Discuss strategies for reducing human resource problems in GR's restaurants without increasing unit costs.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2020). The mark or mark type is shown in brackets.

1. [K] Employee performance measured by consideration of factors such as productivity
2. [K] Relevant strategies: Increased pay
3. [K] Relevant strategies: Improve working conditions
4. [K] Relevant strategies: Democratic leadership style
5. [K] Relevant strategies: Investment in capital equipment
6. [APP] Labour turnover is high and has increased by 2% points (20% to 22%)
7. [APP] Increase in labour turnover – 40 employees left in 2018 and 44 in 2019 (10% increase)
8. [APP] Absenteeism will affect service standards in the restaurants
9. [APP] Linking problems to: Autocratic style of managers
10. [APP] Linking problems to: Setting of work rotas
11. [APP] Linking problems to: Zero-hour contracts and unstable working hours
12. [APP] Linking problems to: Lack of empowerment of employees
13. [APP] Linking problems to: Only waiters likely to get benefit of tips
14. [APP] Linking problems to: External appointment of managers of restaurants
15. [APP] Linking problems to: Rigid work practices imposed by Leff
16. [AN] Increased pay provides for more of their 'lower order needs' and may satisfy 'hygiene needs' reducing labour turnover BUT this would raise unit labour costs within restaurants
17. [AN] 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 than equivalent workers.
18. [AN] Introduce policy of pooling tips to increase the reward for kitchen employees.
19. [AN] Better training of managers to improve awareness of equality issues and ensure that company procedures are followed
20. [AN] Consultation with employees may improve outcomes of changes introduced and improve motivation
21. [AN] Recruit managers internally to create a career path for employees, this may reduce labour turnover and increase motivation and productivity
22. [EVAL] Worsening labour turnover needs to be benchmarked against close competitors to give a more meaningful picture.
23. [EVAL] Increasing pay would increase costs unless there was a huge improvement in productivity and pay is not the only factor in determining this.
24. [EVAL] How likely is GR to adopt a 'soft' approach to employees given the attitude of Leff?
25. [EVAL] Supported statement of best approach.
26. [EVAL] Implementing a combination of the methods above may have a greater impact than just one method alone.
27. [EVAL] Consultation may be particularly significant to identify employee views and give ownership of solutions