Callow is a large retail business based in country X. 'Our employees are an important stakeholder', said the Managing Director. ‘To make sure we stay profitable we need to motivate them.' Callow trains all of its shop employees by using off the job training. [Figure 1: Callow Organisation Structure]

Mark scheme

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

1. [2] Knowledge [2 × 1] - award one mark per stakeholder
2. Stakeholders could include: customers, suppliers, Government, owners or shareholders, lenders, community.
3. Note: Do not accept competitors, managers, directors.
4. [2] Application [2 × 1] award one mark per function
5. Functions could include: planning rotas, organise or delegate tasks to various employees, coordinating sections, giving commands to department managers, controlling shop budgets or monitoring targets.
6. Note: Do not accept functions of management which can only be applied to production. Leadership is too vague.
7. [4] Knowledge [2 × 1] – award 1 mark for each relevant feature
8. Application [2 × 1] – award 1 mark for each relevant explanation
9. Features might include:
10. • Tall hierarchy [k] / long chain of command [k] as there are seven levels in the organisation [app]
11. • Functional departments [k] but also a regional division of responsibility for operations [k] as split into north south east and west [app]
12. • Comment on various spans of control e.g. managing director has a short span [k] of 4 employees / supervisors have a wide span of 8 sales assistants [app].
13. Note: Do not award wide/narrow span of control alone as this does not apply to the whole chart, an employee must be specified.
14. [6] Knowledge [2 × 1] – award 1 mark for each relevant method identified
15. Application [2 × 1] – award 1 mark if relevant reference made to Callow's business
16. Analysis [2 × 1] - award 1 mark for each relevant explanation
17. For each reason maximum 3 marks [1k + 1app + 1an].
18. Methods might include:
19. • Bonuses / commission [k] for sales assistants [app] as this would encourage them to sell more to earn extra money [an]
20. • Fringe benefits[k] e.g. the regional directors / managers could receive a company car[app] they will feel important / position recognised [an]
21. • Payment methods e.g. increase wage rate or salary (only allow once)
22. • Job rotation [k] sales assistants could move to different departments [app] so they are not bored [an]
23. • Training/CPD[k].
24. [6] Knowledge [2] – award up to 2 marks for identification of relevant issue(s)
25. Application [1] – award 1 mark if relevant reference made to Callow's business
26. Analysis [1] – award 1 marks for relevant development of point(s)
27. Evaluation [2] – justified decision made as to whether it is a good idea for Callow to use off the job training for all its shop employees. Either viewpoint is acceptable.
28. Relevant points might include:
29. • Training costs will increase [k] as they will need to pay for employees training[k] as well as people to cover them in the department [app] this could negatively impact on profits [an]
30. • Might not have the right people to do training [k] as a good department manager does not necessarily make a good trainer [app] so could teach assistants the wrong skills [an]
31. • Could gain new ideas or skills [k] which could mean that the Callow can become more competitive [an] against other retailers. [app]
32. • On the job could distract good employees from their work [k] so sales could be lost [an] as they might not be able to give their full attention to customers [app].
33. Note: Do not accept development or evaluation which focuses on whether training is a good idea for workers.