Ruby operates as a sole trader. She makes handmade, individually designed greetings cards through job production. Her customers place great importance on high quality cards. Ruby has 3 part-time employees who receive an hourly wage rate. She is thinking about switching from an hourly wage rate to a piece rate system, where employees are paid according to the number of products they produce. Ruby believes this could improve the motivation of her workforce. During festivals and celebrations she gets a greater number of orders.
(a)[2]
What does ‘motivation’ mean?
(b)[2]
Identify two disadvantages for Ruby of using job production.
(c)[4]
Identify and explain two advantages to Ruby of employing part-time employees.
(d)[6]
Identify and explain two non-financial methods of motivation Ruby could use.
(e)[6]
Do you think Ruby should change the way she pays her employees? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “The reason, drive or factor that causes employees to want to work hard and to work effectively or efficiently for the business” …