O Level Business: Motivating employees (Cambridge 7115) – 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.

These questions cover section 2.1 Motivating employees (2.1.1 and 2.1.2) of the Cambridge O Level Business Studies (7115) syllabus for examination in 2026. The subject is not tiered. Learn the content first from the study guide and the revision notes. The wider topic also has a People in business question set. Course links: O Level Business hub and the printable checklist.

Questions

1. Define the term motivation and state one reason, other than pay, why people work. [3]

2. Dunsfold Bakery has 24 staff. Last week they made 7,200 loaves. After a change to the rota they made 8,100 loaves with the same staff. Over a five-week period of five working days a week, staff lost 18 working days to absence. During the year 6 employees left; the average number employed was 24. (a) Calculate labour productivity before and after the change. [2] (b) Find the percentage rise in labour productivity. [2] (c) Calculate the absenteeism rate for the five weeks. [3] (d) Calculate labour turnover for the year. [2]

3. Identify the level of Maslow’s hierarchy of needs that each action mainly meets. (a) A care worker is given a permanent contract after probation. [1] (b) A design studio organises its staff into project teams. [1] (c) A clerk is promoted to team leader with a new job title. [1] (d) A senior engineer is asked to design a new product range from scratch. [1]

4. Explain two differences between Taylor’s and Herzberg’s views on motivating employees. [6]

5. An agent at Eskwith Telesales is paid a salary of 1,200 a month plus 5% commission on sales. (a) Calculate total pay in a month when sales are 36,000. [2] (b) Calculate total pay in a month when sales fall to 28,000. [2] (c) State one disadvantage of commission for the employee. [1]

6. Brackenfold Garments made a profit of 96,000 and shares 15% of it equally among its 40 employees. (a) Calculate the amount each employee receives. [2] (b) Calculate each share if next year’s profit is 60,000 and the percentage is unchanged. [2] (c) Explain one reason profit sharing may not motivate a machinist. [2]

7. Distinguish between job rotation and job enrichment, giving an example of each. [4]

8. Eskwith Telesales employs 35 agents, each paid 9.00 an hour for a 35-hour week, all year. Labour turnover last year was 45%. Agents say the calls are repetitive and that nothing they do changes their pay. The owner is considering a 1% commission on sales; each agent makes about 50,000 of sales a month. Recommend, with justification, whether the owner should introduce the commission. [8]

9. Vessanta Support employs 18 software support engineers on salaries above the local average. Recent surveys show engineers are bored by routine tickets, have no chance to learn new systems, and absenteeism is rising. Recommend, with justification, one or two non-financial methods of motivation for Vessanta. [8]

10. Orrinby Couriers has 60 van drivers paid 10.50 an hour. Labour turnover is 30% and each leaver costs the business 2,500 to replace. The owner is deciding between two options. Option A is a quarterly bonus of 250 per driver for no late deliveries, which would cost up to 60,000 a year if every driver earned it. Option B is a training programme with a path to senior driver, costing 15,000 a year. Evaluate which option Orrinby should choose to reduce labour turnover. [10]

Answers

1. Motivation is the desire or drive [1] to put effort into doing a job well [1]. Any one other reason, for example social contact, security, recognition or satisfaction from the work [1]. [3] Examiner insight: a definition that only says “being happy at work” usually lacks the idea of effort or drive; include what the desire leads to.

2. (a) Before: 7,200 ÷ 24 = 300 loaves per employee [1]. After: 8,100 ÷ 24 = 337.5 loaves per employee [1]. (b) Change = 337.5 − 300 = 37.5 [1]. 37.5 ÷ 300 × 100 = 12.5% [1]. (c) Days available = 24 × 5 × 5 = 600 [1]. 18 ÷ 600 [1] × 100 = 3% [1]. (d) 6 ÷ 24 [1] × 100 = 25% [1]. [9] Examiner insight: show the formula and the substitution, because a bare number leaves nothing to reward if one input is wrong, and use the base period (the old figure) for a percentage change.

3. (a) Safety (security of employment) [1]. (b) Social (belonging) [1]. (c) Esteem [1]. (d) Self-actualisation [1]. [4] Examiner insight: the same action can be argued at two levels, for example promotion can bring higher pay; choose the level the stem emphasises, and a short reason makes the choice clear.

4. Difference 1, the role of pay: Taylor saw money as the main motivator [1]. Herzberg treated pay as mainly a hygiene factor that prevents dissatisfaction without motivating [1]. So Taylor would raise pay for more output, while Herzberg would add responsibility and recognition [1]. Difference 2, job design: Taylor favoured small, repeated tasks with close supervision [1]. Herzberg favoured enriched jobs with more responsibility and achievement [1]. Taylor’s approach can bore workers, whereas Herzberg’s can make work more meaningful but costs more time and training [1]. [6] Examiner insight: a “difference” needs both sides stated; describing Taylor in one paragraph and Herzberg in another, without contrast, usually earns less than a direct comparison.

5. (a) Commission = 5% × 36,000 = 1,800 [1]. Total = 1,200 + 1,800 = 3,000 [1]. (b) Commission = 5% × 28,000 = 1,400 [1]. Total = 1,200 + 1,400 = 2,600 [1]. (c) Income varies and is uncertain, or the employee may feel pressure to sell [1]. [5] Examiner insight: the salary is paid whatever the sales, so add it to the commission; forgetting the fixed element is a common slip.

