Question 1
BGN sells furniture such as beds and tables. It started as a partnership but is now a private limited company. BGN has expanded quickly and has 10 shops located in different cities. Each shop manager is responsible for recruitment and decisions about inventory levels. They send the Board a
monthly report. The Managing Director has a laissez-faire leadership style. There has been an increase in customer complaints and employees think internal communications need to be improved.
(d) Identify and explain one advantage and one disadvantage of the Managing Director’s leadership style.
Advantage: ………………………………………………………………………………………………………………………………………………………………………………………………………………………………
Explanation: ………………………………………………………………………………………
……………………………………………………………………………………………………………
Disadvantage: ……………………………………………………………………………………………………………
……………………………………………………………………………………………………………
Explanation: ………………………………………………………………………………………………………………
………………………………………………………………………………………………………… [6]
(e) Explain two ways BGN could try to improve internal communication. Recommend which way BGN should choose. Justify your answer.
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………………………………………………………..…………….. [6]
Question 2
Ruby is a sole trader. She produces handmade, individually designed greetings cards using job production. High quality cards are important to Ruby’s customers. Ruby has 3 part-time employees who are paid an hourly wage rate. Ruby is thinking of changing from an hourly wage rate to a piece rate system, where the employees are paid depending on the quantity of products they make. Ruby thinks this will help to improve the motivation of her workforce. During festivals and celebrations she receives a higher number of orders.
(c) Identify and explain two advantages to Ruby of having part-time employees.
Advantage 1:………………………………………………………………………………………………………
………………………………………………………………………………………………………
Explanation:………………………………………………………………………………………………………..
…………………………………………………………………………………………………………
Advantage 2:………………………………………………………………………………………………………
………………………………………………………………………………………………………………
Explanation:………………………………………………………………………………………………………..
…………………………………………………………………………………………………………[4]
(d) Identify and explain two non-financial methods of motivation which Ruby could use.
Method 1:……………………………………………………………………………………………………………
………………………………………………………………………………………………………………
Explanation:………………………………………………………………………………………………………..
………………………………………………………………………………………………………………
Method 2:……………………………………………………………………………………………………………
………………………………………………………………………………………………………………
Explanation:………………………………………………………………………………………………………..
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
…………………………………………………………………………………………………………. [6]