Steppa is a private-sector shoe manufacturer. It employs 200 workers, and all of them are paid a high hourly wage rate. The Human Resources Director said: ‘We use a democratic leadership style. Employees are an important stakeholder group. Happy workers are good for business. Revenue increased by 10% last year.’ The director cannot understand why so many workers leave the business each year. She is considering other non-financial ways of motivating employees.
(a)[2]
What is meant by a ‘stakeholder group’?
(b)[2]
What is meant by ‘private sector’?
(c)[4]
Identify and explain two consequences for Steppa of many workers leaving the business each year.
(d)[6]
Identify and explain two potential benefits for Steppa of adopting a democratic leadership style.
(e)[6]
Explain two methods of non-financial reward that Steppa could use to raise employee motivation. Recommend which method Steppa should use. 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: “Any individual or group that has an interest in what a business does” …