'The success of any manufacturing business will depend on the productivity of its workforce.' Discuss the extent to which you agree with this view.
- Discuss the extent to which you agree with this view.[20]
Mark scheme
Marking points from the official mark scheme (May/June 2021). The mark or mark type is shown in brackets.
- [1] Clear understanding of manufacturing business
- [1] Clear understanding of productivity
- [1] Clear understanding of workforce
- [1] Reference to the success of a (manufacturing) business
- [1] Reference to the role of the workforce
- [1] Productivity - a measure of the efficiency of the workforce, measured by output per worker per time period.
- [1] The workforce needs, of course, to be motivated and/or incentivised to be productive.
- [1] The success of the manufacturing sector relies on the production of components or finished products by its workforce.
- [1] If productivity increases, assuming labour costs are unchanged then labour cost per unit falls.
- [1] Improved productivity and lower costs therefore, a business can either enjoy higher profit or can possibly reduce price and increase demand/sales.
- [1] Increased profit can allow further investment in the business which can lead to more improvements to working practices/methods or quality of the product made.
- [1] Any business relies on its workforce do work to a high standard (either of quality or speed) if objectives are to be met.
- [1] A candidate should make a judgement as to the extent that the success of any manufacturing business will depend on the productivity of its workforce.
- [1] These judgements may be made at any point as well as in a concluding section.
- [1] The context is a manufacturing business.
- [1] Can depend on what the business manufactures; high value items lower price might give the impression of lower quality.
- [1] Increased investment from profits is likely to lead to more success in this case.
- [1] Is worker productivity the only or most important factor determining success?
- [1] Other factors such as level of capital investment or quality of product or general management quality may be more critical.
- [1] However, a lot depends on the product involved and whether a manufacturer is labour or capital-intensive.
- [1] If employees are encouraged to produce more items, quality might suffer, and the success of the business might be damaged due to poor quality items.
- [1] Alternatively, high rates of production might lead to more wastage and therefore increase the unit costs.
- [1] The quality of the output is as important, if not more important, than the actual number produced.
- [1] Business success can depend heavily on the reputation the business has with its customers.
- [1] Accept any other valid response.
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