A loss-making state-owned airline has a reputation for poor customer service. Its Human Resource Director suggested that: 'the best way to improve our situation is to pay our employees higher wages and give them an end of year bonus'.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

1. Level 5: Effective evaluation of the statement that, in the context of a loss-making state-owned airline/state-owned business/airline, 'the best way to improve our situation is to pay our employees higher wages and introduce an end of year bonus'. [17-20]
2. Level 4: Limited evaluation and good analysis of the statement that, in the context of a loss-making state-owned airline/state-owned business/airline, 'the best way to improve our situation is to pay our employees higher wages and introduce an end of year bonus'. [15-16]
3. Level 3: Analysis of the statement that, in the context of a loss-making state-owned airline/state-owned business/airline that has a reputation for poor customer service, 'the best way to improve our situation is to pay our employees higher wages and introduce an end of year bonus'. [11-14]
4. Level 2: Application and/or analysis that 'the best way to improve a business is to pay its employees higher wages and introduce an end of year bonus'. [5-10]
5. Level 1: Knowledge and understanding of loss making/state owned/poor customer service/payment methods/possible performance improving methods. [1-4]
6. Level 0: No creditable content. [0]
7. Answers may include:
8. Knowledge and understanding
9. Knowledge and understanding of loss making/state owned/poor customer service/payment methods/possible performance improving methods.
10. Application
11. Reference to business problems and the use of payment methods to solve them.
12. Analysis
13. The following points may be suggested in order to improve a business and/or be related specifically to solve the problem of poor customer service in a state-owned airline.
14. A consideration of non-financial rewards to motivate workers.
15. Reference to potential employee motivation factors including HR focus on remuneration methods.
16. Motivation theories may be used as vehicles to consider the suggestion in the question.
17. A recognition that the statement by the HRM Director is very much in line with the Taylor School of motivation.
18. A reference to the limitations of the Taylor approach.
19. A discussion of other motivation theorists, such as Maslow, Mayo, Herzberg, McClelland and Vroom.
20. Alternative solutions referring to motivational theorists may be suggested.
21. Level 3 Analysis needs to be in the context of a state-owned airline/state-owned business/airline.
22. Evaluation
23. The context is a state-owned airline/state-owned business/airline.
24. and the suggestion is that this poor performance can be explained by its poor customer performance reputation.
25. Discerning answers may challenge the assumption that the problem of this airline is simply a people/motivation problem.
26. There may be more fundamental problems such as under-capitalisation/old aircraft/low technology on board/poor management of front-line staff/poor time keeping.
27. The state-owned ownership issue may also be important in that clear achievable/rewardable objectives may not be set.
28. A nationalised business may be over bureaucratic and there may be a lack of dynamism as compared to a private sector business.
29. Accept any other valid response.