Unit 2

Topical Questions
(2014-2018)
Q1) Define the term ‘labour turnover’. [2]

Labour turnover refers to the rate at which employees leave a business and are replaced over a
given period of time. It is used to measure how frequently staff changes occur in a business.

The formula for labour turnover is:

(number of employees leaving ÷ average number of employees) × 100

[May/June 2014 P11 Q2a]

Q2) Explain one way human resource management could help a business achieve its objectives. [3]

One way human resource management (HRM) could help a business achieve its objectives is by
recruiting skilled and motivated employees. For example, if a business wants to improve product
quality, HRM can hire workers with strong technical expertise and experience. These skilled
employees are likely to make fewer errors and improve efficiency, which supports the business
in meeting its quality and productivity goals.

[May/June 2014 P11 Q2b]

Q3) Explain the differences between the motivation theories of Maslow and Herzberg. [8]

Maslow and Herzberg are two well-known theorists who developed different approaches to
understanding employee motivation. Maslow created the Hierarchy of Needs, which outlines five
levels of human needs that must be satisfied in sequence. Herzberg developed the Two-Factor
Theory, which separates workplace factors into two categories: hygiene factors and motivators.

One major difference is that Maslow believed motivation comes from fulfilling needs in a
specific order, starting from basic physiological needs up to self-actualisation. For example, an
employee will focus on getting enough salary (basic need) before they seek personal growth or
creativity in their job (self-actualisation). This suggests that unless basic needs are met, higher-
level motivators won’t be effective. In contrast, Herzberg believed that motivation doesn't
depend on a hierarchy but on the presence of motivators like recognition and achievement.
According to him, even if basic conditions are met, true motivation only arises from meaningful
work and growth opportunities.

Another key difference is how each theory treats the causes of dissatisfaction. Maslow’s theory
focuses entirely on what motivates people, without discussing what causes dissatisfaction.
Herzberg, however, clearly separates the two. He argued that certain factors like poor salary or
bad working conditions (hygiene factors) cause dissatisfaction but don’t motivate when
improved. Only motivators like challenging work or achievement actually increase motivation.
This helps businesses understand that simply removing dissatisfaction doesn’t lead to motivation
— they must also create opportunities for growth.

[May/June 2014 P11 Q5a]

Q4) Evaluate the view that a successful business needs both effective managers and effective
leaders. [12]

A successful business is one that meets its objectives efficiently and consistently, whether in
terms of profit, customer satisfaction, or growth. For this to happen, both effective managers and
leaders play vital roles. While management focuses on planning, organising, and controlling
resources, leadership involves inspiring and guiding people toward a shared vision.

Effective managers ensure that day-to-day operations run smoothly. They make sure deadlines
are met, budgets are followed, and employees are performing their tasks efficiently. For
example, a manager in a manufacturing firm may ensure that raw materials are available,
production is on schedule, and costs are kept low. This organisational ability ensures stability
and consistency. However, if a business only relies on good managers without any leadership, it
may lack innovation and adaptability. It might succeed in the short run but fail to cope with
change in the long term.

On the other hand, effective leaders provide direction, motivation, and a long-term vision. They
inspire employees, promote innovation, and help the business navigate through change. For
example, a leader in a tech startup may encourage creative thinking and risk-taking to bring a
new product to market. Leadership fosters a sense of purpose and unity, especially in times of
uncertainty or competition. However, a business cannot rely solely on leadership without
structure. A visionary leader without systems or control may cause confusion or
mismanagement.

In conclusion, both effective managers and leaders are essential for long-term business success.
Managers bring order, efficiency, and control, while leaders provide vision, motivation, and
change. The absence of either role can lead to imbalance — either too rigid or too chaotic —
which may ultimately harm the business. The most successful organisations are those that
balance strong leadership with sound management practices.

[May/June 2014 P11 Q5b]

Q5) Explain the differences between McGregor’s ‘Theory X’ and ‘Theory Y’. [8]

McGregor introduced the concept of ‘Theory X’ and ‘Theory Y’ to explain two contrasting
approaches managers take toward managing workers, based on their assumptions about human
nature and motivation. These theories reflect how a manager’s mindset influences their
leadership style and how they treat their employees.

‘Theory X’ managers assume that employees are inherently lazy, avoid responsibility, and
dislike work. Based on this belief, such managers adopt an autocratic leadership style where they
closely monitor and control their workers. For example, a Theory X manager in a manufacturing
plant may keep strict check-in/check-out times and give clear instructions without room for
employee input. They believe that employees will only work effectively if controlled through
punishments or financial incentives, such as piece-rate payments or bonuses. This often leads to
a rigid working environment with limited opportunities for employee creativity or development.

On the other hand, ‘Theory Y’ managers believe that employees are self-motivated, enjoy work,
and seek responsibility. They adopt a democratic leadership style where trust is placed in
employees to take initiative. For example, in a tech company, a Theory Y manager might allow
employees to choose their own projects or contribute ideas in team meetings. These managers
offer both financial rewards and non-financial incentives like recognition, flexible hours, or
career development opportunities, believing that employees are driven by a variety of needs
beyond just money. This style encourages innovation, engagement, and a more empowered
workforce.

[May/June 2014 P12 Q5a]

Q6) Evaluate the benefits of team working for production workers and managers. [12]

Team working refers to a situation where employees collaborate in groups to achieve common
goals rather than working individually. It is a modern approach to workforce management that
offers advantages for both production workers and managers, particularly in terms of motivation,
efficiency, and workplace culture.

For managers, one of the major benefits of team working is improved delegation. When
employees work in effective teams, managers can delegate tasks more confidently, knowing that
responsibilities are being shared among workers with diverse skills. For example, in a production
setting, a manager might assign a team to handle quality control independently. This allows the
manager to focus on strategic tasks like forecasting or inventory planning. It also encourages
democratic leadership, as decision-making becomes more inclusive. As more ideas are shared in
teams, the quality of decisions may improve, and overall productivity can increase. However,
team working may sometimes lead to longer decision-making processes if not managed
effectively.

