Edexcel IGCSEBusiness StudiesGeneral Applications13 Marks

Read Figure 3.

(a)Explain one benefit to 'Tech Solutions' of using a democratic leadership style.[2]
(b)Explain one benefit to 'Tech Solutions' of investing heavily in research and development (R&D).[2]
(c)Analyse one reason why 'Tech Solutions' may find employee retention a key challenge.[3]
(d)Evaluate whether training and career progression opportunities are the most effective ways for 'Tech Solutions' to motivate its employees.[6]

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Mark scheme

Marking points from the official mark scheme. The mark or mark type is shown in brackets.

**Question 20(a):**
Award 1 mark for identification of a benefit (e.g. increased employee motivation/engagement, better decision making, fosters creativity/innovation, improved employee retention). (B1)
Award 1 mark for linked explanation of the benefit, contextualised to 'Tech Solutions'. (B1)
e.g. A democratic leadership style at 'Tech Solutions' encourages employees to contribute ideas (B1) which can lead to better solutions for their innovative mobile applications and cloud-based software, improving product quality (B1).
**Question 20(b):**
Award 1 mark for identification of a benefit (e.g. develops innovative products, gains competitive advantage, enters new markets, improves existing products, strengthens brand reputation). (B1)
Award 1 mark for linked explanation of the benefit, contextualised to 'Tech Solutions'. (B1)
e.g. Investing heavily in R&D allows 'Tech Solutions' to develop innovative mobile applications and cloud-based software (B1) which is crucial to stay ahead in their highly competitive and fast-changing market (B1).
**Question 20(c):**
Award 1 mark for identification of a reason (e.g. highly skilled staff are in demand, competitive market for talent, employees seek better remuneration/opportunities, work pressure/burnout). (B1)
Award 1 mark for linked explanation of the reason, contextualised to 'Tech Solutions'. (B1)
Award 1 mark for analysis of the reason. (B1)
e.g. 'Tech Solutions' employs 200 highly skilled software engineers (B1) who are in high demand in the Silicon Valley area (B1). This means competitors will actively try to poach them, offering better packages, which makes it difficult for 'Tech Solutions' to keep their valuable employees, potentially leading to increased recruitment costs and loss of expertise (B1).
**Question 20(d):**
• Knowledge 2, Application 2, Analysis 2, Evaluation 2
• Award up to 2 marks for knowledge of motivation theories/methods (e.g. defines training, career progression, identifies other motivators like remuneration, Maslow/Herzberg). (K)
• Award up to 2 marks for application to 'Tech Solutions' (e.g. relates to highly skilled engineers, innovative culture, competitive market, employee retention challenge, existing remuneration packages). (App)
• Award up to 2 marks for analysis of the effectiveness of training/career progression (e.g. improves skills, increases job satisfaction, leads to promotion, aligns with democratic culture, meets higher-level needs). (An)
• Award up to 2 marks for evaluation of whether they are *most* effective (e.g. compares to other methods like remuneration, considers needs of highly skilled staff, short-term vs long-term, cost-effectiveness, cultural fit, role of other motivators mentioned). (Ev)
Maximum of 4 marks if no evaluation. Balanced argument required for top marks.