Chapter 6 Resources
Chapter 6 Resources
AO2 Application
People in business
Cambridge IGCSE™
Business 0450
This Teaching Pack can also be used with the following syllabuses:
• Cambridge IGCSE™ (9–1) Business Studies 0986
• Cambridge O Level Business Studies 7115
Version 0.1
In order to help us develop the highest quality resources, we are undertaking a continuous programme
of review; not only to measure the success of our resources but also to highlight areas for
improvement and to identify new development needs.
We invite you to complete our survey by visiting the website below. Your comments on the quality and
relevance of our resources are very important to us.
www.surveymonkey.co.uk/r/GL6ZNJB
Would you like to become a Cambridge International consultant and help us develop
support materials?
www.cambridgeinternational.org/cambridge-for/teachers/teacherconsultants/
UCLES retains the copyright on all its publications. Registered Centres are permitted to copy material from
this booklet for their own internal use. However, we cannot give permission to Centres to photocopy any
material that is acknowledged to a third party, even for internal use within a Centre.
Contents
Introduction ...................................................................................................................................................... 4
AO2: Application................................................................................................................................................ 5
AO lesson: Application of business knowledge ............................................................................................... 6
Skill development lesson: Motivation methods .............................................................................................. 8
Skill development lesson: continued .............................................................................................................. 9
Skill development lesson: continued ............................................................................................................ 10
Independent lesson: Motivation in the workplace ......................................................................................... 11
Worksheets and answers ............................................................................................................................. 12
Teaching Pack: AO2 Application
Introduction
This pack will help you to develop your learners’ higher order thinking skills as defined by AO2.
Important note
Our Teaching Packs have been written by classroom teachers to help you deliver
lessons which develop higher order thinking skills. Use these materials to
supplement your teaching and engage your learners. You can also use them to help
you create lesson plans for other parts of the syllabus.
This is one of a range of Teaching Packs. Each pack is based on one element of the syllabus with
a focus on specific skills within one of the assessment objectives. The packs can be used in any
order to suit your teaching sequence.
In this pack you will find the lesson plans, worksheets for learners and teacher resource sheets you
will need to successfully complete the lessons.
AO2: Application
This Teaching Pack focuses on AO2 Application – apply knowledge and understanding of facts,
terms concepts, conventions, theories and techniques. It has links to the following syllabus content
(see syllabus for detail):
The lesson(s) cover the following skills, adapted from AO2: Application (see syllabus for
assessment objectives):
Please note that analysis and evaluation will feature in some activities, but these skills are
focussed on in more depth in other Teaching Packs and Scenario Packs.
Prior knowledge
Knowledge from the following syllabus topics is useful for the activities that follow
Teacher notes
The suggested activities are to help engage your learners as they develop the skill of applying their
business knowledge to a range of business scenarios and contexts.
Learners can find applying their business knowledge difficult. For example, the application of their
knowledge on methods of motivating the workforce in a car manufacturing plant will be different to
the methods used to motivate a team of sales people selling cars.
It is also important to apply knowledge correctly in the context of the business, for example its size,
whether it is a ‘for profit’ or ‘not for profit’ business, and whether the business is well established or
a start-up.
Learners need to focus on how to use the business knowledge they have in given situations and
circumstances. The Assessment Objective (AO) lesson, skill development lesson and the
independent lesson activities will help learners practise this.
Timings Activity
Introduction
Take students through PowerPoint (AO Application Introduction), to explain what is
meant by the term ‘application’ of knowledge.
This is followed by another short activity where learners can practise applying their
knowledge. This time, learners have to consider businesses A and B. There is no
need for learners to record anything at this point – this can all be done verbally.
Suggested responses are:
• Praise and recognition – Both
• Fringe benefits – Both, but the package offered might have some
differences – discuss what some of these might be for the different roles in
both businesses
• Variety of tasks – Both, but only with some job roles – discuss how this
method would only work for some job roles in each business
• Flexible hours – difficult for both as they will need rotas, but a good
discussion on how this might be achieved could be used if fixed days and
hours
• Promotion – Both but may be limited in a restaurant – depends on the size
• Bonus for meeting targets – Airline
• Paid by piece rate – Neither – why?
AO lesson: continued
Timings Activity
Main lesson
Continue using the PowerPoint resource and hand out Worksheet A. Learners have
to read each statement about methods of motivation in the workplace and decide if
they have been applied in the context of the business scenario. For the final
suggestion, learners need to write this themselves based on their understanding of
which of the first four were applied and which were not.
Read the case study on the PPT and the practise question. Hand out a copy of
Worksheet B.
Talk through steps one to three giving learners time to make notes on their handout.
For step four give learners 10 minutes to write their answer in the space provided
on the worksheet. Learners should use their notes from steps one to three to help
them if they need it.
