1.
Evaluate three consequences of removing a layer from the organisational structure at senior
director level.
(Total 6 marks)
2.
Vidler need to improve communication between store managers and their staff. Explain three
methods they could implement in order to make communication more effective.
(Total 6 marks)
3.
Martínez and Pérez S.A. (Ltd.) is a Latin American firm that makes men’s shirts with imported
material from an Asian country. Last month, due to problems in Asia, the price of material went
up by 50%. The price increase is considered to be a long-lasting one, so the General Manager of
Martínez & Pérez knows that the firm needs to act quickly to counteract the effect of the
increase in the price of the input. One alternative is to cut the high labour costs. The General
Manager has written to the work force (which is organised in a trade union) offering the
following alternatives:
• dismiss 20 workers
• retain all workers but pay them less for working the same number of days
• retain all workers but cut the number of days worked by each worker and only pay
them for the days they work
4.
What is a trade union?
(Total 2 marks)
5.
Assess each of the alternatives presented to the trade union and show how the union will react to
each.
(Total 6 marks)
6.
The Board of Directors of the firm Day News (a firm which manufactures newspaper) has
recently sent its four senior managers on a training course to help find solutions for their
problems. They complain that workers are not motivated and that they cannot achieve
short-term consensus for any change they propose. At the training course, they were told the
following:
• mission statements help different people in a firm share a vision
• management should introduce change in spite of experiencing resistance
• one of the main causes of conflict in firms is poor communication
7.
Give two ways in which communications could be improved at Day News.
(Total 2 marks)
1
8.
Give two reasons to explain the cause of the workers’ lack of motivation and give a possible
solution for each one.
(Total 5 marks)
9.
Analyse Fun Air’s existing organisational structure and corporate culture and comment on
whether these could survive a significant growth in the business.
(Total 6 marks)
10.
In 1985, two entrepreneurs, Richard Sinclair and Joe Enfente, set up Microphone, a mobile
phone company. They both believed that employee performance should be measured and
bonuses paid to reflect customer satisfaction and sales. They introduced customer satisfaction
questionnaires and hired a team of pretend shoppers to check on service standards. However,
after three years the two founders had a major disagreement over management style and Joe
Enfente left the business to set up a rival company, ‘Clear Sounds’. By 1999, both companies
were in the top five sellers in their country and thinking of selling shares to the public. A
newspaper report on the two men highlighted the differences in management style.
“Richard Sinclair believes in staff involvement in decision making. Employees are encouraged
to make suggestions which are rewarded if implemented. Excellent performers receive large
bonuses and loyalty awards after five years’ service. Free holidays are provided to the top ten
employees in the firm. Richard regularly visits stores and personally presents awards.
Communication is enhanced through company videos and newsletters. A praise culture is
encouraged. Joe Enfente, in contrast, rules his business through fear with two-way cameras
linked to head office and computer systems which record sales per employee and by store. He
appoints store managers similar to himself. Employees do not contribute to decision making, but
many say that they respect Joe’s business sense and the opportunity to share in profits and earn
high bonuses keeps them working for Clear Sounds.”
11.
Compare and contrast the management styles of Richard Sinclair and Joe Enfente.
(Total 3 marks)
12.
Using your knowledge of leadership and motivation theory, assess how the two different styles
of leadership may influence motivation of the employees of Microphone and Clear Sounds.
(Total 10 marks)
13.
(i)
As Microphone grew, how would the changing roles of Richard Sinclair and Joe Enfente
cause disagreements?
(4)
(ii)
If Microphone and Clear Sounds sell shares to the public, how will this affect the
entrepreneurial roles of the two men?
(3)
(Total 7 marks)
2
14.
Jaipuri Casting is an engineering company manufacturing crane parts traditionally produced to
customer order and in batches of up to 200 units. Following a trip to a conference in America,
the Production Manager, Bill Kerr, is seeking to improve the quality of products and the
efficiency of the plant. At present, quality control is carried out by inspection at the end of the
production process. The factory has a high reject rate, averaging 6% of all finished parts, and
there have been complaints from customers about part failures and missed delivery dates. Bill
employs the services of a consultant, Saburo Kawasumi, to implement a work and method (time
and motion) study and to review efficiency and quality control systems.
15.
On behalf of Saburo Kawasumi prepare a report:
(i)
examining methods to improve production efficiency and quality standards at Jaipuri
Casting, evaluating their suitability for the firm, and
(ii)
identifying personnel, training and management issues that will arise from the
implementation of these measures.
(Total 16 marks)
16.
(a)
Explain what is meant by an autocratic manager (line 103).
(2)
(b)
Discuss the effectiveness of Joseph Obeng’s leadership approach and management style.
(4)
(Total 6 marks)
17.
(i)
Select four monetary and two non-monetary incentives that Joseph Obeng and Peter
Storm could use to improve the productivity and/or motivation of their staff.
(3)
(ii)
Evaluate the likely success of your selected incentives, either individually or in
combination, at Warm Breezes and the head office.
(5)
(Total 8 marks)
3
18.
The diagram shows the organization chart for a charity, KNDC.
Board of Directors
Chief
Executive
Community
Projects
Manager
Education
Officer
Health
Officer
Administrative
Assistants
Executive
Assistant
Housing
Projects
manager
Operations
Manager
Finance
Officer
Office
Manager
Welfare
Officer
Building
Services
manager
Accounts
Clerk
Administrative
Assistants
Welfare
Assistant
Maintenance
Staff
KNDC have just been given $140 million from the government to improve a poor area of the
capital city, by building new houses, shops and schools. The strength of the charity is the way in
which they consult the community and involve them in the decision-making process.
The government are keen to see that KNDC match the money given to them using sponsorship
from the private sector. The Board of Directors have recently agreed to accept $6 million
sponsorship to support information technology development in the new schools. The sponsoring
company is a multinational tobacco company Deval. The Chief Executive has raised concerns as
to whether this is “ethical and socially responsible”.
19.
Analyse the organization chart in terms of line-management responsibility and span of control.
Use appropriate examples from the chart to illustrate your answer.
(Total 4 marks)
20.
Applying your knowledge of motivation and leadership theory, analyse the likely effects on
employees of Joseph Obeng’s, Marc Leroux’s and Peter Storm’s management styles.
(Total 9 marks)
21.
Assess the potential role of a trade union at Open Views in promoting the views of employees
and in helping to resolve conflicts within the workplace.
(Total 4 marks)
4
22.
3M is a multinational corporation manufacturing innovative products in highly competitive
consumer, commercial and industrial markets. The following extracts outline 3M’s philosophy:
3M - McKnight Policy
“Those men and women to whom we delegate responsibility, if they are good people, are going
to want to do their jobs in their own way…
Management that is destructively critical when mistakes are made kills initiative and it is
essential that we have people with initiative if we are to continue to grow.”
William L McKnight, former President, 3M (1948)
3M Human Relations strategy
Our people are the company’s most valuable asset. They are the primary means by which 3M’s
goals and objectives will be attained. The company’s management, therefore believes it is
essential to provide an organizational structure and a work climate that:
Figure 1
▪
▪
▪
▪
Respects the dignity and worth of individuals
Encourages the initiative of each employee
Challenges individual capabilities
Provides equal opportunities
www.3M.com (2001)
The People at 3M
Since our beginnings at the turn of the 20th century, our success has come from producing
innovative solutions to our customers’ problems. But innovation is more than products, it is the
way 3M people do business.
• 3M is a company where an entrepreneurial spirit shared by all, leads to the constant
development and spin off of innovative ideas, processes and products. We are a versatile
company applying a great many technologies as we develop products that meet often
unrecognised customer needs.
Recruitment Advertisement
• Our corporate culture encourages a lively exchange of concepts and information across
different areas and functions. You are expected to be creative; to share your knowledge,
freely and often. And to demonstrate a ready willingness to solve problems, act on your
initiative and motivate others. You’ll also find 3M flexible. We champion both sides of your
nature – team player and individualist.
5
23.
(i)
Describe 3M’s corporate culture and assess how this corporate culture encourages
innovation and new product development.
(4)
(ii)
Analyse how 3M’s corporate culture is likely to influence its organizational structure and
communication systems.
(5)
(Total 9 marks)
24.
You are the Human Resources Director at 3M. Produce a memorandum
(memo) for all operational managers detailing:
(i)
six practical suggestions to put into operation the ideals for organization and work climate
stated in Figure 1, and
(ii)
how benchmarks (standards) could be set up and used to measure and reward
performance.
(Total 8 marks)
25.
Staff turnover at Warm Breezes is high. Discuss the likely impact of Peter Storm’s autocratic
management style on staff motivation and retention.
(Total 4 marks)
26.
The employment of foreign students, as untrained casual staff, is leading to complaints about
slow service and rude staff. Outline a training plan and rewards package that could be introduced
to overcome these problems.
(Total 6 marks)
27.
Chong Seng Construction
Chong Seng Construction (CSC) is a family business based in Kuala Lumpur, Malaysia. CSC
employs approximately 300 workers from neighbouring countries that offer a source of
inexpensive labour. These employees are hired as labour on a casual basis; if there is a decline in
business they will not be employed and will receive no income. The managers at CSC are told to
organise work based on the ideas of Frederick W Taylor and this seems to be a very effective
method. However, full-time core staff in the business resent this style of management and CSC
find it difficult to retain these employees. Those professionals who have left the business
complain that there is a lack of communication at CSC and that the family business is autocratic.
28.
Assess the advantages and disadvantages to CSC of hiring labour on a casual basis.
(Total 4 marks)
6
29.
Outline the management ideas of Frederick W Taylor and explain why the company believes
these methods to be effective.
(Total 6 marks)
30.
Use motivational theory to explain the resentment felt by the professional employees at CSC.
(Total 6 marks)
31.
Discuss the potential benefits that could arise at CSC from greater communication and
participation in decision making.
(Total 4 marks)
32.
Analyse how the use of new information and communication technologies could help improve
communications, operations and organizational control within Open Views.
(Total 10 marks)
33.
Analyse how the actions of informal groups within Warm Breezes could damage both its
reputation and profits.
(Total 6 marks)
34.
Evaluate to what extent the recruitment and training of local managers linked to a total quality
culture managerial approach, would benefit the future development and growth of Warm
Breezes.
(Total 10 marks)
7
35.
Boots The Chemists1
On the official website2, Boots The Chemists
maintain that they are committed to safeguarding
and enhancing their reputation as a well managed,
ethical and socially responsible company. They
believe that the relationship between the company, its
staff and the wider community provides the firm
foundation on which commercial success can be
built and sustained.
Investor Information
Five Year Summary
Turnover £m
00
99
98
97
96
5,189
5,045
5,022
4,578
4,125
Operating
profit before
exceptional
items £m
00
99
98
97
96
565
562
538
492
443
Specifically, with regard to conditions of employment
for the workers in the Far East who produce goods
Dividend per 00
25.2
for sale in Boots The Chemists stores, the company
share p
23.8
99
(1997 excludes 98
insists on only doing business with those
22.3
44.2p special
manufacturers which meet certain predetermined
97
20.5
dividend)
standards. For example, pay scales are monitored
96
18.5
to see that they are above average and facilities, which are provided for workers who live on the
premises – three nutritious meals a day, recreational amenities – are all based on competitive
standards.
Systems have been put in place to check that employers are conforming to their local
government labour laws and complying with the legal age of employment.
The website also states that no animal testing of any kind is undertaken or commissioned by
Boots The Chemists Company or its subsidiary businesses. In addition, the company has a
responsibility to take proper care of the environment on behalf of its shareholders, customers,
staff and the communities in which they operate. Caring for the environment is an essential part
of the way they run their business, and environmental audits and inspections are undertaken. By
integrating environmental consideration into their everyday activities, the environment is
managed alongside other business considerations such as safety, quality and value.
________________________________________________________________
1
2
36.
Boots The Chemists (BTC) is a pharmacy/drugstore and a retailer of health and beauty products.
Website source: rhttp://www.boots-plc.com/environment/policy/policy2.html
Boots the Chemists insists that their Far East suppliers offer competitive terms and conditions of
employment. Evaluate payment and incentive systems to encourage and reward higher
productivity and recommend the most suitable system, or systems, to put into practice in the Far
East.
(Total 7 marks)
8
37.
Top-taste is a medium-sized food manufacturing company. The company faces tough domestic
competition.
The Chief Executive Officer (CEO) and the Senior Management Team have considered both
short-term and long-term options so as to reduce costs and improve efficiency.
Top-taste is now considering a merger with a considerably larger overseas company that will
inject much needed cash and expertise.
In an emergency meeting called by the management the employees were told that:
• a large injection of money into advanced technology will enable Top-taste to move from
“batch” to “flow” production. Work groups will have to be dismantled.
• all employees have to take a 3% wage cut with immediate effect.
• due to a restructuring and de-layering process, numbers of middle management will be cut
by 5%.
• some workers must take their annual leave immediately rather than when they choose.
• future increases in wages will be directly linked to increases in productivity.
The employees are currently very upset and considering their reaction.
38.
(a)
Use Maslow’s hierarchy of needs to discuss why employees of Top-taste fear change.
Consider the effects of such fear on motivation.
(6)
(b)
Describe three possible types of employee’s resistance to these changes and assess their
effects on Top-taste,
(5)
(Total 11 marks)
39.
In a report format addressed to the Senior Management Team:
(2)
suggest and evaluate ways in which Top-taste could have managed organizational change more
effectively.
(7)
(Total 9 marks)
40.
(a)
What is meant by the term high staff turnover in relation to Rainbow Club Ltd?
(3)
(b)
Discuss the possible consequences of a 30% turnover of staff at Rainbow Club Ltd.
(5)
(c)
Evaluate methods by which the present high staff turnover at Rainbow Club Ltd may be
reduced.
(10)
(Total 18 marks)
9
41.
Natalia Artusa works for a mail order company, Stylish, who sell furniture for houses. In 2002
the company was restructured and customer service staff were encouraged to work from home
rather than in a central office. Natalia’s team consists of eight telephonists whose job is to
answer customers’ calls and e-mails and process their orders. The team now work independently
from home, and send information through the internet to the distribution department who
process the orders for customers and arrange payments.
Complaints have been received from customers about difficulty in speaking to customer service
staff. Natalia is finding it difficult to maintain quality within the team and arrange training to
ensure an efficient service is offered.
Currently the team’s wages are based on a flat monthly payment regardless of the number of
orders processed but Stylish is considering changing the system so that wages are based on the
number of orders placed each day and targets set by Natalia monthly. The more orders processed
and targets reached, the higher the wages received by the staff. However, Natalia is concerned
that the quality of products may deteriorate as staff may not spend as much time on each order.
42.
(a)
Explain the benefits to Stylish of restructuring the company to ensure that the customer
service team work from home, rather than from a central office.
(4)
(b)
Outline two advantages and two disadvantages for Natalia and her team of working from
home.
(4)
(c)
Assess the communication barriers that might result from working at home rather than
working as a core team and suggest three ways in which Natalia could improve
communication.
(6)
(Total 14 marks)
43.
Evaluate the current and proposed methods of payment in terms of quality and meeting targets.
(Total 6 marks)
44.
Discuss the effectiveness of Joe Swale’s leadership approach and management style and assess
its likely implications for Rainbow Club Ltd and its future success.
(Total 8 marks)
45.
Advise George Swale on the use of both monetary and non-monetary rewards to improve the
morale of administrative staff.
(Total 10 marks)
10
46.
Human Resource Management
As the economic environment becomes increasingly global and competitive, company culture
and organization become more and more important. The way people are employed is changing
rapidly. Rather than a career for life, employees are likely to be faced with a series of projects,
rather than jobs. Companies will put more emphasis on outsourcing, contract work and
consultants, and a workforce willing to re-skill, retrain and respond to a fast moving
environment.
Customers are getting used to doing business whenever they want. Just about every major
company is reviewing its products, services and delivery mechanisms in the light of the 24 hour,
seven day, instantaneous accessibility of the “world wide web”. If organizations are to be
flexible and agile, it follows that people must be flexible and agile too. Companies need to take
responsibility for this by providing an environment that encourages and empowers their
workforce.
