Employee Motivation and Business Strategies: A Case Study
Paper 1
1. (a)
(i) Hourly Wage Rate Definition
By hourly wage rate, we mean that employees are paid according to the amount of hours that they spend working. By high, we mean that employees are paid significant amounts of money, or that the wages are higher than in other companies.
(ii) Impact of Piece Rate on Employees and Mr. Singh’s Business
His employees: It will benefit them since the money they earn will be more closely associated with their effort, which gives them an opportunity to work faster to obtain more money. However, for employees who focus on quality, this may not be an advantage as they will be paid less than those who rush.
Mr. Singh’s business: The piece rate element may benefit it as it will motivate employees to work faster, which means more production and, consequently, more profits. However, the business’s reputation may be damaged if low-quality goods and services are produced by employees rushing to earn more.
1. (b)
(i) Responsibility as a Motivator
In my opinion, responsibility motivates employees as it gives them a sense of importance in the company and lets them organize their work as they like, which may increase their willingness to do it. It’s a way of conveying to the employee that their activities are appreciated and that the company thinks they are valuable. However, companies have to be careful when deciding who they give responsibility to, as some workers may not want it since it causes them a lot of stress.
(ii) Jordan’s Management Style
Jordan’s management style is a laissez-faire one as it lets employees make their own decisions.
(iii) Importance of Training
Training might greatly help the performance of employees in the business as it may teach them new skills to improve their work or enable them to perform new tasks. As employees in Jordan’s business are left to manage their work as they want, training might help them to apply new methods and increase efficiency.
2. (a)
(ii) Number of Customers
200 customers
(iii) Revenue
$800
2. (b) Price Elasticity of Demand
If the demand for a service is price elastic, it means that a small change in price will have a great influence on the demand for it. So, if Pedro is considering increasing his prices, he has to know that the number of customers he now has will eventually decrease. Pedro has to evaluate if the decrease in customers and having higher prices is more profitable than keeping the current ones.
2. (c)
(i) Marketing Budget Definition
By marketing budget, we refer to the financial plan of a business for the marketing of a product during a period of time. It represents the expenditure target that the company has to meet.
(ii) Importance of a Marketing Budget
Most businesses have a marketing budget since it’s a good method for calculating the budget available for marketing. It is useful as a plan to assess aims, it prevents overspending, and it clearly states how money is going to be divided among the different areas of the marketing department.
2. (d)
(i) Brand Name Definition
The term brand name refers to the unique name given to a product that distinguishes it from others.
(ii) Benefits of a Brand Name for Pedro’s Business
The brand name could help Pedro build up his business as it will differentiate his service from others, giving it a special relevance in the market and making people aware of his existence. To succeed, the brand name should be easy to remember and be accompanied by a strong image that attracts people. Besides, branded products are usually associated with high quality, which increases customers’ confidence and, consequently, sales.