Plenary
Choose 3 or 4 learners to read out their answers and ask their peers to comment on
how well they feel it is applied.
Using the PPT, show the model answer for step four. Learners should self or peer-
assess their work and make any necessary corrections.
Timings Activity
Introduction
Explain to learners that this activity is designed to check their knowledge and
understanding of elements of core content from section 2.1 of the syllabus. Hand
out to learners Worksheet C. Letters can be added for differentiation.
Learners can use the answers for these activities to mark their work.
Ask learners to identify the areas which need developing in this topic.
Main lesson
Hand out Worksheet D. The aim of this activity is to help learners understand that
the different motivational methods businesses use are not always suitable for all
types of business and job roles. The key to success for motivation is being able to
select which methods are realistic in the context of given business and situation.
There are two options for this activity depending on access to video clips.
Option 1
Search for, and select a video clip to play which shows a day in the life of a Google
worker. There are many clips that could be sourced for suitability through a search
engine. Learners should observe and note down what they see and hear in the clip
that indicates a motivated workforce at Google. After the clip they should note down
alongside their observations why they think each method motivates the workers
there, and what other types of businesses and job roles would or would not be
appropriate for that same method.
Timings Activity
Option 2
If access to a video clip is not possible you could use a business case study to
achieve the same outcome. For example,
http://businesscasestudies.co.uk/kelloggs/building-a-better-workplace-through-
motivation/introduction.html
Learners should read the case study and note down on the worksheet what the
company did to create a motivated workforce. After they have done this, they
should note down alongside their findings why they think each method motivates
the workers there, and what other types of businesses and job roles would or would
not be appropriate for that same method.
Arrange learners into teams of five and read the scenario at the top of Worksheet E.
Each team member selects a worker card from Worksheet E and assumes that role.
Each learner plays the role of the unhappy worker and reads their card out to the
rest of the team. Between them they must decide which is the most appropriate
method of motivation in that given circumstance and explain why. Please note that
leadership styles can be a source of motivation.
Learners will be given a list of motivational methods they can choose from in
Worksheet F. Learners should be encouraged to be independent and also come up
with their own ideas.
The learner playing the role of the worker records the team’s recommendation and
the process starts again with the next learner. When all workers have a suggested
method on the back of their card from their team, they seek out their equivalent
worker from the other teams and compare their recommendations. The idea is that
all the workers should have an appropriate method applied to their business
situation with a reason why.
Use Worksheet G
This activity involves recommending appropriate leadership styles in given
circumstances. This is a whole class exercise. Select five learners to be
management. They will adopt a leadership style which isn’t working or they don’t
know which is the most appropriate to use (these are written on the cards).
Management will be asking for advice on what style they should adopt to get the
best out of their workers. Learners must think carefully about which style would be
the most appropriate choice given the context of the business. Give them a choice
of autocratic, democratic and laissez-faire. This activity should help learners to
apply their knowledge of leadership styles.
Timings Activity
Plenary
Split the class into groups of four. Create a box of businesses using Worksheet H.
Each business card has a type of business on it, along with some job roles for that
type of business. Each group picks a card out of the box and writes on the back
what the business could do to motivate workers.
Timings Activity
Starter
Learners complete Worksheet I to help them to review their knowledge.
Main lesson
Hand out Worksheet J. Learners should work on this activity with you facilitating.
They can work in pairs, but need to complete a worksheet each. For each of the jobs
and situations, learners need to make a recommendation for the most appropriate
method of motivation for the type of business and job role, stating reasons why.
After eight minutes, learners should pair up with another pair to discuss and compare
their suggestions.
Learners have 30 minutes to come up with a motivational strategy to help improve the
productivity of the workers in the business. They need to give reasons why they think
their strategy will work. The worksheet gives them guidance on what they must
include in their proposal, and provides space for them to make notes ready for their
presentation in the plenary. Learners could work in groups of three.
Plenary
Groups of three will present their motivational strategy proposal to the teacher. The
aim is for learners to demonstrate the skill of taking knowledge and making
appropriate decisions in the context of a particular business scenario.
Worksheets Answers
B: Building an answer 15 – 16
C: Crossword 17 28
D: Case study 18
F: Motivational methods 20
G: Role play 21 30
H: Business box 22
I: True or false 23 31
FruitStax is a manufacturing business that specialises in making real fruit ice lollies on a mass
scale. They employ 1500 people with job roles ranging from production line workers, production
managers, office workers and managers in a range of other functional areas such as; finance,
marketing, sales, logistics and human resources. Over the last six months, FruitStax has seen an
increase in its labour turnover, with most employees citing boredom and low morale as their reason
for leaving. Most of the employees that have left were production line workers.
FruitStax need to address this issue before they lose more workers. They have some ideas below.
