Question 1
Question 1(a)
Define the term motivation.
Question 1(b)
Explain one benefit to a business of motivated employees.

Practise HRM definitions, calculations and applied analysis of recruitment, training, morale, motivation and workforce decisions.
Define the term motivation.
Explain one benefit to a business of motivated employees.
Crafty Toys (CT)
CT is a co-operative that produces and sells a range of wooden toys, such as puzzles, cars and dolls. The co-operative was formed in 2020 by a group of 12 people who share a passion for making toys. They wanted to work together to create quality products that would appeal to children and parents. No one person takes on the role of manager; instead, they share the traditional manager functions between them.
CT operates from a large workshop in a rural area of country Z, making toys using labour-intensive techniques. CT uses locally sourced wood that is certified as eco-friendly. CT also uses natural paints and finishes that are safe and non-toxic for children. Table 1.1 shows CT's output in 2024.
CT sells its products online through its own website and social media platforms, as well as through some independent retailers who specialise in ethical products. The co-operative

Table 1.1 Output data for CT in 2024
also attends various trade fairs and exhibitions to showcase its products and network with potential customers and suppliers. CT has never researched customer wants.
CT faces some challenges in its current operations. These challenges include:
- high costs of production
- a long lead time
- a requirement for skilled workers.
CT is considering changing to flow production to overcome these challenges.
Explain the term traditional manager functions.
Town Trucks (TT)
TT is a private limited company in country J. TT has contracts to deliver products to secondary, tertiary and quaternary sector businesses.
QZ is one of the largest manufacturers in country J and plans to outsource its supply chain management. A contract has been agreed between TT and QZ based on the following cost and revenue data (see Table 1.1). TT's Sales Manager has forecast that TT will make 5000 deliveries with the new contract.

Table 1.1 Cost and revenue forecast for the QZ contract
TT employs 120 drivers. The majority of these drivers are white men aged between 40 and 60 . A national newspaper has recently criticised the truck industry in country J for not having diversity and equality in the workplace.
Klide, the Marketing Manager, has been set an objective to increase TT's revenue. He has decided to target small online retailers. TT will pick up individual products from the small online retailers and deliver them to households. This would require a new fleet of smaller trucks but has the potential to increase TT's revenue. Klide plans to use digital promotion to target these small online retailers.
Analyse two advantages to TT of improving diversity and equality in the workplace.
Define the term involuntary redundancy.
Explain one way a business could use employee development to encourage multi-skilling.
Define the term employee morale.
Explain one method of paying employees.
Define the term on-the-job training.
Explain one advantage to a business of induction training.
Popular Drinks (PD)
PD is a mass market fizzy drinks manufacturer in country Z. The fizzy drinks market in country Z is dominated by a few well-known brands. The total market value is $ 5.3 bn and the PD brand has a 17% share of this market.
Pablo was recruited to be the Marketing Director of PD in 2022. He launched a new promotional campaign based on trending music on social media. He decided to use social media influencers to focus on this market.
Online feedback of the campaign was poor. Many of PD's customers did not want to be associated with trending music. National news highlighted the negative feedback and PD's sales volume decreased by 20% within a week and continued falling. This led to excess inventory in PD's warehouses. The bad publicity also caused a drop in PD's share price and a negative impact on cash flow.
Fig. 2.1 shows feedback from a recent questionnaire where previous PD customers were asked what they thought about the promotional campaign.

Fig. 2.1 Market analysis data of a sample of PD's customers
Pablo has called an emergency meeting of PD's marketing managers to repair the damage done to the PD brand from this recent promotional campaign.
Identify one recruitment method.
Analyse one benefit to a business of low labour turnover.
Analyse two reasons why an employee's human needs may not be satisfied at work.
'Non-financial motivators are the most effective methods of motivating a hotel's employees.'
Evaluate this view.
Analyse two ways a business could use employee participation in the management of business activity.
Evaluate whether McClelland's three needs theory is the best way to meet employee needs in a software business.