Unit 2 HR Test Maker Worksheet

1
1 Keypeople is a recruitment agency which only operates in one small town in country Z. Its owner, Rachel,
and her two employees know that good customer service is important. Rachel would like to expand her
business. Keypeople offers a variety of human resource services to other businesses, such as recruiting
employees and preparing employment contracts. Rachel has been asked by a local manufacturing business
to recruit a senior manager.
Identify and explain two reasons why employment contracts are used by businesses.
Reason 1:..................................................................................................................................................
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Explanation:.............................................................................................................................................
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Reason 2:..................................................................................................................................................
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Explanation:.............................................................................................................................................
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[Total: 4]
2
2 Cutter is a family owned private limited company. It manufactures a luxury brand of coats. In 2013 sales
revenue increased by $3m and retained profits also increased. ‘The marketing mix is working’ said the
Marketing Director. Cutter’s Operations Director thinks that batch production is still the right method of
production to use, but he cannot decide whether on the job or off the job training is better for the business.
Do you think it is better for Cutter to use on the job or off the job training? Justify your answer.
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[Total: 6]
3
3 Keypeople is a recruitment agency which only operates in one small town in country Z. Its owner, Rachel,
and her two employees know that good customer service is important. Rachel would like to expand her
business. Keypeople offers a variety of human resource services to other businesses, such as recruiting
employees and preparing employment contracts. Rachel has been asked by a local manufacturing business
to recruit a senior manager.
Identify and explain two stages in the recruitment process of the manager’s job for the manufacturing business.
Stage 1:.....................................................................................................................................................
Explanation:.............................................................................................................................................
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Stage 1:.....................................................................................................................................................
Explanation:.............................................................................................................................................
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[Total: 6]
4
4 Do you think it is a good idea for Callow to use off the job training for all its shop employees? Justify your
answer.Callow is a large retail business based in country X. ‘Our employees are an important stakeholder’,
said the Managing Director. ‘To make sure we stay profitable we need to motivate them.’ Callow trains all
of its shop employees by using off the job training.
Fig: Callow Organisation Structure
Do you think it is a good idea for Callow to use off the job training for all its shop employees? Justify your
answer.
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[Total: 6]
5
5 Callow is a large retail business based in country X. ‘Our employees are an important stakeholder’, said the
Managing Director. ‘To make sure we stay profitable we need to motivate them.’ Callow trains all of its shop
employees by using off the job training.
Identify and explain two possible methods that Callow could use to improve the motivation of its employees.
Method 1:.................................................................................................................................................
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Explanation:.............................................................................................................................................
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Method 1:.................................................................................................................................................
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Explanation:.............................................................................................................................................
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[Total: 6]
6
Identify two functions of management that each shop manager will have to perform.
Function 1:................................................................................................................................................
Function 2:................................................................................................................................................ [2]
[Total: 2]
7 What is meant by ‘span of control’?
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[Total: 2]
7
Identify and explain two features of Callow’s organisational structure.
Feature 1:..................................................................................................................................................
Explanation:.............................................................................................................................................
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Feature 2:..................................................................................................................................................
Explanation:.............................................................................................................................................
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[Total: 4]
8
9 LEK owns 80 electrical shops. It sells products such as cell (mobile) phones and televisions. The Marketing
Director believes offering customers a choice of products helps LEK to be competitive. LEK must use suitable
ways to communicate with its customers. LEK’s directors are planning a takeover of a competitor. This
competitor owns 40 shops and operates in the same 4 regions as LEK.
Fig: LEK organisational chart
Identify and explain two benefits to LEK of having an organisational chart.
Benefit 1:..................................................................................................................................................
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Explanation:.............................................................................................................................................
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Benefit 2:..................................................................................................................................................
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Explanation:.............................................................................................................................................
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[Total: 4]
9
10 HPT makes frozen food products. The Finance Director wants to improve HPT’s cash flow position. The
Table below is an incomplete cash flow forecast for the next 3 months. The Finance Director thinks HPT
should not use expensive packaging. He is also worried that new Government health & safety laws will not
benefit the company and will only add to its costs.
Table: Cash flow forecast ($000’s)
The Finance Director is worried that new Government health & safety laws will not benefit the company
and will only add to its costs. Do you agree? Justify your answer.
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[Total: 6]
10
11 Identify two advantages of using internal recruitment.
Advantage 1:.............................................................................................................................................
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Advantage 2:.............................................................................................................................................
