Business Studies

Business Studies

-Exam Style Questions- (pg 75)

Q1)a: Define ‘piece rate’. [2]

Ans) Piece rate is an amount paid for each unit of output. The more the employees make, the more they get paid.

b) Identify two examples of non-financial benefits Joe could give to his employees [2]

Ans) He could give discounts on the company’s products, health/medical care.

c) Outline two reasons why many employees leave their job at the furniture company. [4]

Ans) Maybe the employees found another job that pays piece-rate. The employees could have found the job boring, so they found a more interesting and productive job of making furniture. Or they might not have felt motivated at work and found another business that makes furniture and makes the employees feel appreciated.

d) Explain two ways Joe can improve the job satisfaction of his employees [6]

Ans) Increase the wage rates, as an increase in pay rate will make the worker feel appreciated, especially if they have been making furniture for Joe for many years.

• Change from time-rate to piece-rate, as the worker will be more motivated to make more furniture as they will get paid more.
• Job enrichment. Such as adding responsibilities to the work so that the job becomes more interesting; carrying out more than one skill in making the furniture.

e) Do you think a wage calculated by piece-rate is a suitable method of payment for all Joe’s employees? Justify your answer. [6]

Ans) In my opinion, if it’s calculated by piece-rate then it may lead to lower quality furniture being made, as workers are only

concerned with quantity and not the quality of the furniture. But on the other hand, Joe needs to reduce the number of workers leaving as this is expensive for the business to keep recruiting new workers. So as long as he uses quality control methods to check the furniture is of good quality then piece-rate is suitable, and it will improve his business. In conclusion, time-rate should be the best suitable method of payment for all of Joe’s employees.

** \n Q2)a: Define “bonus”. [2]**

Ans) A bonus is an additional amount of payment above basic pay as a reward for good work. It can be paid at the end of the year or at intervals during the year.

b) Identify two reasons why people work. [2]

Ans) People work for various reasons such as money, security, job satisfaction, esteem needs, and social needs.

c) Outline two levels in Maslow’s hierarchy of needs experienced by the hotel workers [4]

Ans) Physiological needs: wages paid to kitchen workers need to be high enough to meet weekly bills such as food and shelter. Then rest and recreation also need to be sufficient.

• Safety/security needs as this will give job security and protection against danger and fair treatment for room cleaners.
• Social needs: hotel reception colleagues should be supportive at work and give a sense of belonging to a team and friendship.

d) Explain two benefits to the hotel of having well-motivated employees. [6]

Ans) The workers will feel happier in their jobs and therefore give a better service to customers of the hotel. Hotel guests may tell their friends about the excellent service they received at the hotel and so it will gain a better reputation. Then workers are less likely to leave their jobs if they are well motivated and therefore Sasha will not have to spend time recruiting new staff for the kitchen, restaurant, hotel, reception or housekeeping. Sasha can spend her time doing other work for the hotel to improve the business.

e) Do you think introducing a bonus is the best way to improve the motivation of the employees at the hotel? Justify your answer. [6]

Ans) Well, employees might want their other needs well as identified by Maslow’s theory. So praising them for good customer service or giving them more responsibility in the hotel may make them feel more motivated to work for Sasha. A bonus shouldn’t be the only best way to improve the motivation of the employees at the hotel. There should be other satisfying factors as well such as the work environment, appreciation for their hard work, etc. I think that Sasha should ask employees about their levels of motivation and what would improve their motivation as only increasing their wages might not be effective if they feel their social needs are not being met. So in conclusion, I don’t agree with the statement. A bonus shouldn’t be the only factor which motivates the employees.