For production workers, team working provides a sense of belonging and social interaction.
According to Maslow’s hierarchy of needs, social needs play an important role in motivation.
Being part of a team satisfies this need, making employees more motivated and committed. For
instance, workers who collaborate in a garment factory may support each other to meet
production targets, reducing stress and increasing morale. Moreover, team working allows
informal learning, as weaker members can gain experience from stronger ones. This not only
improves performance but also reduces the need for formal training. On the downside, there may
be conflicts within teams if roles are unclear or if team dynamics are poor.

Overall, while there may be some coordination challenges, team working fosters a positive
organizational culture. It strengthens employee-employer relationships, lowers labor turnover,
and helps management implement decisions with less resistance. By creating a cooperative
environment, team working ultimately benefits both workers and managers, contributing to
higher efficiency and long-term business success.

[May/June 2014 P12 Q5b]

Q7) Explain why a business could decide to use only non-financial rewards to improve the
motivation of its workforce. [8]

A non-financial reward is any benefit given to employees that does not involve direct monetary
compensation. These include things like praise, promotion opportunities, flexible working hours,
recognition, or additional responsibilities. Such rewards aim to fulfil psychological, social, or
developmental needs of employees rather than just financial ones.

One reason a business might choose only non-financial rewards is to meet employees’ deeper
motivational needs, especially those related to esteem and self-fulfilment as suggested by
Maslow’s hierarchy of needs. For example, a business could implement a structured recognition
program where employees are publicly praised for their contributions. This can lead to a strong
sense of belonging and achievement. When employees feel valued and respected, they are more
likely to stay loyal, perform better, and take initiative in their roles. This not only improves the
work environment but also creates a positive feedback loop of motivation and productivity
without increasing wage expenses.

Another reason is that non-financial rewards can help create long-term loyalty and professional
development at a relatively lower cost. For instance, a business might offer career growth
opportunities such as internal promotions or sponsorship for skill development courses.
Employees feel that the company is invested in their future, which builds trust and engagement.
As workers improve their capabilities, the business benefits from a more skilled workforce while
avoiding high recruitment costs. Even though this approach may take time to show results, it
builds a strong organisational culture and reduces dependence on financial incentives, which
may not always be sustainable.

[May/June 2014 P13 Q5a]

Q8) Evaluate the view that effective workforce planning is a necessary requirement for successful
business performance. [12]

Workforce planning is the process of analyzing and forecasting the number and type of
employees a business needs both in the short and long term. It ensures the right people are in the
right roles at the right time. Effective workforce planning is seen as essential to ensure a business
can meet its objectives without overstaffing or skill shortages.

One reason workforce planning supports business success is that it allows the firm to respond
proactively to changes in demand or market conditions. For example, a retail business expecting
increased seasonal demand can use workforce planning to hire temporary staff in advance. This
avoids last-minute recruitment, reduces pressure on existing employees, and ensures high
customer service levels are maintained. This efficiency helps businesses meet sales targets,
manage costs better, and ultimately improve profitability. However, if workforce planning is
based on inaccurate forecasts, the business might hire too many or too few employees, leading to
inefficiencies or missed opportunities.

Additionally, workforce planning helps identify skill gaps and enables timely training and
recruitment. For instance, in a tech company, if a gap in cybersecurity expertise is forecasted, the
firm can invest in upskilling current employees or recruiting new talent before a problem arises.
This not only increases operational efficiency but also reduces the risk of disruption. However,
the benefit depends on how well the business understands future trends and its own internal
capabilities—poor internal communication or unclear strategic direction can limit the
effectiveness of workforce planning.

On the other hand, while workforce planning is important, it is not the only factor behind
business success. A company also needs strong leadership, innovation, effective marketing, and
financial management. For example, even with perfect workforce planning, a company may still
fail if its product becomes outdated or poorly marketed. Also, some businesses with limited
resources may rely more on flexible working, outsourcing, or part-time labor rather than long-
term workforce planning and still perform successfully in dynamic markets.

In conclusion, while workforce planning plays a critical role in aligning human resources with
business goals, it should not be seen as the sole driver of success. It is most effective when used
in combination with other strategic functions like leadership, innovation, and market
adaptability. Businesses that integrate workforce planning into their overall strategy are more
likely to achieve sustained success.

[May/June 2014 P13 Q5b]

Q9) Explain one difference between redundancy and dismissal. [3]

One key difference between redundancy and dismissal is the reason behind the employee
leaving. Redundancy happens when the job itself is no longer needed—such as when a company
shuts down a department—so the employee is let go even though they have done nothing wrong.
In contrast, dismissal occurs when an employee is removed from their job due to their behavior
or performance, such as repeated misconduct or poor work.

[Oct/Nov 2014 P11 Q2b]

Q10) Define the term ‘workforce planning’. [2]

It is a systematic identification and analysis of what an organisation is going to need in terms of the size,
type, and quality of workforce to achieve its corporate objectives. It is an attempt to maintain the most
efficient employee management team possible, maximising profits and ensuring long terms success.

[Oct/Nov 2014 P12 Q4a]

Q11) Explain one benefit to a business of effective workforce planning. [3]

One benefit of effective workforce planning is that it ensures the business has the right number
of employees with the right skills at the right time. For example, a retail business that plans
ahead for seasonal demand, like hiring extra staff before a holiday rush, can meet customer needs
efficiently. This reduces delays, improves customer satisfaction, and helps the business increase
sales and performance.

[Oct/Nov 2014 P12 Q4b]

Q12) Explain one way in which human needs could be satisfied at work. [3]

One way in which human needs could be satisfied at work is by providing a sense of belonging
through team-based activities. For example, if a company encourages teamwork and regularly
involves employees in group projects or social events, workers feel more connected and valued.
This fulfils their social needs and helps improve motivation and job satisfaction.

[Oct/Nov 2014 P13 Q2b]

Q13) Define the term ‘emotional intelligence’. [2]

Emotional intelligence is the ability to recognize, understand, and manage one’s own emotions
as well as the emotions of others. It helps in building better relationships, making informed
decisions, and handling workplace challenges effectively.

[May/June 2015 P12 Q2a]

Q14) Explain one of Goleman’s emotional intelligence competencies. [3]

One of Goleman’s emotional intelligence competencies is self-awareness. This refers to the

ability of an individual to recognize and understand their own emotions, strengths, and
limitations. For example, a manager who is self-aware might realize they are feeling stressed
before a meeting and take steps to calm down, ensuring they don’t take it out on the team. This
improves decision-making and helps maintain a positive work environment.