Human Resource Report
[Source: Adapted from “People Pressure” and “Employees all over the place”. The Observer 23 Aug 2000]
47.
Assess how the introduction of new information and communication technologies has
contributed to changes in organization structures and corporate culture.
(Total 8 marks)
48.
Analyse the consequences of changing work patterns and practices on the recruitment and
training of staff.
(Total 7 marks)
49.
Describe George Swale’s present span of control and assess whether this is appropriate to his
function.
(Total 4 marks)
50.
Discuss how Rainbow Club Ltd’s staffing and organization structures could be altered to reflect
Joe’s decreasing administrative role and the club’s increasing international focus.
(Total 8 marks)
51.
Describe how Joe Swale’s present leadership style has contributed to conflicts within Rainbow
Club Ltd and evaluate how the use of different leadership styles and approaches might help
resolve or minimize conflict.
(Total 10 marks)
11
52.
Singh and Patel Ltd
Singh and Patel Ltd employ 200 manual workers at their factory which specialises in low cost,
self assembly furniture. Singh and Patel Ltd are anxious to expand their business but are
constrained by problems with recruiting labour. Recent investment in new technology has
increased labour productivity by ten percent but the personnel director is concerned that high
labour turnover means that a great deal of time is spent training new recruits. In an average year
60 manual workers leave Singh and Patel Ltd. They complain that the work is dull and repetitive
and that the workplace is unfriendly.
Andrew Breakey, the personnel director, is considering the following changes to address the
problems:







53.
(a)
offering a $500 bonus to each employee for each full year of completed employment
replacing the existing time rate system with a piece rate system
demonstrating that promotion opportunities exist
exploring opportunities for job enrichment, rotation and enlargement
promoting group morale and cohesiveness
improving working conditions
improving the process of employee selection, induction and training.
What is the annual percentage rate of labour turnover for manual labour at Singh and
Patel Ltd in an average year?
(2)
(b)
Assess the potential disadvantages of high labour turnover for an organization such as
Singh and Patel Ltd.
(4)
(Total 6 marks)
54.
Analyse the potential advantages and disadvantages for Singh and Patel Ltd of introducing a
piece rate system of pay to replace the time rate system.
(Total 6 marks)
55.
To what extent will Andrew’s proposals help Singh and Patel Ltd achieve their objectives? Use
appropriate motivational theory to support your answer.
(Total 8 marks)
56.
Discuss whether Rainbow Club Ltd should redevelop its present site (option A) or relocate to
Carlton (option B).
(Total 10 marks)
12
57.
Analyse the advantages and disadvantages for Rainbow Club Ltd of globalizing its marketing
and operations.
(Total 8 marks)
58.
Advise Danielle Jarman, the human resource manager, on methods to reduce staff turnover and
improve recruitment and training.
(Total 8 marks)
59.
Explain the advantages and disadvantages for Riveau Yachts of creating a flatter organizational
structure.
(Total 6 marks)
60.
Synergy Oil
Synergy Oil is an international company with offices in 17 countries and a head office in Vienna,
Austria. Poor communication has led to low motivation and decreased productivity. Amir Sahid
has been employed to improve communication in the organization. Employees are concerned
that Amir will make major changes to the organization. As part of the process Amir conducted
interviews with some staff. The following are some quotes taken from the interviews:
“Whenever I want to speak to Amir at head office, he has left for the day, and when messages
are returned, I am not at work.” (Jo Palin – Perth, Australia)
“I used to enjoy my job but now I have trouble finding out important information.” (Emmanuelle
Bukhari – Caracas, Venezuela)
“Meetings don’t seem to be important. I feel I have no place in setting the agenda, Amir does it
all. My ideas are not considered when decisions are made.” (Steffan James – Singapore)
Amir finds it difficult to make any decisions and is inclined to allow staff he works with to make
decisions. He believes that the staff are generally lazy and do not want to work. His inability to
make decisions contrasts with his belief that staff cannot be trusted. He has set up systems to
control and monitor the work that staff are doing.
61.
Evaluate three ways in which Amir Sahid can improve the effectiveness of communication in
Synergy Oil.
(Total 6 marks)
62.
Use motivation theory to explain how poor communication might reduce motivation.
(Total 6 marks)
13
63.
Analyse the leadership and management style of Amir Sahid and the implications of this style
for Synergy Oil.
(Total 8 marks)
64.
IBM
Louis Gerstner, former chairman and CEO of the US computer giant IBM, once said that in the
1990s IBM stood for a “big, traditional company” with “controlled and reliable staff in “dark
suits, ties and white shirts”. What was interesting is that this description referred to people and
culture, rather than to products or services.
Clear vision, strategy and marketing, combined with good financial management can carry a
company, but no enterprise can succeed in the long run if these do not become part of the
company’s culture. Inevitably, as the world changes, the culture may no longer reflect the
purpose of the business, and may affect sales and profits. For IBM, worldwide standards were
essential to ensure common products for customers operating on a global basis. However, in the
1990s, IBM’s departments and branches appeared to be bureaucratic and competing against each
other rather than cooperating. Activities were repeated at every level of the organization,
because managers did not trust their colleagues.
Although Gerstner recognized that the external environment was changing and that IBM needed
to adapt to fast moving markets and new technologies, he found it difficult to update the firm’s
existing highly structured company culture. Gerstner realized that only the workforce itself could
change the culture of IBM; change could not be imposed. Gerstner created the conditions and
provided the incentives for change. Employees began to take personal responsibility for
outcomes, without waiting to be told what to do. IBM developed the ability to handle a high
level of internal change and rather than hiding from conflict, employees began to manage, and
even benefit from it.
[Source: adapted from The Battle to Change Corporate Culture in IBM: Louis Gerstner The Times 14 November 2002]
65.
(i)
Explain the term corporate culture with reference to IBM.
(3)
(ii)
Examine why Louis Gerstner felt it necessary to change IBM’s culture.
(3)
(Total 6 marks)
66.
Analyse the factors that influence the degree of centralization and decentralization in
multinational companies like IBM.
(Total 6 marks)
14
67.
WMB and globalization
WMB is an established car manufacturer in a wealthy developed country. In recent years WMB
has faced intense competition from car manufacturers that have focused on producing a range of
cars for the global economy to reap the benefits of economies of scale. Whilst domestic car sales
have been stable, WMB’s share of the global market has shown evidence of decline in recent
years.
Kosuke Ozumi has recently been appointed as the chief executive of WMB. He plans to
introduce a number of financial incentives to improve motivation at WMB since Kosuke believes
that the individual should be rewarded if he or she produces good results.
Industry commentators have not been impressed by Kosuke’s plans. They believe that WMB
needs to both subcontract* more of its activities and investigate ways to reduce its excessive
stock levels which have resulted in the organization having too much money tied up in working
capital.
* Subcontract: this means that they will use other companies to carry out their activities.
68.
Analyse the potential problems for WMB if they use “financial incentives to improve
motivation”.
(Total 6 marks)
69.
Explain what is meant by “a more team-based and flexible approach to production” (line 124).
(Total 4 marks)
70.
Explain three factors that have contributed to rising labour turnover at Riveau Yachts.
(Total 6 marks)
71.
Using the motivation theories of Maslow and Herzberg, assess how the human resource
manager, Danielle Jarman, can improve the motivation of workers at Riveau Yachts and reduce
labour turnover.
(Total 12 marks)
15
72.
New Microsoft
Microsoft is undergoing the biggest transformation in its history. The founder Bill Gates is
handing over the running of the business to his best friend – Steve Ballmer. Few companies have
been so closely identified with their founders and Gates’ intellect and fierce competitive streak is
reflected in all of Microsoft’s activities.
As Microsoft matures, Ballmer’s ambition is to make Microsoft’s next twenty five years as
successful as the last. To do this he knows that Microsoft must change. Ballmer’s vision of the
future involves a greater degree of accountability, co-operation and sharing, than the company
has been used to in the past.
HARNESSING “THE FORCE”.
Steve Ballmer has drawn up a summary of Microsoft’s culture.
Strengths
• the company is “totally
about intelligence”. It
employs some of the
brightest people
• Microsoft “loves, loves,
loves” technology
• it is highly competitive
• internally the company is
honest and self-critical
• individuality is encouraged.
Weaknesses
• internal competition is too
fierce. Departments see
each other as enemies
• the company is sometimes
too product focused and
fails to identify market
opportunities
• it is too reliant on “brilliant
leaders”
• has strong opinions but fails
to act on them
• there is a lack of team work.
Microsoft’s aims
▪ restoring industry trust: the company is seen as using its
dominant position aggressively
▪ building customer loyalty: customers complain Microsoft does
not listen to them
▪ encouraging internal co-operation and ending conflict within the
organization
▪ delegating responsibility from the top: Bill Gates, founder, and
Ballmer acknowledge the company is now too big to be run by
one man.
Ballmer is now assessing the culture of his staff.
Over the next six months all of Microsoft’s 50 000 employees will
be assessed to see how well they are adapting to Ballmer’s vision.
[Source: adapted from Dominic Rushe, New Microsoft, The Sunday Times, 23 June 2002]
73.
Describe the organizational culture of Microsoft as identified by Steve Ballmer.
(Total 2 marks)
16
74.
Analyse the advantages and disadvantages of organizing the firm as a matrix structure.
(Total 6 marks)
75.
(i)
Describe Tom’s leadership approach.
(4)
(ii)
Suggest changes that could improve his effectiveness as a manager.
(5)
(Total 9 marks)
76.
Applying appropriate theory, discuss the effectiveness of the motivational strategy implemented
by Gadgets2u.com.
(Total 10 marks)
77.
Get Going
Get Going is a charity that was created fifteen years ago to provide wheelchairs to disabled
people. After a successful start, the business has been experiencing financial problems. This has
led to low motivation among employees and some are considering leaving the charity. Recent
changes in the organization from a tall to a flat structure have led to communication problems
and the chief executive is keen to solve the issues. Rumours have started about job losses and
this has led to employees becoming more unhappy and fearing change.
78.
Examine the effects on Get Going of moving from a tall to a flat organizational structure.
(Total 6 marks)
79.
Identify two examples of formal and two examples of informal communications that might be
used in Get Going.
(Total 4 marks)
80.
Evaluate two solutions to the problems of poor communications in Get Going.
(Total 6 marks)
81.
Explain three benefits for Gadgets2u.com of adopting a matrix structure (line 25).
(Total 6 marks)
17
82.
(i)
Some communication problems have started to emerge at Gadgets2u.com. Identify
reasons why these problems have occurred.
(3)
(ii)
Examine possible strategies to overcome the problems identified in (i).
(5)
(Total 8 marks)
83.
AOL-Time Warner
In 2001, the merger of AOL and Time Warner was thought to be a vision of the future; a
company with the ability to deliver all manner of entertainment over the world wide web.
Everything from magazines to popular TV series would be accessible from people’s desks, their
homes and their hand held computers. It was a $125 billion deal merging the magic of
Hollywood films (Time Warner), and the cutting edge technology of the Internet (AOL).
It also brought together two billionaire entrepreneurs, Steve Case of AOL and Gerald Levin
of Time Warner.
Two years later, the company formed from the world’s biggest business merger reported losses
of an astonishing $110 billion, a sum equivalent to the total wealth of a medium sized country
like Ireland. In fact, 75% of AOL-Time Warner’s sales still came from its core traditional
businesses of publishing, film-making and cable subscriptions. Overvalued Internet shares,
including AOL, fell dramatically worldwide. More damaging was that revenues in many areas of
the new conglomerate were significantly affected by illegal downloading of films and music
using Internet sites, often provided by AOL!
Large mergers almost never fulfill their promise. Research shows that, more often than not, they
destroy the value which comes with more focused management. By bringing together two very
different corporate cultures, the creativity was certain to result in a clash of empires and egos.
AOL has now admitted it overstated its sales in its accounts and is under criminal investigation.
AOL-Time Warner will be remembered as a star that burned itself out in record time.
[Source: adapted from End of the empire of mighty egos, Daily Mail 31 January 2003]
84.
(i)
Explain why AOL-Time Warner was described as a conglomerate.
(2)
(ii)
Explain the problems that AOL-Time Warner may have faced in merging two different
corporate cultures.
(4)
(Total 6 marks)
85.
Evaluate methods of making mergers more successful by effective change management.
(Total 8 marks)
18
86.
Jaguar
When the US car manufacturer, Ford, acquired Jaguar in the early 1990s, it decided to produce
its new model, the Jaguar X’ Type in a dedicated plant located in the UK. The Halewood factory
was chosen to produce the X’ Type because the “Britishness” associated with Jaguar made
overseas production inappropriate. $300 million was invested by Ford to upgrade Halewood to
deliver exceptional quality products using highly efficient “lean manufacturing”. Totally new
production lines were installed allowing complete production in a single location. Production
efficiency was further improved by locating all major parts suppliers alongside the factory
allowing for just-in-time production system.
The “Halewood Vision” is a statement of principles aiming to create a world-class
manufacturing facility. A new set of working relationships was agreed with employees.
Production line workers were given responsibility for identifying continuous improvements and
were organized into smaller teams working with a group leader. These teams were given
considerable responsibility for implementing change. This led to dramatic increases in
productivity, and increased pride and commitment within the workforce.
Implementing the total quality culture involved workshops for managers, union representatives,
supervisors and production line workers based on participation and empowerment. The
production process and working culture at the plant was transformed by over a million hours of
training; an average of approximately 350 hours for each employee.
[Source: adapted from www.jaguarcars.com]
87.
Using appropriate motivational theory, analyse how Jaguar has managed to increase the pride
and commitment of its employees.
(Total 6 marks)
88.
Evaluate methods for achieving a total quality culture in large organizations like Jaguar.
(Total 8 marks)
89.
Evaluate three strategies to help Gadgets2u.com improve communication within the firm.
(Total 9 marks)
90.
Outline the problems that Gadgets2u.com may face if it follows Juan Alvarez’s suggestion “to
reduce the span of control and make the hierarchy taller to improve efficiency” (lines 47-48).
(Total 7 marks)
19
91.
BN
In June 2001 Dr Hugo Lorenzo, chief executive of BN, the world’s largest conglomerate, left BN
abruptly having been in the position for nine months. The BN organizational culture was to
allow considerable freedom to regional directors as long as they achieved clearly defined
financial targets. However, in practice, Dr Lorenzo used a very autocratic style of leadership
with his fellow directors and would often overrule their decisions and fail to recognize their
achievements. Dr Lorenzo always argued that BN offered the best pay and conditions, so
managers had no reason to feel dissatisfied. Industry analysts believed that Dr Lorenzo’s
top-down communication through e-mail and formal meetings stifled creativity and
collaboration. This approach was deemed totally inappropriate for a rapidly changing business
environment. In addition, Dr Lorenzo had a reputation for making BN excessively bureaucratic
and hierarchical.
92.
Explain three reasons why Dr Hugo Lorenzo may have adopted an autocratic style of
leadership.
(Total 6 marks)
93.
Using Herzberg’s theory of motivation, explain why the strategy adopted by Dr Hugo Lorenzo
led to dissatisfaction among his regional directors.
(Total 4 marks)
94.
(i)
Explain three causes of communication failure at BN.
(3)
(ii)
Evaluate solutions to the three communication failures you have identified in (i).
(7)
(Total 10 marks)
95.
Assess the suitability of the present organization structure of Gadgets2u.com, given the recent
rapid growth of the company.
(Total 8 marks)
96.
Advise Tom Figueredo on the advantages and disadvantages of homeworking. The answer
should refer to productivity, motivation and job satisfaction.
(Total 8 marks)
20
97.
•
•
•
•
•
•
•
•
•
•
•
•
Costs saved will be greater at this level than lower down in the organisation;
Enable new blood to become involved in the decision making;
Expertise may be lost;
Confidential Company information may be taken elsewhere;
Staff may have been with the company for some time;
Employees may be older and may find it difficult to get jobs elsewhere;
Redundancy payments are likely to be higher at this level;
Communication may improve;
Greater workload on those who remain;
Greater premium on delegation;
Different managerial style;
Upskilling of those lower down the structure.
