Evaluate the impact of SCC's HRM decisions on the future success of the business.

Mark scheme

Marking points from the official mark scheme (May/June 2024). The mark or mark type is shown in brackets.

1. [K] Role of HRM, in terms of managing employees to meet the business needs.
2. [K] The differences between soft and hard HRM.
3. [K] Relevant knowledge of the meaning of success, e.g. profit, growth, productivity, sustainability.
4. [K] Generic knowledge approaches such as target setting, training, promotion and links to motivation.
5. [K] Generic knowledge around approaches that may be suitable for different types of workers.
6. [APP] Employees at SCC vary, with some lower and some higher skilled, depending on whether they are sewing fast fashion, or designing and making bespoke items.
7. [APP] The HRM approach seems to have elements of both hard (targets) and soft (training and refreshments) HRM.
8. [APP] Many clothing manufacturers means high demand for all types of clothing workers, but especially those with higher level skills.
9. [APP] Working conditions and pay seem to be above average, but still hard work in hot temperatures.
10. [APP] Decisions such as providing meals and drinks, training and promotion opportunities do suggest a soft approach.
11. [APP] Sunil wants to expand SCC, forecasting 10% sales increase.
12. [AN] Development of application points, in terms of the likely impact of HRM approaches.
13. [AN] Chains of reasoning explaining why the approaches may work for SCC. For instance, target setting enables Sunil to judge employees' performance, potentially even give out productivity bonuses, improving efficiency, lowering average cost and increasing profit.
14. [AN] Chains of reasoning explaining why the strategy may not work. For instance, target setting when employees are all working on different items may be difficult, could even lead to poor quality work and demotivation, decreasing productivity.
15. [AN] Links with staff retention, especially in a competitive labour market. If it costs a little more, perhaps in the provision of refreshments, then staff turnover will be lower, leading to less recruitment costs.
16. [AN] Links with Sunil's objective to expand SCC, will need to retain and recruit employees with the right skills. Soft HRM approach may make this easier.
17. [AN] Especially with reference to bespoke items, the SCC designers will be an important part of SCC's USP, and Sunil cannot afford for these people and their design skills to be poached by other clothing companies, he will therefore need to pay above the market wages, potentially increasing costs and decreasing profit margins if prices cannot be increased.
18. [EVAL] Impacts of the HRM approaches will depend on the nature of employees.
19. [EVAL] A judgement as to whether Sunil's approaches are 'mainly hard' or 'mainly soft' and the long-term impact of this on the recruitment and retention of employees.
20. [EVAL] The importance of using the appropriate approaches of HRM with different employees, but how possible may this be?
21. [EVAL] How affordable may some of the soft approaches be if there is a price war in the market for mass-produced clothing?
22. [EVAL] Supported conclusion as to whether the mix of approaches is likely to help SCC succeed in the long term, for instance in terms of profit, growth, sustainability.
23. [EVAL] Other factors that may be as or more important to SCC's success, such as finance for the proposed new factory.
24. [EVAL] Accept all valid responses.