Ben owns a small gardening business, which he started 15 years ago. Ben believes providing a quality service is important to his success. Ben's business has a number of stakeholder groups including 2 full-time and 4 part-time workers who have all been employed by him for a number of years. Each worker is expected to do any job that Ben orders them to do. All workers are paid an hourly wage rate. They also receive a bonus if customers recommend the business to other people. Ben is always thinking about other ways to improve the motivation of his workers.

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

1. [2] Clear understanding: any group or person with a (direct) interest in the performance / activities of a business
2. [1] Some understanding: someone affected by a business [1] or anybody inside or outside the business who cares about its operations [1]
3. [1] personal wishes / owners objectives
4. [1] size of market / niche
5. [1] lack of finance
6. [1] avoid diseconomies of scale / communication issues / co-ordination issues
7. [1] help establish loyalty [k] which can help improve his business success [app]
8. [1] increase sales / revenue / attract new customers [k] through more recommendations [app]
9. [1] improve reputation / brand image [k] for his gardening business [app]
10. [1] no need for rework [k]
11. [1] able to charge high prices [k]
12. [1] maybe his USP[k]
13. [1] more flexible / help meet demand during busy times [k] can cover when full-time workers not available [app] so work is completed on time [an]
14. [1] help retain experienced employees [k] who have worked there for a number of years [app] so reducing his recruitment costs [an]
15. [1] can add more skills / experience to business [k] to increase demand [an]
16. [1] help attract / easier to find workers [k]
17. [1] do not have to pay holiday / sick pay [k]
18. [1] may be more motivated [k] so productivity would rise [an]
19. [1] part-time workers don't work as many hours [k] Ben pays an hourly wage rate [app] therefore the total wage bill would be lower [an]
20. [1] change method of payment / increased rate of pay [k]
21. [1] training [k] so feel more valued [an]
22. [1] involve workers in decision making [k] so workers feel more important [an] to the gardening business [app]
23. [1] change leadership style [k] Ben orders workers to do jobs [app]
24. [1] chance for promotion / become full time [k]
25. [1] job rotation [k] for the 6 employees [app] so employees are not bored doing the same thing [an]
26. [1] job enlargement [k]
27. [1] job enrichment [k]
28. [1] employee of the month [k] therefore workers feel like their hard work is being recognised [an]
29. [1] praise [k] meeting employees esteem needs [an]
30. [1] team working / communication [k]
31. [1] fringe benefits [k]
32. [1] Award 1 mark for identification of relevant point (s)
33. [1] Award 1 mark for relevant reference made to this business
34. [2] Award up to 2 marks for relevant development of point(s)
35. [2] Award up to 2 marks for a justified decision made as to which way Ben should use to improve employee motivation.