Business Studies Grade 12 KZN Prelim 2016 Memo

Please turn over Downloaded from Education KwaZulu-Natal Department of Education REPUBLIC OF SOUTH AFRICA BUSINESS STUDIES F MEMORANDUM : PREPARATORY EXAMINATION : SEPTEMBER 2016 i NATIONAL, ; SENIOR CERTIFICATE N.B. This memorandum consists of 50 pages including this page. Copyright reserved hlayiso.com Business Studie Preparatory Examination September 2016 2 NSC - Memorandum NOTES TO MARKERS. PREAMBLE ‘The notes to markers are provided for quality assurance Purposes to ensure the following: (a) Faimess, consistency and reliability in the standard of marking () Facilitate the moderation of candidates' scripts at the different levels (c) Streamline the marking process considering the broad specirum of markers across the country (d) implement appropriate measures in the teaching, learning and assessment of the subject at schools/institutions of learning 1. For marking and moderation purposes, the following colours are recommended: Marker Red Senior Marker Green Deputy Chief Marker Brown, Chief Marker Pink Internal Moderator Orange DBE Moderator Turquoise 2. Candidates’ responses must be in full sentences for SECTIONS B and C. However, this would depend on the nature of the question. 3. A comprehensive memorandum has beeri provided but this is by no means exhaustive. Due consideration should be given to an answer that is correct but * Uses a different expression from that which appears in the memorandum * Comes from another source ° — Original ° Adifferent approach is used. NOTE: There is only one correct answer in SECTION A. 4, Take note of other relevant answers provided by candidates and allocate marks accordingly. (In cases where the answer is unclear or indicates some understanding, part-marks should be awarded, for example, one mark instead of the maximum of two marks.) 5. The word ‘Sub max’ is used to facilitate the allocation of marks within a question or sub question. 6. The purpose of circling marks (guided by ‘max’ in the breakdown of marks) on the right- hand side is to ensure consistency and accuracy in the marking of scripts as well as for calculation purposes. 7. Subtotals to questions must be written in the right-hand margin. Circle the subtotals as indicated by the allocation of marks. This must be guided by ‘max! in memo. Only the total for each answer should appear in the left-hand margin next to the appropriate question number. &. In an indirect question, the theory as well as the tesponse must be relevant and _reiaied fo the question. Please turn over Copyright reserved

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Downloaded from hlayiso.com Business Studies Phepefatory Examination September 2016 NSC - Memorendurn NOTE: 1. No marks will be awarded for contents repeated from the intraduction and conclusion. 2. The candidate forfeits marks for layout if the words INTRODUCTION and CONCLUSION are not stated. 3. No marks will be allocated for layout, if the headings INTRODUCTION and CONCLUSION are not supported by an explanation. 18.3 Indicate insight in the left-hand margin with a symbol, e.g. (‘L, A, S and/or oO} 15.4 The breakdown of marks is indicated at the end of the suggested answer/ marking guidelines to each question. 15.5 Mark ail relevant facts until the SUB MAX/MAX mark in a subsection has been attained. Write ‘SUB MAX'/MAX' after maximum marks have been obtained. 15.6 At the end of each essay indicate the allocation of marks for facts and marks for insight as follows: L —Layout, A — Analysis, S — Synthesis, O - Originality as in the table below, CONTENT MARKS Facts 32 (max.) L 2 A 2 Ss 2 ce} 2 TOTAL 40 15.7 When awarding marks for facts, take note of the sub-maxima indicated, especially if candidates do not use the same subheadings. Remember, headings and subheadings are encouraged and contribute to insight (structuring/logical flow/sequencing) and indicate clarity of thought. (See MARK BREAKDOWN at the end of each question.) 15.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she may still obtain marks for layout. 15.9 Ifa different approach is used by candidates, ensure that the answers are assessed according to the mark allocation/subheadings as indicated in the memorandum, 15.10 15.10.1 Award TWO marks for complete sentences. Award ONE mark for phrases, incomplete sentences and vague answers. 15.10.2 With effect from November 2015, the TWO marks will not necessarily appear at the end of each completed sentence. The ticks (v) will be separated and indicated next to each fact, e.g. Product development is a growth strategy,V where businesses aim to introduce new products into existing markets.'V 7 This will be informed by the nature and context of the question, as well as the cognitive verb used. Please tum over Copyright reserved Business Studi, / oad NSC - Memorandum SECTION A (COMPULSORY) 1.4.1 BYY 1.1.2 DYv 14.3 BYY 1.4.4 CVV 115 BYY 1416 BYY 11.7 AVY 1.18 BYY 1.4.9 D¥YY 4.1.10 DY¥ 121 Wv 1.2.2 FYY 1.23 BYY 1.24 Cv¥ 1.2.5 DYY 1.3.1 SWOTYY 1.3.2 Quality assurance “VW 1.3.3 Assurancey¥ 1.3.4 Triple bottom line vv 1.3.5 Time-related vv” Please turn over Preparatory Examination September 2016 (10 x 2) (20) (5 x 2) (10) (8 x 2) (10) BREAKDOWN OF MARKS [QUESTIONT [MARKS | 1.4 20 1.2 10 4.3 410 TOTAL 40 Copyright reserved