Your task is to identify which suggestions for increasing motivation have been written in context,
and which ones haven’t.
Suggestion 1
Why?
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
Suggestion 2
We could motivate workers on the production line if we gave them a variety of jobs to do. Job
rotation is one way of doing this, so they do not get bored doing the same job each shift. This means
we will also have a more flexible workforce and one which could increase promotional opportunities
for them.
Why?
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
Worksheet A: continued
Suggestion 3
According to Taylor’s theory of motivation, workers are only motivated by money so an autocratic
style is the only way to get work done, along with an increase in the hourly rate we pay.
Why?
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
Suggestion 4
Our production line workers may have some useful input on how we introduce the new machinery to
increase efficiency with our new product line. If we use a democratic style of leadership, rather than
autocratic, it might motivate them as it shows we value their opinions on the changing working
Why?
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
Suggestion 5
Now see if you can come up with another suggestion for motivating production line workers at
FruitStak. Remember to apply it to their business context.
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
The Party Factory is a medium sized family run business specialising in party accessories. They
buy in party supplies and create ‘party boxes’ tailored to the customer’s requirements. They
operate out of a warehouse and are an e-commerce business. Delivery is either by the business
van or by post. They have around 70 employees. Job roles vary from pickers and packers to
cleaners and office staff. There has been a rise in the number of employees leaving recently.
The owners have carried out a survey on staff morale which highlighted a number of issues they
need to address. They are looking at strategies to help motivate their staff, with an aim of also
increasing productivity.
What methods of motivation would you recommend that the owners of The Party Factory could
implement to help motivate their employees?
Worksheet B: continued
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
………………………………………………………………………………………………………………..
Worksheet C: Crossword
Across
4. An additional payment to employees based on the amount of profit the business has made (6, 7)
6. Groups of employees meeting regularly to discuss work related issues (7, 7)
7. Payment to sales staff based on the value of what they sell - usually a percentage of what they
sell (10)
Down
Methods of motivation used by the business Other businesses or job roles this method
would or would not work for and why
I love being creative and when I first joined I get to communicate with lots of customers
here 20 years ago, the owners trusted me to which I enjoy. I assist the Marketing Manager
get on with the job. Since it has grown and a and the Sales Manager with the day-to-day
line manager has been assigned to me, I no administration for those two functions. I have
longer feel I am given the autonomy to create learnt a lot over the five years I have been
what I know meet customer needs. My here, but I do feel that I have more to offer and
manager dictates to me what they want me to there are few opportunities for me to show my
design and I feel my creativity is being held abilities. The two managers do recognise the
back. I feel quite demotivated by this. good work I do, but I would like to have the
opportunity to show them what else I can offer.
I feel quite demotivated by being held back.
I like my work, I enjoy being outside, and I like I enjoy meeting people and sharing my
to be told what to do and then left to get on expertise. I think the people that sign up for our
with it. Recently though, I have been assigned workshops like the fact that I have done what
to the same task on each job. I understand this they are wanting to learn, and this used to give
means I can specialise, but I have a range of me job satisfaction. However, what was
skills that I know I can use doing other supposed to be a short-term rotation of tasks,
gardening jobs and I’m starting to get bored of has turned into a more permanent one, since
just doing the same task. I am beginning to the other trained workshop facilitator has
feel less motivated. retired. I am missing working outdoors and with
my fellow garden workers. I feel quite
demotivated by this.
Below are a selection of motivational methods businesses can use to motivate employees.
Payment to sales staff based on the value of what they sell - usually
Commission
a percentage of what they sell
Change in leadership
Changing the leadership style management use
style
Opportunities for
An opportunities for career progression in the workplace
promotion
Manager 1 Manager 2
I just don’t understand, I thought that all I work for a gas and oil company and need to
employees like to be left to get on with their adopt a range of leadership styles that will
work and make all the decisions themselves. keep workers motivated but also ensure the
I’ve been assigned a new team to lead, and company works as efficiently and safely as
morale seems quite low and productivity has possible. The industry can be dangerous if the
fallen as each worker seems to be taking wrong leadership styles are used. To ensure
longer to finish each task. I don’t understand safety all employees must follow my
why my laissez-faire style is not working. instructions. Please advise on which
Which style I should use and why? leadership style I should use and why?
Manager 3 Manager 4
We’re bringing out a new line of shampoo in a I manage a skilled team in a call centre that
few months. The workers on the production only need me to supervise when there is a
line that will be making these products will be problem to solve, such as a crisis. I was
using new production line methods. They advised that I could perhaps increase
might feel more valued and motivated if they productivity further if I used a more autocratic
are consulted about the changes to help the approach which my colleague has done. My
decision making process. Please advise on team haven’t made any mistakes in their work,
which leadership style I should use to achieve they are motivated and will seek my support
this and why? when they can’t make decisions themselves.