[May/June 2015 P12 Q2b]

Q15) Analyse why it is important for a business to have an effective system of recruitment and
selection. [8]

Recruitment and selection is the process of attracting, identifying, and choosing the most suitable
individuals to fill job roles within an organisation. It ensures that the right people with the
required skills, qualifications, and attitude are appointed at the right time and in the right
position. This process is vital for building a strong and competent workforce that directly
influences business performance.

An effective recruitment and selection system ensures that the business hires employees who
closely match the person and job specifications. For example, if a retail company is hiring a store
manager and selects someone with strong leadership experience and customer service skills, that
manager is more likely to improve team performance and customer satisfaction. This alignment
helps the employee perform better, reduces the need for micromanagement, and ensures business
objectives are achieved more efficiently. It also minimises the risk of hiring someone unsuitable,
which could otherwise result in poor performance, customer complaints, or even early
resignation.

Another benefit is that it helps reduce long-term costs associated with employee training and
turnover. For instance, if a company hires a marketing executive who already has knowledge of
digital marketing tools, the business won’t need to spend heavily on initial training. This not only
saves costs but also allows the new recruit to contribute more quickly to marketing campaigns.
Moreover, when employees feel well-matched to their roles, job satisfaction and retention rates
increase—helping the business avoid frequent rehiring and retraining, which can be time-
consuming and expensive.

[May/June 2015 P12 Q7a]

Q16) Evaluate why a school might decide to recruit a new head teacher externally, rather than by
internal promotion. [12]

External recruitment is the process of hiring a candidate for a position from outside the existing
pool of employees in the organisation. A school may decide to recruit a new head teacher
externally rather than through internal promotion due to a number of strategic, organisational,
and human resource-related reasons.

One advantage of recruiting externally is that it allows the school to attract a much wider pool of
candidates with diverse qualifications, experiences, and new ideas. For example, an external
candidate might bring in knowledge of modern teaching methodologies or experience from
another high-performing school, which could help improve academic standards. This fresh
perspective may be valuable for schools seeking transformation or innovation. However, the
drawback is that the new head teacher will not be familiar with the school culture, systems, and
staff, which could lead to slower adaptation and resistance from existing employees, especially if
the leadership style differs significantly from what the staff is used to.

Another benefit of external recruitment is that it helps avoid internal conflicts that may arise if
one teacher is promoted over others. If an internal candidate is chosen, it may cause jealousy or
resentment among peers who were also hoping for the role, leading to reduced morale and
teamwork. Hiring externally removes this issue by bringing in a neutral figure. However, this can
also demotivate internal staff who may feel their career progression is limited within the school,
leading to higher turnover or disengagement.

On the other hand, internal recruitment also has its advantages. An internal candidate is already
familiar with the school's values, staff, and challenges, which allows for a smoother transition
and less onboarding time. Promoting from within can also boost morale by showing that the
school values and rewards loyalty and performance. However, if the school feels that change and
new leadership are essential for improvement, then recruiting externally may be a more strategic
choice. In conclusion, while both approaches have merits, the decision to recruit a head teacher
externally may be justified when the school needs fresh ideas, wider expertise, and wants to
avoid internal politics—making it a potentially more effective option for long-term development.

[May/June 2015 P12 Q7b]

Q17) Define the term ‘management’. [2]

Management is the process of planning, organising, directing, and controlling resources—

including people, finance, and materials—to achieve the goals and objectives of a business
efficiently and effectively.

[May/June 2015 P13 Q4a]

Q18) Explain one of Mintzberg’s roles of management. [3]

One of Mintzberg’s roles of management is the leader role, which involves motivating and
guiding employees to achieve the organisation’s objectives. For example, a manager may inspire
a team during a difficult project by providing encouragement and support. By doing so, the
manager builds team morale and ensures tasks are completed effectively, helping the business
achieve its goals.

[May/June 2015 P13 Q4b]

Q19) Analyse why a business might have a high rate of labour turnover. [8]

Labour turnover refers to the rate at which employees leave a business and are replaced over a
given period. A high rate of labour turnover means that a significant number of workers are
leaving the organisation, which can lead to instability and added costs for the business.
One reason for high labour turnover could be poor working conditions or low wages. For
example, if a manufacturing business pays minimum wage and requires employees to work in
uncomfortable or unsafe conditions, workers are likely to leave as soon as they find better
opportunities. This not only increases recruitment and training costs for the business but also
affects productivity, as time and resources are spent constantly hiring and onboarding new staff
rather than improving output.

Another possible reason is lack of career growth or motivation. If employees feel there are no
promotion opportunities or professional development options, they may lose interest and seek
jobs elsewhere. For instance, in a retail chain where employees stay in the same role for years
without advancement, even skilled workers may quit in search of more fulfilling jobs. This can
lead to a loss of experienced staff and negatively impact customer service and business
reputation.

[May/June 2015 P13 Q7a]

Q20) Evaluate how a cruise ship company could solve the problem of a high level of passenger
complaints about poor customer service. [12]

A high level of passenger complaints about poor customer service can damage a cruise ship
company’s reputation and reduce future bookings. To solve this issue effectively, the business
must address the root causes of poor service through both immediate and long-term strategies.

One solution could be to provide proper training to customer-facing staff. For example, all
employees who deal directly with passengers—such as receptionists, waiters, and cleaning
staff—could be trained in communication, conflict resolution, and customer care. This would
improve their ability to handle customer needs professionally and politely. However, training
programs can be expensive and time-consuming, and some staff may not take the training
seriously, limiting its impact. Despite this, if done effectively, training improves service quality,
increases passenger satisfaction, and reduces complaints over time.

Another solution could be to introduce a customer feedback system during the cruise rather than
waiting until after it ends. For instance, tablets or kiosks could be placed on board for passengers
to rate services in real time. This would allow the management to quickly identify problem areas
and resolve them before they escalate. While this system helps address issues immediately, it
might not be helpful if passengers are unwilling to use it or staff fail to act on the feedback. Still,
when used well, it builds a more responsive and adaptive service culture.