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Business Studies NSC - Memorandum 2.4 — Skills Deveiopment Act - There is a lot of paperwork/administrative work. Businesses has to complete the application form/registration form. V¥ - Businesses will have less money because they have to pay the skills levy. v~ - Bureaucracy/Red tape when applying for learner ship programmes. “~ - Less time is devoted to performance. Businesses have to train/coach/employees mentor Vv“ - Short-term loss of profitability because employee has to take time Off to go for training. Vv - Employee needs regular training to keep up with the demands of a dynamic working environmeni/to improve customer care services. “” - Difficult to assess the service providers of SETAs. ““ - Once employee's skills have been improved, he/she becomes marketable and may leave the business. Vv” - ‘When employees becomes-more skilled, he/she may demand a higher salary. Vv“ - Any other relevant answer related to challenges/impact of the Skills Development. 2.5 Strategic management process OPTION 1 - Have a clear vision, a mission statement” and measurable/realistic objectives in place. ” - Identify opportunities/weaknesses/strengths/threats“” by cond jucting Environ-mental scanning/situational analysis. ~ - Tools available for environmental scanningY may include a SWOT/ PESTLE-/Porters Five Forces-analysis. V - Formulate altemative strategiesv to respond to the challenges/scanning results. ¥ - Develop (an) action plan(s), W including the tasks to be done/deadiines to be met/resources to be procured, etc. ” - Implement selected strategies” by communicating it to all stakeholders/ Organising the business's resources/motivaiing staff. ” - Continuously evaluate, Y monitor, “ measure strategies in order to take corrective action. ¥ - Any other relevant answer related to how the strategic management process can be applied. Max (10) OR Please tum over Copyright reserved Ph._vatory Examination September 2016 Business Studi. / 2.6 Please turn over Downloaded from hlayiso.com 10 Preparatory Examination September 2016 NSC - Memorandum OPTION 2 Review” vision statement. v Analyse/Re-examinev mission statement. ~ Conduct an analysis“ using models such as PESTLE/PORTERS. “ Formulate strategy,“ referring to strategies such as defensive/retrenchment. ” implement strategy“, using templates such as action plans. “ Control of strategy” to identify gaps in planning. Evaluate strategy” to identify deviations in implementation. ~ Take corrective action’ to ensure goals/v objectives are met. V Any other relevant answer related to how the strategic management process can be applied. Max (10) NOTE: The steps may be in any order. BBBEE Through BBBEE the government” strives to involve all businesses (profit and non-profit organisations). “” BBBEE Act includes a wider group of previously disadvantaged people, v such as black women, people with disabilities, youth and people living in rural areas through social-economic strategies “such as management, ownership, employment equity, social responsibility, preferential procurement and enierprise development. “ BBBEE Broad-based Black Economic Empowerment is a growth strategy” that targets inequality within the South African economy ~ by encouraging more black management, promoting employment equality”, encouraging skills training in businessesv’, nurturing black entrepreneurship and building black SMMEs by means of affirmative action. ” Any other relevant answer related to the introduction of Broad- Based Black Ecoriomic Empowerment (BBBEE). Max (7) [60] BREAKDOWN OF MARKS MARKS: QUESTION 2 2.4 = 2.24 2.2.2 2.2.3 2.3.1 2.3.2 24 =| 25 2.6 S]~]S}00/o7/co].0/ a |n9]5} 2) TOTAL Copyright reserved

