call) [k] at the oil company [app] as able to get feedback/allows for two-way communication [an]
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:
- Oil
- 6 countries
- 2000 employees
- 60 managers
- Laissez-faire
Other appropriate examples can be credited.
Can award the following as [an] for different methods but only award once:
- Low cost
- Quick
- Send to many people at once
- Send large amounts of information/able to send attachments
- Written record/can refer to later
- Able to get (instant) feedback
- Do not have to travel
Question 4
[Maximum number: 4]
DLT manufactures cups and plates in country X. Its factory uses flow production and has 75 employees. The Human Resources Director is aware that there are many legal controls over employment. DLT exports 30% of its products to country Y where it benefits from lower rates of taxation and no import quotas. DLT's Managing Director is considering relocating its factory to another part of country X to meet the increased demand for its exports.
Identify four legal controls over employment.
Legal control 1:
Legal control 2:
Legal control 3:
Legal control 4:
Award 1 mark per legal control (max 4).
Points might include:
- Unfair dismissal
- Discrimination/equal opportunities
- (Health and) safety/working conditions/working environment
- Minimum wage
- Contract of employment or examples such as sickness policy / holiday entitlement / notice period / rate of pay/salary / pension entitlement
- Redundancy
- Working hours/provide breaks
- Legal working age/child labour
Other appropriate responses should be credited.
Only award the first four responses given.
Allow examples of discrimination only once.
Do not award:
- Ethical points such as fair pay.
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