The company could also consider increasing staff numbers or improving working conditions.
Sometimes poor service is simply a result of overworked or demotivated employees. Hiring more
workers or improving their incentives—like offering bonuses for good reviews—can lead to
more attentive service. However, increasing staff raises labour costs, and financial pressure could
reduce the company’s profit margins, especially if bookings are already declining due to
complaints.
On the other hand, not all complaints stem from the staff. Some may be due to unrealistic
passenger expectations or external factors like weather delays or overbooked activities. In such
cases, the company must manage expectations better through clearer communication and pre-
boarding briefings. Improving the booking system or offering realistic service guarantees could
help reduce unjustified complaints.

In conclusion, while each solution has its costs and challenges, improving staff training,
gathering timely feedback, and addressing workforce conditions are all effective strategies to
reduce complaints. A combination of proactive service improvement and better communication
with passengers will help rebuild trust and improve the cruise company’s reputation.

[May/June 2015 P13 Q7b]

Q21) Define the term ‘contract of employment’. [2]

A contract of employment is a legal agreement between an employer and an employee that sets
out the terms and conditions of [Link] usually includes information such as job title,
working hours, pay, duties, and the notice period required to end the contract.

[Oct/Nov 2015 P11 Q1a]

Q22) Explain one advantage to employees of having a contract of employment. [3]

One advantage to employees of having a contract of employment is that it gives job security, as
the employer cannot dismiss the employee without following the agreed [Link] example, if
the contract states a one-month notice period, the employer must either allow the employee to
work for one more month or pay them an amount equal to one month's salary. This ensures the
employee has time to prepare or look for another job, which provides stability and peace of
mind.

[Oct/Nov 2015 P11 Q1b]

Q23) Define the term ‘piece rate payment method’. [2]

Piece rate payment method is a system where employees are paid based on the number of units
or items they produce or complete, rather than receiving a fixed hourly or monthly wage.

Formula:
Total Pay = Number of Units Produced × Rate per Unit

[Oct/Nov 2015 P12 Q2a]

Q24) Explain one possible disadvantage of piece rate payment methods for employers. [3]

One possible disadvantage of piece rate payment methods for employers is that workers may
focus too much on quantity rather than quality.
For example, in a garment factory, workers might try to stitch as many shirts as possible to earn
more money, but the stitching may be poor or faulty. This can lead to higher levels of defective
products, customer complaints, and increased costs for the business increased costs for the
business increased costs for the business for the business due to returns or rework.

[Oct/Nov 2015 P12 Q2a]

Q25) Analyse the possible consequences for a business of high labour turnover. [5]

High labour turnover refers to the rate at which employees leave a business and are replaced by
new workers. It can be costly for a business because it increases recruitment and training
expenses. For example, if a mobile phone company frequently loses its sales staff, it will have to
spend money on advertising jobs, interviewing candidates, and training new recruits again and
again. This not only increases costs but also reduces efficiency, as new employees take time to
reach full productivity. As a result, the business may face lower output, poor customer service,
and even a drop in profits if the turnover continues.

[May/June 2016 P11 Q3]

Q26) Analyse why it is important for a business to have policies on diversity and equality. [8]

Diversity and equality policies are rules or guidelines in a business that ensure all employees are
treated fairly, with no discrimination based on race, gender, religion, age, or disability. These
policies aim to create an inclusive and respectful workplace where everyone has equal
opportunities.

One key reason for having such policies is that they improve the business's reputation and help
attract a wide pool of skilled applicants. For example, a tech company that promotes gender
equality and hires both men and women for leadership roles will be seen as modern and fair. This
will encourage more qualified candidates to apply, increasing the chances of hiring talented
individuals. A diverse team also brings different ideas and perspectives, leading to more
creativity and better decision-making in the business.

Another important benefit is that these policies help avoid legal problems. If a company does not
follow equality laws, it can be taken to court for discrimination. For instance, if a restaurant
unfairly pays a male chef more than a female chef for the same job, the business could face legal
action and fines. This not only costs money but also damages the company’s public image. By
having strong diversity and equality policies, the business can reduce such risks and show
commitment to ethical practices, building trust among both employees and customers.

[May/June 2016 P11 Q5a]

Q27) Evaluate the importance of ‘work-life balance’ for employee welfare in a tertiary sector
business. [12]

Work-life balance means an employee’s ability to manage work responsibilities alongside

personal life, such as family, hobbies, or rest. In a tertiary sector business like retail, hospitality,
or banking—where workers often deal directly with customers—achieving this balance is vital
for employee welfare and performance.

A major benefit of promoting work-life balance is improved motivation and productivity. For
example, a customer service representative in a bank who gets flexible hours or remote work
options will likely feel less stressed and more satisfied. This improves mental health and leads to
better service quality and reduced absenteeism. When employees feel trusted and supported, they
often show higher levels of loyalty and responsibility. However, offering flexible arrangements
might reduce coordination within teams, as not all employees will be present at the same time,
possibly causing delays in customer handling or miscommunication among departments, which
could affect the customer experience.

Another advantage is employee retention. When a tertiary business supports personal life
through balanced schedules or wellness programs, workers are more likely to stay long-term. For
example, a hotel offering regular off-days and reasonable shifts may see lower staff turnover.
Lower turnover means less time and money spent on recruitment and training, which helps
reduce costs and builds a stronger, more experienced workforce over time. However, this can
raise operational challenges during peak seasons, as having more off-days might reduce staff
availability, affecting service delivery and customer satisfaction if not managed properly.

However, some roles in the tertiary sector may not allow much flexibility—such as retail
workers who must be present physically. In such cases, achieving work-life balance can be
difficult, no matter how much the business tries. Also, if the business over-prioritizes balance
without ensuring productivity, it may struggle to meet customer expectations.

In conclusion, while work-life balance is crucial for employee welfare and motivation, especially
in service-based industries, it must be carefully managed alongside operational needs. The key is
finding a balance that benefits both employees and the business without compromising on
service quality.

[May/June 2016 P11 Q5b]

Q28) Distinguish between a ‘job description’ and a ‘person specification’. [2]

A job description is a detailed list of the tasks, duties and responsibilities that will be required to be
performed in the job. It is a document that focuses on the job and how it is to be performed. Person
specification is the document that outlines the education/qualifications, experience, age gender and
particular requirements that are needed in the person who is required to do the job. It focuses on the
person who is applying.