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Business Studies Downloaded from hlayiso.com NSC - Memorandum Preparatory Examination September 2016 - 3.5.2 How taxation and legislation impact positively (contribute to the company's success} and negatively (can lead to failure} Taxation Success Failure -Public companies have -Large tax payments” can have a more opportunities to negative effect on profits” reduce their tax liability” . . e.g. allowances can be Bublect to double taxation , claimed as company which reduces the company’s expenses” profit and shareholders -A company pays tax on the | dividends v” income brought into the -Failure to comply with company business, v’ after the tax regulations v’could lead to expenses of running the substantial financial penalties” business have been deductedv -Any other relevant answer related to taxation as failure factor Any other relevant answer Telated to taxation as a success facior Sub max (6) Legislation Success Failure -Limited liability allows for greater risk taking”, which can lead to growth of the business” Audit of financial statements V gives shareholders the assurance that the business is properly run and helps in faising additional finance -There is no limit” on the number of shareholders ¥ ~Any other relevant answer related to legislation as success factor -Long and complicated” registration process which may delay the commencement of the business” -Failure by management to meet the requirements of the Act may lead to major challenges.” -Changes in legislation affecting companies” can cause extra challenges” -Can be complicated to follow the correct process Vand obtain all the necessary legai documenis “ ~Directors can be sued personally” if they allow reckless trading ¥ - Any other relevant answer related to taxation as legislation factor Sub max. (6) Please tum over Max (12) Copyright reserved Business Studies” 14 3.6. 37 Please furn over Preparatory Examination September 2018 NSC - Memorandum Factors to be considered when preparing for a presentation Clear purpose/intentions/objectivesY” and main points of the presentation. ” Main aims captured” in the introduction/opening statement of the presentation. Information presented” should be relevant and accurate. “ Fully conversant” with the content/objectives of the presentation. ” Background/Diversity/Size/Pre-knowledge of the audience’to determine the appropriate visual aids. “ Prepare a rough draft of the presentation with a (n) logical structure/format/introduction, body and conclusion. “ Conclusion shows a summary of the key facts” and how it relates to the objectives/shows that all aspects have been addressed. v Create visual aids/graphics” that will consolidate the information/facts to be conveyed to the audience. “ Find out about the venue for the presentationy’, e.g. what equipment is available/appropriate. “ Consider the time frame for presentation’, e.g. fifteen minutes allowed to complete the presentation. Vv Rehearse” to ensure a confident presentation/time was used effectively. v Prepare for the feedback sessionv, by anticipating possible questions/comments.V¥ Any other relevant answer related to the factors that must be considered when preparing for a presentation. Max (12) Positives Managers ensure that government policies/business tules/procedures~ are always followed accurately. “ Tight control measures implemented/followed” ensure high quality service delivery. “ Ensures accountability” to the general public/community. ¥ Improves health and safety in dangerous workplaces”, e.g. mines, construction sites. ” Any other relevant answer related to positives of a bureaucratic leadership style. AND/OR Negatives Complicated/Involving/Official rules” may seem unnecessary/time consuming. “ Leaders/Directors may acquire power“ and can disregard/ignore inputs from others. “ Very little room for errory’, so workers feel they are not treated as Copyright reserved

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Downloaded from hlayiso. com Business Studies NSC- Manorandum 42 King Code Independence « Business must have mechanisms in place. (ie board members Preparatory Examination September 2016 and committee composition ) and implement the mechanisms to minimize or avoid potential conflicts of interests. ““ Any other relevant answer related to.how businesses can apply independence. 2) Responsibility: e Board members must act responsibly towards all stakeholders and management should allow for corrective action. “~W Any other relevant answer related to how businesses can apply responsibility. (2) 4.3 Procedure for dealing with grievances in the workpiace - An aggrieved employee must verbaily report the incident/grievance to his/her Supervisor/manager, who needs to resolve the issue within 3 to 5 working days. - Should the employee and supervisor not be able to resolve the grievancev, the employee may take it to the next level of management.¥ - The employee may move to a more formal processvV where the grievance must be lodged in writing/completes a business grievance form.V - He/She must receive a written reply in response to the written grievance.V - A grievance hearing/meetingY must be held with all relevant parties present.¥ - Minutes of the meeting must be recorded and any resolution passed must be recorded on the formal grievance form.V Should the empioyee not be satisfied, then he/she could refer the matter to the highest level of management.V - Top management should arrange a méetingy with all relevant parties concemed. - Minutes of this meeting should be filed/recordedy and the outcome/decision must be recorded on the formal grievance form.