Evaluates at least three consequences of the removal of a layer, the evaluation is effective.
[5 to 6 marks]
Evaluates at least two consequences of the removal of a layer, the evaluation is adequate.
[3 to 4 marks]
Evaluates one consequences of the removal of a layer, the evaluation is superficial, or lists at
least two consequences without evaluation.
[1 to 2 marks]
98.
•
•
•
•
•
•
•
•
•
•
•
•
Ensure adequate feedback facilities exist;
Ensure everyone is aware of the importance of good communication;
Use a variety of media;
Minimise chains of communication;
Hold regular meetings;
Notice board;
Newsletter;
Daily briefing;
In store notices;
Suggestion box;
Improve management style;
Better training.
(Award up to [2 marks] for each relevant explanation up to a maximum of [6marks]).
99. No mark scheme available
100. A group of workers who have sought and obtained representation to bargain with employers to
obtain better pay or better working conditions for its members or bargains to defend their
members’ rights.
(Award [2 marks] for a complete answer.)
(Award [1 mark] for evidence of knowledge of what a union is.)
21
101. 1.
The union will refuse to consider it. They cannot accept a measure that will put their own
members out in the street. Unless workers who are dismissed accept to leave in exchange
for a reasonable redundancy payment. Union might consider consulting members on this
issue, especially the ones with more seniority in the firm so that they collect higher
redundancy.
2.
Cutting wages means that workers all work the same number of hours but for less money.
The only benefit is that they will not be losing their employment. Union should resist this
as well since the union fees will now seem relatively more expensive and members might
want to leave the union.
3.
Although it is not the same as dismissal the union leaders might be reluctant since it
means everybody earns less. The benefit over number 1 is that nobody loses his or her job,
but the cost is high: the entire workforce earns less. The benefit over number 2 is that
workers will be able to derive some utility from a day off (they could even find alternative
employment that day). With number 2 workers work the same for less pay.
(Award [2 marks] for each properly assessed alternative.)
(Discount [1 mark] if any of the alternatives are only partially analysed or discount [2 marks] if
an alternative is ignored.)
102. No mark scheme available
103. The possible ideas are:
• Early morning briefing with entire staff to share the news of the day;
• Have all the relevant staff connected by email and communicate every piece of news in that
manner;
• Assemblies;
• Communication board in a very visual place;
• Loudspeakers to make announcements as necessary.
Candidates can come up with other ideas.
(Award [1 mark] for each relevant suggestion.)
104. Possible reason for lack of motivation:
• Low pay, no perks;
• Boredom: the task is monotonous;
• Flat organisations: no possibility of progress;
• Difficult to socialise with people in the firm.
In the same order, possible solutions are:
• More pay (productivity agreements, profit sharing, more perks);
• Job rotation, job enlargement;
• Share the decision making process; allow for personal progress;
• Organise parties, football matches, etc.
Candidates might come up with many more reasons to explain lack of motivation. Accept any
reasonable ones.
22
Two reasons with reasonable solutions.
[5 marks]
Two reasons, solutions not very consistent with problem.
[4 to 3 marks]
One reason with a good solution or two reasons and no solutions.
[2 to 1 marks]
105. The present:
The present organisational structure and corporate culture reflects the small size and
entrepreneurial nature of Fun Air, which is required given the nature of the holiday market.
Modern human relations approaches are being employed and the young staff are prepared to
flexible and adaptive in return for being valued as “partners’ and having a stake in the business.
That Fun Air recruit people “Like Us’ ensures a consistent culture throughout the organisation
and allows staff to feel part of a team that they know and trust.
The flat hierarchy allows Fun Air to keep down their overhead costs and offers partners the
possibility of rapid promotion. The few hierarchies reduces formalities and bureaucracy as well
as minimising staff costs at managerial level. Spans of control are currently between two and
seven which are within the Fayol tolerance level. Communication is quick and those at the
bottom will feel they “know’ senior management. Jeff clearly has a day-to-day role in the
business which is probably valued by staff .
The Future:
Like all organisations experiencing rapid growth, control issues may arise, which will force
organisational and managerial adjustments. Unless additional levels of management are added,
spans of control will increase and managers may become overloaded. Jeff will find that he has
less time to be on the “shop floor’ being more involved in policy decisions.
The increased competition from other airlines may lead to cost cutting measures. Fun Air may
be able to retain their entrepreneurial and family feel -see Virgin Airlines – but tough decisions
on staffing may widen the gap and outlook between top and bottom. The need to monitor a
wider range of issues will require more formality and standardise procedures. If the firm
eventually goes public this will have a fundamental change on the business.
The candidate:
Presents a detailed and balanced analysis of the present organisational structure and corporate
culture using relevant illustration from the case study, and recognising the strength of the forces
of change.
[5 to 6 marks]
Presents an description of the present organisational structure and corporate culture using
relevant illustration from the case study. The need to change is recognised but in a limited
fashion
[3 to 4 marks]
Provides a general response with little illustration from the case study.
[1 to 2 marks]
106. No mark scheme available
23
107. There are some similarities in style related to the focus on performance related pay the customer,
typical of an entrepreneurial approach. Both are “hands-on’ leaders. The newspaper article
shows that the personalities of the two are, however, quite different with Richard exhibiting a
more open, democratic approach than Joe who likes to maintain an arms length style and
autocratic strategy. Joe is keen to surround himself with like-people and although the article does
not state this overtly he probably does not like criticism of any sort.
The candidate:
Identifies both similarities and contrasts in style using examples from the question and uses
appropriate terminology.
[3 marks]
Identifies both similarities and contrasts, but either lacks illustration or does not employ
appropriate terminology.
[2 marks]
Presents a simplistic and general response lacking effective use of illustration and terminology.
[1 mark]
108. There is a wealth of possible theory that can be applied from Macgregor’s theory × and Y
leaders to Maslow’s hierarchy of needs. Good candidates may refer to the work of theorists such
as McClelland (nAch) and Vroom(expectancy theory), particularly to emphasise why employees
may be happy to stay with Joe. It is to be hoped that situational leadership and contingency
approaches such as Fiedler might also receive a mention by the best candidates. It would be too
simple to say that Richard will be more successful in the long run, but certainly their may be
loyalty issues which arise when there are problems with the business and staff turnover may be
higher in Clear Sounds than Microphone. It is to be expected that the average student will miss
some of the subtlety of the question and concentrate on either the democratic versus the
autocratic approach, or the role of money in motivation. If expressed well these answers should
be rewarded nonetheless.
The candidate:
Offers a response which identifies that there may be no correct form of leadership style, merely
one which is appropriate to the needs of the business and the characters and skills of managers
and employees. The candidate uses suitable illustration and employs a range of relevant theory.
The answer is effectively laid out and structured.
[9 to 10 marks]
May concentrate more on issues of money and leadership style, but uses a number of leadership
and motivation theories to support the answer, which is thoughtful and generally well illustrated.
[6 to 8 marks]
Presents an assessment which lack some focus and is often rather generalised. The plan is
illustrated, but not necessarily very effectively and may lack reference to specific theory.
[3 to 5 marks]
Presents a simplistic and general response.
[1 to 2 marks]
24
109. (i)
At the early stage of the business Richard and Joe would have been involved in running
most functions of the business probably from a single outlet. Although there may have
been other staff many of the important aspects of the business, like buying, marketing,
finance and administration would have been carried out by the two personally. As the
business grew they would have been forced to appoint managers and delegate tasks to
others. They would have more time to concentrate on policy and strategic issues. The
recruitment, training and control of staff and the direction of the business would become
an issue. At this point it is likely that the two different styles identified by the article
would have become important, with incompatibility clear.
The candidate:
Identifies that the role of the two would change as the business developed and that
delegation and strategic focus would become areas of disagreement. The answer is
effectively structured with relevant illustration
[4 marks]
Identifies that there are many potential areas of disagreement as businesses grow, but may
not fully explain the important transition from tactical day to day issues to the
management and policy of a large organisation. There is some attempt for three marks to
illustrate from the question.
[2 to 3 marks]
Presents a simplistic and general response.
[1 mark]
(ii)
This is really an extension of the previous question in that there is a significant change in
the role of the founder of a business when accompany goes public. Naturally the extent of
this will depend upon whether the founder retains a controlling issue and their role after
flotation. Richard and Joe could take the money and run or retain a nominal advisory role
spending more time on leisure activities or new business interests. In addition, the
business will have a legal responsibility to its shareholders which may force a change in
business policy and management accountability. The business growth may in itself impose
additional organisational changes.
The candidate:
Identifies the change in nature of ownership as it sells shares to the public and the
difference in approach and organisation. The role of the founder as shareholder is
addressed.
[3 marks]
Identifies the change in nature of ownership as it sells shares to the public and the
difference in approach and organisation, but the answer may lack clarity and depth in
terms of the different role and legal position. There is some reference to relevant changes
in responsibilities.
[2 marks]
Presents a simplistic and general response.
[1 mark]
110. No mark scheme available
25
111. Possible approaches to improve quality and/or efficiency :
• Benchmarking;
• Total Quality Management;
• Kaizen/continuous improvement;
• Quality assurance;
• Lean production;
• Cell production;
• Quality Circles;
• New technology implementation – automated systems;
• Operational research;
• Just-in-Time;
• Statistical Process Control;
• Performance bonuses.
The suitability for Jaipuri will relate to cost, management support, employee resistance to
change, relevance to a firm producing relatively small batches, fit with firm’s culture, pressure
from customers and suppliers, the level of competition in the market, inertia, applicability to the
nature of the product, human resource availability.
Personnel, training and management issues:
• re-organisation and possible downsizing, delayering, re-engineering etc;
• availability of skilled labour within and outside of the firm and recruitment costs;
• employee willingness to retrain and the cost of this training;
• selling the idea to the workforce of change and therefore communication issues; * opposition
from unions and staff associations;
• effects on morale and motivation;
• the availability of finance and cash flow;
• consideration of the results of not changing;
Award up to [2 marks] for an appropriate report format including “to, from, date, terms of
reference, main body, conclusions and recommendations’, and up to [14 marks] for the report,
see below.
The candidate:
Examines and explains a number of approaches (from the above list) to the quality control and
efficiency problem using appropriate terminology and within a coherent structure. The report
identifies relevant personnel, training and management issues arising from the implementation
of these approaches.
[11 to 14 marks]
Concentrates on a limited number of approaches, which may not be well explained and
illustrated at the bottom of the band. There is an attempt to identify personnel, training and
management issues, but these are less well linked and explained.
[7 to 10 marks]
[2 marks]
Presents actions which lack some focus and are often rather generalised. There is some use of
appropriate terminology and some attempt to develop ideas at the upper end of the band.
[3 to 6 marks]
Presents a simplistic and very general report.
[1 to 2 marks]
26
112. (a)
An autocratic manager is authoritarian. S/he does not consult their employees, but simply
tells them what to do. Communication, therefore, tends to be one-way, and downwards.
Feedback is not invited or encouraged. Often orders are backed up by threats of
punishment should actions not be completed or completed successfully.
Award [1 mark] for a brief definition and [2 marks] if it is expanded upon and illustrated.
(b)
Joseph’s management style is a strange mixture. Major decisions are centralised and when
Joseph is present, his style is “hands-on” and paternalistic. When he is absent, the style is
rather laissez faire. Staff can cope in most circumstances as they are relatively
experienced. However, financial and performance indicators are suggesting that a lack of
consistency and support is affecting staff efficiency and motivation.
His staff like his personal approach, but are becoming frustrated by his whirlwind visits,
and the fact that he leaves tasks incomplete, simply a mess that needs clearing up after he
has gone. Some of them recognise this is a symptom of stress. As the firm has grown he
needs to relinquish some of the decision making, as making all major decisions is proving
too big a task.
The leadership approach and management style are accurately described and the effects on
the firm’s operations intelligently discussed using examples from the case.
[3 to 4 marks]
The discussion is general, but essentially correct, with few or no examples.
[1 to 2 marks]
113. (i)
Possible monetary rewards:
• overtime
• performance related pay / piece rates
• bonuses
• profit sharing
• share options
• discounts on products and services
• reduced interest mortgages and loans
• relocation payments
• company car
• promotion and higher salary.
Non-monetary rewards:
• club membership
• awards e.g. employee of the month
• praise
• job enrichment, enlargement, empowerment
• own parking spaces
• promotion.
The six incentives selected are relevant and appropriate
[3 marks]
Less than six incentives are selected or some are inappropriate.
[2 marks]
A limited answer in terms of relevance or numbers of incentives selected.
[1 mark]
(ii)
Judgements about the incentives are made by reference to the economic position of the
business, its operational objectives and its need to motivate and retain its personnel.
Clearly, any additional expenditure needs to result in improved results. A discussion needs
to relate to the present targets and the link with payment.
Relevant monetary and non-monetary rewards are identified and evaluated against the
27
firm’s financial position, its operational objectives and its need to retain and motivate
personnel.
[4 to 5 marks]
There is an attempt to judge the likely success of the selected incentives, but there is a
tendency to be descriptive rather than analytical or evaluative.
[2 to 3 marks]
A limited response.
[1 mark]
114. No mark scheme available
115. There are five levels of hierarchy in the organization, the line management structure is clear for
most of the staff, except for the Community Administrative Assistants. The Administrative
Assistants answer to both the Education Officer and the Health Officer, this may lead to
confusion and problems with decision-making. The span of control is the number of
subordinates controlled by the manager, for example the operations manager has a span of
control of two. Generally the span of control in the organization is narrow. This aids the
decision-making process, making it easier to consult.
The answer analyses the organization chart, in terms of line management responsibility and span
of control. The analysis is detailed and uses appropriate examples from the chart.
[4 marks]
The answer attempts to analyse the organization chart, in terms of line management
responsibility and span of control. The analysis may lack detail but uses examples from the
chart.
[2 to 3 marks]
The answer is limited in terms of line management and span of control. There is no attempt to
analyse the chart. Reference to the chart is limited.
[1 mark]
116. • Joseph’s management style is a strange mixture. Major decisions are centralised and when
Joseph is present, his style is “hands-on” and paternalistic. When he is absent, the style is
rather laissez faire. Staff are able to cope in most circumstances as they are relatively
experienced. However, financial and performance indicators are suggesting that a lack of
consistency and support is affecting staff efficiency and motivation.
• Marc’s style is impersonal and bureaucratic. He uses management by objectives, but staff
lack confidence in his experience and knowledge.
• Peter Storm is autocratic and patronising.
All three styles are likely to have some negative effect on motivation. Staff at Open Views have
to cope with inconsistent management, and appear to have little control over important decision
making. When they are given responsibility it is often in the form of crisis management.
Employees at Warm Breezes are in a service environment, requiring flexibility. Again they do
not feel included in decision-making and feel patronised and unsupported as evidencing by high
staff turnover. They also feel unrepresented as there are no senior local managers who might
understand their needs more fully. There is little justification for this style of management given
the environment.
28
Relevant theory may include leadership theories such as Blake and Mouton, and Tannenbaum
and Schmidt. Relevant motivation theory could be Mayo, Maslow, McGregor and Herzberg.
The three leaders’ styles are accurately identified with illustration from the case study. The
effects on motivation are analysed using appropriate motivational and/or leadership theory.
These may be brief at the lower end of the band.
[7 to 9 marks]
The three leaders’ styles are described, possibly in general terms. There is an attempt to examine
the effects on motivation of staff. There may be no theory applied.
[3 to 6 marks]
A limited and general response, not using theory.
[1 to 2 marks]
117. Unions can:
• help express their members, concerns collectively to management in a more effective manner
• represent their members’ interests in tribunals or law courts
• pressurise employers by threatening a range of supporting action, such as strikes
• help resolve conflict through negotiation and discussion
• bring issues to management before they threaten to cause conflict.
In the case of Warm Breezes, a trade union may place pressure on management to be more
democratic, to raise salaries and to review health and safety lapses.