[May/June 2016 P12 Q4a]

Q29) Explain one way in which employees can participate in business decision making. [3]

One way in which employees can participate in business decision making is through trade
unions. For example, if a business plans to reduce wages or make workers redundant, the trade
union can negotiate with the employer on behalf of all employees. This process, called collective
bargaining, ensures that employees' concerns are considered in important business decisions,
which can help reduce conflict and improve industrial relations.

[May/June 2016 P12 Q4b]

Q30) Define the term ‘workforce planning’. [2]

Workforce planning is the process of forecasting the number and types of employees a business
will need in the future. It ensures the right people are in the right jobs at the right time to meet
business objectives.

[May/June 2016 P13 Q2a]

Q31) Explain one benefit to a business of workforce planning. [3]

One benefit of workforce planning is that it helps a business avoid staff shortages. For example,
if a retail company expects higher sales during the festive season, it can plan ahead and hire
temporary staff. This ensures smooth operations and better customer service during busy periods,
helping the business meet demand efficiently.

[May/June 2016 P13 Q2b]

Q32) Analyse why efficiency is important to a manufacturing business. [5]

Efficiency means producing goods using the least amount of resources while maintaining
quality. It is important for a manufacturing business because it helps lower production costs and
improve productivity. For example, if a factory uses automation to reduce labor hours and
material waste, it can produce more units in less time. As a result, the business can offer lower
prices or earn higher profits. This will lead to increased customer satisfaction and loyalty.
Therefore, improving efficiency strengthens the business’s competitiveness in the market and
supports long-term growth.

[May/June 2016 P13 Q3]

Q33) Define the term ‘redundancy’. [2]

Redundancy is when a business no longer needs a certain job role and the employee doing that
job is let go, not because of their performance but because the position itself is no longer
required.

[Oct/Nov 2016 P11 Q2a]

Q34) Explain one way a human resource management department could help employees who are
to be made redundant. [3]

One way the human resource management (HRM) department can help employees who are to be
made redundant is by offering outplacement support. For example, the HR team may arrange
career counseling or training sessions to help affected workers learn new skills or prepare for job
interviews. This support can reduce stress for employees and help them find new employment
more quickly, which improves the company’s reputation and maintains good morale among
remaining staff.

[Oct/Nov 2016 P11 Q2b]

Q35) Evaluate the importance of ‘intellectual capital’ for a university. [12]

Intellectual capital refers to the intangible value of a business derived from the knowledge, skills,
and experience of its employees, research capability, and organizational systems. In the context
of a university, it includes the expertise of professors, research output, academic reputation, and
innovative teaching practices.

One major importance of intellectual capital is that it helps build the academic reputation of the
university. For example, universities with highly qualified lecturers and researchers are more
likely to attract top-performing students and receive higher rankings globally. This will lead to
increased student applications, more funding opportunities, and partnerships with industry or
other institutions. Therefore, a strong intellectual base directly contributes to the university’s
growth and financial sustainability.

Another benefit is that intellectual capital drives innovation and research output. If a university
has skilled faculty and an environment that promotes research, it can publish cutting-edge
studies, gain patents, and solve real-world problems. For instance, universities that innovate in
fields like AI, medicine, or sustainability can attract grants and gain media recognition. As a
result, this not only strengthens the university’s brand but also creates social impact, making the
institution more relevant and respected in society.

However, relying heavily on intellectual capital can also have risks. If key professors or
researchers leave, it may significantly affect course quality or research progress, leading to a
decline in the university's reputation. Additionally, investing in intellectual capital requires time
and significant financial resources, such as funding for training programs, research facilities, and
attractive salaries to retain talent. Therefore, if not managed well, the university may face
difficulties in sustaining academic standards and might even lose competitive edge to better-
funded institutions.

In conclusion, intellectual capital is extremely important for a university because it enhances

reputation, improves research output, and attracts funding. However, it must be supported by
strong HR policies and systems to retain and continuously develop talent. Its impact is long-term
and foundational for the university’s success.
 [Oct/Nov 2016 P11 Q6b]

Q36) Define ‘leadership’. [2]

Leadership is the ability to influence, guide, and motivate others toward achieving common
goals or objectives. It involves setting a clear vision and inspiring people to follow it willingly.

[Oct/Nov 2016 P12 Q2a]

Q37) Explain one advantage of autocratic leadership. [3]

One advantage of autocratic leadership is that it allows for quick decision-making. For example,
in a manufacturing business facing a sudden machinery breakdown, an autocratic leader can
immediately instruct the team on what to do without waiting for group input. This can lead to
faster problem resolution, minimizing downtime and maintaining productivity.

[Oct/Nov 2016 P12 Q2b]

Q38) Evaluate the importance for a large hotel of staff development and training. [12]

Staff development and training refer to the continuous process of improving employees’ skills,
knowledge, and attitudes to help them perform better in their jobs. In the case of a large hotel,
where success depends heavily on the quality of customer service, cleanliness, efficiency, and
guest experience, training becomes a vital part of business operations and competitiveness.

One significant advantage of staff training is that it improves service quality and consistency. For
example, training front-desk staff in hospitality etiquette and conflict resolution ensures that
guests are welcomed warmly and any issues are handled professionally. This leads to higher
customer satisfaction and potentially better online reviews, which are extremely important for
attracting future customers. As a result, a well-trained team can increase occupancy rates and
customer loyalty, directly contributing to the hotel's revenue and long-term success. Therefore,
staff development acts as a key driver for maintaining service standards and business reputation
in a highly competitive market.

Another benefit is enhanced employee motivation and reduced staff turnover. When a hotel
invests in staff development—such as offering barista training for restaurant staff or management
courses for supervisors—it sends a clear message that employees are valued. This boosts morale
and creates opportunities for career advancement. Employees are more likely to remain loyal to
the business, reducing the high costs of recruiting and training new staff. This is particularly
important in large hotels where replacing experienced employees frequently can disrupt service
and reduce productivity. Thus, training not only builds skill but also fosters a loyal, skilled
workforce that contributes to a positive workplace culture.