¥ - Should the employee still not be satisfied, he/she may refer the matter to the CCMA who will make a final decision on the matter. - Any other relevant answer related to the correct procedure to deai with grievances in the workplace. NOTE: The procedure may be in any order. Please turn over Copyright reserved Max (8) Business Studie 48 Preparatory Examination September 2016 NSC - Memorandum 4.4.1 Corporate social investment Refer to any project undertaken by an organisation which is over and above normal business activities of the company and not directly aimed at increasing profitability. vv“ Programmes that will benefit the community and/or the environment, into which time, skills, expertise and money are invested. Vv Any other relevant answer related to corporate social investment. Sub Max (2) Corporate social responsibility . Refers to any strategy used by a business to take responsibility for their impact on society and the environment, VW itis not a single action but rather an approach to doing business that guides all decision making in the firm. V~ itis the way in which companies manage their business operations so that it does not negatively affect all stakeholders. Vv Any other relevant answer related to corporate social responsibility. Sub Max (2) Max(4) 44.2 CSI projects from the scenario Build schools in communities“ /Offer bursaries to needy students/” Donate old computers to less privileged schools”/Provide/Support adult education and training in the local community’. (4x 1) (4) 44.3 Other CSI projects Please turn over Charitable confribution towards NGOs/Businesses can donate blankets to old-age homes/orphanages/running soup kitchens. VV Involvement in community education/ - Teach entrepreneurial skitls/Offer support te individuals starting new business ventures.vV Conduct skills development/job creation projects/Offering bricklaying courses.VY Sponsor art and cultural programmes, such as school choirs.vV Support youth programmes, such as sport/recreational activities./V Any other relevant answer related to the contribution of corporate social investment (CSI) projects to the community. Mark the first TWO (2) only. Award a maximum of TWO (2} marks if the example demonstrates the same practical way and contribution of CS! projects to the community. we Any (2 x 2) (4) Copyright reserved

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Downloaded from hlayiso.com Business Studies Prép=atory Examination September 2016 NSC - Memorandum QUESTION 5: BUSINESS OPERATIONS 5.1.1 Production function/ Accept any other business function ” (t) 5.1.2 Machinery and equipment not properly maintained Vv Machinery and equipment not replaced for many years” Finishing on shoes is inferior” Stitching frequently comes apart if shoes are heavily used Max (4) 5.2.1. Employment Contract - Key performance areas/Duties and responsibilities. vw” - Code of conduct. vv” - Job description. vv - Name and address of the business/employer. VV - Name and address and other personal information of the employee. ““ - Job title. vv - Probation period. v~ - Bonus and salaryfemployee wage/salary and method of calculating the wage/salary. vv - Remuneration package/other payments the employee is entitled to. ““ - The date of commencement of employment. Vv” - Details of termination of a contractinatice period. vv - Rate of overtime payment. VW - All deductions that will be made from the employee salary/wage must be clearly indicated. vw” - Leave. vv - Working hours. “~ - Any other relevant answer related to the aspects included in an employment contract. NOTE: Mark first FIVE (5) only. (Any 5 x2) (10) 5.2.2 BCEA - The terms and conditions of employment V are not in accordance with labour legislation/BCEA. “” - Employees are entitled to leave V regardless of work performance. “ - Hours of work that are not specified v could lead to tabour exploitation. “ The law (BCEA) stipulates that pregnant women” are entitled to take 4 months maternity leave” - Any other relevant answer related to evaluation of leave and working hours. Sub max (4) Recommendation Please turn over Copyright reserved Business Studie” Preparatory Examination September 2016 NSC - Memorandum Employees are entitled to 21 days annual leave or 1 day after every 17 days worked, “v Working hours are restricted to 8 or 9 hours per day in a 45 hour work week, depending on the employment contract. v~ A meal interval of 60 minutes after every 5 hours worked, should be allowed. Vv” The contract is incomplete e.g. maximum of 10 hours overtime per week. This must be specified in the contract. v~ The business will experience many disputes where the contract is not clear/specific. vv Any other relevant answer related to recommendation of leave and working hours. Sub max (6) Discussion (4) Recommendations (6) (Max) (10) §.31 External recruitment ~ A recruitment agency was used. ““ Max (3) 5.3.2 \mpact of extemal recruitment Positives /Advantages The business recruits from other businesses/educational” institutions/advertisemenis in the media/recruitment agencies/ headhunting, etc. ¥ New candidates bring new talents/“ideas/experiences/skills into the business. “ It may help the business to meet affirmative “action and BBBEE plans. ~ There is a larger pool” of candidates to choose from. ¥ There is a better chance V of getting a suitable candidate with the required skills/quaiifications“/competencies who do not need much training/development which reduce costs. ¥ Minimises unhappiness/conflict amongst current employees” who may have applied for the post. ” Any other relevant answer related to positive aspects of external recruitment. AND/OR, Negatives/Disadvantages External sources can be expensive, é.g. “ recruitment agencies’ fees and advertisements in newspapers/magazines. “ The selection process may not be effectivev’ and an incompetent candidate may be chosen. “ Information on CV's or from references may not be reliable. “ Recruitment process takes longer/is” more expensive as background checks must bé conducted. ~ New candidates generally take iongerv to adjust to a new work environment. “ In-service training” may be needed which decreases productivity during the time of training. ” Many unsuitable applications” can slow down the selection Please tum over Copyright reserved

Downloaded from hlayiso. com Business Studies 23 Preparatory EXwethation September 2016 Business Studies 24 NSC - Memorandum NSC - Memorandum process¥ - Any other relevant answer related to negative aspects of exiernal recruitment. Sub max (10) Max (8) 5.3.3 Termination of contract - Matata Motors may dismiss employees for valid reason(s), €.g. unsatisfactory job performance, misconduct’ v’, etc. - Matata Motors (employer) may no longer have work for redundant employees/cannot fulfil the contractfis restructuring. ¥~ . Matata Motors may retrench some employees due to insolvency/may not be able to pay the employees. Vv ¥ - Employees decided to leave and resign voluntarily. “~~ - An employee may have reached the pre-determined agev for retirement. ~~ - Any other relevant answer related to the reasons for termination of an employment contract. Max (8) 5.4.1 Quality of performance within the public relations function Success factors * ‘Improved relations with clients~ through effective after sales, e.g. handling complaints.” e Phones to be answered promptly“and receptionists to act professionally. e Ensuring that internal publicity, “e.g. appearance of correspondence is up fo standard. “ « Negative publicity is countered” by releasing regular press statements. ¥ « Compliance to relevant legalisation,” e.g. the Basic Conditions of the Employment Act. “ « Improve the positive image of the business“ through good publicity. * Any other relevant contribution related to public relations function. Max (8) 5.4.2 Quality of performance within the finance function Success factors ¢ Financial control measures/systems~ to eliminate fraud. “ e Investing strategiesv’ to increase profitability. Vv « The financial department must determine the profitability”, gearing and liquidity” on a regular basis. “ « Implementing “credit granting “and collecting policies. ” ¢ Accurately analyzing” and interpreting financial information. “ e Any other relevant contribution related to finance function. Max (8) {60} QUESTION 6: MISCELLANEOUS TOPICS BREAKDOWN OF MARKS Please turn over Copyright reserved Please tum over Preparatory Examination September 2016 QUESTION 5 MARKS: 5.4.4 5.1.2 5.2.4 10 5.22 10 5.3.1 5.3.2 5.3.3 15.4.1 5.4.2 B] co] | 0] «| TOTAL Copyright reserved

Business Studies Downloaded from hlayiso.com Business Studies“ 26 Preparatory Examination September 2016 NSC - Memorandum 6.1.1 Identification Tertiary sector Sub max (1) Reason This is rendering of service. Vv“ Sub max (2) Max (3) 6.1.2 SAPPI forestry planting trees. Identification Primary sector Vv Sub max (1) Reason This extraction of natural resources Vv Sub max (2) Max (3) 6.2 Positive impact on businesses Promotes safety” in the workplace. ¥ Creates a framework for acceptable employment practices” and safety regulations. “ Supply administrative guidelines/mechanisms” for dealing with/processing claims. “ Eliminates time and costs spent” on lengthy civil court proceedings. ¥ Any other relevant answer related to the positive impact of COIDA on businesses. AND/OR Negative impact on businesses Please turn over Claiming processes/proceduresY can be time consuming. “ Processes/Procedures required by this Act may be costly” as. paperwork places an extra administrative burden on businesses. ¥ Implementation processes/procedures required by the Act” may