Business 9609/43 May/June 2024: question paper and mark scheme

Mark scheme

1 Evaluate KF’s approach to human resource management (HRM) between 2018-2023. 20 Please refer to the marking grid at the start of the mark scheme. Indicative content Responses may include: AO1 Knowledge and understanding Knowledge (max 1 mark) can be awarded for any relevant business knowledge about human resources, including: Purpose and roles of HRM Workforce planning Recruitment and selection Redundancy and dismissal Morale and welfare Training and development Management and workforce relations Motivation as a tool of management and leadership Motivation theories Motivation in practice Management and managers Organisational structure Business communication Leadership The difference between hard and soft HRM Flexible working contracts: advantages and disadvantages of temporary contracts or flexible contracts including zero hours contracts, part-time, full-time, annualised hours, flexi-time, home working, shift working, job sharing, compressed working hours, the gig economy The measurement, causes and consequences of poor employee performance Strategies for improving employee performance Management by objectives The changing role of IT and AI in HRM. Knowledge and understanding (max 2 marks) can be awarded for any relevant business knowledge and understanding about marketing strategy. 1 AO2 Application Application (max 1 mark) can be awarded for any relevant use of context linked to KF’s Human Resources. Application (2 marks) can be awarded for applying knowledge of HR strategy, to KF between 2018 and 2023: Small staff – one office manager, 15 kitchen support workers Use of full-time contracts and flexi-time contracts Objectives of growth and profit maximisation New delivery service – 45 riders hired, increasing to 75 Use zero-hours contracts Use of tracking software for staff performance Tracks speed, efficiency of deliveries Unreasonable time targets Bad timing within the app Bonuses and performance judged unfairly Compliance with new legislation banning zero-hours contracts Staff moved to self employed and will operate as part of the gig economy Use of performance data to judge staff for restructure. 1 AO3 Analysis Analysis is likely to be based on KF’s objectives in 2018 to exploit rapid growth in the sector and maximise profits. Analysis of the impact of KFs HR strategy ( and and ) including: KF operates a simple organisation structure that supports the restaurants renting the space – keeping their costs low to aid profit maximisation and growth. Kitchen support workers are supplied on zero-hours contracts – keeping costs low on wages. The launch of their own delivery service is easy through the use of zero-hours contracts meaning they do not have to pay full-time wages – keeping staff costs low. Expansion (and contraction) of the business has been easy due to the flexible working practices KF uses – it is easy to reduce or increase hours/contracts. By using zero-hours contracts KF doesn’t have to provide paid holiday or benefits – again saving KF costs and helping keep profits high. Office manager will spend a lot of time planning the staff on zero-hours contracts – matching the demand from restaurants to the staff available. The use of the zero-hours contracts means that calculating the pay for these workers takes longer – this needs to be accurate. The delivery app provides key performance indicators that Liam and Samir can use to evaluate the performance of their riders – this can then be used to help decide who continues to be used for work. The new technology in the app may not be working properly or staff may not be using it properly – This may need further investigation – leading to costs of redevelopment and/or training for staff. The problems with the app may be causing issues with business reputation – leading to further costs. KF are complying with the law change on zero-hours contracts – which has implications on the current staff. Once the new legislation starts, KF will have much less responsibility for the staff – decreasing the cost of running the business. Once riders are self-employed, albeit with an insecure income, what will the impact be on customer service and efficiency of deliveries – will this increase or will the riders not care as much? 1 AO4 Evaluation Evaluation ( and and ) including: Evaluation will largely depend on the points raised in the analysis. The use of zero-hours contracts has helped KF keep costs down but it may cause motivation issues with staff if there are not enough hours for people to earn ‘full-time’ money. Aiming for profit maximisation has kept Liam and Samir focused on lower costs – decisions about ZHC, the tracking app, the business model have all been designed to keep costs low and make this objective achievable. But has the pursuance of this meant HR has been very ‘hard’? The use of the gig economy means that expansion is much easier for KF but they have little control over who and how many riders are available at any one time, this might upset the restaurants who may not have a delivery rider available to deliver food. The issues with the app are causing problems with staff – how useful is the technology if it is inaccurate? Will this mean less riders log on – they are not employees, so they don’t have to. This could lead to KF not having enough riders and having to use a third party (Deliveroo for example). KF are responding to the change in law but this is going to increase their costs – affecting the prices for its clients – and will require a new training structure and recruitment process this will also influence its profit maximisation objective. KF approach to HR has been successful in keeping the costs low. How they approach the HR from 2023 onwards may need to change given the potential growth strategies. Accept all valid responses.

