People in Organisations Solutions Paper 2

Management and Managers 💡

(d) Recommend which of Mintzberg’s management roles is likely to be the most important for the new Managing Director of NT. Justify your recommendation. [11]

The new MD needs to be a figurehead.  Santiago was a good figurehead because he was well-liked for over 50 years. A good figurehead will have the trust and loyalty of the workforce.  This will result in improving the morale of the demotivated workforce.

He also needs to be an entrepreneur, to diversify as demand is falling.  This means he will find new ways to boost demand, increase profits/ revenue and generate further capital to move into other markets.

The entrepreneur role is the most important. Without new ideas, the business will not have enough demand and this is the most immediate concern for NT.  However, this depends upon the MD being able to have some interpersonal skills.

Other Acceptable Answers:






Disturbance Handler.

Resource Allocator.


Emotional Intelligence/Emotional Quotient (EQ) 💡

(c) Analyse two ways in which emotional intelligence may help Isabel be an effective leader. [8]

Social awareness.  As Isabel has an understanding of her workers and their concerns. Workers may feel insecure as a result of the proposed expansion. So Isabel will understand this and be able to communicate her plans with her employees and ensure they don’t become demotivated as a result of the expansion.

Self-awareness. Isabel feels the management functions may be too much for one person. She can recognise that she will need help going forward rather than doing everything herself. This means that her business can continue to operate smoothly throughout the expansion as good leaders get support when they need it.

Other Acceptable Answers:

Knowledge – Emotional Intelligence (EI)
• recognising and managing your emotions and those of others.
• Goleman’s other two competencies of emotional intelligence:
− self-management,
− social awareness

Recruitment and Selection 💡

b (i) Refer to Table 1.1. Calculate the rate of labour turnover for department A in 2020. [3]

Other Acceptable Answers:

16.1 or 16.11

b (ii) Explain one disadvantage for RHZ of having high labour turnover. [3]

Increased recruitment costs.

RHZ will have to employ workers to replace those employees that leave, which will add to costs for advertising, selection and training the new employees.

As RHZ requires highly skilled employees these employees maybe difficult to find and push recruitment costs even higher.

Other Acceptable Answers:

Increased training costs
Organisation is less productive if there aren’t enough experienced and trained staff. 
 • Damages reputation 
 • Demotivating for existing employees to see employees leave

Application ideas
Highest labour turnover in customer service department
Less nurses and doctors recruited
May not be able to meet recruitment demand for healthcare workers

Staff Morale and Welfare 💡

 (d) Discuss the likely impact on the morale and welfare of HC’s employees if the Retro Cycle is produced using mass customisation [11]

Morale is the general outlook and feelings of a workforce. It may be negatively impacted by the switch to mass customization as workers often fear change. Their high skills levels will no longer be required by employees and production will rely on machines. So workers may feel less valued and feel less satisfied in their work,  which may lead to higher labour turnover lower productivity and more disagreements between workers and management. 

However, morale may be increased by the employees’ pride in seeing the success of the retro cycle.  As HC is a small business but growing rapidly employees may feel they are an important part of the business growth and feel higher status.

This may increase motivation and allow worker buy in for the change to mass customization leading to continued positive relationships with directors.

Changing to mass customisation will have a negative effect on morale. It is a significant change for HC and undoubtedly workers will feel insecure at least in the short term. However, if leaders maintain good relationships with employees by communicating clearly and emphasise the benefits of the shift to mass customisation for future job security the morale will rise in the long term.

Other Acceptable Answers:

Payment system might change
Loyalty to company (5 years or more)

Impact on morale
• Higher absenteeism
Higher labour turnover
• Lower quality of work
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