be expensive. ¥ Employers have to register all their workers and make annual contributions to COIDA, “ which may result in cash flow problems. ~ Employers may be forced to pay heavy penalties” if they are found guilty of negligence/not enforcing safety measures. “ Any other relevant answer related to the negative impact of COIDA on businesses. MAX (10) Copyright reserved 63 64.4 6.4.2 6.5 Please turn over Preparatory Examination September 2016 NSC - Memorandum Criteria for a logical and effective presentation of information: Know your audiencev¥ Organise the contentY” Capture attention in the introduction’ ~ Organise the body v¥ State the aims in your introduction’ ¥ Put the most important information first VW Use visuals effectivelyY ¥ Use your conclusion to summarise your key point’ ” Any other relevant answer relating to a logical and effective presentation. Max (8) ee eoceseee Transactional leadership style” (1) The impact of a transactional leadership style Positives ° Encourages employees” to work hard because they will receive rewards. “ Improves employees' productivity” and morale. ~ The goals and objectives” of the business can be achieved. Y Employees shouid know “what is expected of them. ~ Disciplinary action proceduresv are well communicated. “ Any other relevant answer related to the advantages/positive impact of a transactional leadership style. se nee Negatives ® Employees can become bored because they have te follow rules and procedures therefore there is no creativity in the workplace. ¥ e A transactional leader will have to monitor the work performance ” of the employees to ensure that expectations are met and this can be time-consuming. ~ e Some employees may be demoralised or unmotivated v’if they fait to reach/meet targets despite having worked very hard. “ . This theory is not suitable for team work because al! team members can be punished for poor performance caused by a member of a team. “ ° Any other relevant answer related to the disadvantages/negative impact of a transactional leadership style . Max (4) Role of Positive attitude ° Self-confidence and believingv— belief in yourself as a leaderv ® Desire and drive Y— strong feeling of wanting to have something” * Courage” — never gives up — the sirengih to take on challenges” Copyright reserved

Downloaded from hlayiso. com Business Studies 27 NSC - Memorandum . Persistence V— dedication and commitment to overcome obsiacles” . Belief” in others — see the good in others and recognize their abilities” . Taking personal responsibility” (accept it) - see you role in situations, don’t blame others. “ . PerseveranceY— seeing things through, not” giving up, being patient 66 Please turn over . Opiimism — “seeing opportunities and possibilities” . Reliability, ~ honesty and professional ethics. “ (any 2x2=4) Ways in which professional, responsible, ethical and effective business practice should be conducted. ¢ Starting the business at the expense of someone else Vv” « Businesses should not be started at the expense of someone else. “” « The aim should never be profit at all cost, as it will always be to the disadvantage of others. vv * Businesses should not use other's ideas to enrich themselves. VV * Putting someone else out of business for own gain, is unethical and a poor moral choicev ~ . Any other relevant answer related to starting business at the expense of someone else. Sub max (2) Payment of fair wages/salariesv “ . Workers must not be exploited with low salaries just because it is difficult to find a job. vw . Workers’ rights and dignity should be respected. vv . Employees make a contribution to the success and profitability vv” of the business, therefore they must be remunerated fairly. . Remunerate workers for working overtime and on public holidays. v~ . Any other relevant answer related to payment of fair remuneration. Sub max (2) Hiring honest and trustworthy accountant/financial officers with good reputations. vv . Businesses should appoint accountants who are known for their ethical and professional reputation and who can prove it with documentation. “~ . Any other relevant answer related to hiring honest accouritants. Sub max (2) Regular payment of taxes” “ . Businesses should complete tax returns in deiail and on time. ~~ . Businesses should not evade tax and honesily declare all income earned. v~ . Business should pay tax to avoid government penalties and fines. ““” Copyright reserved Preparatory EXwwfhation September 2016 Business Studies 28 e Preparatory Examination September 2016 NSC - Memorandum Any other relevant answer related to regular tax payments. Sub max (2) Transparent processes and procedures” “ Staffing and other processes should be open and transparent. vv” Employees should be aware of the employment policy of the business¥v’. All laws that govern employment should be communicated to