Using the data in Table 1.1, calculate the average monthly labour productivity for January to May 2025. Using the data in Table 1.1, calculate the percentage of output that failed to meet quality standards for January to May 2025. Evaluate the best approach for WS to improve the performance of its production employees.

Mark scheme

Marking points from the official mark scheme (May/June 2025). The mark or mark type is shown in brackets.

1. [2] (a) Average monthly labour productivity = Total output / Number of employees
2. [1] (a) OR 90 000 / 480
3. [2] (a) 187.5 OR 188
4. [2] (b) Percentage failing to meet quality standards / output × 100
5. [1] (b) OR 15 000 / 90 000 × 100
6. [2] (b) 16.67% OR 16.7% OR 17%
7. [2] (b) Accept 16.66% and 16.6%
8. [K1] (c) Employee performance measured by productivity, absenteeism, labour turnover, accident rates, wastage/product rejection rates.
9. [K1] (c) HRM components: motivation, management styles.
10. [K1] (c) Reference to theories on motivation including: Taylor, Mayo, Herzberg and Maslow.
11. [K1] (c) Possible techniques to improve performance include: Providing better equipment and training.
12. [K1] (c) Possible techniques to improve performance include: Appropriate motivation techniques for employees.
13. [K1] (c) Possible techniques to improve performance include: Realistic informed target setting.
14. [K1] (c) Possible techniques to improve performance include: Bonus payments for production/waste targets.
15. [K1] (c) Possible techniques to improve performance include: Facilitating employee participation in decision making and/or working arrangements.
16. [APP1] (c) Application to WS by making use of relevant case information once (e.g., batch production on assembly lines, information from Table 1.1 showing employee performance measures, increase in number of units failing to meet quality standards, increase in labour turnover, increase in number of accidents, use of bullet points on employee performance, wages 10% more than industry average, complaints about production targets, on-the-job training, limited opportunities for career progression, strict management style).
17. [AN1] (c) Bonuses for achievement of production targets will provide a financial incentive for production employees encouraging them to be more focused on increasing output and therefore increasing productivity.
18. [AN1] (c) Off the job training could make employees feel more valued and increase skills therefore improving motivation and quality of work which will reduce the number of defects and lead to higher output.
19. [AN1] (c) Empowering workers to make more decisions about their working day will reduce the conflict caused by the current strict management style and have a positive impact on motivation therefore resulting in a reduction in labour turnover.
20. [AN1] (c) Possible reasons for decreased performance include: Little training 'expected to learn on job', non-participation in decision making 'follow instructions', complaints about targets.
21. [AN1] (c) Possible reasons for decreased performance include: Limited opportunities for progression.
22. [AN1] (c) Possible reasons for decreased performance include: All measures in Table 1.1 show decreasing performance.
23. [AN1] (c) Possible reasons for decreased performance include: Pay does not seem to be a factor 'paid 10% more than industry average'.
24. [EVAL1] (c) Considered judgement based on argument.
25. [EVAL1] (c) Short term v long term.
26. [EVAL1] (c) Changes in profit ratio in last two years suggest that management strategies are working and indicate that returns to shareholders will continue to increase.
27. [EVAL1] (c) Changes being considered/implemented may increase sales and profits and sales. Directors would need to actively use these increases to pay more dividends.
28. [EVAL1] (c) Effect of these changes is to make more money available for investors BUT will the cost of implementation actually lead to increased profit? Will WS increase dividends? Will the changes increase the share price?
29. [EVAL1] (c) What timescales are the changes going to occupy?
30. [EVAL1] (c) The changes that benefit investors will also be beneficial to WS, its managers and employees, so high probability of them succeeding.