Mark scheme

2 Advise KF whether using Ansoff’s matrix is sufficient to develop a successful growth strategy. 20 Please refer to the marking grid at the start of the mark scheme Indicative content Responses may include: AO1 Knowledge and understanding Knowledge (max 1 mark) can be awarded for any relevant business knowledge about business strategy and Ansoff’s Matrix as well as the alternative strategies including: The meaning and purpose of business strategy The meaning and purpose of strategic management: analysis, choice and implementation Approaches to develop business strategy, including: – blue ocean strategy – scenario planning – PEST analysis – Porter’s five forces – core competence framework – SWOT – force field analysis – decision trees. Award for any explanation of relevant business knowledge, up to a max of 2 marks. 2 AO2 Application Application (1 mark) can be awarded for applying knowledge of Ansoff’s matrix/business strategy, to KF. Application (2 marks) can be awarded for applying knowledge of HR strategy, to KF between 2018 and 2023: Delivery market is shrinking back to pre-pandemic levels, limiting growth opportunities. Changes in legislation change the model of using zero-hours/gig-economy workers. Any element of the case study/appendices including: – Small staff – one office manager, 15 kitchen support workers – Use of full-time contracts and flexi-time contracts – Objectives of growth and profit maximisation – New delivery service – 45 riders hired, increasing to 75 – Use zero-hours contracts – Use of tracking software for staff performance – Tracks speed, efficiency of deliveries – Unreasonable time targets – Bad timing within the app – Bonuses and performance judged unfairly – Compliance with new legislation banning zero-hours contracts – Staff moved to self employed and will operate as part of the gig economy – Use of performance data to judge staff for restructure. 2 AO3 Analysis Analysis of the usefulness of Ansoff’s matrix to help KF develop a growth strategy ( and and ) including: The current market for deliveries is shrinking – will Ansoff lead them to discuss options that are not viable when other options may need exploration? What is Liam and Samir’s attitude to risk? – This may fuel which direction they choose to go in. Where will financing come from? – The business has rationalised recently so do they have the money to expand? Candidates may offer alternative approaches: May want to use the blue ocean strategy to identify a market where they can dominate – as they did when they originally set up the KF/delivery business. Scenario planning could help map what may happen with the current business model – to help identify where they should move to. SWOT analysis may help identify strengths that can be transferred to a new project – whilst highlighting the problems they may face in a different model to how they currently operate. PEST analysis could help understand the changing environment after the global pandemic – which has changed many elements of this. Five forces would help understand the rivalry they face in a very crowded food/restaurant/takeaway market. Core competency framework would allow them to identify what they do well and could transfer to any growth option chosen – especially if this is not an expansion of the current food delivery model. Force field analysis could help Liam to understand the constraining and driving forces in developing the new strategy – This may help him to identify actions that need to be taken to reduce constraining forces. Decision trees could be used to help make a quantitative led decision between the different options for expansion – but would need to have much more financial information to be worthwhile. 2 AO4 Evaluation Evaluation will largely depend on the points raised in the analysis of the approaches needed to develop the new strategy other than Ansoff’s Matrix. Evaluation ( and and ) including: Candidates must state that Ansoff’s Matrix is/isn’t sufficient or acknowledge that something else is better for first N1 mark. Each option requires much more data and research to understand the risk, financial constraints and success probabilities to help make the final decision. Should KF be using a combination of other methods – decision trees to help make the decision, core competency framework to identify strengths to transfer to new business etc.? How important is growth to the new strategy moving forward, do they need to consolidate after the pandemic and focus in on what they do best given new HR implications? Is the whole structure of their business model changing given changes to ZHC legislation – is this model even still viable? Advice to KF should make clear whether Ansoff’s matrix is sufficient or whether it should be supported by other models, and if so which? Accept all valid responses.