Evaluate the likely impact on AP of the introduction of the new employment legislation (lines 58–62).

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2022). The mark or mark type is shown in brackets.

1. [K] General points about labour legislation.
2. [K] Trade union and collective bargaining.
3. [K] Hard and soft HRM.
4. [K] Temporary contracts.
5. [K] Authoritarian management style.
6. [K] Factors affecting motivation.
7. [App] Existing organisational structure is hierarchical with functional departments.
8. [App] Strict guidelines for managers, centralised decision making (hard HRM).
9. [App] AP's low costs, loss of ineffective employees, reputation for high quality products.
10. [App] The impending introduction of three areas of legislation – allowing TUs, asking business to demonstrate cooperation between management and workforce and implement a policy for diversity and equality.
11. [App] Use of the six points the HR manager has noted: Employees refusal to work overtime.
12. [App] Use of the six points the HR manager has noted: Legal challenges to holiday and sick pay terms and conditions.
13. [App] Use of the six points the HR manager has noted: 28 unfair dismissal appeals.
14. [App] Use of the six points the HR manager has noted: Complaints about authoritarian managers who never listen to employees.
15. [App] Use of the six points the HR manager has noted: 40% increase in temporary employment contracts.
16. [App] Use of the six points the HR manager has noted: Many female employees leaving due to low pay and lack of promotion opportunities.
17. [App] Planned merger with SC with its more decentralised structure.
18. [An] Linking likely effect of the new legislation to any of the points noted by the HR manager and the consequential impact on AP.
19. [An] Change will require time and training and this may increase costs.
20. [An] May need managers to operate a softer HRM approach which may require training, taking time.
21. [An] Existing difficulties indicate time for change to move into in line with the new laws.
22. [An] Managers and directors have to plan for change while continuing work which will add to workload and may cause demotivation and affect efficiency.
23. [An] Management/employee relations will change and this may increase motivation which may increase productivity.
24. [An] If merger with SC goes ahead the new organisation is likely to be more in line with new legislation.
25. [Eval] Judgement regarding possible extent of changes needed for compliance.
26. [Eval] Some managers unable to change to a softer HRM approach.
27. [Eval] Employees and managers will have to change attitudes.
28. [Eval] No guarantee that beneficial effects will happen.
29. [Eval] Change management will be vital for successful implementation.
30. [Eval] If SC merger goes ahead the expertise and experience from SC will more easily enable meeting new legislation requirements.
31. [Eval] If the SC merger goes ahead, will SC staff leave/redundancies be made from either firm, which could impact meeting new legislation requirements, at least in the short term.