JKL uses job production to make clocks. JKL buys all its raw materials locally and exports 60% of its products. The business has high fixed costs. JKL has 30 skilled employees. Many of them work part-time and delegation is encouraged. All workers receive an email from management every day to keep them informed about production issues. The Human Resources Director said: 'I think it is more cost-effective to try to retain our existing workers rather than to recruit new employees.' The Director wants to reduce barriers to communication, as he knows effective communication is important to help JKL meet its objectives.

Mark scheme

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

1. [1] Act as measure of success
2. [1] Provides an aim or target
3. [1] Motivate OR teamwork OR unite the business
4. [1] Gives a sense of direction OR know what to do
5. [1] Help decision making / planning / budgeting / manage business better
6. [1] Rent OR rates
7. [1] Utilities, e.g. electricity OR gas OR water
8. [1] Insurance
9. [1] Salaries OR cost of office employees
10. [1] Loan repayments OR interest charges
11. [1] Storage costs
12. [1] Unique OR meet exact customer needs [k] for its clocks [app]
13. [1] Workers less likely to make mistakes [k] as employees are skilled [app]
14. [1] More varied work (leads to higher motivation) [k] helping retain existing workers [app]
15. [1] Can charge a higher price [k]
16. [1] Flexible [k]
17. [1] No economies of scale [k] when buying raw materials locally [app]
18. [1] Production can take longer OR slow OR low output [k] leading to problems when exporting [app]
19. [1] Skilled labour can cost more [k] so can lead to high fixed costs [app]
20. [1] Costs are higher as it is often labour intensive [k] so may not be able to find 30 employees [app]
21. [1] Mistakes can be expensive to correct as each job is different [k]
22. [1] Problems with medium [k] OR examples such as wrong medium, language, too much information, technical problems, e.g. technical language [k] so could simplify or avoid jargon [an] so can understand what is written in the email [app]
23. [1] Problems with sender [k] OR examples such as send wrong information, message too detailed [k]
24. [1] Problems with receiver [k] OR examples such as not listening, too busy to pay attention or read material [k]
25. [1] Problems with feedback [k] OR examples such as no immediate OR opportunities for feedback [k]
26. [1] Cheaper recruitment costs OR no recruitment cost [k]
27. [1] Current workers know how things are done [k] so easier to maintain quality OR standards [an] of its clocks [app]
28. [1] Improve employee motivation OR loyalty [k] so easier to use delegation [app]
29. [1] Can help improve business image [k]
30. [1] Access to new ideas OR skills [k] to overcome barriers to communication [app] helping them to produce / develop new products [an]
31. [1] New employees may need training [k] which will increase costs [an] at time when has high fixed costs [app]
32. [1] Can be difficult to find suitable employee OR time taken to train new employees [k] could lead to lower output OR productivity [an] can lead to problems as 60% exported [app]
33. [1] New employees may bring bad habits with them [k]