Whether unions can help resolve conflict at Warm Breezes will depend upon the attitudes of the
employees, employers and unions. Peter Storm and Joseph Obeng may perceive unions as a
threat and may resist their influence. The union may wish to exercise their muscle, possibly for
political reasons. The employees may ignore the good of the company in pursuit of their own
individual objectives. Alternatively, all three groups may work closely together. In some
countries the unions are merely an extension of the government and therefore are likely to seek
conflict resolution.
A range of union functions are assessed, beyond just that of industrial action. Specific functions
are considered which promote the interests of employees and address conflict resolution. The
answer relates to the issues of importance at Warm Breezes and/or Open Views, such as health
and safety and salaries.
[3 to 4 marks]
Issues are limited and functions merely described. The answer may not refer to Warm Breezes or
Open Views.
[1 to 2 marks]
118. No mark scheme available
119. (i)
The culture is:
• entrepreneurial, promoting risk taking
• team and person orientated and empowering
• blame-free culture.
Employees are encouraged to take risks and mistakes are accepted as long as lessons are
learned. Delegation and empowerment promote personal initiative and improves
motivation.
The culture is accurately described and the discussion links this to the generation of ideas
and new product development.
29
[3 to 4 marks]
The culture is described, but lacks precision and/or detail. There is an attempt to link this
to innovation and new product development.
[2 marks]
A limited response.
[1 mark]
(ii)
3M’s entrepreneurial and empowering culture is likely to have the following effects:
• a flat hierarchy with few levels of hierarchy and wide spans of control
• matrix structures and team / project management
• significant delegation and decentralisation
• two-way communication
• limited rules and regulations – free rein
• wheel or circle communication nets
• informal relationships.
A clear and concise analysis highlighting the influences of the entrepreneurial and
empowering culture on both organization structure and communication systems, using
appropriate examples and business terminology.
[4 to 5 marks]
There is an attempt at analysis, but this tends to the descriptive. For [3 marks], the
response must include the use of business terminology.
[2 to 3 marks]
A limited response.
[1 mark]
120. Award [1 mark] for a suitable memorandum (memo) format including “to, from, date, and
subject”.
Possible practical suggestions
• Dignity and worth of individuals:
– develop open two-way communication systems which involve individuals in decision
making, such as quality circles, open door policies, suggestion schemes, regular team
meetings, appraisal.
• Encourage individual initiative
– individuals are encouraged and trained to be creative and given the appropriate
environment and freedom to experiment
– communication systems are set up to allow rapid and regular transfer of ideas through
appropriate forums and communication channels
– individuals may work from home or remote locations and are provided with adequate
technologies to do so.
• Challenge individual capabilities
– regular in-service training and staff development programmes linked to organizational
and individual objectives e.g. professional examinations and qualifications, sponsored
degrees, training courses
– job enrichment, enlargement and empowerment. Rotate staff around different functions
and location. Regular appraisal for promotion.
30
• Provide equal opportunities
– departments to audit human resources to ensure equality of opportunity in recruitment,
remuneration and promotion with regard to sex, ethnic diversity, disability and age
– rewards such as bonuses are evaluated against objective, job-related criteria.
All benchmarks should be objective and open. They should be established using best practice
from successful firms and organizations and related to internal and external circumstances.
Targets should be realistic, but challenging. Rewards should be related to performance and idea /
profit / sales generation.
The suggestions clearly relate to the philosophies laid out in Figure 1 and provide at least one
practical suggestion in each category. The benchmarks relate to organizational objectives and
suggest measurement criteria.
[6 to 7 marks]
Suggestions relate to the philosophies, but may not cover all categories and/or may lack practical
application. Benchmarking is referred to, but this may be vague.
[3 to 5 marks]
A descriptive approach lacking in detail and clarity and which may not address many of the
issues required.
[1 to 2 marks]
121. The staff do not like working for Peter Storm who is an autocratic manager. They find him
patronizing and unapproachable. He shows no interest in them personally and this will lower the
self-esteem of the employees and lead to demotivation. It is likely that he is not interested in
their ideas but wishes them to do the job his way. He is not satisfying their safety needs and
while they are dissatisfied with their equipment they will not make an effort to work. Staff who
are demotivated may seek employment elsewhere where they feel valued and worthwhile. They
do not appear to be rewarded for hard work and there is no incentive therefore to work hard or to
show loyalty to the company. The local staff are likely to be low paid and therefore do not have
Peter’s loyalty to the company. They may resent working with foreign students when
unemployment in their region is significant.
The answer discusses in detail the impact of an autocratic leader on staff motivation and
retention. The answer makes reference to the case study.
[4 marks]
The answer discusses the impact of an autocratic leader on staff motivation and retention, though
it may lack detail or direct reference to the case study.
[2 to 3 marks]
A general and simplistic response.
[1 mark]
122. Training Plan
• Needs to be cost effective if students are not intending to stay very long.
• The company would be better investing in the training of local people who will work hard.
Individual training needs analysis.
• Continuing process of training, leading to qualifications, especially for local people.
• Training to include off the job and on the job training.
• Some of the employees could become trainers themselves and work to support other
employees.
• Manuals could be used to inform new recruits of procedures to ensure consistent practice.
31
Rewards Package
Examples could include:
• appraisal system linked to performance reward
• bonus payments
• discounts in resort
• extra holidays
• employee of the week / month
• incentives could be offered to encourage students to return
• “sandwich” courses would benefit both students and resort.
A training plan is outlined that includes most of the important factors. A rewards package is
suggested that is relevant to the case study and achievable for the company.
[5 to 6 marks]
A training plan is outlined that includes some of the important factors. A rewards package is
suggested. It should be relevant to the case study and achievable for the company.
[3 to 4 marks]
A general and simplistic response.
[1 to 2 marks]
123. No mark scheme available
124.
•
•
•
•
Advantages
lower costs during a recession
easy to lay off
hire only when required
match employees to demand required
•
•
•
•
Disadvantages
likely lack of labour loyalty
potential impact on quality
staff may not be available when
poor communication between core and
casual staff
Relevance to the construction industry also needs to be considered e.g. in many countries
construction work is cyclical and seasonal.
Candidates may suggest that they are easy to lay off.
Assesses advantages and disadvantages of hiring labour on a casual basis (reference is made to
CSC). Look for two advantages and disadvantages for [4 marks].
[3 to 4 marks]
Describes at least one advantage and/or disadvantage of hiring labour on a casual basis. There
may be limited reference to CSC.
[1 to 2 marks]
125. Candidates should emphasize the importance of such factors as:
• division of labour
• managerial control
• measurement
• standardization
• efficiency
• discipline
• workers motivated by money and self interest
Outlines Taylor’s management ideas and explains their relevance to construction (e.g.
standardized product, measurable outputs, specialist jobs, piece rate pay). The answer explains
32
why CSC believes these methods to be effective.
[5 to 6 marks]
Shows some understanding of Taylor’s management ideas but they may be limited in number or
depth. Their application to CSC is outlined.
[3 to 4 marks]
A limited and general response.
[1 to 2 marks]
126. Causes of resentment include:
• no sense of belonging
• little involvement in decision making
• lack of communication
• poor company policy
• poor relations with senior management
Motivational theorists to quote include:
• Herzberg (Hygiene / motivators)
• Maslow (sense of achievement / belonging)
• McGregors (X & Y)
• McClelland (achievement, power, affiliation)
• Mayo (Hawthorne experiment)
Applies appropriate motivation theory to the case study to account for the resentment. The
theory is relevant and the explanation is detailed.
[5 to 6 marks]
Explains motivation theory though its application to the case study may lack relevance and
detail.
[3 to 4 marks]
Demonstrates knowledge of motivation theory though this may not be by name but does not
apply it to CSC or explains the resentment without using motivation theory.
[1 to 2 marks]
127. For example:
• enhanced motivation
• more sources of ideas
• reduction in mistakes
• reduced labour turnover
The answer discusses at least two potential benefits that could arise from greater communication
and participation in decision making with reference to CSC.
[3 to 4 marks]
The answer describes potential benefits but not in detail or with much reference and relevance to
CSC.
[1 to 2 marks]
33
128. There is evidence of poor communication within Open Views. Joseph seems to make decisions
based on insufficient information. Communication is “top-down” and most information is
handled on the telephone. The business is also quite fragmented with four offices and the Warm
Breezes complex; each with a separate management structure. Information and computer
technologies would include mobile telephones and laptop computers, pagers, the internet,
teleconferencing, wireless and satellite systems and Local Area and Wide Area networks LANs,
WANs). The firm might set up its own website, including a webcam of the resort.
The candidate could examine many aspects of communications, operations and organizational
control, such as:
• Financial and cost control
• Day-to-day communication of information such as holiday availability and bookings
• Communication between branches, and branches and Warm Breezes
• Communication between the management teams, e.g. Marc Leroux and Joseph
The answer needs to address how the technologies singly, or in conjunction, would help improve
the operations of the business.
Several existing problems are identified and the answer analyses how a range of technologies
will help improve communications, operations, and organizational control within Open Views.
[9 to 10 marks]
Information and communication technologies are identified and linked to the needs of Open
Views. There is an attempt to analyse how these technologies can improve some aspects of
communications, operations and organizational control.
[6 to 8 marks]
Information and communication technologies are identified, but not well linked to the needs of
Open Views. There is a limited attempt to describe how these technologies can improve some
aspects of communications, operations and organizational control.
[3 to 5 marks]
A generic answer, which describes some technologies, but in a limited fashion.
[1 to 2 marks]
129. An informal group is one that is not sanctioned by, or set up by the company. In the case of
Warm Breezes the local employees are likely to form an informal group, because of their culture
and position within the business. It is likely that this group is disaffected as indicated by the high
staff turnover and antipathy towards Peter Storm, who is thought of as unapproachable and
patronising. There is also discontent that local staff are not achieving senior positions, and also
about the working conditions.
Complaints about slow service and rude staff are increasing and this could have a devastating
effect on the image of Warm Breezes. Warm Breezes is an exclusive holiday justifying its
premium prices. Slipping standards and poor service will further erode satisfaction levels and
may negatively affect word of mouth endorsement. As a result sales bookings and profits may
fall.
There is a clear understanding of the nature of an informal group and there is a good analysis of
how their actions may affect Warm Breezes’ reputation and profits.
[5 to 6 marks]
There is an understanding and description of how negative behaviour could affect Warm
Breezes.
[3 to 4 marks]
There is some understanding of the likely groups involved, with a limited description of effects
on Warm Breezes.
[1 to 2 marks]
130. The recruitment and training of local staff would go some way to addressing the concerns of the
34
local government, trade unions, local businesses and employees. It may also reduce the high
level of staff turnover, which is affecting service levels and standards.
Warm Breezes is seeking finance from the local government to fund its expansion plans.
Improved labour relations will certainly help their funding application. It could be argued,
however, that recruiting local staff would be detrimental in that they would lack experience of
running such a large business and dealing with overseas tourists. The best person for the job may
not be recruited as a result.
The introduction of a total quality culture (TQC) will involve empowering the employees and
making quality the centre of all activities. This should help maintain Warm Breezes’ exclusive
image. It would also reduce the risks associated with hygiene and safety lapses and should
improve satisfaction ratings and sales. The expansion plans will require additional staff and the
success of the venture will probably rest on the quality of the staff involved. Training costs may
be higher as a result.
The answer evaluates the recruitment and training of local staff and the introduction of TQC
managerial techniques and the effects on the development and growth of Warm Breezes.
Examples are used from the case study.
[7 to 10 marks]
The answer tends to describe or explain rather than evaluate and one or more elements are
examined in a brief or limited manner. A TQC may not be mentioned, or understood.
[3 to 6 marks]
A limited and generalized response.
[1 to 2 marks]
131. No mark scheme available
132. We know from the text that Boots The Chemists insists that conditions of employment for Far
East workers need to meet above average pay scales and competitive working conditions, There
is a range of payment and incentive schemes that would motivate employees and are linked to
productivity, e.g.
•
•
•
•
•
•
•
performance related pay
time based payments
piecework
profit sharing
share ownership
fringe benefits
group or individual production bonuses
All of these could improve motivation and therefore production, whilst satisfying Boots’
requirements. PRP demands individual appraisal and may not be suitable for a production line,
where individual performance may be affected by the performance of others. Piecework may put
an overemphasis on output quantity rather than quality and may produce a “sweatshop”
atmosphere. Overtime payments may well encourage extra, longer hours, but this does not
necessarily improve productivity. The workforce, being in a low wage economy, may already be
working long hours and so terms of employment may become unacceptable.
35
Newer schemes like profit sharing and share ownership schemes would enhance the employees’
sense of belonging and ownership, but may not fit in with the prevailing national culture, nor fit
the legal structure of possibly small firms. For instance, these manufacturers may be partnerships
without shares.
A range of individual and team bonuses may be appropriate, backed up by additional fringe
benefits. For a small firm offering low prices to their MEDC customers, however, it is essential
that incentives do in fact raise productivity and therefore pay for themselves.
It is possible for candidates to recommend a variety of suitable packages, but the choice(s)
should be justified.
Suitable payment and incentive schemes are evaluated against the need to provide competitive
terms and conditions and schemes are recommended which clearly link reward to performance
and are appropriate for Far East manufacturers.
[6 to 7 marks]
Suitable payment and incentive schemes are discussed and there is some attempt to link these to
the needs of the Far East manufacturers. A recommendation, although possibly limited in nature,
is required to achieve [5 marks].
[3 to 5 marks]
There are descriptions or a description of an incentive or payment scheme. The answer is
primarily descriptive and possibly simplistic.
[1 to 2 marks]
133. No mark scheme available
134. (a)
With the application of Maslow’s Hierarchy of Needs, the reasons why employees in
Top-taste fear change include:
• physical needs – unemployment, loss of earnings, home, rest period;
• security needs – lack of necessary skills, loss of job;
• belonging needs – moved away from one’s family group / friends;
• esteem needs – loss of position, power, responsibility – especially for middle
managers, feeling incompetent with the new technology;
• self-actualisation – reduced promotion opportunities, inability to cope with the new
technological challenge, managers from the other company may eventually replace top
jobholders.
The above can result in low morale and a lack of motivation. This consequently affects
productivity, costs and possibly sales and profit.
Explanation of the various needs in an appropriate order, correct application of relevant
information to Maslow’s Hierarchy and some discussion of the effect on motivation and
consideration of the fears of employees.
[6 marks]
Explanation of the various needs, correct application of relevant information to Maslow’s
Hierarchy and a limited discussion of the effect on motivation and consider the fears of
employees.
[4 to 5 marks]
36
Description of the various needs and some minimal attempts to apply information and to
discuss employees’ fear.
[2 to 3 marks]
Vague, extremely superficial answer that makes some minimal attempt to list Maslow’s
Hierarchy of Needs.
[1 mark]
(b)
Some possible types of employee resistance to change:
• inefficient work: low level of effort, time / material wasting, go-slow, overtime ban,
work to rule, high level of absenteeism;
• complaints, demonstration, mass occupation of premises by employees, strikes,
voluntary resignation;
• any other relevant example.
Possible effect on Top-taste:
• loss of production due to industrial action can result in loss of sales, profit, bad
relationship with consumers, bad publicity and possible loss of reputation and future
orders;
• long term effect on motivation and employee retention and recruitment;
• cost of recruitment due to high staff turnover;
• fixed costs still have to be paid even if production is altered;
• any other relevant effect.
For a discussion of three possible types of resistance and for a clear assessment of their
specific effects on the organization.
[5 marks]
For a simple description of three possible types of resistance without an assessment of
their effects or a description of fewer than three types of resistance with some assessment.
[3 to 4 marks]
For a superficial response with no assessment of the effects on the organization.
[1 to 2 marks]
135. [2 marks]
For a report format, which includes: to, from, date, title, introduction, analysis, conclusions and
recommendations. One element may be missing without marks being deducted.
[1 mark]
For a report format where more than one element may be missing.
[2 marks]
Possible suggestions:
• avoid one-sided top-down approach;
• try to predict and plan for change as far ahead as possible;
• be proactive rather than reactive;
• inform people in a variety of ways as soon as possible;
• encourage queries and challenges from employees;
• encourage consultation and participation in various ways: working groups, open meetings,
group meetings, discussion groups etc.;
• provide clarity, reassurance and support as much as possible regarding the possible negative
effects of the change – such as redundancies, demotion etc.;
• emphasise the positive effects of the proposed change;
• provide training when possible;
• any other relevant suggestion.