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[Total: 2]
12 What is meant by ‘dismissal’?
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[Total: 2]
11
13 A2Z is a small but successful airline company in country B, providing flights for business people. The
management of A2Z wants the business to expand. It will have to buy more aeroplanes and recruit more
airline pilots. The Human Resources manager has produced a job description for the pilots. She is now ready
to advertise for the new pilots. She believes the best way for A2Z to motivate its pilots is to use financial
rewards.
Identify and explain two suitable ways A2Z could use to advertise the new jobs.
Way 1:.......................................................................................................................................................
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Explanation: ............................................................................................................................................
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Way 2:.......................................................................................................................................................
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Explanation: ............................................................................................................................................
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[Total: 6]
12
rewards.
Do you think that using financial rewards is the best way for A2Z to motivate its pilots? Justify your answer.
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[Total: 6]
13
rewards.
Identify and explain two advantages to A2Z of producing a job description.
Advantage 1:.............................................................................................................................................
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Explanation:.............................................................................................................................................
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Advantage 2:.............................................................................................................................................
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Explanation:.............................................................................................................................................
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[Total: 4]
16 Identify two stages of the recruitment process.
Stage 1: ....................................................................................................................................................
Stage 2:..................................................................................................................................................... [2]
[Total: 2]
14
17 PJK makes a range of luxury sports watches. Each watch is handmade by skilled workers. Quality assurance
is important. The Operations Director has been looking at costs and prices as he wants to do a break-even
analysis. He is planning to invest in new technology to automate parts of the production process. The
Operations Director thinks this is the best way to improve profitability.
Identify and explain two advantages to PJK of having skilled workers.
Advantage 1: ............................................................................................................................................
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Explanation:.............................................................................................................................................
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Advantage 2:.............................................................................................................................................
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Explanation:.............................................................................................................................................
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[Total: 6]
15
18 Alkin is a multinational company. It manufactures breakfast food products including many leading brands
of cereal. Alkin plans to start selling in country Z, which is a fast-growing market. Alkin plans to form a joint
venture with a local business, based in country Z. ‘Effective communication will be important to our success
but I think there are many advantages in expanding this way’ said Alkin’s Managing Director. The Government
of country Z is worried about the effect of multinational companies like Alkin on consumers.
Identify and explain two reasons why effective communication might be important for Alkin.
Reason 1: .................................................................................................................................................
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Explanation: ............................................................................................................................................
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Reason 2:..................................................................................................................................................
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Explanation: ............................................................................................................................................
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[Total: 4]
19 Camille is an entrepreneur. She owns a popular and successful hairdressing business. Camille wants to expand
her small business. Camille currently employs 5 part-time workers, but she will have to recruit 3 more workers
who will need on-the-job training. She thinks that her laissez-faire leadership style will have to change as
her business grows.
Identify and explain two advantages to Camille of employing part-time workers.
Advantage 1: ............................................................................................................................................
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Explanation: ............................................................................................................................................
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Advantage 1: ............................................................................................................................................
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Explanation: ............................................................................................................................................
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[Total: 4]
16
20 Camille is an entrepreneur. She owns a popular and successful hairdressing business. Camille wants to expand
her small business. Camille currently employs 5 part-time workers, but she will have to recruit 3 more workers
who will need on-the-job training. She thinks that her laissez-faire leadership style will have to change as
her business grows.
Identify and explain two problems for Camille of using on-the-job training.
Problem 1: ...............................................................................................................................................
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Explanation: ............................................................................................................................................
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Problem 1: ...............................................................................................................................................
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Explanation: ............................................................................................................................................
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[Total: 6]
21 Tebo has recently been made redundant from his job as a car mechanic. He is thinking of setting up his own
business. Even though he has no management experience, he knows that managing cash flow will be important
to the success of the business.
Identify two functions of management that Tebo might need to perform
Function 1: ...............................................................................................................................................