However, despite these benefits, there are challenges involved. Staff training can be expensive
and time-consuming, especially in a large hotel with hundreds of employees across different
departments. If not managed properly, it can lead to temporary labour shortages and affect
service delivery. For instance, training housekeeping staff during peak holiday seasons may
delay room cleaning and inconvenience guests. Additionally, some employees may leave the job
soon after receiving training, resulting in a waste of resources. This means that while staff
development is beneficial, it must be planned strategically to ensure that it does not interfere with
hotel operations or lead to unnecessary costs.

In conclusion, although there are some financial and operational challenges associated with staff
development, the long-term benefits far outweigh the drawbacks. A well-trained workforce leads
to higher customer satisfaction, employee loyalty, and overall efficiency—all of which are
crucial for a large hotel’s success. Therefore, staff training should be viewed as an investment
rather than a cost, playing a vital role in maintaining competitive advantage in the hospitality
industry.

[Oct/Nov 2016 P12 Q7b]

Q39) Distinguish between external and internal recruitment. [2]

External recruitment is when a business hires someone from outside the organization, such as
through job advertisements or recruitment [Link] recruitment is when a business fills a
vacancy by promoting or transferring an existing employee from within the organization.

[Oct/Nov 2016 P13 Q1a]

Q40) Explain one advantage to a business of internal recruitment. [3]

One advantage of internal recruitment is that the employee is already familiar with the business
operations and culture. For example, promoting a current supervisor to a managerial role means
they already understand the company’s policies and expectations. This leads to quicker
adaptation, fewer training needs, and potentially higher productivity, which can save the business
time and costs in the long run.

[Oct/Nov 2016 P13 Q1b]

Q41) Define the term ‘emotional intelligence’. [2]

Emotional intelligence is the ability to recognize, understand, and manage your own emotions, as
well as the emotions of others. It helps in building strong relationships and making thoughtful
decisions.

[May/June 2017 P11 Q4a]

Q42) Explain one of Goleman’s emotional intelligence competencies. [3]

One of Goleman’s emotional intelligence competencies is self-awareness. This means

understanding your own emotions, strengths, and weaknesses. For example, a manager who is
self-aware can recognize when they are stressed and avoid taking it out on their team. This leads
to better decision-making and improved relationships at work.

[May/June 2017 P11 Q4b]

Q43) Define the term ‘leadership’. [2]

Leadership is the ability to influence and guide individuals or groups towards achieving common
goals. It involves setting a clear vision, motivating others, and making important decisions to
ensure success.

[May/June 2017 P12 Q1a]

Q44) Explain one style of leadership. [3]

One style of leadership is democratic leadership. In this style, the leader encourages employees
to share their ideas and take part in decision-making. For example, in a marketing team, the
manager might ask team members for suggestions on a new campaign. This leads to better
teamwork and motivation as employees feel valued and involved in the success of the business.

[May/June 2017 P12 Q1b]

Q45) Analyse how a business might use Mintzberg’s roles of management. [8]

Mintzberg defined management as a set of ten roles categorized into interpersonal, informational,
and decisional roles. These roles help managers carry out essential duties that keep the business
running effectively.

One important role is the leader (interpersonal), where a manager guides, motivates, and supports
employees. For example, in a retail store, the store manager might set daily targets, motivate
employees through encouragement, and address their concerns. This will lead to better employee
performance and higher job satisfaction. As a result, motivated employees are more likely to stay
loyal, reducing labour turnover and helping the business maintain a consistent and experienced
workforce, which enhances customer service and overall productivity. Therefore, this role is
critical for maintaining a strong internal team and achieving long-term goals.

Another key role is the monitor (informational), where the manager gathers and assesses relevant
data. For instance, a manufacturing manager might regularly check production reports to identify
delays or defects in output. This allows quick decision-making and problem-solving, which
reduces waste and downtime. As a result, it leads to greater operational efficiency, lowers costs,
and improves product quality. Thus, by fulfilling the monitor role effectively, the business gains
a competitive advantage through smoother operations and better responsiveness to issues.

[Oct/Nov 2017 P11 Q7a]

Q46) ‘Emotional intelligence is the most important quality of an effective leader.’ Do you agree
with this view? Evaluate your answer. [12]

Emotional intelligence (EI) refers to the ability to understand, manage, and influence one’s own
emotions and those of others. Many argue that this quality is essential for effective leadership as
it plays a critical role in communication, decision-making, and maintaining team morale.

One reason emotional intelligence is considered highly important is that it enables leaders to
develop strong, trusting relationships with their team members. For example, a manager with
high EI in a customer service company can recognize signs of stress or disengagement among
employees and respond with empathy and support. This not only improves job satisfaction but
also builds loyalty and motivation among staff. In the long term, such a positive environment
reduces employee turnover and improves productivity, both of which are vital for business
sustainability.

Another major advantage is its role in conflict resolution. Leaders with strong emotional
intelligence can approach disagreements with calmness and fairness, reducing the chances of
escalation. For instance, in a school setting, a headteacher with high EI might mediate disputes
between teachers in a balanced way that preserves mutual respect. This leads to a more
harmonious workplace, encouraging collaboration and efficiency—especially important in
industries where teamwork is essential to performance.

However, while emotional intelligence brings clear benefits, it may not always be the single most
important leadership trait. In certain industries or scenarios, qualities like strategic thinking,
decisiveness, or technical competence may take priority. For example, a construction project
manager needs to make quick, accurate decisions regarding safety and deadlines. In such
environments, being too focused on emotional factors may delay crucial actions or reduce clarity
in judgment, potentially affecting performance or safety outcomes.

In conclusion, emotional intelligence is undeniably a key element of effective leadership,

especially in roles that require team management and interpersonal interaction. It fosters a
healthy work culture and promotes strong team cohesion. Yet, it should not be viewed in
isolation—leaders must also possess practical skills such as planning, problem-solving, and
critical thinking. The most effective leaders are those who can balance emotional awareness with
sound judgment and clear strategic direction.