37
The above suggestions should:
• reduce fear of the unknown
• create a participative culture of trust and a sense of direction and new challenges for the
employees.
The above suggestions can also be looked upon as addressing the lower as well as the higher
levels of needs.
The factors above should result in improved motivation, efficiency and profit.
[7 marks]
For relevant suggestions (at least four) introduced and evaluated in a coherent manner.
[6 to 7 marks]
For at least three relevant suggestions. Evaluation is not always correct.
[3 to 5 marks]
For limited suggestions without evaluation.
[1 to 2 marks]
136. (a)
Staff turnover measures the rate at which staff are leaving Rainbow Club Ltd. It is
calculated by the formula:
Number of staff leaving per year
× 100
Average number of staff
In the case of Rainbow Club Ltd this is high compared to the average in the industry.
A definition supported by a formula or a description of its elements using a proportion or
percentage, and comparing to competitors.
[3 marks]
A general statement, which contains the facts that many staff are leaving and this
compares poorly to other businesses or is worrying.
[2 marks]
A statement that the club is losing staff.
[1 mark]
(b)
Most of the consequences are likely to be negative:
• poor morale among remaining staff and possible increased workloads
• costs of recruiting and training new staff
• bad public relations possibly affecting the image of the club
• increased risks of legal action against the club.
There may, however, be some positive aspects:
• new blood and ideas may be introduced
• better staff than those presently at the club may be recruited
• restructuring of the existing workforce may be possible.
A discussion of the consequence of high staff turnover, thorough at the upper end.
For [5 marks] there should be a recognition that turnover may be beneficial in some
circumstances.
[3 to 5 marks]
The consequences of high staff turnover tend to be listed rather than discussed and
for [1 mark] may be very limited in number.
[1 to 2 marks]
38
(c)
The high staff turnover appears to be the result of Joe’s management style and autocratic
approach and poor terms and conditions of employment.
As the director of administration and personnel George Swale has a responsibility to
examine methods of reducing turnover. He could speak to his brother about his approach,
but the effectiveness will depend on their relationship. Outside consultants could be used
to advise on possible strategies and to provide training on management and leadership.
Given Joe’s autocratic nature, this strategy is unlikely to be successful.
Alternatively, George needs to look at both financial and non-financial motivation.
Possible monetary rewards include
• overtime
• bonuses and incentives
• performance / profit related pay
• share ownership
• profit sharing
• fringe benefits.
Possible non-monetary approaches include
• job design, job flexibility and job satisfaction
• job rotation
• job enlargement
• job enrichment
• group working
• empowerment
• training, multi-skilling and staff development
• recognition
• appraisal.
The balance of rewards will need to be judged against the likely costs and benefits and
whether George sees the staff turnover as a problem. If staff members are relatively
unskilled then the cost of replacement may be far lower than the additional reward
package.
Reasons for the high staff turnover are recognised and potential solutions presented and
their effectiveness evaluated. Examples from the case study are used to support the
evaluation.
[8 to 10 marks]
There is some understanding of the reasons for the high staff turnover, and some solutions
are presented. The range of solutions and evaluation may be limited, or missing, at the
bottom of the band.
[4 to 7 marks]
There is a generalized and limited discussion. Solutions, although relevant, tend to be
brief and analysis if present, weak.
[1 to 3 marks]
137. No mark scheme available
39
138. (a)
Stylish will save the running costs for the office. They may achieve better productivity
from the team by enabling them to work separately. The quality of service to customers
may improve if staff feel more motivated.
The benefits to Stylish are explained and are relevant.
[3 to 4 marks]
The answer is limited in response.
[1 to 2 marks]
(b)
Advantages
Save travelling time and costs
Can develop a work pattern to suit own
lifestyle, e.g. around children
No need to wear special clothes for work
May get tax advantages
May be able to develop own work
patterns
Disadvantages
Cannot spin ideas off fellow workers
easily
May get distracted by household
Difficult to switch off from work/home
May be lonely and miss social aspects
Employer may not realize the hours
worked
Costs of electricity etc. transferred to
employee
The answer outlines two appropriate advantages and disadvantages and relates them to the
question.
[4 marks]
The answer outlines two advantages and disadvantages that are generally relevant; at the
lower end they may be restricted in number.
[2 to 3 marks]
The answer is limited in terms of advantages and disadvantages and relevance to Natalia.
[1 mark]
(c)
Barriers
Barriers to communication may result from Natalia not meeting the team face to face and
the understanding of messages that she is hoping to convey may be affected. Information
that might be passed on quickly or verbally might be lost and Natalia will not have a full
picture of what is happening. The team may lead Natalia to believe that they are working
well and that there are no problems but this may not be true and deadlines/work may be
missed.
The team does not meet together and opportunities for collaborative thinking and working
may be lost.
Ways to improve communication:
• e-mail
• tele and/or video-conferencing
• visiting employees in their own homes
• arranging meetings so that the team can meet regularly.
40
The answer assesses in detail the communication barriers that might result and suggests
three suitable ways to improve communication. The answer is related to Stylish.
[5 to 6 marks]
The answer attempts to assess the communication barriers but the assessment may be
limited. The answer suggests at least two suitable ways of improving communication.
[3 to 4 marks]
The answer is limited in terms of assessment and improvements to communication.
[1 to 2 marks]
139. Currently the teams’ wages are based on a flat monthly payment regardless of the number of
orders processed. This means that no matter how hard they work they will receive the same pay;
this might lead to a loss of motivation and may not be an incentive to the worker. This may be
particularly important as they are working from home. The method relies on the worker using
their time productively.
Stylish is considering changing the system so that wages are based on the number of orders
placed each day and targets set by Natalia monthly. The more orders processed and targets
reached, the higher the wages received by the staff. This may cause workers who believe that
they can achieve the targets to work harder. Frustration may be caused if workers cannot achieve
their targets because customers cannot get through to them. However it may motivate the
workers to work harder, though Natalia cannot assess if this is because they are improving their
productivity or if they are simply working longer hours, in which case this may be counter
productive. Quality may suffer as they may spend less time on each order.
The answer fully evaluates the methods of payment in detail and addresses both quality and
meeting targets.
[5 to 6 marks]
The answer attempts to evaluate the methods of payment but may not address fully quality
and/or meeting targets.
[3 to 4 marks]
The answer is limited in terms of detail and does not address quality and meeting targets.
[1 to 2 marks]
140. Joe’s style is autocratic, but also adaptable to the situation. It may be argued that his style has
become increasingly laissez faire as he is spending little time at the club recently. It appears to
be successful in retaining the support of the club’s fans as his style is charismatic. It is less
successful with employees as it contributes to a high staff turnover, which may threaten the
effective administration of the club. It may also affect performance and be expensive in terms of
recruiting and training replacements.
The style is in some ways in tune with some of the aggression exhibited by the players and has
attracted some players to the club who might not otherwise have come.
In the long run the club may find it increasingly difficult to recruit, motivate and retain new
staff. The club may also be open to legal action for constructive dismissal and harassment. The
club may become less successful in the long run.
41
There is a clear and illustrated discussion on Joe’s style, which recognises its primarily
autocratic qualities and provides cogent assessment of its likely implications for Rainbow Club
Ltd and its future success. There is some recognition of the positive elements of Joe Swale’s
style and passion.
[7 to 8 marks]
There is some discussion of Joe’s style, which is recognised as primarily autocratic. The
assessment attempts to identify some implications.
[3 to 6 marks]
There is a generalized and limited response.
[1 to 2 marks]
141. Possible monetary rewards include
• overtime
• bonuses and incentives
• performance/profit related pay
• share ownership
• profit sharing
• fringe benefits.
Possible non-monetary approaches include
• job design, job flexibility and job satisfaction
• job rotation
• job enlargement
• job enrichment
• group working
• empowerment
• training, multi-skilling and staff development
• recognition
• appraisal.
All rewards need to be balanced against their potential costs and benefits. It may be that rewards
lead to greater motivation and output, but the benefits must exceed the costs of implementing the
systems. The advantages of performance related rewards are clear in that they are flexible and
reflect performance and profit levels. Increased benefits, which become part of the standard
package, may be far more costly and impossible to remove in the long run. Fringe benefits such
as tickets for the game may be beneficial as they encourage loyalty and may have a lower cost to
the club, but are of value to the employee.
Non-monetary rewards are possibly cheaper and more effective in improving motivation, morale
and performance. In simple terms recognition and respect cost nothing. Perhaps Joe will need to
reflect on his present management style. Other methods of job redesign and employee skilling
are likely to have longer-term positive effects.
A suitable combination of these rewards needs to be identified and judgements made by
reference to the economic position of the business, its operational objectives and its need to
motivate and retain its personnel. In the case of Rainbow Club Ltd staff it is likely that the
solution is to adjust leadership style and to offer a financial package, which is comparable to
other similar ice hockey clubs.
42
A range of monetary and non-monetary rewards is identified and their use and effectiveness in
improving morale is assessed. Rewards may be related to motivation theory. There is clear
advice given as to the value of the rewards identified for Rainbow Club Ltd.
[7 to 10 marks]
Some rewards are identified, although they may not be clearly ordered. The effect on morale is
addressed, but advice may be omitted at the bottom of the band.
[3 to 6 marks]
There is a generalized and limited response.
[1 to 2 marks]
142. No mark scheme available
143. New information and communication technologies include:
• e-mail
• the world wide web
• satellite communication
• mobile telecommunications
• laptop and palm-held computers
• ISDN lines
• smart cards
• video-conferencing
• pdas.
The question provides an opportunity for a broad range of answers and discussion. It is to be
expected that some of the following may be addressed, although these may not be exhaustive
and intelligent answers should be rewarded:
→
New ICT systems reduce the need for individuals to work at a head office.
Homeworking is the obvious result, but increasing mobility of individuals means
that organizations can become more customer-focused and mobile. There are
significant discussion opportunities surrounding the changes in organizations’
structure, to include this more peripheral and non-standard workforce and the effect
on motivation and reward systems.
→
The location and focus of business transactions has changed. E-commerce is
expanding rapidly. The largest growth area in employment in many developed
societies is in call centres. The result has been the “downsizing” of administrative
staff, the flattening of hierarchies and the movement away from large numbers of
staff in megalithic city-based headquarters. The reward and security structures of
these staff, many of whom are part-time, may be worse than traditional full time
staff.
→
The new industries, especially in the tertiary sector, are changing their traditional
organization structures, encouraged by new ICT technologies into ones which
contain smaller core teams, and more contract and peripheral staff who may be
project based. Traditional line hierarchies are being replaced with matrix structures
and tight–loose structures to aid flexibility.
→
There is a potential for increased globalization of operations and markets.
In general, answers should conclude that organization structures are becoming more flexible,
many organizations are reducing the size of their “core staff” and replacing these with a more
transient workforce. One result is the large increase in homeworking and net-based operations.
43
Corporate culture is being affected in that the traditional image of the corporate family is being
reduced and the motivation hierarchies, such as that put forward by Maslow, are less relevant.
Cultures are becoming, by necessity, more dynamic, task and customer focused. Organizations
are becoming more organic with an emphasis on contingency approaches. These changes may be
less pronounced in LEDCs and in more traditional secondary sectors.
There is a clear understanding of the new technologies and their effects. The answer addresses
change in both organization structures and corporate culture and is quite wide ranging. There is
an intelligent assessment of the nature and significance of the change and the answer employs
relevant business terminology.
[7 to 8 marks]
There is a good understanding of the new technologies and, their effects. The answer addresses
change in both organization structures and corporate culture although this may lack some detail.
There is an attempt to assess the nature and significance of the change and the answer employs
some relevant business terminology.
[5 to 6 marks]
The answer focuses on only a few technologies and although change is addressed, the discussion
may be general and may not address both changes in organization structures and corporate
culture.
[3 to 4 marks]
A brief, generalized and probably unbalanced answer, which tends to description.
[1 to 2 marks]
144. The key changes in working practices and patterns are:
• fewer core staff on full benefits
• more flexible structures, involving outsourcing, contract work, project-based operations and
the greater use of consultants
• more part-time and peripheral staff
• a more mobile workforce
• greater numbers of employees working from home or outside of the “traditional office”
• flatter hierarchies
• portfolio working and multi-skilling
• more empowered employees.
These changes are likely to have significant effects on recruitment and training.
Recruitment: Firms will be searching for:
• “flexible” workers in terms of location, working hours and skills
• increasing numbers of part-time or temporary/contract staff
• employees who are willing and able to work at a high skill level from day one
• employees who have the ability to take control of their working environment, especially if
they are “contract staff”
• “key employees” who are highly skilled and well educated, who will join the elite of the core
team, and will be rewarded with the whole range of company benefits
• employees with good ICT training and experience
• employees with excellent “customer skills” if they are front line staff.
44
Training:
• firms will be less willing to train peripheral and contract staff
• they will be making significant investment in fewer, core staff
• there is an increasing expectation that staff will be constantly updating their skills – lifelong
learning”, often at their own expense
• some of the traditional induction training may not be necessary
• training periods are likely to be lower
• banking staff in call centres, for example, will be expected to train only for a few weeks to
acquire ICT skills, whereas traditional bank clerks would learn over a number of years,
combining on the job training with external courses and accreditation
• more training is now offered “on-line” from home.
There is a clear and comprehensive analysis of the effect of changing work patterns and
practices on recruitment and training. There is a recognition of the need to have flexible and
adaptable staff. Good examples are provided to support discussion.
[6 to 7 marks]
The analysis is thoughtful, but may be limited in terms of the effects. At the upper end the
changing requirements of firms are recognized.
[3 to 5 marks]
A brief, generalized answer, which tends to description or merely lists.
[1 to 2 marks]
145. George’s span of control is six people; the ticketing and premises managers, plus four secretarial
staff. These subordinate all report directly to him.
A span of control of six people is well within the normal acceptable range, especially given that
two of the six subordinates are specialist managers and probably experienced staff. However,
George’s job is being expanded as a result of reducing input from Joe Swale. Some candidates
may discuss the issue of the human resource role at this point for which George appears
individually responsible.
The span of control is accurately identified. For [4 marks] the answer may assess whether it is
appropriate by reference to accepted theory, e.g. Fayol, and/or the nature of the tasks involved.
The position taken is well supported and focuses on Rainbow Club Ltd.
[3 to 4 marks]
The answer is either unsupported or extremely general. For [2 marks], there is an understanding
that the span is related to the task and/or the people involved.
[1 to 2 marks]
146. The major structural issues are that of Joe Swale’s diminishing input into the general
administration of the club and the resulting increase in demands on the rest of the management
team. The move into international markets both in marketing and playing areas will lead to an
increasing role for both George and Nancy and may provide financial problems for Robert
Graves.
On the human resource front, George appears to be solely responsible. He has specific human
resource experience, but not necessarily the academic background and knowledge to run the
function effectively. It may be necessary to hire a personnel expert, with experience of dealing
with an international staff, to take on the role of HRM. George may wish to concentrate on
administrative matters, now that Joe has decided to take more of a “back seat” role. George may
also be able to look at the business from a more strategic viewpoint if he is not tangled up with
routine matters.
45
It is not clear whether Nancy has specific marketing experience, but even if she has, additional
specific marketing assistance may be useful; again with an emphasis on international markets.
This would offer the possibility of greater specialization, with Nancy focusing on, for instance,
communications.
At the moment the existing structure is rather formal and military. A more flexible, decentralized
structure is a possibility. The expansion overseas may be managed through the use of project
groups or matrix structures. Some of the functions could be outsourced to specialist
consultancies.
It may also be necessary to appoint additional staff overseas or use agents in other countries to
manage Rainbow Club Ltd’s interests.
However, the autocratic nature of Joe Swale may mean necessary changes are not implemented.
The discussion is detailed and relates to adjusting the present structure, such as adding additional
posts or levels, or introducing more flexible structures. Examples are taken from the case study
recognizing changing responsibilities of staff, particularly Nancy and George.
