Analyse the benefits to a business of motivating its employees.

Mark scheme

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

1. [8] (a) Level 4 (7-8 marks): Good analysis of the benefits to a business of motivating its employees.
2. [8] (a) Level 3 (5-6 marks): Some analysis of the benefits to a business of motivating its employees.
3. [8] (a) Level 2 (3-4 marks): Some application of the benefits to a business of motivating its employees.
4. [8] (a) Level 1 (1-2 marks): Knowledge and understanding of motivation of employees.
5. [8] (a) Content for K&U, Application & Analysis: Clear understanding of motivation. Clear understanding of employees. Reference to the benefits to a business of motivating its employees. Analysis: Motivation of employees is achieved by the use of methods / factors that stimulate employees to take actions which lead to achieving business objectives. Benefits to a business of motivating its employees include: Low labour turnover – motivated employees are happier and more committed to the business therefore less likely to leave. Reduces recruitment and training costs. Low absenteeism/lateness – motivated employees are less likely to suffer from illness and so have better attendance and punctuality at work. Increases productivity. High productivity – motivated employees want to work quickly and effectively to achieve objectives and targets. Less waste – motivated employees care more about the cost to the business and concentrate more on getting things right first time. Responsible employees – motivated employees will enjoy working for the company and be prepared to accept more responsibility. Involved employees – motivated employees will feel part of a team and will be able to make suggestions for the improvement of the business. Focused employees – who work hard to achieve personal goals, e.g. self-actualisation, which the business also benefits from. Less accidents – motivated employees take greater care at work and concentrate more. Easier to manage – motivated employees respond well and promptly to direction by managers. Less disruption and disputes – employees are less likely to challenge and disagree with instructions so there are less disputes. Accept any other valid response.
6. [12] (b) Level 4 (9-12 marks): Effective evaluation of whether a salary is the best payment method for motivating employees of a shoe retailer.
7. [12] (b) Level 3 (7-8 marks): Limited evaluation of whether a salary is the best payment method for motivating employees of a (shoe) retailer.
8. [12] (b) Level 2 (3-6 marks): Application and analysis of whether a salary is the best payment method for an employee.
9. [12] (b) Level 1 (1-2 marks): Knowledge and understanding of salary / payment method / motivation / employees / retailer.
10. [12] (b) Content for K&U, Application, Analysis & Evaluation: Clear understanding of salary. Clear understanding of payment method. Clear understanding of motivation. Clear understanding of employees. Clear understanding of retailer. Reference to whether a salary is the best payment method for an employee. Analysis: Salary is an annual income that is usually paid on a monthly basis. Common form of payment for professional, supervisory and management staff. Salary fixed each year, not dependent on number of hours worked (time rate) or number of units sold (piece rate). Given in recognition that hours and workload may vary during the year and the employee is responsible for working to achieve targets regardless of time taken. A salary may not provide an incentive for a shop assistant to sell more or provide good customer service. Shop assistant could be on time rate as likely to work set hours per week. If called in extra, would get extra pay per hours worked. Good incentive to do more hours but may not work any harder. Possibility of using other financial reward systems eg bonus, performance related pay, profit sharing. Commission (percentage of sales value) would reward the assistants selling more shoes. Assistants may not want to serve children due to lower sales value. Evaluation: The context is a shoe retailer. This could be shown by types of shoes sold, specific shoe retailers. Retailer could be shown by the use of relevant employee roles ie shop assistant, sales supervisor, customer service. Recognition that a shoe retailer, like other retailers may have different types of employees such as full time, part-time, temporary, contract employees. Employees may also have different levels of responsibility. Salary payment may be appropriate / the best way of payment to motivate only a minority of employees in this business. Are there more important ways of motivating staff in this type of business than various methods of financial rewards? For example, non-financial incentives alongside a perceived 'fair' and / or 'generous' payment system. Reference may well be made here and throughout the essay to appropriate motivation theorists such as Maslow, Herzberg, Mayo, McClelland and Vroom. Accept any other valid response.