[Oct/Nov 2017 P11 Q7b]

Q47) Analyse the importance of workforce planning for the effective performance of a university.
[5]

Workforce planning is the process of ensuring that an organization has the right number of
people with the right skills in the right roles at the right time. For a university, this is important
because it directly affects the quality of education and research. For example, if workforce
planning shows a future shortage of computer science lecturers due to rising student intake, the
university can begin recruitment or training in advance. This will lead to well-prepared faculty,
avoiding overburdening staff or lowering teaching standards. As a result, student satisfaction and
academic performance will improve. Therefore, effective workforce planning ensures smooth
functioning of departments, helps meet institutional goals, and supports long-term success.

[Oct/Nov 2017 P12 Q3]

Q48) Define the term ‘induction training’. [2]

Induction training is the process of introducing new employees to the organization, its policies,
procedures, and their specific job roles. It helps them settle into the workplace quickly and work
effectively.

[Oct/Nov 2017 P13 Q2a]

Q49) Explain one benefit to a business of training employees. [3]

One benefit to a business of training employees is improved efficiency. For example, in a

manufacturing company, training workers to use new machinery correctly can reduce errors and
speed up production. As a result, this leads to higher output, better product quality, and
potentially increased profits for the business.

[Oct/Nov 2017 P13 Q2b]

Q50) Analyse the responsibilities employees have to the business that employs them. [5]

Employees have several responsibilities towards the business that employs them, which include
being reliable, meeting performance standards, and following company rules. One key
responsibility is to perform assigned tasks efficiently and to the best of their ability. For example,
a customer service representative in a telecom company is expected to respond to customer
queries politely and resolve issues quickly. This will lead to improved customer satisfaction and
loyalty, which is essential for business success. If employees fail to carry out their duties, it can
result in lost sales, reputational damage, or operational inefficiency. Therefore, fulfilling
responsibilities not only supports the smooth functioning of the business but also contributes to
achieving overall business objectives like profitability, productivity, and growth.

[Oct/Nov 2017 P13 Q3]

Q51) Analyse the methods managers might use to help employees satisfy their self-actualisation
needs, as identified by Maslow. [8]

Self-actualisation, according to Maslow’s hierarchy of needs, refers to the desire to achieve one's
full potential and pursue personal growth, creativity, and purpose. In the workplace, this means
employees want to do meaningful work, feel challenged, and have opportunities to develop.

One method managers can use is delegating meaningful and challenging tasks that align with an
employee’s strengths and aspirations. For example, in a university, a lecturer could be given the
responsibility of designing a new course or curriculum in their subject area. This allows them to
apply their expertise in a creative and impactful way, fostering intellectual growth. As a result,
the lecturer may feel a stronger sense of purpose and motivation, leading to higher productivity
and a deeper commitment to the institution.

Another effective method is offering continuous professional development. Managers can

encourage staff to attend workshops, pursue advanced degrees, or take part in training courses.
For example, in a software company, a programmer might be given access to advanced coding
bootcamps or certifications. This helps them develop new skills, stay updated with industry
trends, and feel more confident in their abilities. As employees feel more competent and
fulfilled, they are likely to become more innovative and committed to delivering high-quality
work, which benefits the overall success of the business.

[Oct/Nov 2017 P13 Q7a]

Q52) Evaluate the view that the ability to motivate others is the most important quality of an
effective business leader. [12]

The ability to motivate others refers to a leader’s skill in inspiring employees to work
enthusiastically towards achieving business goals. Many believe this is the most crucial quality
of a business leader, as motivated employees often show higher productivity, stronger loyalty,
and greater job satisfaction.

One reason motivation is seen as essential is that it drives employee performance. For example,
in a call center, a team leader who recognises achievements, sets clear goals, and maintains a
positive team spirit can significantly boost morale. This results in not only reduced absenteeism
but also more consistent customer service. When employees feel valued and driven, they are
likely to put in extra effort, leading to better outcomes for the business. Over time, this can create
a high-performance culture, where employees hold themselves and each other to higher
standards, giving the business a strong internal advantage.

Furthermore, a leader’s ability to motivate helps build a strong organisational culture. In fast-
growing startups, for instance, where resources may be limited, a charismatic leader who
communicates a clear vision and involves employees in decision-making can foster a sense of
purpose and ownership. This sense of belonging often translates into higher retention and greater
innovation. When employees are emotionally invested, they’re more willing to stay through
challenges and find creative solutions—helping the business grow sustainably even in
competitive industries.

However, motivation alone may not be sufficient. In some situations, other leadership qualities
like strategic thinking, decision-making under pressure, or industry expertise might be more
critical. For example, during a financial crisis, a leader must make quick and tough decisions to
cut costs or restructure operations. In such cases, being motivational is helpful, but not enough
on its own. If a leader focuses too much on encouraging others without making firm choices or
having a long-term vision, the business may lose direction or miss opportunities, especially in
fast-changing markets.
In conclusion, while the ability to motivate is undoubtedly a key quality of effective leadership,
it must be balanced with other skills like strategic thinking, communication, and decision-
making. The best leaders are those who can inspire their teams while also making informed,
timely decisions that guide the business toward long-term success.

[Oct/Nov 2017 P13 Q7b]

Q53) Define the term ‘productivity’. [2]

Productivity is a measure of how efficiently resources are used to produce output.

It is often calculated as the output produced per unit of input, such as output per worker per hour.
Formula:
Productivity = Output / Input
(e.g., units produced per worker per hour)

[May/June 2018 P11 Q2a]

Q54) Explain one way a manufacturing business could improve productivity. [3]

One way a manufacturing business could improve productivity is by investing in automation and
advanced machinery. For example, a car manufacturing company could use robotic arms on the
assembly line to speed up production and reduce human [Link] would allow more units to be
produced in less time, leading to greater efficiency and lower costs per unit. As a result, overall
productivity would increase, improving the firm's competitiveness in the market.

[May/June 2018 P11 Q2b]

Q55) Analyse the possible disadvantages to a business of using performance related pay to motivate its
employees. [8]

Performance-related pay (PRP) is a financial incentive where employees receive additional pay
based on how well they meet certain targets. While it can encourage greater effort, it also has
several potential disadvantages for a business.