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Function 2:................................................................................................................................................
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[Total: 2]
17
22 What is meant by ‘made redundant’?
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[Total: 2]
23 TWH makes a range of toys using batch production. TWH’s Managing Director, Dylan, plans to invest in
new technology to reduce average costs. ‘It’s the only way to increase efficiency as I do not know how we
can improve employees’ motivation’ he said. Dylan cannot decide on whether it would be better to use
retained profits or a long term loan as the source of finance.
Identify and explain two ways that TWH could improve the motivation of its employees.
Way 1:.......................................................................................................................................................
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Explanation: ............................................................................................................................................
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Way 2:.......................................................................................................................................................
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Explanation: ............................................................................................................................................
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[Total: 6]
24 What is meant by ‘span of control’?
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18
[Total: 2]
25 CLW makes wood furniture, including chairs and tables. Demand has risen quickly over the past 3 years and
the business needs to increase the scale of production at its factory. The factory is located near the city centre
in an area of low unemployment. The Finance Director has produced a business plan, including a balance
sheet. The Finance Director is pleased with CLW’s liquidity
Identify and explain two factors (other than finance) that CLW’s management need to consider when increasing
the scale of production.
Factor 1: ...................................................................................................................................................
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Explanation:.............................................................................................................................................
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Factor 2:....................................................................................................................................................
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Explanation:.............................................................................................................................................
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[Total: 6]
1
1 Define ‘trade union’.
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[Total: 2]
2 What is meant by ‘on-the-job training’?
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[Total: 2]
2
3 CPK operates 5 sports clubs. Each club offers a range of activities including gym and yoga classes. CPK
uses job enrichment to keep its 60 employees well-motivated. Having the right marketing mix is important
to CPK’s success. The Finance Director is analysing CPK’s financial statements. An extract is shown in the
table below. He wants to know how an increase in taxation might affect CPK’s business.
Extract from CPK’s financial statements
2020 2021
Current ratio 1.6 1.3
Profit margin 12% 10%
Non-current assets $2m $2m
Do you think job enrichment is a better way for a business to motivate its employees than profit sharing?
Justify your answer.
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[Total: 6]
3
4 DNG provides electricity to 16 million customers. It is a limited company which means DNG’s shareholders
benefit from limited liability. DNG is planning to stop using coal to produce its electricity. Pressure groups
had an influence on this decision. The Managing Director knows there will be an opportunity cost to making
this change. She is considering the best way to communicate this important information to DNG’s 6500
employees. DNG provides electricity to 16 million customers.
Explain two methods of internal communication a large business could use to share important information
with its employees. Justify which method should be used.
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[Total: 6]
4
5 AHG is an established business as it has been operating for a long time. It sells garden products including
plants and flowers. AHG uses competitive pricing. The business has 4 managers and 30 other employees.
All AHG’s managers use delegation. The Finance Manager is analysing AHG’s statement of financial position
as she is interested in its liquidity. An extract is shown in the table below.
Extract from AHG’s statement of financial position at 30 March 2022 ($000)
Non-current assets 800
Current assets 660
Current liabilities 600
Explain two advantages to AHG of its managers using delegation.
Advantage 1: ............................................................................................................................................
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Explanation: ............................................................................................................................................
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Advantage 2: ............................................................................................................................................
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Explanation: ............................................................................................................................................
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[Total: 6]
5
6 MBH is a business organisation in the public sector. It controls 5 hospitals and has 5600 employees including
440 doctors. External recruitment is used when recruiting skilled employees. The Human Resources Director
uses ideas from Herzberg’s theory to improve employee motivation. He is worried about communication
barriers within MBH. The business has a tall organisational structure and a long chain of command. Most of
MBH’s internal communication is by email and phone calls.
Outline two ways MBH can use ideas from Herzberg’s theory to motivate its employees.
Way 1: ......................................................................................................................................................
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Way 2: ......................................................................................................................................................
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[Total: 4]
7 State two responsibilities of a director.
Responsibility 1: ......................................................................................................................................
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Responsibility 2: ......................................................................................................................................
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[Total: 2]
6
Do you think an organisation should always use external recruitment when recruiting skilled employees?
Justify your answer.
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[Total: 6]
7
Explain how MBH might reduce or remove each of the following communication barriers:
Message lost: ...........................................................................................................................................
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Explanation: ............................................................................................................................................
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Use of jargon: ..........................................................................................................................................
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Explanation: ............................................................................................................................................
