Section 1: Knowledge & Understanding
Identify two benefits of well motivated workforce. [2 marks]
Distinguish between physiological needs and safety needs. [4 marks]
Explain the difference between intrinsic and extrinsic motivation. [4 marks]
Define the following Terms:
Job enlargement [2 marks]
Job enrichment [2 marks]
Job rotation [2 marks]
Empowerment [2 marks]
Section 2: App (Case Studies)
1. Overseas School (M06S2)
Overseas School was established in Asia in 1973 and by 2003 had established itself as a
prestigious fee paying international school with a reputation for sending its high school
graduates to the best universities.
Teachers were employed on two year contracts, which were renewed if performance was
deemed to be satisfactory by the chairman of the board of governors. In 2004 the chairman,
Tom Jones, decided that the school needed to introduce radical changes to head off the
challenge from new international schools. Tom proposed the following changes:
•
The existing head teacher, who had been employed by the school for 15 years would
be replaced as soon as possible

The appointment of a director of administration who would oversee the non-academic
operations of the school (e.g. catering, transport, cleaning). The director would have
a business(rather than education) background and would receive performance related
pay
•
Existing teachers would take a 30 % pay reduction
•
A major building programme would be initiated to distinguish Overseas School from
its rivals
Members of the union committee would not have their employment contracts renewed
•
•
A rigorous teacher appraisal would be introduced; under-performing teachers would
not have their contracts renewed. Extra money would be given to teachers with
a“good” appraisal

Heads of subject departments would be required to report regularly to the director of
academic studies. Examination results would be monitored closely.
Tom’s proposals were strongly opposed by the teachers and management, but supported by
the parents and students. However, since Tom had complete control over the board of
governors the opposition was largely ignored.
Using Herzberg’s theory of motivation, examine the likely effects on teacher motivation
of Tom Jones’ proposals. [10 marks]
2. Fish Packaging in Reykjavik (M08S2)
The firm Fish Packaging Ltd owns a fish packaging plant in Reykjavik, Iceland, and sells
frozen fish to the domestic market. Workers in the plant are paid $10 per hour to pack fish
into boxes. They are expected to pack approximately 13 kg per hour. When local fishing
boats do not go out fishing, there is nothing to pack. When this happens the workers stay at
home and are still paid $4 per hour. The workers are concerned about a number of issues
including: poor weather has led to local fishing boats fishing less, so workers are staying
home more often an autocratic leadership style a lack of involvement in day-to-day decision
making a shortage of protective clothing insufficient rest breaks during the working day.
Management complains that workers seldom exceed the target of 13 kg per hour and are also
concerned about the possible imposition of fishing quotas by governments. Furthermore, the
fish packaging industry has been badly hit by the competition of Russian factory ships.
Management feels it has to make some changes and is considering the introduction of a piece
rate payment system.
Describe the difference between time rate and piece rate payment systems. [2]
Explain two disadvantages and one advantage of introducing a piece rate payment
system at Fish Packaging Ltd. [6]
Using appropriate motivation theory, evaluate possible changes the management of Fish
Packaging Ltd could introduce to improve the motivation of the work force. [8]