AQA A-Level Business: Human resource management (7132) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

This set covers section 3.6 (Decision making to improve human resource performance) of the AQA A-level Business specification (7132): HR objectives, HR data, job and organisational design, the HR flow, motivation and employer-employee relations. All businesses are invented. Learn the content first from the study guide and revision notes. Course hub: AQA A-level Business. Printable list: checklist. Check where you stand with the free diagnostics.

Questions

1. Whinmoor Care Homes employed 120 staff at the start of the year and 130 at the end. During the year 20 people left, and 106 of the original 120 stayed throughout.

(a) Calculate labour turnover for the year. [2] (b) Calculate the retention rate. [2] (c) Explain one reason why a care home might want to reduce its labour turnover. [2]

2. Pendlefold Components sells every unit at £40.

	Year 1	Year 2
Output (units)	64,000	70,400
Employees	40	44
Employee costs	£1,120,000	£1,276,000

(a) Calculate labour productivity in each year. [2] (b) Calculate labour cost per unit in each year, to the nearest penny. [2] (c) Calculate employee costs as a percentage of turnover in Year 2. [1] (d) Analyse what these figures suggest about Pendlefold’s human resource performance. [3]

3. Whinmoor Care Homes follows a soft approach to human resource management.

(a) Identify two human resource objectives from the specification that such a business is likely to set. [2] (b) Explain one way in which a hard approach would change its decisions on staffing. [2]

4. Saltbourne Contact Centre agents handle only scripted password-reset calls, never see customer feedback and have no say in how they organise their shift. Analyse how using Hackman and Oldham’s model could improve the motivation of the agents. [6]

5. Ayrdale Logistics has 180 warehouse operatives.

(a) Calculate the number of management layers above the operatives if every manager has a span of 10, and if every manager has a span of 5. [3] (b) Explain one effect of moving to the narrower span. [2] (c) Explain one influence that would make the owner more willing to delegate decisions. [2]

6. Pendlefold Components is closing a line that employs 8 people. Their employee costs total £216,000 a year. The company has offered a redundancy package of £7,200 to each. Another line needs 5 trained operators, and training would cost £1,500 per person. Evaluate whether Pendlefold should make all 8 people redundant or redeploy some of them. [9]

7. Explain how each of Taylor, Maslow and Herzberg would advise a manager at Whinmoor Care Homes who wants to motivate care assistants. [6]

8. Saltbourne Contact Centre has a sales team. A sales adviser has a basic pay of £9,500 and earns 5% commission on annual sales of £180,000. The company also offers performance-related pay of 6% of a £26,000 salary for meeting targets.

(a) Calculate the adviser’s total annual pay under the commission scheme. [2] (b) Calculate the performance-related pay bonus. [1] (c) Evaluate whether Saltbourne should rely on financial methods or non-financial methods to motivate its employees. [6]

9. Ayrdale Logistics wants to change shift patterns. Its staff have said they feel that decisions are announced without warning.

(a) Define a works council. [2] (b) Analyse the value to Ayrdale of good employer-employee relations. [4]

10. Pendlefold Components has 20 office staff. Last year 5 left, a labour turnover of 25.0% against a local average of 15%. Two vacancies drew no suitable applicants. A director proposes allowing tele-working three days a week. Evaluate this proposal. [8]

Answers

1. (a) Average employed = (120 + 130) / 2 = 125 [1]. Labour turnover = 20 / 125 x 100 = 16.0% [1]. [2] (b) Retention rate = 106 / 120 x 100 [1] = 88.3% (to one decimal place) [1]. [2] (c) Lower turnover reduces recruitment and training costs [1], and keeps experienced staff, so residents see familiar carers and the quality of care is more consistent [1]. [2] Examiner insight: A bare figure with no formula can lose the method credit if it is wrong, and “reduce turnover” needs a reason that fits a care home, not a general remark about cost.

2. (a) Year 1: 64,000 / 40 = 1,600 [1]. Year 2: 70,400 / 44 = 1,600 [1]. [2] (b) Year 1: 1,120,000 / 64,000 = £17.50 [1]. Year 2: 1,276,000 / 70,400 = £18.13 [1]. [2] (c) Turnover = 70,400 x £40 = £2,816,000; 1,276,000 / 2,816,000 x 100 = 45.3% [1]. [1] (d) Productivity has not changed, so the extra output came only from extra staff [1]. Labour cost per unit rose by about 3.6% (from £17.50 to £18.13) [1]. Pay per employee rose from £28,000 to £29,000 without a matching rise in output per employee, so unit costs and the share of turnover absorbed by labour rose [1]. [3] Examiner insight: Interpretation questions reward a comparison between the two years with a reason, such as pay rising faster than productivity; restating the numbers earns little.

3. (a) Any two of: employee engagement and involvement; talent development; training; alignment of values; diversity [1] [1]. [2] (b) A hard approach treats staff as a cost [1], so it might use flexible or short contracts and cut staffing quickly when demand falls, rather than investing in training to keep people [1]. [2] Examiner insight: Naming the objective is enough for “identify”; the explain part needs a stated consequence for decisions, not just a description of hard HRM.

4. Skill variety: agents handle only one call type, so adding other call types uses more skills [1]. Task identity: let an agent see a customer problem through to the end [1]. Autonomy: let agents choose break times or call order, giving a sense of responsibility [1]. Feedback: share customer ratings so agents know how they are doing [1]. These raise motivation by producing experienced meaningfulness, responsibility and knowledge of results [1]. Costs include training time and more variable call handling, so Saltbourne should judge whether lower turnover and better service outweigh them [1]. [6] Examiner insight: Naming the model’s characteristics without a link to the case stays at knowledge level; each change needs to be tied to a detail in the stem.

