People in Business Solutions Paper 1

Motivation Solution 💡

Delishjuice is a small business and produces a range of fruit juice made from fruit using batch production. Delishjuice uses specialisation in its factory. The business has grown quickly over the last two years. Delishjuice has increased the number of production workers from 10 to 20 . This has increased the span of control for each manager. It has been difficult for Delishjuice to keep workers motivated.

The Human Resources Manager has to decide whether it is better to use job rotation or financial bonuses to improve employee motivation.

Do you think using job rotation is a better way for a manufacturing business to motivate employees  rather than financial bonuses? Justify your answer

Yes, because it will prevent workers becoming bored doing the same task repeatedly, which could increase output.

No, because they need to provide training to the 80 employees which increases cost.

Job rotation is better, as it will also give a manufacturing business more flexibility, as workers will be able to do more than one job so can move to where they are needed on the production line. Bonuses will also cost more and not give the flexibility of job rotation.

Organisation and Management Solution 💡

LUV sells luxury chocolates. Last year sales in LUV’s 200 shops increased but profit fell by 70% to $4m. LUV’s Human Resources Director said: ‘All retailers are

finding this stage of the business cycle challenging. LUV has to reorganise the business. This will mean redundancy for 1800 shop workers. LUV plans to create 100 new jobs in the marketing department at head office to help maintain customer loyalty. The company is working with trade unions to carry out these changes.’

Identify and explain two ways a trade union could help LUV’s employees.

Way 1:                Gives strength in numbers

Explanation:      When dealing with the head office over the redundancies

Way 2:                Can negotiate better working conditions

Explanation:      For the workers in LUV’s 200 shops

Recruitment Selection and Training Solution 💡

FCA is a large business and uses batch production to make instant coffee. The products are sold using several distribution channels. FCA employs 700 production workers. FCA has problems with many employees leaving.

Following the dismissal of the Operations Manager, the Human Resources Director has to recruit a new manager. She said: ‘The person must have good communication skills

to help solve the communication barriers FCA has with employees.’

The Human Resources Director has to decide whether to use internal recruitment or external recruitment for the new manager.

Do you think external recruitment is a better way for a large business to find a new Operations Manager  than internal recruitment? Justify your answer.

External recruitment might be more expensive, which will increase costs.

However, the business might have no choice, as there may not be suitable internal applicants. External recruitment means a wider choice of applicants.

Although a higher cost, using external recruitment would be better as it will cause the appointment of a manager whose cost savings will soon outweigh the cost of external recruitment, especially in a large business where there is much more opportunity for cost savings.

Communication Solution 💡

FCA uses batch production to make instant coffee. The products are sold using severaldistribution channels. FCA employs 600 production workers. FCA has problems with many employees leaving. Following the dismissal of the Operations Manager, the Human Resources Director has to recruit a new manager. She said: ‘The person must have good communication skills to help solve the communication barriers FCA has with employees.’.

d) Explain how each of the following could cause communication barriers within HSN.

Language:                         Use of technical terms

when using batch production so employees may not understand the message.

Medium of Communication: The wrong channel may be used

so all the 600 employees may not access the message if they send a message by email as not all workers have access to a computer.

People in Business Quizzes