This seems to work well, but I just need
reassurance that this is the correct approach
as I’m not convinced changing the styles is
appropriate in this situation. Which two
leadership styles am I using in this situation
and why are they suitable?
Manager 5
For each question, decide whether the statement is true or false by circling the correct answer
True / False
True / False
True / False
True / False
5. Taylor believed the piece rate system gets employees working harder
True / False
True / False
7. Herzberg’s research says that motivators are the factors that influence a person to increase
their efforts in the workplace
True / False
8. Maslow’s theory says that respect from others and recognition for a job done well will help
to meet esteem needs
True / False
9. Salary or wage, relationships with others and working conditions are all examples of
Herzberg’s Hygiene factors
True / False
10. One of the limitations of Maslow’s theory of motivation is that self-actualisation is rarely
achieved
True / False
For each job, suggest what motivational method would be most appropriate and why.
Delivery driver
Farm worker
Worksheet J: continued
Tring Tring is a manufacturer of mobile telephones. The number of mobile phones produced over the last four weeks has been steadily declining.
Workers in the factory are paid per hour and work an average of 40 hours a week on a shift basis. There are no schemes in place to give
recognition to worker and the only fringe benefits are discount meal vouchers for the canteen. The production manager receives a salary and a
company car. The owners know they need to put a motivational strategy in place to improve the motivation of the workers so that productivity
improves.
Use the planning sheet below to put together a proposal for a motivational strategy Tring Tring could use to improve the productivity of its workers.
Management or
leadership styles to use
in different situations
Worksheet K: continued
Career development
Job Enrichment
Job Rotation
Worksheet C: Answers
Across
4. An additional payment to employees based on the amount of profit the business has made
Profit sharing
6. Groups of employees meeting regularly to discuss work related issues
Quality circles
7. Payment to sales staff based on the value of what they sell - usually a payment percentage of
what they sell
Commission
Down
Job rotation
2. An additional pay reward to employees for meeting targets set
Bonus
3. An opportunity to career progress in the workplace
Promotion
4. Payment to workers based on the number of items produced
Piece rate
5. Non cash incentives for employees such as discounts
Fringe benefits
The suggestions below are not exhaustive – learners may identify additional methods that could
realistically work.
Suggestion: Line manager changes leadership Suggestion – Job enrichment. This could
style from autocratic to laissez-faire if the include more responsibility in the functional
worker has not given the manager a reason areas they support daily. This creates the
opportunity arises.
Suggestion – Job enlargement so the variety Suggestion – Job rotation, so that the
of tasks outdoors is increased. Job rotation facilitator has some time in the gardens still
through delivering workshops could motivate and allows them to engage in team work
if this is something the worker is interested which they say they miss by not working
in pursuing through additional training, outdoors with fellow garden workers. This
although they indicate that they want to use opens up an opportunity for workers to be
their skills in the garden like they used to. trained to also run workshops if this is
The worker could still be rotated with other something they are interested in to alleviate
outdoor jobs they used to do. Job the boredom they are experiencing.
opportunity.
could work.
Manager 1
This will be down to the skills of the workers and the task that they are doing. When decision
making is difficult or the wrong decision can have large consequences, some workers are afraid of
making the wrong decision and would prefer to be told what to do. Advice would be autocratic for
those who have limited decision making skills and/or are doing a task which if done incorrectly has
consequences for the business.
Manager 2
Autocratic due to safety measures needing to be in place – there is no negotiating for this situation.
Manager 3
Democratic – there is time to consult and the decisions that will need to be made by management
will impact on the production line staff. To help them adapt and accept change, including them in
the decision making process should help to make the transition for them easier and therefore more
efficient for the company.
Manager 4
Democratic and autocratic – this is because the workers are skilled and motivated and have
empowerment that they can do their jobs without close supervision. When autocratic leadership is
needed, it is because they need a decision to be made higher up or to solve a problem they feel is
out of their responsibility area. They will respect it when autocratic leadership is therefore needed
and would feel unsupported if that style wasn’t used when they needed support.
Manager 5
Laissez-faire – not letting creative roles make decisions can often prevent employees generating
their best work. Providing they are given the information they need and the deadlines, letting them
get on with the work enables the creativity to flow better rather than being watched over and
dictated to.
Worksheet H: Answers
True
True
False
False
5. Taylor believed the piece rate system gets employees working harder
True
False
7. Herzberg’s research says that motivators are the factors that influence a person to increase
their efforts in the workplace
True
8. Maslow’s theory says that respect from others and recognition for a job done well will help
to meet esteem needs
True
9. Salary or wage, relationships with others and working conditions are all examples of
Herzberg’s Hygiene factors
True
10. One of the limitations of Maslow’s theory of motivation is that self-actualisation is rarely
achieved
True