Year 12 Mock (june 2024)

Question 1

What is Maslow’s theory called and what does it mean?

Answer 1

The hierarchy of needs
- Provides 5 categories of needs which a business must cater to if its employees are to be as engaged and motivated as possible

Question 2

What are the 5 tiers of Maslow’s hierarchy of needs?

Answer 2

• Self actualisation (giving employees the opportunity to meet their full potential)
• Esteem (giving employees access to opportunities for promotion)
• Belongingness/love (giving employees opportunities to build relationships)
• Safety and psychological needs (offering job security, a safe working environment and pay for food and accomodation)

Question 3

What are the pros and cons of Maslow’s hierarchy?

Answer 3

• Offers a structured approach to improve motivation
• Assumes employees will place the same importance of their needs as ordered and this may not apply to all staff

Question 4

What is Herzberg’s motivation theory?

Answer 4

Suggests two groups of factors which impact upon an employees motivation, safer conditions and motivating factors.

Question 5

What is Taylor’s theory?

Answer 5

Piece rate: to motivate employees they should be paid based on the amount of output they have produced.

Question 6

What is market mapping?

Answer 6

A market map illustrated the range of positions a product can take in a market based on two dimensions that are important to customers. eg low price vs high price

Question 7

What are some advantages of market maps?

Answer 7

• Helps spot gaps in the market
• Useful for analysing competitions - where are their products positioned?
• Encourages use of market research

Question 8

What are some disadvantages of market maps?

Answer 8

• Not all gaps needs to filled / doesn’t mean there is demand for the product
• Not a guarantee of success
• How reliable is the market research

Question 9

What is meant inventory?

Answer 9

Inventories are the raw materials, wip and finished goods held by a business to enable production to take place and meet customer demand.

Question 10

What influences the amount of inventory held?

Answer 10

• The need to satisfy customer demand
  -The need to manage working capital
• Risk of inventory losing value

Question 11

What are some costs involved with holding inventory?

Answer 11

• Cost of storage (may require employees and equipment)
• Interest costs
• Obsolescence risk
• Stock out costs

Question 12

What are the 4 management styles?

Answer 12

Autocratic, democratic, paternalistic and laissez-faire.

Question 13

What is an autocratic management style?

Answer 13

An authoritarian style of leadership involving managers making all decisions without consulting with employees.

Question 14

Benefits of an autocratic management style?

Answer 14

• Decisions made quickly
• Decisions made by most experiences organisation members
• Good in companies with low skilled employees
• Employees have clear instructions of requirement

Question 15

Drawbacks of an autocratic management style?

Answer 15

• Employees ideas and creativity are not taken into account
• Employees may become demotivated by lack of input or responsibilities
• Amount of decision making can be stressful for managers
• Decisions based on managers capabilities

Question 16

What is a Laissez-faire management style?

Answer 16

Managers let employees get on with their jobs with as little inference as possible.

Question 17

What are benefits of a laissez-faire management style?

Answer 17

• Effective in situations where staff are highly skilled and motivated
• Employees may feel empowered and motivated by their responsibility
• Leaves room for innovative decision making

Question 18

What are drawbacks of a laissez-faire management style?

Answer 18

• Poor performance can result if inexperienced staff are left without direction
• Employees may feel pressured if they have no support
• Unclear who takes responsibility - may lead to blame culture

Question 19

What is a democratic management style?

Answer 19

Managers and employees working together to make decisions

Question 20

What are some benefits of a democratic management style?

Answer 20

• Highly motivates employees who feel empowered
• Employees better prepared for promotion
• Employees more accepting of change

Question 21

What are some drawbacks of a democratic management style?

Answer 21

• Decision can be slow
• A strong leader is required to lead discussion and supervise

Question 22

What is a paternalistic management style?

Answer 22

A managerial approach where there is a dominant figure that decides what is best for employees

Question 23

What are some benefits of a paternalistic management style?

Answer 23

• Creates loyalty among employees
• Employees feel more valued - more commitment
• High retention and job satisfaction
• Good for a low skilled workforce who require guidance

Question 24

What are some drawbacks of a paternalistic management style?

Answer 24

• Ultimately still an authoritarian style so little communication or input from employees
• Employees can become dependent on leaders for supervision

Question 25

What is employee engagement?

Answer 25

A human resources concept that describes the level of enthusiasm and dedication a worker feels towards their job.

Question 26

What are some benefits of motivated and engaged employees?

Answer 26

- Produce higher quality product/service (which adds value and reduces waste) - Reduces costs through better productivity and innovations - Stays with the business, reduces costs of recruitment

Question 27

What are some ways to increase employee engagement?

Answer 27

- Piece rate pay - Pay commission - Performance related pay - Job enrichment - Empowerment (delegating) - Team working

Question 28

What is the formula for margin of safety?

Answer 28

Actual sales - Break even sales

Question 29

How is share price determined?

Answer 29

By the interaction of supply and demand

Question 30

What are factors that affect supply and demand for share price?

Answer 30

Financial performance Dividend policy Relationship with key investors Management reputation State of the economy General market sentiment Industry developments Better alternatives

Question 31

What is customer service and what can it involve?

Answer 31

The interactions between a company and its customers - Investigating customers needs - Presenting products of offer - post sales service

Question 32

Benefits of good customer service?

Answer 32

Loyalty and repeat purchases (some business promote repeat purchasing through the use of a loyalty scheme eg Costa) Customer satisfaction - spread the word of business Customers willing to pay more for a product (business can become more profitable)

Question 33

Drawbacks of good customer service?

Answer 33

Higher staff wages from hiring skilled employees Paying for staff training Extra costs for extra services offered Higher wage costs from post sales service time

Question 34

What are some dangers of poor customer service?

Answer 34

Can lead to dissatisfied customers who are unlikely to purchase products or service from business again. Can also lead to a poor reputation therefore revenue due to fall in demand.

Question 35

What is kaizen?

Answer 35

Constantly introducing small incremental changes in a business in order to improve quality and or efficiency

Question 36

Benefits of kaizen?

Answer 36

Creates a culture that encourages and rewards employees for their contribution to the process

Question 37

Drawbacks of kaizen?

Answer 37

Some firms set targets for individuals to come up with a minimum number of ideas in a period of time which can be a unwelcome pressure of employees