6. (a) 15% × 96,000 = 14,400 [1]. 14,400 ÷ 40 = 360 each [1]. (b) 15% × 60,000 = 9,000 [1]. 9,000 ÷ 40 = 225 each [1]. (c) A machinist’s own effort has little effect on total profit [1], so the payment is not clearly linked to their work and the reward may feel distant, or may fall for reasons outside their control [1]. [6] Examiner insight: “explain” needs the reason and its effect on motivation; saying only that profit varies is a description, not an explanation.

7. Job rotation moves employees between different tasks at a similar level [1], for example a shop worker moving between till, stock and display work [1]. Job enrichment gives employees more responsibility, decision-making or challenge [1], for example letting a cashier order stock and train new staff [1]. [4] Examiner insight: the examples should differ clearly: if both involve doing different tasks, the distinction in responsibility has not been shown.

8. Recommend introducing the commission in addition to the basic wage [1]. The job is selling and agents influence the outcome, so a link between sales and pay fits the work [1]. At present the pay is fixed and agents say effort changes nothing, so commission answers that complaint directly [1]. Monthly wage = 9.00 × 35 × 52 ÷ 12 = 1,365; commission is 1% × 50,000 = 500, about 37% extra pay [1]. Total extra cost is 35 × 500 = 17,500 a month [1]. Against that, lower turnover would cut replacement costs, and more sales help pay for it [1]. Risk: agents also find the calls repetitive, which commission does not fix; pressure to sell may even raise turnover [1]. Judgement: introduce it, but add variety or a team element and review after a trial period, because pay alone may not address the boredom [1]. [8] Examiner insight: using the numbers in the stem (500 per agent, 17,500 in total) shows application; a general statement that “commission motivates” is likely to be treated as knowledge only.

9. Recommend training [1] and job enrichment [1]. Pay is already above average, so a hygiene factor is met, and a pay rise would add little [1]. The engineers are bored and want to learn, which are esteem and self-actualisation needs in Maslow’s terms [1]. Training in new systems and more responsibility, such as leading a project or solving complex tickets, meets those needs and links to Herzberg’s motivators [1]. This should reduce absenteeism and make engineers more productive [1]. Risk: training has a cost, and trained engineers may leave for other employers [1]. Judgement: both methods fit the stated problem better than money, so Vessanta should introduce them, perhaps with a commitment to stay for a period after expensive courses [1]. [8] Examiner insight: the reasoning must come from the evidence in the stem (above-average salary, boredom, no learning); a list of all five non-financial methods without a link to the case rarely scores well.

10. Current cost of turnover: 30% × 60 = 18 leavers, 18 × 2,500 = 45,000 a year [1]. Option A costs up to 60,000 a year (60 × 250 × 4) [1]. Even if the bonus stopped all leavers, it would save at most 45,000, so it cannot pay for itself through lower turnover alone [1]. A bonus for punctuality also does not address why drivers leave, and pay is mainly a hygiene factor [1]. It may help delivery performance, but that is a different aim [1]. Option B costs 15,000, which equals 6 leavers (15,000 ÷ 2,500), or 10 percentage points of turnover [1]. A fall from 30% to 20% would cover the cost [1], and a path to senior driver meets esteem needs, as Maslow and Herzberg suggest [1]. Risks: training costs also fall on the business if drivers leave after training, and there are few senior posts [1]. Judgement: choose B, because it is cheaper, needs a smaller fall in turnover to pay back and addresses progression, but monitor results and consider a small team bonus later if drivers say pay is the problem [1]. [10] Examiner insight: “evaluate” is rewarded for a reasoned conclusion that depends on the evidence; using the break-even comparison of leavers saved shows judgement, while simply preferring training with no figures is likely to stay at a general level.

Where marks are usually lost

• Leaving out the formula, the working or the unit in a calculation.
• Dividing by the new figure when working out percentage change.
• Using the wrong number of days or staff when finding absenteeism.
• Mixing up labour turnover (people leaving) with absenteeism (people away).
• Naming a level of Maslow’s hierarchy without saying why the action fits it.
• Describing the two theories separately when the question asks for differences.
• Confusing job rotation with job enrichment.
• Recommending a method without using the figures or facts given.
• Stopping at advantages and never giving a risk, cost or final judgement.

Frequently asked questions

Are these Cambridge O Level Business Studies 7115 past paper questions? No. They are ten original practice questions written for Marlbridge on section 2.1 Motivating employees. Use them alongside the official past papers.

What is the difference between labour turnover and absenteeism? Labour turnover measures people leaving the business and having to be replaced. Absenteeism measures people being away from work when they are expected to be there, and mixing the two up is a common error.

What do you need to show in motivation calculations? Write the formula, the substitution and the unit, and divide by the original figure when finding a percentage change. A bare number leaves nothing to reward if one input is wrong.

What is a common slip in pay calculations with commission? Forgetting the fixed element. A salary is paid whatever the sales, so it must be added to the commission to find total pay.

How do you answer a “recommend” or “evaluate” question on motivation? Use the figures and facts in the stem, such as pay compared with the local average or the cost of staff leaving, and give a risk or cost before a reasoned conclusion. A general statement that a method “motivates” earns little.

Next steps

• Review the study guide on any question you missed.
• Recheck the formulas in the revision notes.
• Open the O Level Business hub and tick items on the printable checklist.
• Try all the free 10-minute diagnostics.
• Book a free trial class if you want help with recommend-and-justify answers.

Official syllabus

Cambridge International, Cambridge O Level Business Studies (7115) syllabus for examination in 2026, section 2.1 Motivating employees (2.1.1 and 2.1.2).