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[Total: 6]
8
10 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.’
Outline two methods of financial rewards RWB might use to motivate its employees.
Method 1: ................................................................................................................................................
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Method 2: ................................................................................................................................................
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[Total: 4]
11 Define ‘chain of command’.
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[Total: 2]
9
12 BCZ is a multinational company which operates in 12 countries. It manufactures cement, a building material
used by construction companies, so quality assurance is important. Making cement creates external costs.
One of BCZ’s factories is located in country X. The government of country X plans to introduce new legal
controls that will reduce the maximum number of working hours from 45 to 35 hours per week.
Explain one possible effect on BCZ and one possible effect on its employees of the new legal controls that
will reduce the maximum number of working hours.
Effect on BCZ: ........................................................................................................................................
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Explanation: ............................................................................................................................................
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Effect on BCZ’s employees: ....................................................................................................................
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Explanation: ............................................................................................................................................
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[Total: 6]
13 Identify two reasons (other than financial) why people work.
Reason 1: .................................................................................................................................................
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Reason 2: .................................................................................................................................................
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[Total: 2]
10
14 Define ‘off-the-job training’.
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[Total: 2]
15 Identify two motivational theories.
Theory 1: .................................................................................................................................................
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Theory 2: .................................................................................................................................................
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[Total: 2]
16 WTB is a private limited company. It manufactures breakfast cereals. WTB has 600 production workers in
its factory. Many of its employees are part-time. All employees receive training and managers use delegation.
The Human Resources Director is interested in using motivational theories to help improve employee
motivation. The directors plan to expand the business and are considering whether to convert WTB into a
public limited company.
Outline two benefits to WTB of having part-time employees.
Benefit 1: .................................................................................................................................................
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Benefit 2: .................................................................................................................................................
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[Total: 4]
11
17 WTB is a private limited company. It manufactures breakfast cereals. WTB has 600 production workers in
its factory. Many of its employees are part-time. All employees receive training and managers use delegation.
The Human Resources Director is interested in using motivational theories to help improve employee
motivation. The directors plan to expand the business and are considering whether to convert WTB into a
public limited company.
Explain two reasons why training might be important to WTB.
Reason 1: .................................................................................................................................................
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Explanation: ............................................................................................................................................
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Reason 2: .................................................................................................................................................
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Explanation: ............................................................................................................................................
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[Total: 6]
18 Define ‘delegation’.
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[Total: 2]
12
19 BGR is a private limited company. It operates 6 cinemas in different towns. Effective internal communication
is important for BGR. The Finance Director has been analysing BGR’s accounts and an extract is shown in
the table below. BGR plans to open another cinema and will need to recruit 10 new employees. The new
cinema will cost $8m. The Finance Director has to decide whether BGR should issue new shares or use a
bank loan to finance the expansion.
Extract from BGR’s Income statement for year ending 2020 ($000’s)
Revenue X
Cost of sales 180
Gross profit 720
Expenses Y
Profit 400
Explain two reasons why effective communication might be important to BGR.
Reason 1: .................................................................................................................................................
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Explanation: ............................................................................................................................................
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Reason 2: .................................................................................................................................................
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Explanation: ............................................................................................................................................
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[Total: 6]
13
20 SBG makes a range of products including specialist paints. It has 6 factories and 700 employees. All SBG’s
employees are encouraged to be involved in decision-making. SBG’s products are exported to 16 countries
using wholesalers as its main channel of distribution. The Managing
Director said: ‘Our objectives are to grow and make a profit. ’He also recognises that all business activity
creates externalities for SBG’s stakeholder groups.
Explain two ways SBG can involve its employeesin decision-making.
Way 1: ......................................................................................................................................................
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Explanation: ............................................................................................................................................
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Way 2: ......................................................................................................................................................
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Explanation: ............................................................................................................................................
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[Total: 6]
21 Identify the level of Maslow’s Hierarchy of Needs each of the following methods belongs to.
‘Employee of the month award’...............................................................................................................
Organises team building courses:............................................................................................................. [2]
