Discuss whether KKS should introduce the new HR Director's proposed changes (lines 63–67).

Mark scheme

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

1. Existing organisation structure offers a degree of autonomy in decision making for employees, with supportive career progression and skills development plus possibility of performance bonuses.
2. Disadvantage is freedom can lead to inefficiency and employees not working hard to meet objectives as lack of supervision
3. Suggestions are to move to more task orientated culture reflected in MBO, increased formality and job focus with more responsibility on supervisors
4. Will more precise targets be as motivating as the current levels of autonomy?
5. Will the increased clarity in objectives and job roles assist employees in efficiency
6. Will involvement in setting targets be as motivating as current arrangements
7. Will employees become more alienated and less involved and committed or v.v.
8. Cost of changing to a new system – training, short term increase in labour turnover
9. The meetings to discuss objectives are time consuming
10. Targets may be set to be easy to achieve or if imposed may be resented
11. Will the proposals lead to more or less flexibility in a changing marketplace?
12. Will all objectives be able to be integrated?
13. Will redundancies lead to less commitment? Or more? Are they inevitable?
14. A supported recommendation
15. Consideration of the need for a change – does the firm actually know that the current arrangements have led to inefficiencies? How responsible are these for the fall in sales/profits? It looks as though something should be done.
16. Most important factor or ranking of importance of factors in the decision
17. Weighing up the impact on the business if proposal implemented
18. Consideration of how much research has been done on possible impact of proposed changes