[7 to 8 marks]
The discussion suggests additional posts or levels. Examples are taken from the case study
recognizing changing responsibilities of staff.
[5 to 6 marks]
The discussion is sensible, but deals with the structure in a very general manner with little
appreciation of the particular demands of the club. For [3 marks], it may be brief and relatively
unsubstantiated.
[3 to 4 marks]
The answer is essentially descriptive. Some relevant points are made but there is a lack of
balance and depth.
[1 to 2 marks]
147. Most of the conflict seems to emanate from the interventions of Joe Swale. Sources of conflict
include:
• treatment of players
• running the club like a personal possession
• disciplining players in public and being unaware of cultural issues
• treating players with contempt
• threatening to sell Brad Mansoff to another club unless he improves his fitness and attitude
• interference in the selection and purchase of players
• putting business interests over the performance of the team by introducing players who lack
talent
• non-payment of staff
• conflict with the fans and the fan magazines over the proposed move to Carlton. Joe Swale’s
leadership approach is highly autocratic, exhibiting a theory “X” leadership style, as
described by McGregor. Joe, however, also exhibits some paternalistic attitudes in that he
views the club as a personal possession or family and acts in the way he sees fit in its best
interests. He appears to be popular with fans and to be congenial in his dealings with them.
However, with paid employees his attitude is different. Joe “tells” rather than “sells”
(Tannenbaum and Schmidt) and has a “9.1”style under the Blake and Mouton grid, with a
high concern for the task, but a low concern for people.
46
To resolve or minimize some of the conflicts, he would have to show more respect for other
people’s opinions and views and be prepared to implement the ideas of others when they were in
the interests of the club. It is unlikely that he would be able to become a theory “Y”
manager overnight, but he could move across the Tannenbaum and Schmidt continuum to sell
his ideas and consult more often. This could happen through a range of forums, involving
players, administrative staff and fans. The use of quality circles could help engender a sense of
participation. If this occurred all staff may be more motivated and efficient. The use of
situational or contingency leadership styles may be effective, although Fiedler doubts that
leaders can easily change their style.
Training may help Joe make this adjustment, or the use of external consultants may be
appropriate. However, the likelihood of a change in Joe Swale’s style is questionable, and he
may need to address the financial requirements of the club, even if this means upsetting other
people. In a time of crisis, autocratic leadership is sometimes required, but it would be far better
to take his players and staff with him when the changes occur.
The major sources of conflict are identified and the relationship to the leadership style is
examined. A judgment is made as to the effectiveness and likelihood of employing different
leadership approaches and styles in resolving these conflicts. A range of leadership theories is
employed.
[9 to 10 marks]
The major sources of conflict are identified and the relationship to the leadership style is
discussed. Some leadership theory is employed and there is an attempt to assess the effect of
different leadership styles on the conflicts identified.
[6 to 8 marks]
Some conflicts are identified and there is a general discussion of style, though this may be
limited and without reference to leadership theory.
[3 to 5 marks]
A brief, generalized and probably unbalanced answer, which tends to description or listing.
[1 to 2 marks]
148. No mark scheme available
149.
60
200
= 30% per year or
= 3.3
200
60
(i.e. the workforce turns over approximately every 3.3 years.)
[2 marks] for correct calculation of annual rate of labour turnover.
[1 mark] if some understanding of calculation of annual rate of labour turnover is evident.
(b)
Potential disadvantages include:
• lost production whilst post is not filled
• lost production during training
• cost of recruitment and training
• break up of work groups
• cost of mistakes made by trainee
• payment of bonuses to other workers (e.g. overtime)
• lack of continuity between staff.
• lower productivity of less experienced workers
Note that high labour turnover amongst core staff is likely to be a major problem. Whilst
high turnover amongst unskilled staff is an irritation, it is likely to be a fact of life.
47
Assesses the potential disadvantages of high labour turnover in detail. At the top of the
band the assessment is relevant to Singh and Patel Ltd.
[3 to 4 marks]
Some mention of the potential disadvantages, but no attempt is made at assessment. At the
lower end there may be a limited and general response.
[1 to 2 marks]
150.
Potential advantages (piece rate)
•
•
•
stimulates effort
encourages workers to devise improved
methods
simplifies costing
Potential disadvantages (piece rate)
•
•
•
•
encourages workers to cut corners
– may affect quality
output may not be attributable to own
individual effort
output may be outside the workers control
(e.g. if a machine breaks down)
can be divisive in a team situation
Analyses the potential advantages / disadvantages with reference to Singh and Patel Ltd.
For example, workers are going to be less inclined to train new recruits if this takes up their time
and directly reduces their pay.
[5 to 6 marks]
Attempts to analyse the potential advantages and disadvantages, though it may be limited in
parts. Application to Singh and Patel Ltd may be limited.
[3 to 4 marks]
A limited and general response.
[1 to 2 marks]
151. Theorists
e.g. Potential Motivator(s)
Herzberg
hygiene and motivators (e.g. changes  and )
Maslow
link to hierarchy of needs (e.g. changes and )
Taylor
link to standardised output and piece rate (e.g. change )
McGregor
link to theory X and theory Y (e.g. changes  and )
Applies motivation theory appropriately to explain how the proposals could help Singh and
Patel Ltd achieve their objectives. Explains in detail the extent to which the proposals will help
Singh and Patel Ltd achieve their objectives.
[7 to 8 marks]
Uses motivation theory and discusses how some of Andrew’s proposals may help Singh and
Patel Ltd achieve their objectives.
[5 to 6 marks]
48
Attempts to use motivation theory and refers to some of the management proposals. At the lower
end there may be no motivation theory [3 marks].
[3 to 4 marks]
A limited and general response.
[1 to 2 marks]
152. Reasons for redeveloping in its present site:
• local history of the club in its existing location and general inertia
• opposition from disgruntled local fans and the consequent loss of future revenue if they are
not prepared to travel the extra distance to Carlton and switch to the Jets. There is no
guarantee that new fans will replace the existing loyal fans
• the effect of opposition to the relocation from the local and national media and business
interests
• possible boycotts and demonstrations which will adversely affect the reputation and image of
the club
• the availability of derelict industrial sites nearby to construct the retail units and cinema
complex
• car parking at the nearby hotel
• general resistance to change
• environmental pressure group activities, opposing environmental damage and risk to rare
insects if the firm relocates to Carlton
• lack of finance to support the move to Carlton
• the merger with the local Carlton club may affect the identity of Rainbow Club Ltd and may
lead to control issues.
Reasons for relocating to Carlton:
• preferred option of Joe Swale
• higher potential revenues
• popular with club sponsors who see the opportunity for developing corporate hospitality
• limitations of the existing location and the poor facilities and lack of seating at the present
rink
• access to transport links, e.g. motorway
• the rural environment and local facilities e.g. shops, school etc. for the employees, the players
and their families
• room for further expansion
• the size and demographics of the surrounding populations
• opposition by the local government to the removal of the ski slope and the concern about
increased congestion in the existing location
• access to the facilities of the regional capital
• financial necessity, given the parlous state of the club
• merger with the local ice hockey club providing further economies of scale.
From a purely financial and commercial point of view the move to Carlton offers the most
potential opportunities, although there is the risk that they will not fill the new rink if fans do not
follow them. They also risk alienating their constituent groups. Opposition by environmental
groups may prevent the move on legal as well as ethical grounds.
However, qualitative issues such as emotions, trust, tradition and loyalty may prevent the move.
The resistors to change may be too great. Redeveloping their existing site is probably less risky,
but may not offer the same financial return in the long run.
49
The discussion is balanced with detailed assessment of the benefits and problems of each option.
The discussion shows evidence of critical, reflective thinking and employs several examples
from the case study. An attempt at reaching a decision is made.
[8 to 10 marks]
The discussion is sound and appropriate to the choice of option, but may lack detail and/or
balance, especially at the lower end of the band. A choice may not be arrived at explicitly, but
the strength of each argument is assessed.
[3 to 7 marks]
A brief, generalized and probably unbalanced answer, which tends to description or listing.
[1 to 2 marks]
153. Advantages of globalizing marketing and operations:
• access to larger markets resulting in potentially greater sales revenues and profits through a
larger fan base and increased merchandising revenues
• diversification and spreading of risk. Poor interest in the domestic market may be
compensated for by an increase in demand overseas
• economies of scale in operation and marketing should lead to lower unit costs
• sponsors, advertisers and investors will be more attracted by the global opportunities afforded
by the expansion
• the image and power of the club will be enhanced as will the reputation of Joe Swale who
will be achieving his “dreams” for the club
• better players may be attracted to the club and overseas players may bring with them
significant additional merchandising opportunities
• access to new information and communication technologies makes the process of
globalization easier.
Disadvantages of globalizing marketing and operations:
• globalizing marketing and operations may be fraught with additional problems, such as those
of culture, language and a lack of understanding by Rainbow Club Ltd of the new markets
they wish to penetrate.
• legal barriers may exist, which will add extra expenses and risks of failure
• the supply chain is long and expensive and the club may have to rely on local agents or
multinational companies which have their own agendas
• exchange rate fluctuations may adversely affect forecasted revenues and profits
• the finance required for the expansion may lead to further liquidity problems
• the expansion may be unrealistic with insufficient interest in an “unknown club” overseas.
This could bring ruin to the club.
The choice of expansion and of globalizing, or not, rests on the likely attractiveness of the club
in overseas markets and the marketing opportunities available. The financial benefits of
globalizing marketing and operations are self-evident, but risks of failure and ruin are too.
Detailed market research would have to be carried out to support the judgment further. It may be
that gradual exposure and limited globalization in the short-run may open the door to greater
globalization at a later date.
50
The analysis is balanced with detailed assessment of the advantages and disadvantages of the
globalization of marketing and operations and an attempt to consider the relative merits. The
analysis is supported by clear references to facts in the case study and an intelligent appreciation
of the barriers and dangers involved.
[7 to 8 marks]
The analysis is sound and appropriate to Rainbow Club Ltd, but may lack detail and/or balance,
especially at the lower end of the band.
[3 to 6 marks]
A brief, generalized and probably unbalanced answer, which tends to description or listing.
[1 to 2 marks]
154. Labour turnover is starting to rise. The ability to recruit younger staff is being hampered by
location and lack of skills and the average age of the workforce is increasing. The only increase
in staffing levels is in management and administration.
Retention of staff could be improved by reviewing and revising financial rewards and
considering profit-sharing bonuses and/or share ownership schemes. Recruitment of younger
staff could be improved by offering sponsorships through college or university, more access to
schools through PR and attendance at careers fairs etc. Signing on bonuses or “golden hellos”
could be considered. Links with junior sailing groups may encourage interest in the firm. The
style of leadership could also be an issue and training of existing staff should be put into place.
More communication with staff would be helpful, including questionnaires to identify any
underlying issues regarding dissatisfactions. This may be the first move in a process of increased
staff participation.
The introduction of team-based or flexible production methods may reduce staff turnover by
increasing motivation.
Many firms are finding it difficult to recruit in production. Materials sent out to potential recruits
should be reassessed to see what messages they contain. Promotion should also be readjusted to
ensure that young people would be attracted. Perhaps Riveau Yachts should look at the concept
of apprenticeships. Other training could include the opportunity for external accreditation. If this
doesn’t work the firm may have to accept the situation and look to introduce further automation.
There is detailed, supported and relevant advice given to Danielle Jarman on how she can reduce
staff turnover and improve recruitment and training, using appropriate examples from the case
study.
[6 to 8 marks]
Some relevant advice is given to Danielle Jarman on how she can reduce staff turnover and
improve recruitment and training, although this may lack depth in one or more of the areas
required. At the upper end of the band there should be some use of examples from the case
study.
[3 to 5 marks]
A limited, descriptive answer.
[1 to 2 marks]
51
155. A flatter organizational structure will entail reducing the levels of hierarchy in the organization.
The effect of this will be to increase the span of control.
Advantages
• delegation increases with each employee given more responsibility for their jobs – employees
need to be more flexible
• empowerment of the workforce may lead to improved morale and motivation
• more opportunities for promotion
• communication may improve as there are shorter lines of communication from top to bottom
• delayering may result in lower salary and wage costs.
Disadvantages
• control over subordinates is reduced and this may have indirect effects on quality control
• training costs may increase
• stress levels may be higher with additional responsibilities
• Riveau Yachts may not be able to keep up with increasing demand
• more skills shortages.
A detailed explanation of both advantages and disadvantages of creating a flatter organizational
structure at Riveau Yachts. The answer highlights factors particularly relevant to Riveau Yachts.
[5 to 6 marks]
An explanation of some of the advantages and disadvantages of creating a flatter organizational
structure at Riveau Yachts. The answer may not be related to Riveau Yachts at all for [3 marks].
There may be some imbalance in the discussion.
[3 to 4 marks]
The answer is limited in terms of breadth and depth, and unbalanced.
[1 to 2 marks]
156. No mark scheme available
157. • create a communications policy adopted by all offices
• improved communication systems between offices e.g. e-mail, website, videoconferencing
• introduce system at head office that covers times of other offices so that someone is available
to answer and deal with issues
• produce different ways of providing information to all employees, e.g. bulletin boards on
Internet and in offices, newsletters etc.
• reorganize and restructure to promote better communication, e.g. flatter structures, fewer
offices if productivity suggests it
• involve employees in decision making and setting agendas for meetings
• provide training to managers to promote better communication.
52
An evaluation of three ways to improve communication that is detailed and relevant to Synergy
Oil.
[5 to 6 marks]
An attempt to evaluate three ways of improving communication that may lack detail but is
relevant to Synergy Oil.
[3 to 4 marks]
A limited and general response.
[1 to 2 marks]
158. Employees will not feel valued and will not feel that they are in control of what is happening in
the company. They may feel that they are unable to carry out their job effectively if they do not
have the relevant information. Lack of information about policies and practice may lead to
inconsistency and even mistakes in procedures. Employees may feel that they are not trusted in
terms of being given information. This may lead to low motivation. Appropriate theorists would
include Maslow, Mayo, Herzberg etc.
Appropriate motivation theory is used to produce a relevant explanation of the issues of poor
communication and their effect on motivation, applied to the case study.
[5 to 6 marks]
An attempt to produce an explanation of the issues of poor communication and their effect on
motivation using motivation theory. The theory may not all be relevant and links to the case
study may be lacking. At the lower end there may be application to the case study but no theory.
[3 to 4 marks]
A limited and general response in terms of theory, relevance and application to the case study.
[1 to 2 marks]
159. Amir does not like to make decisions and waits for staff to make them for him. His leadership
style is laissez faire. His management style is that of McGregor’s theory as he believes staff are
lazy, cannot be trusted and do not want to work.
The complications of this for Synergy Oil are that the staff will not feel motivated and decrease
productivity. Illness may increase and staff want to leave. Eventually this will effect the
financial health of Synergy Oil.
The leadership and management style is analysed in detail and the implications for Synergy Oil
are stated.
[6 to 8 marks]
The leadership and management style is described and there is some evidence of analysis. The
implications are generally correct or at the lower end may not be stated. At the lower end
leadership or management style may not be identified as laissez faire or theory X. If leadership
style is incorrect but management style (or vice versa) and implications are sufficient, award a
maximum of [4 marks].
[3 to 5 marks]
A limited and general response in terms of leadership and management style and implications
for Synergy Oil.
[1 to 2 marks]
53
160. No mark scheme available
161. (i)
Corporate culture is a collection of shared norms, customs, values, beliefs, attitudes and
approaches that moulds and shapes the behaviour of employees within an organization. It
may be a predictor of how an organization responds to change. It could be considered as
the personality or character of a business that underpins its strategy and public image.
According to Gerstner, IBM was considered in the 1990s to be traditional, ordered
(regimented may be more negative) and conservative, but reliable. The image of dark suits
and white shirts refers to being businesslike and formal, but also traditional and
potentially “old-fashioned”, especially in the context of a high technology industry.
Corporate culture is well explained and referenced to IBM. There is an attempt to extend
the answer beyond a brief response.
