Influences of Operations and HRM on Business Activity
(Merged Question Paper and Marking Scheme)
Tuesday 14 May 2024
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GCSE
BUSINESS
Paper 1 Influences of operations and HRM on business activity
Tuesday 14 May 2024 Afternoon Time allowed: 1 hour 45 minutes
Materials
For this paper you must have: For Examiner’s Use
• a calculator.
Section Mark
Instructions A
• Use black ink or black ball-point pen. B
• Fill in the boxes at the top of this page.
C
• Answer all questions.
• You must answer the questions in the spaces provided. Do not write outside TOTAL
the box around each page or on blank pages.
• If you need extra space for your answer(s), use the lined pages at the end of
this book. Write the question number against your answer(s).
• Do all rough work in this answer book. Cross through any work you do not
want to be marked.
Information
• The marks for each question are shown in brackets.
• The maximum mark for this paper is 90.
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GCSE Business Paper 1: Influences of Operations and HRM on Business Activity Summary
The GCSE Business Paper 1: Influences of Operations and HRM on Business Activity, scheduled
for May 2025, will assess students’ understanding of how key business functions—specifically
operations and human resource management (HRM)—impact the overall activity and performance of a
business. The exam will test students' knowledge of how businesses manage production, workforce, and
other internal processes to achieve objectives. The key areas covered include:
1. Operations Management:
Production Processes: Understanding different production methods (job, batch, and flow
production) and how businesses select the appropriate method for their needs.
Quality Control and Assurance: How businesses ensure the quality of their products or services
through methods like quality control, quality assurance, and Total Quality Management (TQM).
Inventory Management: Methods for managing stock levels (just-in-time, just-in-case) and the
impact of efficient inventory systems on business operations.
Efficiency and Productivity: The role of efficient production systems, and the use of technology
and automation to increase productivity.
Supply Chain Management: The importance of managing suppliers, logistics, and distribution
to ensure timely delivery of goods and services.
2. Human Resource Management (HRM):
Recruitment and Selection: The processes businesses use to attract, select, and retain
employees, including the roles of job descriptions, person specifications, interviews, and other
selection methods.
Training and Development: The importance of employee development, including induction
training, on-the-job and off-the-job training, and continuous professional development (CPD).
Motivation and Leadership: Theories of employee motivation (e.g., Maslow’s Hierarchy of
Needs, Herzberg’s Two-Factor Theory, and Taylor’s Scientific Management) and how businesses
apply these theories to improve workforce performance.
Employee Relations: How businesses manage relationships with employees, including conflict
resolution, trade unions, and maintaining a positive workplace culture.
Performance Management: Techniques for assessing and improving employee performance,
such as appraisals, targets, and feedback systems.
, 2
Do not write
outside the
Section A box
Answer all questions in the spaces provided.
For questions with four responses, only one answer per question is allowed.
For each question completely fill in the circle alongside the appropriate answer.
CORRECT METHOD WRONG METHODS
If you want to change your answer you must cross out your original answer as shown.
If you wish to return to an answer previously crossed out, ring the answer you now wish to select
as shown.
0 1 . 1 Which of the following is a benefit to an entrepreneur of operating as a sole trader?
[1 mark]
A Can sell shares
B Easy to set up
C Limited liability
D Many owners
0 1.2 Which of the following is a method of internal recruitment?
[1 mark]
A Advertising at a job centre
B Advertising in a newspaper
C Advertising on a noticeboard in the staffroom
D Advertising with an employment agency
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, 3
Do not write
outside the
0 1.3 Which of the following describes when induction training should take place? box
[1 mark]
A When an employee first joins a business
B When an employee leaves a job
C When an employee needs to learn new skills
D When an employee starts using new technology
0 1.4 Which of the following is correct for a flat organisational structure?
[1 mark]
A Many levels of hierarchy
B Many opportunities for promotion
C Narrow span of control
D Short chain of command
0 1.5 Which of the following is the most likely effect of a decrease in interest rates?
[1 mark]
A Borrowing will be cheaper.
B Business investment will fall.
C Consumer spending will reduce.
D More people will save.
Question 1 continues on the next page
Turn over ►
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, 4
Do not write
outside the
0 1.6 Which of the following is an example of a fixed cost? box
[1 mark]
A Interest payments
B Packaging for goods
C Production wages
D Raw materials
0 1 . 7 Explain one method of growth used by a business when expanding organically or
externally.
[2 marks]
0 1.8 Explain why a business uses delayering.
[2 marks]
0 1 . 9 Explain one way a person specification can be used as part of the recruitment
process.
[2 marks]
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outside the
0 1 . 10 Businesses aim to meet the needs and wants of customers. Explain the meaning of box
the term ‘need’ using an example.
[2 marks]
0 1 . 11 Explain one disadvantage to a business of expanding through external growth.
[2 marks]
0 1 . 12 Land is one of the four factors of production.
Identify and explain two factors of production other than land.
[4 marks]
Factor 1
Explanation
Factor 2
Explanation
20
Turn over for Section B
Turn over ►
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Do not write
outside the
Section B box
Answer all questions in the spaces provided.
0 2 Item A: Luscious Locks by E
Elaine owns her own hair salon called Luscious Locks by E (LLE). The salon has
one senior hairdresser and five junior hairdressers.
The senior and most qualified hairdresser is leaving the business at the end of the
month. They are leaving because Elaine did not listen to ideas from employees on
new hairstyles to offer.
John will be promoted to the senior hairdresser role. He is the most experienced of
the junior hairdressers and is frequently fully booked. Customers are charged a
premium price for bookings with the senior hairdresser and expect a high level
of skill.
John has asked Elaine if the salon would pay for him to go on a college course. He
would need to attend the course one afternoon every week for 2 years. The course
will be led by a specialist trainer in the latest hair techniques. An alternative would
be for John to receive on-the-job training from the current senior hairdresser until
they leave the business.
LLE’s sales and profits have recently fallen due to the opening of a new salon that
offers the latest up-to-date celebrity styles.
0 2 . 1 Explain one benefit to a business of employing workers on a part-time contract.
[2 marks]
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outside the
0 2 . 2 Elaine makes all of the decisions in the business. She rarely consults with anyone. box
Analyse one drawback for LLE of Elaine’s management style.
[6 marks]
Extra space
Question 2 continues on the next page
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Do not write
outside the
0 2 . 3 The college course would allow John to gain an advanced qualification in the latest box
hairstyling techniques.
Recommend whether Elaine should allow John to attend the college course. Give
reasons for your answer.
[9 marks]
Extra space
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Do not write
outside the
box
Question 2 continues on the next page
Turn over ►
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