O Level Business Studies: People in Business — Revision Notes

Condensed for the final weeks. For the full explanation, use the People in Business study guide.

Motivation — two named theorists, one framework

• Maslow’s hierarchy of needs: lower-level needs (pay, security) must be addressed before higher-level needs (belonging, esteem, self-actualisation) will motivate.
• Taylor vs Herzberg: Taylor focuses on pay as the primary motivator; Herzberg distinguishes “hygiene factors” (prevent dissatisfaction) from genuine motivators.

Financial methods: wage, salary, bonus, commission, profit sharing. Non-financial methods: job enrichment, job rotation, teamworking, training, promotion.

Benefits of a motivated workforce: higher productivity, reduced absenteeism, lower labour turnover — name these specifically, not just “workers work harder.”

Organisation and management

• Structure: levels of hierarchy, span of control, chain of command. “Tall” = many levels, narrow spans. “Short” = fewer levels, wider spans.
• Management functions: planning, organising, coordinating, commanding, controlling — plus delegation and the trust/control trade-off.
• Leadership styles: autocratic (fast decisions, crisis), democratic (draws on staff expertise), laissez-faire — always recommend AND justify for the given scenario.
• Trade unions: what one is, and the effects on a business of its employees being union members.

Recruitment, selection and training

• Internal vs external recruitment: filling from within vs hiring from outside.
• Three training types: induction (new starters), on-the-job (learning while working), off-the-job (learning away from work, e.g. a course) — know the benefits and limitations of each.
• Dismissal vs redundancy: dismissal = employee removed for a specific, employee-related reason. Redundancy = the role itself is removed, for reasons unrelated to individual performance (e.g. automation, falling demand).
• Legal controls: employment contracts, unfair dismissal, discrimination, health and safety, legal minimum wage.

Communication

Know the benefits and limitations of different methods (including IT-based ones), and always recommend and justify for the given circumstance. Be ready to discuss communication barriers — how they arise, what problems they cause, and how they can be reduced.

Why theorists need concrete examples

Maslow, Taylor and Herzberg carry more marks tied to a workplace example than as abstract descriptions. Application (AO2) and analysis (AO3) carry more combined weighting than pure knowledge (AO1) alone across the qualification as a whole, and especially on the Paper 2 case study – though on Paper 1 itself, knowledge still carries the larger single share — always link the theory to the specific scenario in the question.

Why this topic connects back to Topic 1

Every business decision studied under Topic 1 — what to produce, how to organise it, who owns it — eventually comes down to people getting the work done. Topic 2 turns to the human resources side: motivation, structure, staffing and communication. It is examined across Paper 1 (Short Answer and Data Response) and Paper 2 (Case Study), both worth 50% of the final grade, since Business Studies at 7115 is not tiered and content is drawn from across the whole syllabus.

The shared content with IGCSE Business

Cambridge explicitly builds this O Level on shared content with Cambridge IGCSE Business Studies (0450) — the underlying human resources theory is the same course either way, and the assessment structures are identical: the same two papers, timings, weightings, question descriptions and assessment-objective weightings. What differs is the qualification code, the grade range (A* to G for the IGCSE against A* to E for the O Level), and the series and zone in which each qualification is available. If you find yourself comparing notes with a friend doing the IGCSE route, the theory itself (Maslow, Taylor, Herzberg, organisational structure, leadership styles) transfers directly, but confirm you are practising with the correct board/qualification past papers before relying on them.

Exam traps

• Naming a motivation method without linking it to which level of Maslow’s hierarchy it addresses.
• Confusing dismissal with redundancy.
• Recommending a leadership style without justifying it against the given circumstance.
• Treating trade union effects as purely negative — the syllabus expects a balanced view.

Building “recommend and justify” answers across all four sub-topics

The single skill that unlocks the most marks in this topic is the same across all four sub-topics: for any named method, style or approach, be ready to state the specific business circumstance that makes it the better choice, and the circumstance that makes an alternative better instead. This applies to motivation methods (financial vs non-financial, matched to the level of need Maslow’s hierarchy suggests is unmet), leadership styles (autocratic for a crisis, democratic for complex decisions needing staff expertise), recruitment approaches (internal for speed and known quality, external for fresh skills), and communication methods (urgent and simple vs formal and important). Practising this one transferable skill across all four sub-topics is more valuable than memorising each sub-topic’s definitions in isolation, since Paper 2’s case study consistently rewards application over recall.

Not tiered, all content examinable

Business Studies at 7115 is not tiered, so every candidate is examinable on the full content of this topic regardless of ability — there is no “core” versus “extended” split to narrow revision around, so plan to cover all four sub-topics rather than assuming any part is optional.

Self-test

1. What must be addressed before higher-level needs will motivate an employee, per Maslow?
2. Identify two financial and two non-financial motivation methods.
3. Explain the difference between dismissal and redundancy.
4. Identify the three types of training and what each means.
5. What leadership style might suit a business needing fast decisions in a crisis?

Answers: 1. Lower-level needs (pay, security). 2. Financial: wage/salary, bonus. Non-financial: job enrichment, training. 3. Dismissal is employee-specific; redundancy removes the role for unrelated reasons. 4. Induction (new starters), on-the-job (while working), off-the-job (away from work). 5. Autocratic.

Official syllabus

Cambridge O Level Business Studies (7115) syllabus for examination in 2026 (Version 2, December 2025) — official syllabus PDF.