[3 marks]
Corporate culture is explained and referenced to IBM. Some aspect of the answer is
brief.
[2 marks]
Either corporate culture is explained or there are illustrative references to IBM, but not
both.
[1 mark]
(ii)
Gerstner was aware that the existing culture was restricting IBM’s growth and affecting its
image as a high-tech company. The attempt to create a vision for the firm or to put in
place financial and marketing strategies was being hindered by a company culture born in
a different age. The culture of IBM had begun to lose the connection to IBM’s purpose. It
had become bureaucratic, with internal competition between departments. There was a
lack of trust in the organization.
The firm was not adapting to changes in the external environment. Conflict was not being
managed. In the end this was affecting sales and profit.
The examination refers in some depth to culture. There is a clear recognition that the
culture was not appropriate to a high-tech firm trying to compete in a global market.
[3 marks]
The examination shows an understanding that the culture was inappropriate in several
areas, and uses references from the text.
[2 marks]
There is a brief and/or limited examination of issues, or a list.
[1 mark]
162. Centralization means that all or most major decisions are made at the top levels (or centre) of the
organization. These decisions are imposed on the rest of the organization, leaving little room for
discretion or autonomy. Decentralization implies delegation and autonomy in the lower levels of
the organization.
The degree of centralization is influenced by
• cost and consequences – generally decisions that entail considerable risk and cost will be made at
the centre
54
• desire for a uniform policy – if consistency and uniformity is required
• the culture and history of the firm – the prevailing culture will influence expectations
• the size of the firm – the larger and more diverse the firm, the more the need for some central
control
• the nature of management – the outlook, character and background of the management will affect
the amount of delegation. Those managers wishing to retain control or status will delegate little.
• the quality of middle and junior management – well qualified and experienced middle and junior
ranks will encourage and demand delegation
• the geographical dispersal of the organization – the more dispersed, the greater the need for some
centralization
• availability of control mechanisms – new information and communication technologies have
encouraged greater decentralization of decision making
• the desire for flexibility – firms needing to adapt to fast changing or localized environments may
need more decentralized policies
• the need for innovation – enterprise may be stifled by too much bureaucracy and control.
In IBM’s case they are in a fast moving environment and one would expect a fair degree of
delegation. However, as it says in the text, coordination was crucial as IBM spread
geographically, but their global clients required compatibility in standards and products
worldwide.
The analysis is balanced with detailed assessment of the factors influencing the degree of
centralization and decentralization. There is an attempt to link the discussion to the requirements
of multinational corporations such as IBM.
[5 to 6 marks]
The analysis is sound and appropriate to IBM, but may lack detail and/or balance, especially at
the lower end of the band.
[3 to 4 marks]
A brief, generalized and probably unbalanced answer, which tends to description or listing.
[1 to 2 marks]
163. No mark scheme available
164. Possible answers include
• may be divisive (e.g. if distribution of incentives is perceived as unfair)
• may affect quality adversely (since focus may be on output)
• not always easy to identify an individual’s contribution (e.g. in team work)
• may be that money is not a long-term motivator (as many theorists suggest)
• measuring “good results” may be difficult
• may be costly (e.g. if many employees achieve “good” results).
A good and detailed analysis of several potential problems of using financial incentives to
improve motivation. Reference is made to the case.
[5 to 6 marks]
Some attempt at an analysis of the potential problems of using financial incentives to improve
motivation. There is some relevance to the case.
[3 to 4 marks]
A limited response, tending to be descriptive.
[1 to 2 marks]
165. Team-based manufacturing will mean that all stages of production are carried out by teams of
55
workers who take responsibility for all aspects of the production of each yacht. The teams will
follow the yachts around the factory rather than staying in the same place and carrying out the
same part of the process for each yacht. This will require a more flexible approach to production
and will mean that workers will need to be multi-skilled and therefore able to carry out a wide
range of tasks in the production of yachts. Flexibility will also require low resistance to change
among employees.
A full explanation of both team-based production and flexibility with reference to the case study.
[3 to 4 marks]
An explanation of either team-based production or flexibility, or a basic explanation of both but
with little or no reference to the case study.
[1 to 2 marks]
166. Labour turnover is a measure of the rate at which employees are leaving Riveau Yachts. Could
be worked out by dividing the number of leavers each year by the average number of staff and
then multiplying by 100 to express as a percentage.
The rising labour turnover may be caused by
• low staff morale – perhaps connected to authoritarian leadership of Jacques and Yves, or
perhaps caused by lack of variation in work (created by tall hierarchy and low span of
control, therefore giving a lack of pride in work and no sense of empathy with aims and
objectives of firm)
• rural location of firm – younger workers are attracted away to jobs in nearby towns and cities
• relatively lower wages causing a shift to urban jobs, or better-paid alternatives
• skills required being skills no longer seen as relevant or useful to younger employees (or ones
they are unwilling to learn)
• external factors – high economic growth offering many other opportunities elsewhere, high
housing costs, lack of local amenities/services
• lack of career progression available at Riveau Yachts – causing staff to move away for
promotion opportunities
• lack of empowerment – employees don’t feel they are given responsibility for the work they
are doing
• increasing average age of staff leading to increased retirement, lack of challenge
• any other relevant point.
A clear explanation of three factors with a number of illustrations of why it might be rising.
Extensive reference is made to the case study and most points are in the context of the case
material.
[5 to 6 marks]
Some explanation of why labour turnover may be rising. At least two factors contributing to
higher turnover are explained. Some reference is made to the case study, though some points
may be more general and not fully in the context of the case material.
[3 to 4 marks]
Some descriptive points or a list of factors causing labour turnover to rise, but perhaps not
related to the case material to any great extent.
[1 to 2 marks]
167. Candidates should give a clear summary of the work of Maslow and Herzberg, looking at the
main findings and implications of their work. Maslow’s hierarchy of needs and Herzberg’s
two-factor theory of job satisfaction need to be sensibly applied to the case material and possible
improvement strategies. Some relevant ways for this to be done may be
56
Maslow
• employees of Riveau Yachts may be achieving basic levels on hierarchy as the firm has been
growing well and seems relatively secure in its position. Firm can help ensure this by
involving staff in long-term planning, enhancing the feeling of security and involvement
• however, rising labour turnover and average age of workforce may be an indication that
higher needs are not being met
• tall hierarchy and low span of control and traditional production methods may lead to low
variation in production processes carried out and this may prevent workers reaching higher
levels of needs (esteem and self-actualisation). Flattening of hierarchy and larger span of
control may help to give employees a greater sense of responsibility and involvement in the
firm
• proposed changes to team-based and flexible production methods may offer greater
opportunities for empowerment and therefore enable many to progress higher up the
hierarchy, but this may also threaten security and safety needs for some
• team-based production should help enhance social needs with groups working closely
together
• relatively authoritarian leadership may also prevent many progressing to higher levels, so
ways to involve employees further may help progression up the hierarchy – quality circles,
works councils or other strategies could support this work
• other relevant application of possible changes to Maslow’s hierarchy.
Herzberg
The firm need to remove/minimise the impact of possible hygiene factors, while
increasing/enhancing the motivators. These strategies could include
• enhancing pay or offering bonus/productivity-related deals or other financial incentives
(employee share ownership etc. if they floated) to avoid pay being a hygiene factor
• suggestions from employees on improving working conditions to ensure that is not a hygiene
factor
• reducing the levels in the hierarchy to avoid over-supervision
• moving to a more laissez-faire style of leadership from the senior management
• team-based and flexible working should help achieve job enrichment
• potential for greater employee involvement in decision making through works councils,
quality circles and other similar techniques to increase motivators
• skills development and training programmes to increase motivators
• techniques to ensure recognition for achievement and therefore enhance motivators
• any other relevant point.
A number of strategies for improving motivation are identified and fully and clearly assessed.
The work of both Maslow and Herzberg is extensively used and applied in a relevant manner to
the strategies and ideas identified. The answer is closely related to the case material and
arguments are mainly phrased in the context of the case study.
[10 to 12 marks]
Some strategies for improving motivation are identified and reasonably assessed. The work of
both Maslow and Herzberg is closely referred to and generally applied in a relevant manner to
the strategies and ideas identified. The answer is generally related to the case material though
some points may tend to be a little more general at the lower end of the band.
[7 to 9 marks]
Some methods for improving motivation are identified and the work of Maslow and/or Herzberg
is referred to, though may not be closely related to the methods identified. There is some
reference to the case study, though this may be limited at the bottom end of the band.
[3 to 6 marks]
57
An essentially descriptive answer that may refer to the work of either Maslow or Herzberg and
may identify or list some methods for improving motivation, but which is essentially descriptive
and tends not to relate to the case study.
[1 to 2 marks]
168. No mark scheme available
169. The current organizational culture in Microsoft can be described as: technological culture;
dynamic and innovative culture; role culture.
For an accurate description of Microsoft’s organizational culture.
[2 marks]
For a limited description of Microsoft’s organizational culture.
[1 mark]
170. The Gadgets2u.com matrix structure means people working together on project teams to achieve
their objectives. Each person may work on a number of different teams, which should help
improve communication between the different departments of the firm. Candidates may
represent this diagrammatically.
Advantages
• more flexible organization of staff
• improved staff motivation (allows for job rotation and job enrichment)
• greater efficiency and/productivity (caused by two previous points)
• it promotes team work
• it is a very good way to maximize the capacity of all workers, even those down in the
hierarchy – or those recently employed
• any other relevant point.
Disadvantages
• it is expensive
• it slows down the decision-making process (everybody has an opinion, teams have to reach
agreements)
• it can cause communication problems, especially as the firm grows in size and complexity
• job rotation might conspire against specialization
• any other relevant point.
There is a balanced analysis of advantages and disadvantages with clear reference to information
from the case study.
[5 to 6 marks]
Some advantages or disadvantages are analysed but the answer may be less balanced.
There should be some reference to the case study. At the lower end of the band there
may be a tendency to explain with little analysis.
[3 to 4 marks]
A limited and general response.
[1 to 2 marks]
58
171. (i)
Tom is probably a charismatic leader with both autocratic and democratic traits.
Autocratic characteristics
• selection of employees (he chooses friends to fill the vacancies)
• wants to get involved in all the appraisals
• team leader of purchases: he does all the buying, he has a very centralized approach
• he has chosen a friend to lead the HRM team, so everybody will now be recruited,
trained and appraised by Tom’s friend and/or himself.
Democratic characteristics
• the organization itself, in project teams
• rotation of project leaders to keep everybody involved and motivated
• the “special days” in which all the employees can communicate and feel part of the
decision making process.
Tom’s leadership approach is described, including reference to both autocratic and
democratic characteristics. For [4 marks] autocratic and democratic approaches must be
explicit.
[3 to 4 marks]
Some characteristics are described, but the answer is limited. Leadership approach may
not be identified.
[1 to 2 marks]
(ii)
An effective manager will know how to plan, organize, budget, coordinate, direct and
communicate. Mostly, effective managers will know how to delegate on sufficiently
competent subordinates who they trust.
To be more effective as a manager Tom should ease up on the recruitment process and
really delegate it on the team leader and ensure it is an open and transparent process.
Tom should delegate functions on subordinates (purchasing, recruitment, appraisals) and
concentrate on the strategic functions.
The whole organization is one that fosters democracy, but the time has to be made for
team leaders to meet more often to discuss the important company issues, that are
otherwise all decided by Tom.
Changes are suggested as to how Tom can improve his effectiveness as a manager. The
answer shows knowledge of managerial functions and relates to the case study. At the
bottom end there may only be one relevant suggestion but it is related to management
functions and to the case study.
[3 to 5 marks]
A limited and general response.
[1 to 2 marks]
172. McGregor Theory Y: the owners trust their employees, making them part of the
decision-making process, assuming that motivation will come from within the
workers – without the need for external motivating factors.
Maslow: employees have been given responsibility and that allows them to satisfy higher order
needs (social needs, esteem needs and self actualization).
Herzberg: non-hygiene factors: special days organized every two months; responsibility and the
matrix structure. Working from home.
Ouchi: by giving them shares employees are made to feel part of the firm (they belong to the
“family” – they are not just employees).
The application of any other appropriate theories should be credited.
Workers in a matrix have to be independent and self-demanding, otherwise the job doesn’t get
done. Employees are given responsibility and trust. They are all made to feel part of the firm and
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part of the decision-making process, in line with what theorists have suggested as the general
motivational factors of workers. Tom seems to be aware of this and is therefore acting
accordingly. There is no “Taylorism” in the firm at all. According to theory, the firm has an
effective strategy that should keep workers motivated. However, the fast growth of the firm is
conspiring against achieving these objectives and Tom still likes to keep control of some key
aspects of the firm (like purchasing and appraisals).
There is a detailed discussion of the effectiveness of the motivational strategies in
Gadgets2u.com and these are clearly related to appropriate and adequate theory.
[7 to 10 marks]
There is some discussion of the effectiveness of the motivational strategies in the firm and there
is some reference to theory. At the bottom end of the band the discussion may be limited and
there may be limited reference to theory.
[3 to 6 marks]
A limited and general response.
[1 to 2 marks]
173. No mark scheme available
174. There may be changes in jobs and even job losses or job increases. Managers will have different
roles and responsibilities and may have training issues. The number of levels in the hierarchy
will be reduced. The span of control will increase. This will affect communication both top
down and bottom up. Some functions may disappear.
Motivation may be affected. Decision making may take longer.
A relevant examination of the effects of changing the structure related to the case study and
entirely appropriate.
[5 to 6 marks]
A relevant examination of the effects of changing the structure but it may lack detail.
At the lower end it may lack application to the case study.
[3 to 4 marks]
A limited and general response.
[1 to 2 marks]
175. Formal communication could include
• all methods approved by employers and employees
• meetings arranged by the organization representatives
• union meetings
• notices for redundancy
• minutes of meetings
• memos and e-mails
• appraisal.
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Informal communication could include
• the grapevine
• spreading rumours
• meetings/get togethers not approved
• “leaks”
• verbal discussion between employees
• discussion during breaks/lunch etc.
• private e-mails between colleagues
• social outings
• other suitable methods may be identified.
Award [1 mark] for each example correctly identified up to a maximum of [4 marks].
176. The managing director could minimize and address these issues by holding a briefing meeting
for appropriate staff or by publishing a document that outlines the plans for the company. The
rumours need to be tackled and facts put to the workers about the current situation. The
managing director could link performance management to any decisions that have to be made
and if redundancies are planned make plain to the staff the criteria to be used.
The managing director could improve communication in many other ways using solutions such
as
• bulletin boards
• newsletters
• e-mails
• get together events
• team events
• team-building activities
• assign a manger to develop communication
• Intranet and Internet.
N.B. A solution given may be to revert to a tall structure. This needs to be evaluated and while
it may be a solution, it is not an appropriate solution.
Answers that include other sensible suggestions should be rewarded.
Two ways to improve communication are evaluated. They are entirely relevant and there is some
reference to Get Going.
[5 to 6 marks]
Two ways to improve communication are given and there is some attempt at evaluation.
The methods are generally relevant and there should be some reference to Get Going.
[3 to 4 marks]
A limited response in terms of methods of communication but there must be some suitability
to Get Going.
[1 to 2 marks]
177. Benefits may include
• more flexible organization of staff – essential for a small, growing firm
• faster decision-making
• improved motivation of staff – enables job rotation and job enrichment
• greater efficiency/productivity – stemming from increased flexibility and improved
motivation
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• greater involvement in decision-making from all staff – should enable a range of perspectives
to be taken into account with decisions
• flat hierarchy and matrix structure means improved communication
• enables expertise to be used where it is most effective and the bringing in of outside expertise
enables teamwork
• any other relevant point.
Three benefits fully and accurately explained. Benefits are clearly related to and derived from
the case study.
[5 to 6 marks]
Two or three benefits are partially explained. Explanations may lack detail or not be entirely
related to the case study.
[3 to 4 marks]
One or two relevant benefits perhaps listed or not adequately explained or not fully related to the
case study.
