Take this Quiz: A-Level Business: People and Operations | Zestly

Question 1

A small logistics firm employs an average of one hundred and twenty staff throughout the year. During the same period, eighteen employees left the company. What is the labour turnover rate, and what is the primary financial implication for the firm?

Accepted Answer

Fifteen per cent; the firm faces significant costs related to recruitment, selection and training of new staff.

Answer

Eighteen per cent; the firm has gained a competitive advantage by refreshing its workforce with new talent.

Answer

Fifteen per cent; the firm has successfully reduced its total wage bill by removing underperforming staff.

Answer

Six hundred and sixty-six per cent; the firm must immediately increase wages to prevent further staff departures.

Question 2

A furniture factory employs forty production staff who produce four thousand eight hundred units per month. If the output per worker increases next month, why might this not necessarily indicate that the workforce is working harder?

Accepted Answer

Because the increase could be due to the installation of faster machinery or a decline in the quality of the finished products.

Answer

Because the firm has increased the number of working hours, which automatically reduces the productivity of each individual.

Answer

Because higher output per worker always proves that the staff are more motivated and efficient.

Answer

Because the total output has remained constant while the number of staff has decreased.

Question 3

A garment manufacturer introduces a piece rate payment system to increase production. While output rises, the number of defective items also increases significantly. Which perspective on motivation does this outcome illustrate, and what does it suggest about the limits of piece rates?

Accepted Answer

It illustrates the limitations of a focus on financial incentives, suggesting that workers may sacrifice quality to maximise their earnings.

Answer

It supports the view that money is the only motivator, suggesting that piece rates are the most effective way to ensure high-quality production.

Answer

It demonstrates that piece rates always lead to higher quality because workers are more focused on the individual items they produce.

Answer

It shows that piece rates are only effective when the workforce is already highly motivated by non-financial factors.

Question 4

A software company spends a large sum of money improving the office canteen and the staff car park, yet employee motivation and productivity remain unchanged. According to Herzberg's two-factor theory, why did this happen?

Answer

Because the improvements were not large enough to be noticed by the employees.

Answer

Because the company should have focused on providing bonuses instead of physical facilities.

Answer

Because the employees were already satisfied with their working conditions.

Answer

Because these are hygiene factors, which can prevent dissatisfaction but cannot act as motivators to increase effort.

Question 5

A large retail chain has a tall organisational structure with narrow spans of control, leading to slow decision-making. The board proposes delayering the organisation. What is the likely impact of this change?

Answer

The cost of the management structure will increase significantly due to the need for more senior staff.

Answer

The number of levels in the hierarchy will increase, leading to greater specialisation among staff.

Answer

The span of control will widen, and the workload for remaining managers will likely increase.

Answer

The communication channels will become more complex, and decision-making will become even slower.