Genel manufactures clothes. The company uses an autocratic style of management. It employs a large number of workers and pays low wages. Many employees leave the company each year but they are easily replaced. Working conditions in the factories are poor. Health and safety is ignored and long hours are worked. Employee motivation is low and employee productivity is falling.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2014). The mark or mark type is shown in brackets.

1. [2] Clear understanding e.g. an autocratic style implies that all decisions are made by the management [1] without consultation and discussion [+1] OR workers have no say in decision making [2].
2. [1] Some understanding [1] e.g. a manager who tells others what todo.
3. [2] Application [2 × 1] award 1 mark per reason.
4. Reasons might include:
5. Legislation incurs costs / they don't have to spend money
6. Management doesn't care about employee welfare
7. Laws not enforced
8. Cheaper to pay fines
9. To increase production
10. Workers can be easily replaced
11. Some countries do not have laws for health and safety.
12. [4] Knowledge [2 × 1] – award 1 mark for each relevant way.
13. [4] Application [2 × 1] – award 1 mark for each relevant explanation in context (show why these points matter to this type of business).
14. Points might include:
15. More output [k] so able to meet demand for its clothes [app]
16. Workers work harder [k] which leads to an increase in productivity [app]
17. Lower wage costs [k] as might not need to employ as many workers [app]
18. More flexible [k] as workers will be able to respond to changing tastes [app]
19. Lower levels of absenteeism [k]
20. Lower training / recruitment costs [k] because of lower levels of staff turnover[app]
21. Loyal staff [k] which will reduce staff turnover
22. Less mistakes [k] so better quality clothes made [app]
23. Improved image / better reputation [k].
24. [6] Knowledge [2 × 1] – award 1 mark for each reason identified.
25. [6] Application [2 × 1] - award 1 mark if relevant reference made to this business/manufacturer.
26. [6] Analysis [2 × 1] - award 1 mark for each relevant explanation (show how it will help increase output per employee).
27. Points might include:
28. Switch to piece rate [k] rather than pay low wages [app] as workers might produce more in order to gain more money [an]
29. Increase pay [k] which improves motivation [app] so workers produce more per hour [an]
30. Better working conditions to improve morale [k] as they are currently poor [app]
31. New and better machinery
32. Training [k] improves motivation [app]
33. Reduce working hours
34. Implement health and safety laws [k] which are currently ignored [app]
35. Change management style [k] to democratic rather than autocratic [app] so that workers feel involved and more willing to work [an].
36. [6] Knowledge [2 × 1] award 1 mark for each relevant issue identified.
37. [6] Application [1] – award 1 mark if relevant reference made to this type of business.
38. [6] Analysis [1] – award 1 mark for relevant development of point(s).
39. [6] Evaluation [2] – justified decision made as to whether the Government should introduce laws to protect employees' interests.
40. Points to include:
41. Laws are needed to ensure safety [k] which the company does not follow employee protection [app] so there is no guarantee that Genel would abide by the laws [eval]
42. Discourage businesses from setting up in a country [k] because it would increase costs [an]
43. Higher business costs [k] could see workers lose their jobs [an]
44. Could help retain workers leading to lower recruitment costs?
45. Note - the candidate may address the question from the viewpoint of either the employee, business or the Government.
46. Developed answer:
47. Laws are needed to ensure safety [k] and a fair wage for workers[k] which this company does not follow[app] because it increases their costs[an] therefore introducing laws may have no effect [ev] unless they are monitored [ev].