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Mark scheme

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

1. [2] (a) Knowledge [2 × 1] – award one mark for each economy/diseconomy stated
2. [2] (a) Analysis [2 × 1] – award one mark for a relevant explanation for each economy/diseconomy
3. [4] (a) Application [2 × 2] – award two application marks for each economy/diseconomy
4. [1] (a) Award one mark for each relevant economy/diseconomy (maximum of two), such as: Economy of scale: Purchasing/bulk buying – discount on cost of materials/equipment
5. [1] (a) Economy of scale: Technical - use better equipment
6. [1] (a) Economy of scale: Financial - cheaper interest on bank loans
7. [1] (a) Economy of scale: Marketing - advertising costs per customer is less
8. [1] (a) Economy of scale: Managerial - employ specialist managers/more skilled
9. [1] (a) Economy of scale: Risk bearing – produces a variety of services so if demand for one service falls it is counter balanced by increase in demand of the other services
10. [1] (a) Diseconomy of scale: poor communication – more levels of hierarchy to pass through so distorted message/errors in instructions
11. [1] (a) Diseconomy of scale: lower morale/motivation – more employees and feel less important
12. [1] (a) Diseconomy of scale: harder to control/coordinate departments – may have too many employees in one area relative to another area so less efficient
13. [3] (a) Award a maximum of three additional marks for each explanation of the economy/diseconomy – 2 of which must be applied to this context.
14. [10] (b) Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below. Level 3: At least 2 x Level 2 + 9-10 marks for well justified recommendation as to the whether internal or external recruitment is the best method to choose and why not the other method. 7-8 marks for some limited judgement shown in recommendation as to the whether internal or external recruitment is the best method to choose.
15. [6] (b) Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below. Level 2: 4-6 marks Detailed discussion of advantages and/or disadvantages of internal and/or external recruitment.
16. [3] (b) Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below. Level 1: 1-3 marks Outline of advantages and/or disadvantages of internal and external recruitment.
17. [2] (b) Award up to 2 additional marks for relevant application.
18. [1] (b) Relevant point for Internal recruitment advantages: saves time and money
19. [1] (b) Relevant point for Internal recruitment advantages: can be motivating
20. [1] (b) Relevant point for Internal recruitment advantages: person is already known
21. [1] (b) Relevant point for Internal recruitment disadvantages: may be jealousy
22. [1] (b) Relevant point for Internal recruitment disadvantages: may need training – increases costs
23. [1] (b) Relevant point for External recruitment advantages: new ideas
24. [1] (b) Relevant point for External recruitment advantages: already skilled/trained to correct level reduces costs
25. [1] (b) Relevant point for External recruitment disadvantages: person does not know the organisation and how it works
26. [1] (b) Relevant point for External recruitment disadvantages: person not known