One possible disadvantage is that PRP might create unhealthy competition among employees.
For example, in a sales company, if only top performers receive bonuses, team members may
become less willing to cooperate or share techniques. This can harm teamwork, reduce
knowledge sharing, and create a toxic work environment. In the long term, this may lower
overall productivity and damage employee morale, affecting the business's ability to retain talent.

Another issue is that PRP systems may be seen as unfair or biased. If targets are unclear or
influenced by factors outside the employee's control, workers may feel demotivated. For
instance, in a call centre, an agent might not reach call targets due to a system outage, yet still be
penalized. This can lead to dissatisfaction, high employee turnover, and a decline in trust towards
management. As a result, the business may face increased recruitment and training costs, which
reduces efficiency.
 [May/June 2018 P11 Q7a]

Q56) Evaluate the view that the most important role of human resource management (HRM) in
all businesses is to maintain a high level of staff morale and welfare. [12]

Human Resource Management (HRM) refers to the function within a business that focuses on
recruiting, managing, and supporting employees to ensure the organisation’s success.

One benefit of focusing on staff morale and welfare is that it can lead to improved motivation
and productivity. For example, a company that offers mental health support, fair wages, and
flexible working conditions may have more loyal and engaged employees. This can reduce
absenteeism and turnover, ultimately saving recruitment costs and improving business
performance. However, the drawback is that maintaining high staff welfare can be expensive and
time-consuming. For instance, providing extra benefits and frequent wellbeing programs may
increase costs, which might not be affordable for smaller businesses.

Another benefit is that strong morale contributes to a positive organisational culture, which can
enhance teamwork and innovation. For example, when employees feel valued and supported,
they are more likely to collaborate and suggest improvements. This can give the business a
competitive edge. However, focusing too much on staff welfare may lead managers to avoid
making tough decisions. For example, delaying necessary redundancies or avoiding
performance-based dismissals might harm long-term efficiency.

On the other side, some argue that the most important role of HRM is not morale but ensuring
the right people are recruited and trained. Without skilled and capable staff, even high morale
cannot drive success. Effective workforce planning, recruitment, and development are essential
to achieve business objectives.

In conclusion, while maintaining staff morale and welfare is a vital role of HRM that brings
many advantages, it may not always be the most important. The most effective HRM functions
strike a balance between employee wellbeing and ensuring that the workforce meets the strategic
needs of the business.

[May/June 2018 P11 Q7b]

Q57) Analyse the possible long-term consequences for a business of low levels of employee
motivation. [5]

Low levels of employee motivation occur when workers feel undervalued or disengaged, which
can seriously affect business performance. For example, in a retail store, if staff are not
recognised or rewarded for their efforts, they may become less enthusiastic about their work and
put in minimal effort when dealing with customers. As a result, customer service standards may
decline, leading to dissatisfaction and a fall in repeat purchases. Therefore, the business could
experience reduced revenue and struggle to maintain customer loyalty. This will lead to long-
term challenges such as higher employee turnover, increased recruitment costs, and a weaker
competitive position in the market.
 [May/June 2018 P12 Q3]

Q58) Analyse why many human resource departments have developed policies for diversity and
equality. [8]

Diversity and equality refer to creating a workplace where all individuals are treated fairly,
respected, and given equal access to opportunities regardless of their gender, race, religion, age,
or background. HR departments develop such policies to ensure inclusiveness, comply with legal
frameworks, and improve organisational performance through fair practices.

Many businesses introduce these policies to improve employee satisfaction and morale. For
example, a company that provides equal opportunities for promotion to both men and women
creates a sense of fairness among staff. As a result, employees feel more motivated and loyal,
which leads to reduced turnover and improved productivity. This commitment to fairness also
helps prevent workplace conflict and creates a more cooperative environment, enhancing overall
performance.

Another reason HR departments focus on diversity and equality is to gain a competitive

advantage. For instance, a global tech firm may employ people from different ethnic
backgrounds who contribute unique ideas. This variety of perspectives leads to more innovative
products and marketing strategies tailored to diverse consumer groups. Thus, such policies not
only strengthen internal culture but also expand customer reach and brand image, contributing to
long-term success.

[May/June 2018 P12 Q7a]

Q59) ‘A significant investment in training and development is the best way to improve employee
effectiveness in a retail business.’ Evaluate this view. [12]

Training and development refer to planned efforts by a business to improve employees’ job-
related skills and knowledge. In the retail sector, where customer service and operational speed
are vital, training can play a key role in improving employee effectiveness.

One benefit of training is improved customer service. Employees who receive regular training on
communication, product knowledge, and complaint handling are better equipped to serve
customers. For example, a trained cashier can resolve a billing issue calmly and professionally.
As a result, this improves the customer experience and builds long-term loyalty. However, the
drawback is that training requires time and money. In a busy retail environment, taking
employees off the shop floor for training can reduce productivity in the short term and affect
service levels during peak hours.

Another benefit is increased employee efficiency. Staff trained in stock control, inventory
systems, or sales techniques can work faster and make fewer mistakes. For instance, a sales
assistant trained in upselling can boost average transaction value, directly increasing revenue.
However, a drawback is that not all training guarantees improved performance. Some employees
may struggle to apply new skills or may forget them without proper follow-up, leading to wasted
investment.

On the other hand, businesses can improve employee effectiveness through other means, such as
offering incentives, performance-related pay, or job enrichment. For example, recognizing top-
performing staff with bonuses or promotion opportunities may encourage consistent effort
without the upfront costs of training.

In conclusion, while training and development can significantly enhance employee performance
in retail, especially in terms of service and efficiency, relying solely on this method may not be
sufficient. A balanced approach that also includes motivation and recognition is likely to produce
the most effective results.

[May/June 2018 P12 Q7b]

Q60) Define ‘leadership’. [2]

Leadership is the ability to influence, guide, and motivate others toward achieving common
goals or objectives. It involves setting a clear vision and inspiring people to follow it willingly.

[May/June 2018 P13 Q1a]

Q61) Explain one style of business leadership. [3]

One style of business leadership is the autocratic leadership style, where the leader makes all
decisions without consulting employees. For example, in a manufacturing business, the manager
may assign specific tasks to workers without asking for their input. This can lead to faster
decision-making and clear direction, as the leader maintains full control and ensures consistency
in operations.

[May/June 2018 P13 Q1b]