Business Studies · Oct / Nov 2024 · Paper 12 · Question 4

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TLA is a large hotel with 200 rooms and 3000 employees. Many of these employees are members of a trade union. The Managing Director is planning to expand the business but is worried about 4 possible diseconomies of scale as TLA grows. The Human Resources Director has been asked to recruit 2 new managers. She knows it is important that all managers use the most appropriate leadership style. All of TLA’s new employees receive induction training. Identify one advantage and one disadvantage to employees of being members of a trade

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4(a)[2]
Identify one advantage and one disadvantage to employees of being members of a trade union. Award 1 mark per advantage/disadvantage (max 2). Points might include: Advantages:
Strength in numbers/more power when negotiating with employers / collective bargaining
Offer (legal) advice to employees
Protect job security / protect against possible redundancy / protect against unfair dismissal
Improve health and safety / better/good working environment / protect against unfair work practices
Help obtain a pay rise/extra holiday entitlement/change in hours
Improved benefits for members who are not working because they are sick, retired or made redundant
Protect employee rights / ensure workers are not exploited / protect interests Disadvantages:
Must pay (membership fee) / expensive
Decisions of majority is binding on all members, even if do not agree with the decision Other appropriate responses should be credited. 2 Only award the first response given for each answer. Notes
4(b)[2]
Identify one benefit and one limitation of a business using induction training. Award 1 mark for each benefit/limitation of induction training (max 2). Points might include: Benefits:
Familiarise with work/settle quickly into the job
Helps to be made aware of workplace/ important health and safety issues before starting the job
Helps to understand job role/who the main personnel in the organisation are
May be a legal requirement for health and safety (at start of job)
Workers are less likely to make mistakes Limitations:
Increases costs/expensive
(Wages are paid but) there is no output
Time-consuming
Delay when employee starts working Other appropriate responses should be credited. 2 Only award the first response given for each answer. Do not award: Answers about on-the-job/off-the-job training Notes
4(c)[4]
Outline one reason why each of the following stages of recruitment might be important for TLA: Award 1 mark for each relevant reason (max 2). Award 1 mark for each relevant reference to this business (max 2). Points might include: Job description:
Provides a clear idea of what job involves / sets out clearly the roles and responsibilities of the position [k] for the 3000 employees [app]
Provides basis for drawing up a contract [k] for the new managers [app]
Helps decide basis for pay [k]
Helps create person specification [k]
Helps create appropriate job advert/help decide where to advertise [k]
Helps resolve disputes [k] Job advertisement:
Makes (potential) applicants aware of / know about the job [k] at the hotel [app]
Helps attract a range of applicants [k] as planning to expand [app] Other appropriate responses should be credited. 4 To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question:
Large business
Hotel
200 rooms
3000 (employees)
(2/new) managers
Induction training
Trade union
Planning to expand/grow Other appropriate examples can be credited. Notes
4(d)[6]
Explain two possible diseconomies of scale as TLA grows. Award 1 mark for identification of each relevant diseconomy of scale (max 2). Award 1 mark for each relevant reference to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include:
Low morale/motivation / lack of loyalty/commitment [k] from its 3000 employees [app] leading to higher labour turnover / more workers leaving [an]
Poor communication [k] as more levels for messages to pass through / more mistakes [an] in the hotel [app]
Weak/lack of co-ordination [k] leading to the wrong decisions [an] by the 2 managers [app]
Lack of control [k] which may lead to some employees working less efficiently [an] at this large business [app] Other appropriate responses should also be credited. 6 To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question:
Large business
Hotel
200 rooms
3000 (employees)
2/new managers
Induction training
Trade union Other appropriate examples can be credited. Increase in average/unit cost [an] only. Analysis can be awarded for either: Explaining the effect of the diseconomy. Reasons why the diseconomy arises. Notes
4(e)[6]
Do you think the advantages of managers using a democratic leadership style are greater than the disadvantages for a business? Justify your answer. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for a justified decision as to whether the advantages of managers using a democratic leadership style are greater than the disadvantages for a business. Points might include: Advantages:
Gain (more) ideas/suggestions [k] which may increase sales [an]
Can increase motivation/more committed [k] leading to less absenteeism/(lower) labour turnover / improve efficiency/output [an]
Better decisions could be made [k] as can use employees’ experience and skills [an]
Positive work environment [k] Disadvantages:
Employees may not have the necessary experience / want to be involved in decisions [k] leading to mistakes [an]
Takes time to consult employees [k] which can slow down decision-making [an] Other appropriate answers should also be credited. 6 This is a general question so there are no marks for application. To access [eval], must discuss a valid advantage and a valid disadvantage. Some points can be [k] or [an] but only award once e.g. help keep worker loyalty. Points about motivation could be an advantage or disadvantage but only award once. Do not award: Reference to delegation. Notes Justification might include: One advantage is that it can lead to new ideas [k] which can increase sales [an]. However, it can take time to consult all employees [k] which delays decision-making [an]. The advantage is greater because if the employees’ ideas are successful, they could increase revenue [eval] so the extra time to obtain these ideas would be worthwhile [eval].

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