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O-LevelBusiness StudiesPeople in business7115/12 · May/June 2015 · Q420 Marks

A2Z is a small but successful airline company in country B, providing flights for business people. The management of A2Z wants the business to expand. It will have to buy more aeroplanes and recruit more airline pilots. The Human Resources manager has produced a job description for the pilots. She is now ready to advertise for the new pilots. She believes the best way for A2Z to motivate its pilots is to use financial rewards.

  1. (a)Identify two possible reasons why A2Z might want to expand.[2]
  2. (b)Identify two factors that A2Z should consider when choosing a source of finance to buy more aeroplanes.[2]
  3. (c)Identify and explain two advantages to A2Z of producing a job description.[4]
  4. (d)Identify and explain two suitable ways A2Z could use to advertise the new jobs.[6]
  5. (e)Do you think that using financial rewards is the best way for A2Z to motivate its pilots? Justify your answer.[6]

Mark scheme

Marking points from the official mark scheme (May/June 2015). The mark or mark type is shown in brackets.

  1. [2 x 1] Knowledge / Application – award 1 mark for each relevant reason
  2. Points could include: Increase sales OR revenue OR market share or dominate market or target new markets
  3. Increase profit
  4. Spread risk / attract more investment
  5. Improve reputation / status / brand image
  6. Gain economies of scale
  7. [2 x 1] Application - award 1 mark for each relevant factor
  8. Points could include: Amount needed
  9. Current level of debt / gearing
  10. Amount of retained profits / cash
  11. Time (how long need finance for)
  12. interest rates
  13. Whether can offer security for loans
  14. Ability to repay / able to afford
  15. Do not accept purpose as this is stated in the question
  16. [2 x 1] Knowledge - award 1 mark for each advantage [max 2]
  17. [2 x 1] Application – award 1 mark for each relevant explanation in context of this business
  18. Relevant points might include: Provides a clear idea of what job involves [k] so they can select the best pilots [app]
  19. Saves time / money / makes selection easier [k] as won't get applications from people who cannot fly planes [app]
  20. As a basis for drawing up a contract [k] so sure that all duties will be carried out on-board [app]
  21. Helps decide basis for pay [k]
  22. Help create person specification [k]
  23. Helps create appropriate job advert [k]
  24. Helps resolve disputes [k] between managers and pilots [app]
  25. Do not accept advantages to employees. Candidates must not refer to person specification
  26. Application marks may be awarded for appropriate use of the following: flights, on-board, planes or aircraft, airline, pilots
  27. [2 x 1] Knowledge – award 1 mark for identification of each relevant way [max 2]
  28. [2 x 1] Application – award 1 mark for each way if relevant reference made to this business
  29. [2 x 1] Analysis – award 1 mark for each relevant explanation
  30. Relevant points might include: Specialist magazines [k] as looking for qualified people [app] so likely to read magazines targeted at them [an]
  31. Internet job sites / own website [k] as most people use internet to look for jobs these days [an]
  32. National TV / newspaper / radio advertisements [k] as might not be many pilots locally [app] so can attract suitable people [an]
  33. Job centre / Recruitment agencies [k] can help produce a shortlist of possible candidates [an]
  34. Specialist training / flight schools [k] where people have learnt to fly [app]
  35. Application marks may be awarded for appropriate use of the following: fly, pilots, airlines, highly qualified / highly skilled, passengers
  36. Do not accept answers such internet, website, schools or posters on own as too vague
  37. [1] Knowledge – award 1 mark for identification of relevant issue(s). Positive or negative points allowed or alternative methods (points can be for business or employee) [max 1]
  38. [1] Application – award 1 mark if relevant reference made to this business
  39. [2] Analysis – award up to 2 marks for relevant development of point(s)
  40. [2] Evaluation – justified decision made as to whether financial rewards are the best way for A2Z to motivate its pilots. Candidate's final decision can be either for or against the statement.
  41. Note: evaluation must be from the viewpoint of the business not the employee
  42. Relevant points might include: High wages help retain workers [k]
  43. Can the business afford to pay high wages [k]
  44. High skilled jobs [k] so will expect high levels of financial rewards [an] otherwise they will look for a job at rival airline [app]
  45. Money does not motivate everyone / already highly paid [k]
  46. Training might be offered [k] as high risk job [app] so safety might be more important
  47. profit sharing [k] as small airline [app] so might work as pilots may feel they have a direct impact on performance [an]
  48. Opportunities for promotion [k] could have limited value [an] as it is a small airline [app]
  49. Job security [k]
  50. Travel discounts for pilot and/ or family [k] so able to obtain cheap tickets [app]
  51. Application marks may be awarded for appropriate use of the following: small, expansion, successful, references to risk involved in flying, tickets, highly qualified / highly skilled, highly paid, irregular work hours, passengers
  52. Do not accept pilots as application as it is stated in the question

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About this question

Topic
People in business, O-Level Business Studies (syllabus 7115). Structured question, 20 marks.
Source
O-Level Business Studies, May/June 2015 Paper 1 Variant 2, question 4.

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