5. (a) Span 10: 180 / 10 = 18 supervisors, 2 managers, 1 director = 3 layers [1]. Span 5: 36 supervisors, 8 managers, 2 senior managers, 1 director = 4 layers [1]. The working shows the number at each layer rounded up [1]. [3] (b) Closer supervision is possible [1], but more managers are needed, raising costs, and messages pass through more levels [1]. [2] (c) Any one developed: managers trust skilled, trained staff [1], so decisions can be passed down safely and the owner has time for strategy [1]. [2] Examiner insight: Show the layer-by-layer working; a final number alone cannot show how the layers were counted, and rounding up must be explicit.

6. Redundancy for all 8: package = 8 x 7,200 = £57,600 [1]. Annual employee cost removed = £216,000, so first-year net saving = 216,000 - 57,600 = £158,400 [1]. Redeploying 5 costs training of 5 x 1,500 = £7,500 [1] and avoids hiring and training new operators [1]. It keeps skills and shows loyalty, protecting morale among remaining staff [1]. Redundancy for the other 3 still costs 3 x 7,200 = £21,600 [1]. The saving for the 3 is much larger than the cost, but redeployed staff are still paid [1]. Judgement: redeploy 5 and make 3 redundant, because the new line needs the operators and redeployment is cheaper than replacing them [1]; this depends on whether the 5 can be trained quickly and on demand for the new line [1]. [9] Examiner insight: An evaluation answer should reach a judgement that uses the figures; calculating the costs but not choosing between the options leaves the top level unreached.

7. Taylor: pay by output and break tasks into simple steps with training and supervision [1], so the manager would use a rate per task or bonus [1]. Maslow: identify the unmet level, such as safety through secure rotas or esteem through recognition [1], and meet it [1]. Herzberg: pay and conditions prevent dissatisfaction but do not motivate [1], so add motivators such as more responsibility or achievement [1]. [6] Examiner insight: Each theory needs a recommendation for this workforce; a description of the theory alone does not answer “advise”.

8. (a) Commission = 5% x 180,000 = £9,000 [1]. Total = 9,500 + 9,000 = £18,500 [1]. [2] (b) 6% x 26,000 = £1,560 [1]. [1] (c) Financial: commission and bonus give a direct link to sales and are easy to understand [1], but may push advisers to oversell, and the cost rises with sales [1]. Non-financial: recognition, training and teamwork meet other needs, as Herzberg argues [1], but they take time and may not satisfy people who are paid little [1]. A mix is likely to work best, using pay for measurable sales and non-financial methods for quality [1]. The judgement depends on the labour market and on how well the targets reflect the effort [1]. [6] Examiner insight: A balanced judgement that says what the choice depends on will usually be credited higher than a one-sided case.

9. (a) A group of employee [1] and management representatives that meets to share information and consult on workplace matters [1]. [2] (b) Fewer disputes and less absence [1]. Staff who feel informed are more likely to accept the shift change [1]. Lower labour turnover cuts recruitment and training costs [1], which improves labour cost per unit and competitiveness [1]. [4] Examiner insight: “Analyse” needs a chain of reasoning from relations to a business result, not a list of benefits.

10. For: three days at home cut commuting, widen the pool of applicants, and could cut the 25.0% turnover towards the 15% local average [1]. It may save office space and show the business as a flexible employer [1]. Against: less supervision and weaker teamwork [1], security and equipment costs [1], and the need for training managers to manage remotely [1]. Some roles must be on site, which could seem unfair to those staff [1]. Judgement: trial it, because turnover and unfilled posts show a real problem [1], and review turnover, productivity and customer service after a set period [1]. [8] Examiner insight: Use the stem figures to show why the issue matters, and name how the success of the change would be measured.

Where marks are usually lost

• Using the closing headcount rather than the average in labour turnover.
• Giving a calculated figure with no comment on what it means.
• Confusing labour productivity with labour cost per unit.
• Describing Hackman and Oldham’s characteristics without linking them to the job in the case.
• Counting layers without showing the working at each level.
• Choosing redundancy or redeployment without using the figures.
• Describing a theory but not advising the manager.
• Ending with a conclusion that repeats points and gives no judgement.

Next steps

• Revisit the study guide for worked examples.
• Use the revision notes for a quick recall check.
• Tick off the topic on the checklist and return to the course hub.
• Take the free 10-minute diagnostics to find your next weak area.
• Book a free trial class if you want help with evaluation answers.

Frequently asked questions

How do you calculate labour turnover? Labour turnover = number of staff leaving ÷ average number employed × 100. Using the closing headcount instead of the average is the most common error.

What is the difference between labour productivity and labour cost per unit? Labour productivity measures output per worker, while labour cost per unit measures how much labour costs for each unit produced. Confusing the two loses marks.

How should you use motivation theories in an answer? Use each theory to advise the manager in the case on what to do, rather than only describing the theory. Describing a theory without advising the manager is a frequent weakness.

How are Hackman and Oldham’s job characteristics used in AQA Business? Link each characteristic to the specific job described in the case, showing how the job could be redesigned. Describing the characteristics without that link earns little credit.

Official syllabus

AQA, AS and A-level Business (7131 and 7132) specification, section 3.6 Decision making to improve human resource performance.