Zola is the general manager of a hotel. He believes that customer service is important if guests are to enjoy their stay at the hotel. Zola manages his staff by a mixture of financial incentives, such as bonuses, and by threats. The staff are paid on a time rate basis.

1. (a)What is meant by a financial bonus?[2]
2. (b)Identify two reasons why customer service is important.[2]
3. (c)Identify and explain one advantage and one disadvantage of paying staff by time rate.[4]
4. (d)The hotel has a high staff turnover with a large number of employees leaving their job each year. Identify and explain three consequences of a high staff turnover to the business.[6]
5. (e)Do you think that financial incentives are likely to be effective in motivating staff? Justify your answer.[6]