Evaluate the possible impact on AC of more flexible employment contracts.

Mark scheme

Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.

1. Knowledge: Meaning of flexible working, short term, zero hours, part-time contracts
2. Knowledge: Using HR to meet the needs of the business
3. Knowledge: Allows a business to operate for more hours
4. Knowledge: Modernisation may mean more automation
5. Knowledge: General impacts on staff leading to impacts on business, e.g. low motivation due to insecurity
6. Application: Unemployment falling will impact labour supply and ability to recruit employees on flexible contracts
7. Application: AC production staff are likely to be unskilled – new machinery may need higher skill level
8. Application: What are labour supply conditions in the area of Factory S?
9. Application: Redundancies already an issue after centralisation – assuming Factory N closes
10. Application: Impact on chocolate powder production
11. Application: Impact on image of AC as an ethical business
12. Analysis: If new machinery requires less skilled workers then recruitment of employees for more flexible working more likely to be possible. (Allow candidate reasoning that higher skilled workers required)
13. Analysis: Impacts on AC as a company, such as de-motivated employees reducing productivity
14. Analysis: Impact on labour costs – likely to decrease thus making AC more competitive
15. Analysis: Flexible contracts may result in higher labour turnover leading to an increase in recruitment costs
16. Analysis: More responsive to changing market conditions
17. Evaluation: Depends on nature of employees required e.g. skilled v. unskilled
18. Evaluation: Depends on the local labour market factors
19. Evaluation: Depends on effectiveness of HR department
20. Evaluation: Long / short term impacts