Refer to Table 1. Calculate the difference in labour turnover between 2017 and 2018.

Mark scheme

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

1. [4(a) 1] Labour turnover = Number of employees leaving over period/Average number of employees during period × 100 (1 mark if no relevant calculation)
2. [4(a) 1] Labour turnover 2018 = 165/1300 × 100 = 12.69(%) Allow appropriate rounding
3. [4(a) 1] Labour turnover 2019 = 250/1500 × 100 = 16.67(%) Allow appropriate rounding
4. [4(a) Answer] Change in labour turnover = 4% (points) (increase of 31.5%) (4)
5. [4(a) Answer] Within range of 3.9% – 4% (4)
6. [4(a) Answer] Within range of: 3.9–4 or 31.5 (3)
7. [4(a) Instruction] OFR applies
8. [4(b) Knowledge] Definition of human resource management: the strategic approach to the effective management of an organisation's workers so that they help the business gain a competitive advantage.
9. [4(b) Knowledge] Understanding of role of HRM
10. [4(b) Knowledge] Need for workforce planning
11. [4(b) Knowledge] Motivation of employees
12. [4(b) Knowledge] Importance of cooperation between management and the workforce to success
13. [4(b) Knowledge] Recruitment, selection and training
14. [4(b) Application] High labour turnover of 16.7% is a problem for AEV operations
15. [4(b) Application] High union density
16. [4(b) Application] Workforce planning to recruit 2000 workers with appropriate skills
17. [4(b) Application] Need to double output per employee to meet target
18. [4(b) Application] Reference to issues of employee dissatisfaction
19. [4(b) Application] Long hours
20. [4(b) Application] Compulsory overtime
21. [4(b) Application] Unrealistic production targets?
22. [4(b) Application] Employee health and safety
23. [4(b) Application] Quality problems may be linked to employee dissatisfaction
24. [4(b) Analysis] If labour turnover continues to increase this will impact AEV's ability to meet the growing demand for vehicles. Delays in delivery of vehicles will impact reputation and future sales as customers will go elsewhere
25. [4(b) Analysis] Quality problems will also harm sales in the long term. Employee concerns need to be addressed to improve product
26. [4(b) Analysis] Determination of employment contracts in order to control costs
27. [4(b) Evaluation] Justification of most important issue
28. [4(b) Evaluation] Success of expanded CellX depends crucially on employees. HRM is critical in terms of planning and execution of the expansion
29. [4(b) Evaluation] There are other factors that will also determine success, e.g. supplies of raw materials from country C for the batteries
30. [4(b) Evaluation] Depends on availability of finance