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7115 · 2.1

Motivating workers — practice questions

Practice and worked examples for 7115 Motivating workers. Short previews only — attempt the full question in MarkScheme against the official scheme.

Worked example 1

A call centre has 40% annual staff turnover and falling customer satisfaction scores. Explain how improved motivation could help the business.

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Turnover cost: Constant recruitment and training (2.1.3, 2.1.6) — experienced staff leave, service quality drops.

Motivation fixes: Fair pay + recognition (2.2.4), team leaders who coach not just monitor (leadership), career paths — reduce exit intent.

Customer impact: Motivated agents speak more positively → higher satisfaction, protecting revenue and brand (3.1.1 marketing link).

Worked example 2

A factory employs 50 workers, each working 40 hours a week. They produce 8,000 units per week. The factory introduces a group bonus scheme where a 10% bonus is paid on the total weekly wage bill if output increases by 15%. The average weekly wage is $400 per worker. In the first week of the scheme, output rises to 9,500 units. Calculate: (a) the change in labour productivity (units per worker), and (b) the change in unit labour cost.

Show solution outline

This example shows how a financial motivator can impact key performance indicators. We need to compare the 'before' and 'after' scenarios.

Initial Situation (Before Scheme):

  • Labour Productivity: Output / Number of workers = 8,000 units / 50 workers = 160 units per worker.
  • Total Labour Cost: Number of workers × Average wage = 50 × $400 = $20,000.
  • Unit Labour Cost: Total Labour Cost / Output = $20,000 / 8,000 units = $2.50 per unit.

New Situation (After Scheme):

  • Check Bonus Condition: The required output increase is 15% of 8,000 units = 0.15 × 8,000 = 1,200 units. The actual increase is 9,500 - 8,000 = 1,500 units. Since 1,500 > 1,200, the bonus is paid.
  • New Labour Productivity: New Output / Number of workers = 9,500 units / 50 workers = 190 units per worker.
  • New Total Labour Cost (with bonus): Initial Cost + 10% Bonus = $20,000 + (0.10 × $20,000) = $20,000 + $2,000 = $22,000.
  • New Unit Labour Cost: New Total Labour Cost / New Output = $22,000 / 9,500 units = $2.32 per unit (rounded to 2 decimal places).

Final Answer: (a) Change in labour productivity: Labour productivity increased from 160 units per worker to 190 units per worker, an increase of 30 units per worker.

(b) Change in unit labour cost: The unit labour cost decreased from $2.50 to $2.32, a saving of $0.18 per unit, despite the firm paying a $2,000 bonus. This shows the motivational scheme was financially successful.

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