[Total: 2]
14
22 GCF is a public limited company. It provides a range of computer services to businesses including designing
websites and creating apps. The Human Resources Director use ideas based on Maslow’s Hierarchy of Needs
to help keep GCF’s 250 employees well-motivated. An extract of methods used is shown in the Table. GCF
plans to expand by taking over one of its competitors. This will cost $50m. To finance the takeover, GCF is
considering issuing new shares.
Extract of methods used at GCF to motivate employees
‘Employee of the month’ award
Organises team building courses
Outline two advantages to GCF of having well-motivated employees.
Advantage 1: ............................................................................................................................................
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Advantage 2: ............................................................................................................................................
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[Total: 4]
15
23 VDN is a private limited company. One of VDN’s objectives is to be ethical. VDN produces office products
including pens and paperclips. All raw materials are imported. The Managing Director plans to introduce
new machinery to help lower average costs. This will require training for VDN’s 380 employees. The
Managing Director also wants to introduce Kaizen into the factory.
Do you think off-the-job training is the best method for a large business to use when introducing new
machinery? Justify your answer.
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[Total: 6]
16
24 BEF is a large business based in country X. It uses flow production to manufacture a wide range of products
including toothpaste and shampoo. All BEF’s products are currently sold in country X. BEF knows that
having effective methods of internal communication are important. The Operations Director is analysing
production data. An extract is shown in the table below. BEF is considering exporting its products to country
Y.
Extract of BEF’s production data for one of its products
2019 2020
Average number of production workers 240 250
Total output per week 300 000 310 000
State four factors a business should consider when selecting an appropriate method of internal communication.
Factor 1: ...................................................................................................................................................
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Factor 2: ...................................................................................................................................................
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Factor 3: ...................................................................................................................................................
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Factor 4: ...................................................................................................................................................
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[Total: 4]
17
25 Asmaa used a government grant to set up a small car repair business 4 years ago. Asmaa now has 3 full-time
employees. Keeping her employees well-motivated is important to Asmaa. She thinks her business has
benefited from a low rate of unemployment in the economy. Asmaa is reviewing her cash-flow forecast. An
extract is shown in the table below. She wants to know how the closure of a competitor and an increase in
the minimum wage rate might affect her forecast.
Extract of Asmaa’s cash-flow forecast ($000’s)
January February March
Cash inflow 40 55 40
Cash outflow 50 35 35
Net cash flow (10) 20 5
Opening balance 50 40 60
Closing balance 40 60 65
Explain two non-financial methods a small tertiary sector business could use to keep its employees
well-motivated. Justify which method should be chosen.
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
.................................................................................................................................................................. [6]
[Total: 6]
18
26 SWB is in the secondary sector. It produces 150 000 wooden bookcases each week using batch production.
SWB sells all its output to one customer. Quality control is important. SWB has 240 employees, of which
100 are part-time workers. SWB’s managers use noticeboards around the factory and meetings with employees
every month to help reduce communication barriers. The Operations Manager is considering introducing
just-in-time inventory control to reduce the amount of waste.
Explain two possible communication barriers that might exist at SWB.
Communication barrier 1:........................................................................................................................
..................................................................................................................................................................
Explanation:.............................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
Communication barrier 2:........................................................................................................................
..................................................................................................................................................................
Explanation:.............................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
.................................................................................................................................................................. [6]
[Total: 6]
19
27 DCN is a large chemical company. It has 8 000 employees across its 3 factories. DCN has agreed to set up
a joint venture with a glass making business to develop a new type of environmentally friendly packaging.
DCNs Managing Director said: There are disadvantages to a joint venture. The companies have different
leadership styles and business objectives. We will need to look at ways to overcome possible communication
barriers.
Identify four examples of communication barriers.
Example 1:................................................................................................................................................
..................................................................................................................................................................
Example 2:................................................................................................................................................
..................................................................................................................................................................
Example 3:................................................................................................................................................
..................................................................................................................................................................
Example 4:................................................................................................................................................
.................................................................................................................................................................. [4]
[Total: 4]
20
28 GHT is a public limited company. It produces steel products including gates and garage doors. GHT has a
flat organisational structure and a short chain of command. GHT has many stakeholder groups including 600
employees. The Managing Director is considering introducing job rotation to improve employee motivation.
He has also been analysing some financial data. An extract is shown in the Table.
Explain one advantage and one disadvantage to GHT of using job rotation to improve employee motivation.
Advantage:................................................................................................................................................
..................................................................................................................................................................
Explanation:.............................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
Disadvantage:...........................................................................................................................................
..................................................................................................................................................................
