Refer to Table 3. Calculate for 2017:

Mark scheme

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

1. [3] Labour productivity = total output in time period / number employed.
2. [2] Calculation: 96000 / 240.
3. [3] Result: 400 units.
4. [1] If no rewardable calculation.
5. [3] Wastage rate = (number faulty / wasted / number produced) × 100.
6. [2] Calculation: (3000 / 96000) × 100.
7. [3] Result: 3.125%.
8. [1] If no rewardable calculation.
9. Knowledge: Employee performance measured by consideration of factors such as productivity.
10. Knowledge: Relevant strategies: Increased pay.
11. Knowledge: Relevant strategies: Improve working conditions.
12. Knowledge: Relevant strategies: Democratic leadership style.
13. Knowledge: Relevant strategies: Investment in capital equipment.
14. Application: Employee performance measures are worsening.
15. Application: Wages 50% of ADP average.
16. Application: Accidents at factory - lack of safety equipment.
17. Application: High unemployment.
18. Application: Workers made more than other similar workers.
19. Application: Absenteeism has increased 2500 to 2600.
20. Application: Wastage rate has increased was 1.82% in 2016.
21. Analysis: Worsening performance measures need to be benchmarked against other ADP factories and close competitors to give a more meaningful picture.
22. Analysis: Increase pay to average ADP levels to provide for more of their 'lower order needs' and to satisfy 'hygiene needs' BUT this would raise unit labour costs substantially within country Z factories.
23. Analysis: Improve working conditions to avoid accidents, for example. This would help to meet 'security' needs and hygiene needs. Could also provide job security/employment contracts etc.
24. Analysis: Adopt a more consensual/democratic leadership style which allows workers the opportunity to gain job enrichment – these measures might not have to be introduced with an increase in pay because pay may not be a motivator in this country if employees already receive higher pay that equivalent workers.
25. Evaluation: Improving working conditions may not be effective in improving motivation in the long term unless efforts are made to address the 'motivation' factors and these improvements could also add to unit labour costs.
26. Evaluation: Increasing pay would increase costs unless there was a huge improvement in productivity and pay is not the only factor in determining this.
27. Evaluation: How likely is ADP to adopt a 'soft' approach to employees when the company seems determined to take advantage of its 'multinational corporation status'?
28. Evaluation: Already paid more than similar workers and this doesn't appear to have generated high levels of performance.