[1 to 2 marks]
178. (i)
Problems with communication at Gadgets2u.com have started to arise. The most obvious
example of this was delays to distribution caused by an upgrade of the e-commerce
system. Problems appear to have been caused by
• rapid growth – staffing levels perhaps not keeping up with the workload
• time pressure on existing staff – management of people’s workloads may not have
been adequate and communication may have suffered
• no formal method of communication between project teams – though there are regular
“special days”, these seem to have been taken over with tactical rather than strategic
decision-making
• information/communication overload – all information is available to all staff through
the Intranet and this may lead to information overload.
• any other relevant point.
Award [1 mark] for each relevant reason.
[3 marks]
(ii)
Strategies for addressing the problems may include:
• use management by objectives – this would make objectives clearer and perhaps
enable clearer communication.
• set up further formal communication systems – regular meetings of project teams or
related groups.
• limit information dissemination – make information available only to those who need it
through technology. Helps avoid information overload.
• further empowerment of project teams – this may help ensure teams take responsibility
for all their activities.
• hire more staff to ease time pressure.
• introduction of an appraisal system to formalise communication.
• create a new project team to examine communication problems.
• make hierarchy taller to reduce span of control.
• any other relevant point.
A number of relevant strategies examined and accurately related to the case study where
relevant.
[3 to 5 marks]
A relatively simplistic answer examining one or two strategies or simply listing them.
[1 to 2 marks]
179. No mark scheme available
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180. (i)
A conglomerate is a firm, which comprises of a series of disconnected businesses, in that
the subsidiary companies may be in different industries and different stages of production.
AOL-Time Warner comprised of firms as diverse as film production to Internet operators.
A clear understanding of the concept of a conglomerate linked to examples relating to
AOL-Time Warner.
[2 marks]
There is some understanding of the concept of a conglomerate shown through a definition
not linked to AOL-Time Warner, or a relevant use of examples.
[1 mark]
(ii)
AOL is at the cutting edge of technology. As such it is likely to have an adventurous and
risk-taking environment, where mistakes may be tolerated and even encouraged if they
produce ground-breaking approaches and products. The employees may “play hard”,
working long hours with their leisure and work intermingled, providing a person culture.
The workforce may be younger than in other industries.
Time Warner consists of more traditional companies based on films and entertainment. It
is possible that the organization is more conservative and bureaucratic with a greater
emphasis on role and task. Like AOL the nature of entertainment may also have
encouraged a person culture in some of the group’s activities.
The interests of the two sets of employees may be different and the skills required for
promotion may also differ. Strategies and objectives may be contrasting.
More traditional companies may be longer term in approach. The article refers to a clash
of “egos and cultures”.
A clear identification of cultures that might have existed in the two organizations prior to
the merger. The answer is well explained and supported with business ideas.
[3 to 4 marks]
The answer is relevant but brief and may lack depth and some clarity.
[1 to 2 marks]
181. Change management is crucial to improve the success of any merger. The process must ask the
three questions
• where are we now
• where do we want to get
• how do we get there
Any change is likely to be resisted by some employees of an organization, who may fear loss of
income, power or even employment. Social and psychological factors will also arise, especially
if existing working groups and associations are split up and expectations of individuals change
radically. The process may need to address different cultures and objectives. Individuals from
both firms must be involved and empowered.
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Six strategies may be used to manage change and overcome resistance:
• Education and communication: the need for change is explained and people are informed and
consulted from the beginning of the process. Trust is built up and leads to commitment of
individuals to decisions
• Participation and involvement: referred to as “ringi” in Japan, all those affected by a decision
are consulted and their views elicited. Employees are involved in the planning. This may be
time consuming
• Facilitation and support: affected employees receive additional training or full retraining if
required. Those badly affected by the fear of change may seek counselling
• Negotiation and agreement: those involved are provided with incentives to accept change.
Management is willing to compromise in some circumstances
• Manipulation and cooption: often involved dividing and ruling by playing off one faction
against another or identifying key resistance and either buying it off or eliminating it
• Explicit and implicit threat: although this may work in the short run it may lead to a build up
of resentment and high staff turnover in the future.
The key issues are therefore: communication, clear goals, compromise, participation, training,
shared objectives and incentives. If these do not work, a more negative approach of threats may
be used. The success must be judged in terms of future performance by the merged firm. Too
many compromises during the change process may threaten this.
Methods of change management are evaluated, using appropriate business terminology and ideas
and clearly focused on the issues of merging. Judgments are made.
[6 to 8 marks]
Change management is discussed, although the answer may lack some structure and application
to mergers. There is an attempt to use relevant terminology and business ideas. Judgments may
not be present, or may lack depth.
[3 to 5 marks]
The answer is limited and general, with a lack of focus and detail.
[1 to 2 marks]
182. No mark scheme available
183. Jaguar’s introduction of lean production and JIT has meant that the culture of the business has
had to be adjusted to one, which requires delegation and empowerment. Jaguar has implemented
workshops for managers and employees to promote participation. Training of the workforce is
substantial to support continuous improvement. The focus is on individuals working in
self-contained groups identifying a need for change and driving it through. These centres of
excellence have led to increases in productivity, pride and commitment.
In terms of motivation theory, Jaguar is allowing their workforce access to higher levels of
needs in Maslow’s hierarchy of needs, such as social and esteem needs. Leadership approaches
have been focused to McGregor’s theory Y approaches, allowing participation. Mayo showed at
Hawthorne that motivation increases as employees feel more valued and involved. Other
motivation theories are relevant. Vroom said that if employees believe they can achieve the
rewards on offer, they will be more motivated. It appears that Jaguar is setting up systems that
provide appropriate expectations. The ability to work in teams also sets up the opportunity for
group benefits and motivation.
64
There is a detailed analysis of how Jaguar has managed to increase the pride and commitment of
its employees. Appropriate motivational theory is used to support the analysis and examples
used from the stimulus materials.
[5 to 6 marks]
There is some analysis of how Jaguar has managed to increase the pride and commitment of its
employees. Some motivational theory is used to support the analysis, although specific theorists
may not be named.
[3 to 4 marks]
There is a very limited analysis of the factors improving commitment. No motivation theory may
be attempted, but generalized statements are made.
[1 to 2 marks]
184. A total quality culture is where managers ensure that all activities are planned to meet customer
requirements with quality as the core focus. Quality is the responsibility of every employee not
just the traditional quality control department. Every employee is empowered to take action if
quality is unacceptable. The objective is zero defects and all procedures should be monitored to
ensure they meet set standards. Employees work in teams to share skills and ideas. They should
regard all the people they work for and deal with as customers, even if they work for the same
organization. The object of a total quality approach is to provide a competitive edge.
How can this be achieved? Possible methods
• benchmarking
• statistical process control techniques
• quality assurance procedures and performance targets
• continuous improvement/Kaizen
• prevention rather than cure – aim for zero defects
• quality circles/Kaizen groups
• total quality management (TQM)
• training
• empowerment
• appropriate mission statement and policy statements
• audits
• participation in decision making
• flat organizational hierarchy/re-engineering
• group work
• identifying consumer needs
• top management support and guidance
• commitment of the whole workforce
• seeking quality standards
• investment in people
• cell production.
Kaizen should not be perceived as a fix-all. Some commentators believe it is a fad. There are
considerable expenses involved in training the workforce to be able to take the necessary
responsibility and to maintain the process. A potential problem may be increased bureaucracy.
This is an ongoing process and must be maintained through appropriate recruitment and training.
Some say that the diminishing returns operate with Kaizen approaches. It may be necessary at
times to look at underlying principles rather than just incremental improvements. Total
re-engineering may be a more radical approach.
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Stakeholders must also support the process so that short-term demands, for example, for higher
dividends, do not risk quality gains.
A total quality culture is accurately described and methods for introducing and maintaining a
quality focus in large organizations evaluated with reference to large firms and business
processes such as Kaizen. Some judgments are made.
[6 to 8 marks]
A total quality culture is described in general terms and methods for introducing and maintaining
a quality focus in large organizations are examined with reference to large firms and business
processes such as Kaizen.
[3 to 5 marks]
A brief, generalized and descriptive answer, which may show limited understanding of the
concept of total quality culture.
[1 to 2 marks]
185. Strategies for improving communication may include:
• use management by objectives – this would make objectives clearer and perhaps enable
clearer communication
• set up further formal communication systems – regular meetings of project teams or related
groups and closer line management reporting methods
• limit information dissemination – make information available only to those who need it
through technology. Helps avoid information overload
• further empowerment of project teams – this may help ensure teams take responsibility for all
their activities
• develop a taller hierarchy with a smaller span of control to try to make responsibilities and
information flows clearer
• training may help raise awareness of communication systems
• team-building activities
• any other relevant point.
A detailed and balanced evaluation of three appropriate strategies. The answer is related to the
situation of Gadgets2u.com and includes appropriate theories and/or concepts.
[7 to 9 marks]
A reasonable consideration of three generally appropriate strategies/or detailed evaluation of
two, though this may not be entirely balanced in coverage, and may tend to be more descriptive
at the lower end of the range. The evaluation is generally related to Gadgets2u.com with some
reference to subject theories or concepts where appropriate.
[4 to 6 marks]
An essentially descriptive answer with limited explanation of appropriate strategies or perhaps
just a list of strategies.
[1 to 3 marks]
186. A taller hierarchy and lower span of control may have some advantages for the firm, but it may
also result in a number of problems including:
• higher costs of supervision of staff and therefore higher indirect costs. However, this may
also make it easier for new staff induction as the firm expands, as they will be more closely
supervised.
66
• there is likely to be less opportunity for delegation and the ultimate empowerment of
employees.
• those at the top can keep a tight control over employees, but this may cause some resentment
among employees who are used to taking responsibility for themselves.
• a distance can become apparent between those at the top and bottom of the organization –
again, this may cause some resentment and lack of motivation given the current flat structure.
• a narrow span might encourage greater communication between layers of the management
structure, but might also increase the costs associated with communication.
• training opportunities and personnel development can be more easily managed and attached
to promotional opportunities, but this may be counteracted by employees having less direct
responsibility.
• any other relevant point.
A detailed outline of a number of problems relating to implementing the change in
organizational structure. The answer refers closely to the case study where relevant and uses
subject concepts and theories extensively and appropriately.
[5 to 7 marks]
An outline of some of the problems of changing the organizational structure. The answer refers
generally to the case study and there is some reference to subject concepts and theories, though
this may be limited at the bottom end of the range.
[3 to 4 marks]
Some problems relating to a change in organizational structure are raised but these may be very
limited or perhaps listed. There is little or no reference to the case study material.
[1 to 2 marks]
187. No mark scheme available
188. Factors that could influence the leadership style of Dr Hugo Lorenzo include
• importance/urgency of the decision (e.g. Hugo felt that decisions were urgent and important
so imposed his ideas)
• character/ability of the leader (e.g. that may just be the way he is used to operating and he
may believe he knows best). He wants to maintain control and power
• Hugo may have come from an autocratic culture
• ability/expectations of the subordinates (Hugo may believe that this is how subordinates
expect to be treated)
• nature of the market (a creative, dynamic market is more likely to need a more “laissez faire”
style). Stable markets may suit autocratic leaders.
A detailed explanation of three factors that could influence the style of leadership adopted by
Hugo.
[5 to 6 marks]
A reasonable explanation of up to three factors; some explanation may lack depth, or less than
three factors have been explained in detail.
[3 to 4 marks]
A general and descriptive response with little or no reference to BN.
[1 to 2 marks]
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189. Herzberg’s theory suggested that there are two factors affecting motivation: hygiene and
motivators.
Hygiene
Motivators
(Those factors that do not give positive
satisfaction but their absence will cause
dissatisfaction)
(Those factors that give positive
satisfaction)
policy and administration
(top-down communication)
achievement
(failed to recognize)
supervision
(cover rule decisions)
recognition
(stifled creativity)
work conditions
(beaucratic/hierarchical)
work itself
relationship with peers
(formal meetings)
responsibility
personal life
advancement
relationship with subordinates
(autocratic)
growth
status
(overruled decisions)
security
Dr Hugo Lorenzo seems to have neglected hygiene factors (and this results in dissatisfaction)
and harmed motivators (resulting in low motivation).
An understanding of Herzberg’s theory and an explanation of the dissatisfaction at BN.
[3 to 4 marks]
A general and limited response in terms of theory and explanation.
[1 to 2 marks]
190. (i)
Causes of communication failure at BN include
• poor media (e-mail is static)
• poor direction (one way/top down)
• formal (discourages open/honest discussion)
• lack of interest in the message (e.g. because of emotional state of recipient)
• hierarchy (increases status differentials)
• distance (global conglomerate)
Award [1 mark] for each explained cause of communication failure up to a maximum of
[3 marks].
[1 to 3 marks]
(ii)
Alternative solutions include:
ideas to address each of the above – these can be categorized in terms of skills
(e.g. patience/understanding) or systems (e.g. ensuring feedback and reducing status
differentials)
N.B. An evaluation of solutions means that the answer should judge the likely success of
each solution and/or recommend which is likely to work (and why).
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Evaluate three alternative solutions to communication failure at BN.
The answer may lack detail at the lower end of the band.
[5 to 7 marks]
Explains up to three solutions, but does not judge their likely success.
[3 to 4 marks]
A limited and general response.
[1 to 2 marks]
191. Some aspects of the business, such as recruitment and accounting, are sub-contracted. Five
employees work from home. Gadgets2u.com is presently organized as a matrix structure with a
project team for each major function.
Advantages
This has provided greater flexibility and a flat hierarchy, which is intended to empower and
motivate employees and to involve them in decision-making. Project leaders report to the senior
management team.
Disadvantages
It is becoming clear that this structure is leading to some communication difficulties with project
teams failing to discuss issues with other project teams. Tom’s leadership style of the purchasing
project team is also rather autocratic. Clearly, the structure needs review, based on a restatement
of objectives. Is flexibility or control the priority?
The suitability of the present organization structure is assessed given the recent rapid growth of
the company. The assessment uses a range of business terminology and examples from the case
study.
[6 to 8 marks]
Some assessment of the present organization structure given the recent rapid growth of the
company. Links to the case study may be limited.
[3 to 5 marks]
A limited and/or descriptive answer.
[1 to 2 marks]
192. Tom is questioning whether the five members of staff who work from home should continue to
do so. He is suggesting that they might be encouraged to move into the office. Clearly for Tom
the central issue may be one of control and coordination. Some of these staff members live up to
150 km. from the main office. The immediate effect of such a change may be that these people
choose to leave the firm. This could be costly if they are very experienced. Recruitment and
training of new staff is not cheap. Working from home provides flexibility, and allows work to
be fitted in around other responsibilities such as childcare. The employee may feel more
empowered and as a consequence may be more motivated and productive, leading to greater job
satisfaction.
In terms of motivation theory, homeworking, which provides greater empowerment may satisfy
higher order needs in Maslow’s hierarchy.
Research suggests that those working from home, work longer hours than those who travel to an
office and time and money is clearly not wasted in commuting. Given that Gadgets2u.com is an
internet-based operation it seems strange that they would wish to reintroduce more traditional
working arrangements.
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However, it is true that there may be more distractions in the home environment and it is harder
to ensure that an employee is on task. Communication between project teams is already strained
and centralizing staff may improve the situation, allowing improved coordination. New
information and communication technologies, such as teleconferencing, the Internet, mobile
telephones etc, are speeding up communications and should ensure that communication steadily
improves.
It is not clear what the objective of stopping homeworking will be and Tom would need to be
clear on the costs and benefits before such a change took place. It may be possible to outsource
the functions that the homeworkers are undertaking. A rash action is not advisable.
A clear and detailed analysis of the advantages and disadvantages of homeworking, with
coherent, supported advice given to Tom. The advice is in the context of the business needs of
Gadgets2u.com and includes reference to productivity, motivation and job satisfaction.
[6 to 8 marks]
Some analysis of the advantages and/or disadvantages of homeworking. Advice may be given to
Tom, although reference to the specific needs of Gadgets2u.com may be brief or missing.
[3 to 5 marks]
A limited and/or brief answer, which lacks specific advice.
[1 to 2 marks]
70