Explanation:.............................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
.................................................................................................................................................................. [6]
[Total: 6]
21
29 Calculate the margin of safety for product X in 2020.
Show your working.
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
.................................................................................................................................................................. [2]
[Total: 2]
22
30 GHT is a public limited company. It produces steel products including gates and garage doors. GHT has a
flat organisational structure and a short chain of command. GHT has many stakeholder groups including 600
employees. The Managing Director is considering introducing job rotation to improve employee motivation.
He has also been analysing some financial data. An extract is shown in the Table.
Outline two advantages to GHT of having a short chain of command.
Advantage 1:.............................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
Advantage 2:.............................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
.................................................................................................................................................................. [4]
[Total: 4]
23
31 Do you think autocratic leadership is the most effective style for managers to use when anorganisation has
a large number of employees? Justify your answer.
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
.................................................................................................................................................................. [6]
[Total: 6]
24
32 Do you think it is better for a tertiary sector business to use full-time employees rather than part-time
employees? Justify your answer.
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
.................................................................................................................................................................. [6]
[Total: 6]
33 Identify two stages in the recruitment process.
Stage 1:.....................................................................................................................................................
..................................................................................................................................................................
Stage 2:.....................................................................................................................................................
.................................................................................................................................................................. [2]
[Total: 2]
25
34 BGR is a private limited company. It operates 6 cinemas in different towns. Effective internal communication
is important for BGR. The Finance Director has been analysing BGR’s account and an extract is shown in
the table below. BGR plans to open another cinema and will need to recruit 10 new employees. The new
cinema will cost $8m. The Finance Director has to decide whether BGR should issue new shares or use a
bank loan to finance the expansion.
Extract from BGR’s Income statement for year ending 2020 ($000’s)
Revenue X
Cost of sales 180
Gross profit 720
Expenses Y
Profit 400
Identify four stages of the recruitment process.
Stage 1: ....................................................................................................................................................
..................................................................................................................................................................
Stage 2: ....................................................................................................................................................
..................................................................................................................................................................
Stage 3: ....................................................................................................................................................
..................................................................................................................................................................
Stage 4: ....................................................................................................................................................
.................................................................................................................................................................. [4]
[Total: 4]
26
35 SCT is a small business that manufactures handmade tables. SCT has 50 trained employees. The Operations
Manager uses an autocratic leadership style when making decisions. Some of SCT’s employees are demotivated
and the business has a high rate of labour turnover. SCT is planning to relocate to a new factory in the same
country.
Outline two effects of a high rate of labour turnover to SCT.
Effect 1: ...................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
Effect 2: ...................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
.................................................................................................................................................................. [4]
[Total: 4]
36 Do you think autocratic leadership is the best style for a small business to use? Justify your answer.
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
.................................................................................................................................................................. [6]
[Total: 6]
27
37 Identify two methods of training employees.
Method 1: ................................................................................................................................................
Method 2: ................................................................................................................................................ [2]
[Total: 2]
38 Kolo owns a successful hairdressing salon in the city centre. He has 4 part-time employees. The business
has made a profit in each of the last 3 years. Kolo wants to expand by opening another hairdressing salon to
take advantage of the economic boom. He plans to recruit a manager for the second salon using external
recruitment. Kolo has identified 2 possible candidates for the position. Information about them is shown in
the table below.
Extract from Kolo’s information on the two candidates
Candidate 1 Candidate 2
Experience: 5 years experience 20 years experience
Qualifications: Advanced hairdressing certificate Basic hairdressing certificate
Other information: Never managed a salon Uses autocratic leadership style
Do you think experience is the most important factor for a business to consider when recruiting a new
manager? Justify your answer.
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
.................................................................................................................................................................. [6]
[Total: 6]
28
39 Identify two stages of the recruitment process.
Stage 1: ....................................................................................................................................................
..................................................................................................................................................................
Stage 2: ....................................................................................................................................................
.................................................................................................................................................................. [2]
[Total: 2]
40 Define ‘level of hierarchy’.
..................................................................................................................................................................
..................................................................................................................................................................
..................................................................................................................................................................
.................................................................................................................................................................. [2]
[Total: 2]

