AQA A-Level Business: Human Resource Management

Read the following case study and answer the question that follows.

The following case study was written for this exercise.

Hartwell Care Homes Ltd operates eleven residential homes for older people across the East Midlands, employing around 640 care assistants, senior carers and support staff. Pay for front-line care assistants sits close to the national living wage, and the company has long relied on financial levers to manage its workforce: a small attendance bonus, occasional overtime at premium rates, and a "carer of the month" cash prize. Despite this, the directors are alarmed by a recent (invented) staff survey. Labour turnover among care assistants has reached 38 per cent a year, only 51 per cent of staff say they feel valued, and exit interviews repeatedly mention feeling "rushed, unrecognised and shut out of decisions" rather than underpaid.

The operations director argues that the answer is more money: a 6 per cent pay rise across the board and a larger bonus pot to "buy back" loyalty. The new head of people disagrees. She points to the survey wording and proposes a different route — redesigning care assistants' roles around small, stable teams with their own caseloads (job enrichment and teamworking), training and empowering senior carers to run their own homes, and building a structured recognition programme. The finance director warns that, with employee costs already a high share of revenue in a tight-margin sector, any across-the-board pay rise must be justified by a measurable improvement in retention and productivity.

Question: Evaluate whether financial rewards are the most effective way to improve motivation at Hartwell Care Homes Ltd. [25 marks]

Read the following case study and answer the question that follows.

The following case study was written for this exercise.

Pinfold Distribution Ltd is a fast-growing parcel-delivery firm in the North West, employing about 480 warehouse operatives and van drivers. The business has built its reputation on next-day delivery, which depends on tight scheduling, close supervision and demanding daily targets. Historically it has taken a hard approach to managing people: most drivers are on flexible, short-term contracts, training is limited to the legal minimum, pay is kept close to the market floor, and decisions are made centrally by depot managers. This kept costs low while Pinfold was small.

As the firm has grown, problems have surfaced. Labour turnover among drivers is high, the company is paying a rising bill for agency cover and re-training, and a major retail client has complained about inconsistent service from a constantly changing pool of drivers. The new managing director is considering a shift towards a softer approach: permanent contracts, more training and development, two-way communication, and greater empowerment of drivers to resolve delivery problems themselves. The finance director cautions that softer people management raises fixed staff costs and that the firm competes largely on price.

Question: Assess whether a soft HRM approach is the best way for Pinfold Distribution Ltd to manage its workforce. [16 marks]

Read the following case study and answer the question that follows.

The following case study was written for this exercise.

Glenmore Hotels Ltd runs a chain of mid-range hotels across Scotland, employing housekeeping, reception and restaurant staff. Like much of the hospitality sector, it suffers from very high labour turnover — around 60 per cent a year among front-line staff. New recruits often leave within weeks, citing a lack of induction and training, little chance of progression, and pay that is no better than rival employers nearby. The directors are concerned about the cost and disruption of constantly recruiting and want to reduce turnover without simply matching the highest pay in the area.

Question: Analyse two ways in which Glenmore Hotels Ltd could reduce its labour turnover. [9 marks]

Ravensworth Engineering Ltd manufactures metal components. The table below shows selected workforce data for the most recent financial year.

Workforce data	Value
Number of staff who left during the year	24
Average number of staff employed	160
Total output during the year (units)	480,000

Calculate Ravensworth Engineering Ltd's labour turnover and its labour productivity for the year. (6 marks)

(Labour turnover (%) = number of staff leaving ÷ average number employed × 100. Labour productivity = total output ÷ number of employees.)

Calderbank Foods Ltd, a food-processing business, has given its production-line staff a 5 per cent pay rise in the hope of improving their motivation. After an initial lift, managers report that morale has fallen back to where it was, and that staff still complain of repetitive, monotonous work with little recognition.

Explain, using Herzberg's two-factor theory, why a pay rise alone is unlikely to motivate Calderbank's staff in the long run. (5 marks)

Selby Logistics Ltd employs 90 warehouse staff. Over the most recent year the company recorded the following absence data.

Absence data	Value
Total staff-days lost to absence	1,944
Days each member of staff was scheduled to work	240
Number of staff	90

Calculate Selby Logistics Ltd's absenteeism rate for the year. (4 marks)

(Absenteeism rate (%) = staff-days lost to absence ÷ total possible working days × 100.)