FLD is a furniture retailer．It has 460 shops and 20000 employees．Internal recruitment is used when recruiting new shop managers．The Managing Director wants to know whether job rotation is the best method of motivation for a large business to use．The Finance Director is reviewing FLD＇s income statement．An extract is shown in Table 2．1．She is concerned that FLD＇s gross profit is decreasing． Explain two advantages to FLD of using internal recruitment when recruiting new managers. Advantage 1: Explanation: Advantage 2: Explanation:
Exam No：0450_s25_qp_12 Year：2025 Question No：2(d)
Answer:
Award 1 mark for each relevant advantage (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Award 1 mark for each relevant explanation (max 2).
Points might include:
- Cheaper/lower advertising costs (than external recruitment) [k] so lower/maintain expenses [an] of \$60 million [app]
- Already knows the business/how the business works [k] so can be productive sooner [an] to help sell furniture [app]
- Less/no (induction) training needed [k]
- Can motivate employees [k] at the 460 locations [app] reducing labour turnover/increase employee loyalty/increase sales [an]
- The business knows the person/their ability/reliability/potential/can trust them [k] reducing chance of selecting the wrong person [an]
- Recruitment is quicker [k] so able to focus on other business tasks [an] such as increasing its revenue above \(\$ 400\) million [app]
Other appropriate responses should be credited.
Award 1 mark for each relevant reference to this business (max 2).
Award 1 mark for each relevant explanation (max 2).
Points might include:
- Cheaper/lower advertising costs (than external recruitment) [k] so lower/maintain expenses [an] of \$60 million [app]
- Already knows the business/how the business works [k] so can be productive sooner [an] to help sell furniture [app]
- Less/no (induction) training needed [k]
- Can motivate employees [k] at the 460 locations [app] reducing labour turnover/increase employee loyalty/increase sales [an]
- The business knows the person/their ability/reliability/potential/can trust them [k] reducing chance of selecting the wrong person [an]
- Recruitment is quicker [k] so able to focus on other business tasks [an] such as increasing its revenue above \(\$ 400\) million [app]
Other appropriate responses should be credited.
Knowledge points:
2.3.1.1. Recruitment and selection methods
2.3.1.2. Difference between internal recruitment and external recruitment
2.3.1.3. Main stages in recruitment and selection of employees
2.3.1.4. Recommend and justify who to employ in given circumstances
2.3.1.5. Benefits and limitations of part-time employees and full-time employees
2.3.2.1. Importance of training to a business and to employees
2.3.2.2. Benefits and limitations of induction training, on-the-job training and off-the-job training
2.3.3.1. Difference between dismissal and redundancy with examples
2.3.3.2. Understand situations in which downsizing the workforce might be necessary, e.g. automation or reduced demand for products
2.3.3.3. Recommend and justify which employees to make redundant in given circumstances
2.3.4.1. Legal controls over employment contracts, unfair dismissal, discrimination, health and safety, legal minimum wage
Solution:
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