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1

Fig: Callow Organisation Structure

Fig: Callow Organisation Structure

Fig: Callow Organisation Structure

Function 2:................................................................................................................................................ [2]

7 What is meant by ‘span of control’?

Fig: Callow Organisation Structure

Identify and explain two features of Callow’s organisational structure.

Fig: LEK organisational chart

Identify and explain two benefits to LEK of having an organisational chart.

Table: Cash flow forecast ($000’s)

11 Identify two advantages of using internal recruitment.

12 What is meant by ‘dismissal’?

Identify and explain two advantages to A2Z of producing a job description.

16 Identify two stages of the recruitment process.

Stage 2:..................................................................................................................................................... [2]

Identify and explain two advantages to PJK of having skilled workers.

Identify and explain two advantages to Camille of employing part-time workers.

Identify two functions of management that Tebo might need to perform

22 What is meant by ‘made redundant’?

24 What is meant by ‘span of control’?

1 Define ‘trade union’.

2 What is meant by ‘on-the-job training’?

Extract from CPK’s financial statements

Current ratio 1.6 1.3

Profit margin 12% 10%

Non-current assets $2m $2m

Extract from AHG’s statement of financial position at 30 March 2022 ($000)

Non-current assets 800

Current assets 660

Current liabilities 600

Explain two advantages to AHG of its managers using delegation.

7 State two responsibilities of a director.

Message lost: ...........................................................................................................................................

Use of jargon: ..........................................................................................................................................

11 Define ‘chain of command’.

Effect on BCZ: ........................................................................................................................................

Effect on BCZ’s employees: ....................................................................................................................

13 Identify two reasons (other than financial) why people work.

14 Define ‘off-the-job training’.

15 Identify two motivational theories.

Outline two benefits to WTB of having part-time employees.

Explain two reasons why training might be important to WTB.

Cost of sales 180

Gross profit 720

Explain two reasons why effective communication might be important to BGR.

Explain two ways SBG can involve its employeesin decision-making.

‘Employee of the month award’...............................................................................................................

Organises team building courses:............................................................................................................. [2]

Extract of methods used at GCF to motivate employees

‘Employee of the month’ award

Organises team building courses

Outline two advantages to GCF of having well-motivated employees.

Extract of BEF’s production data for one of its products

Average number of production workers 240 250

Total output per week 300 000 310 000

Extract of Asmaa’s cash-flow forecast ($000’s)

January February March

Net cash flow (10) 20 5