Neil and the part-time employees are both stakeholders in QC.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

1. [2x1] Knowledge - award one mark for stakeholder objectives that are the same/are conflicting
2. [2x1] Analysis – award one mark for a relevant explanation of why the objective is the same/why it is conflicting
3. [2x2] Application - award two application marks for explanation of each stakeholder objective in context
4. Answers are likely to include:
5. Owners and employees both want the business to make profits – to pay higher wages and higher dividends/ more likely to survive and employees more likely to keep their jobs.
6. Owner wants to keep costs lower and may reduce wages but employees want higher wages that will put costs up.
7. Likely shareholder/Owner objectives: To increase profit/make a profit; To expand/grow the business; To increase sales; To maintain brand image/high reputation/customer satisfaction; To reduce costs; To increase productivity/efficiency; To survive
8. Likely employee objectives: To receive higher wages; To have job security; To have improved working conditions; To work sociable hours; To be motivated and happy at work
9. Indicative response: Owner wants to make a high profit (1) but this could keep down the wages of the employees. (1) There are 90 part-time employees and they may feel unhappy about this. (ap) These employees may be less willing to work additional catering jobs when QC is busy. (ap)
10. Possible application marks: Catering services; two shareholders; wants to expand; Weddings; Birthday parties; events; provides catering for businesses such as for conferences; 90 part-time employees; 10 full-time employees; maintain good reputation.
11. Autocratic: Clear direction given to employees; Employees know what is expected from them; Decisions can be made quickly; Communication is only one way; Cannot know the views or suggestions of employees; May be demotivating as employees are not included in any decision making
12. Democratic: May be motivating as employees may be asked before decisions made; Feel as though can contribute to the business - feel valued; May take a long time to consult employees; Decisions may need to be made quickly and this leadership style is too slow
13. Laissez-faire: Give decision making to employees; Motivating as employees feel they have control over their work; Managers have more time for other tasks as can delegate more; Employers feel more trusted; Employees may make bad decisions; May lead to lower productivity or lower profit from bad decisions; Difficult to have a clear direction for the business; Managers may lose day to day control of decision making
14. Level 1 - 1 mark for each L1 statement (max of 3 marks) e.g. Laissez-faire leaves decision making to the employees.
15. Level 2 - 1 x L2 explanation can gain 4 marks and a further mark can be awarded for each additional L2 explanation (max 6 marks) e.g. Laissez-faire leaves decision making to the employees. This will make the employees feel more important and valued and they will work harder as they are more motivated. However, Jin and Neil only give them broad objectives and the employees may not carry out these objectives as the owners want. Leading to the service not being delivered as required due to lack of experience of the part-time employees. (L2)
16. Level 3 - For L3 to be awarded there needs to be at least two L2 marks awarded and then a justified recommendation of which leadership style should be used for the new service.
17. Award up to 2 additional marks for relevant application
18. Possible application marks: Catering services; two shareholders; weddings; birthday parties; events; provides catering for businesses such as for conferences; 90 part-time employees; 10 full-time employees; noticeboard; food.