Steppa is a private-sector shoe manufacturer. The business employs 200 workers, all of whom are paid a high hourly wage rate. The Human Resources Director stated: ‘We use a democratic leadership style. Employees are an important stakeholder group. Happy workers help the business. Revenue rose by 10% last year.’ She cannot work out why so many workers leave the business every year. She is considering other non-financial ways to motivate employees.
(a)[2]
What does ‘stakeholder group’ mean?
(b)[2]
What does ‘private sector’ mean?
(c)[4]
Identify and explain two effects on Steppa of a large number of workers leaving the business each year.
(d)[6]
Identify and explain two possible advantages for Steppa of using a democratic leadership style.
(e)[6]
Explain two non-financial reward methods that Steppa could use to raise employee motivation. Recommend which method Steppa ought to 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 person or group with a direct interest in the activities of a business” …