P & P needs to be efficient. Identify and explain four methods P & P could use to motivate production workers.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2016). The mark or mark type is shown in brackets.

1. [1] Award one mark for each relevant method for production workers (maximum of four).
2. [1] Award one mark for explanation of how each method increases motivation (per method).
3. Possible method: increase wages.
4. Possible method: training.
5. Possible method: profit sharing.
6. Possible method: praise.
7. Possible method: piece rate.
8. Possible method: employee of the month.
9. Possible method: bonus.
10. Possible method: change in leadership style.
11. Possible method: fringe benefits.
12. Possible method: better working conditions.
13. Possible method: job rotation.
14. Possible method: job enlargement.
15. Possible method: setting targets.
16. Possible method: promotion.
17. Indicative response: Introduce piece-rate [ap] because if the production workers produce more paint they will be paid more and so they will be motivated to work harder [an].
18. Relevant points for (b) might include:
19. Where customers are located:
20. - do they deliver paint or do customers purchase from the shops
21. - are they close to the factory – may use direct selling – lower transport costs
22. - may require selling agents is exporting
23. How often the product is purchased:
24. - purchased regularly – may need to be sold in shops near to customers/less often then customers may be willing to travel to large shops to purchase paint
25. - may use wholesaler/middleman if bought less frequently
26. Where competitors sell their products:
27. - may need to sell paint in same retail outlets to competitors – outlet already attracts many customers
28. - don't sell at the same outlets as competitors – may need to reduces price/sales
29. [1-3] Level 1: Outline the factors affecting the choice of channel of distribution.
30. [4-6] Level 2: Detailed discussion of the factors affecting the choice of channel of distribution for the new type of paint.
31. [7-8] Level 3: Some limited judgement shown in conclusion as to which factor will be the most important when choosing a channel of distribution.
32. [9-10] Level 3: Well justified conclusion as to which factor will be the most important when choosing a channel of distribution and why not the alternative channels.
33. [1] Level 1 - for each L1 statement (max of 3 marks) e.g. Where do competitors sell their paint.
34. [4] Level 2 - one L2 explanation can gain 4 marks, e.g. Where do competitors sell their paint. They may want to sell paint in large shops where many brands of paint are sold so that when customers are looking for paint they will see their brand of paint as well and be more likely to buy it than if they sell the paint in shops where no other paint is sold.
35. [2] Award up to 2 additional marks for relevant application.