Evaluate how PV should respond to the threat of employees leaving the business (lines 65–71).

Mark scheme

Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.

1. Note to examiners: Answer should focus on the threat of leaving, not general points re: motivation, leadership or other HRM issues. (but these may be relevant if linked).
2. Answers could include:
3. Reasons for leaving may include:
4. Only average wages paid and little chance for additional earnings cf. to other similar businesses
5. Job tasks very specific, possible boredom and lack of wider training
6. Poor promotion opportunities cf. to elsewhere
7. Autocratic decision making and lack of participation
8. BUT
9. Caring attitude and currently average wages
10. Little uncertainty in job tasks means stability and limited responsibility
11. Possible changes about to happen and their impact on employees include:
12. Greater delegation with quality assurance not control
13. New machines and potential for change in production methods leading to greater involvement / change
14. Lower costs may enable higher wages
15. Possible new designer shoe production requiring more skills
16. Possible actions PV might take
17. Research into employee attitudes to importance of factors influencing decision to leave and satisfaction at work.
18. Can PV afford to increase payments to employees in higher wages or bonuses?
19. May depend on successful marketing / production changes
20. Can promotion opportunities be provided?
21. Factors in the labour market may include:
22. Ease and cost of finding replacement employees
23. Skill levels in labour market
24. Application
25. Payment is average basic wage, opportunities in other local firms, current low labour turnover, supportive senior manager
26. 117 employees
27. Evaluation
28. Discussion of factors should enable evaluative comments re: e.g.
29. Most important factor or ranking of importance of factors
30. Weighing up the impact of factors on the business if employees leave or not
31. Relating factors and any decision to overall / functional area objectives and plans
32. Supported recommendation of actions PV might take
33. A degree of labour turnover can be good thing