workers. VV" Any other relevant answer related to transparent processes and procedures. Submax 2} Draw up a code of ethics” ” « Ethical codes of conduct should be communicated to workers, so that they know what is expected and what the company stands for. ~~ Employees should buy into the expectations for ethical norms/ conduct as set out in company's code of ethics. Vv” Any other relevant answer related to drawing up a code of ethics. Sub max (2) On-going development and training for ail employees” Continuous and regular training is necessary to explain the imporiance of ethical and professional! conduct. vv Employees should understand that certain conducf/actions have certain consequences. “¥ Employees should be encouraged to attend training courses and upgrade their skills. v~ Employees promote their own career development and also contribute fo an increase in productivity. “Vv” Any other relevant answer related to on-going training and development Sub max (2) Performance management system should be in place’ ) Please turn over Business should evaluate employees’ performance against the job description. vv” Employees should be acknowledged for good performance. Training needs can be based on the results obtained from conducting performance appraisals. Vv | Management systems should ensure that employees are’ treated equally to prevent conflict. “¥ Workers’ rights should also be considered when management systems areintroduced. ¥¥ Any other relevant answer related to performance management systems. Submax = (2 Copyright reserved

Downloaded from hlayiso. com. Business Studies Preparatory Examination September 2016 Business Studies—* 30 Preparatory Examination September 2016 NSC - Memorandum Managers must set the tone and example. “” ° Senior management members must act as role models by ensuring that their actions ard decisions are in line with the code of ethics. vw“ . Employees should have a desire to exhibit the behaviour of their Managers Vv. . Any other relevant answer related to the example set by management. Sub max (2) Adequate internal controls “~ 67 . Effective monitoring systems should be in place to monitor usage of all resources. Vv" . Regular meetings/discussions should identify and address potentials problems, in order to be pro-active or re-active. VW . Workers should understand the purpose and the processes of internal control. “¥ . Any other relevant answer related to internal control measures. Sub max (2) Honesty, accountability and transparency in relationships and transactionsY Vv ° Transactions/Relationships with all stakeholders, e.g. suppliers, staff, etc. should always be honest and open. VY . If transactions are properly documented, a paper trail is created that supports accountability. “~” . Systems should protect customers, suppliers and empioyees, especially when dealing with financial transactions. VW . Information technology should never be used to manipulate the database or make transactions look so complicated that they are not properly inspected. ““ . Any other relevant answer related to honest, accountable and transparent transactions/relationships. Sub max (2) Protection of the environmentv~ . All laws and regulations applicable to environmental protection should be taken seriously. V“ . Laws and regulations should be adhered to so that profits are not generated at the expense of the environment. vv . Pollution and other environmental issues should always be considered in ali business activities, e.g. safe disposai of waste/ dumping of toxic waste, etc. vv” . Become involved in environmental awareness programsy v’. . Physical working conditions should always be worker friendly, safe and should promote occupational healthy“. NSC - Memorandum . Physical working conditions, e.g. adequate lighting, ventilation should be taken care of. v¥ . Any other relevant answer related to the protection of the environment. Sub max (2) Max 8 Any other relevant answers on ways in which professional, responsible, ethical and effective business practice should be conducted. Effectiveness of the Delphi technique in solving business problems Positives - A group of experts will be used without bringing them together. ” - Experts will give clear ideas/solutions” on how to improve on low productivity/ profitability. - Panel members/Experts can give new information” on problems. “” - Information received from experts” can be kept confidential. ” - It reduces noise levels in an office environment” since there is no group discussion. ” - Panel members/Experts need to reach consensus”, so that the best solution is found. - All experts are given an equal opportunity to give their opinions”, so no-one dominates the process. ¥ - Any other rejevant positive evaluation related to the use of the Delphi technique in solving business problems. AND/OR Negatives - {tis an expensive technique to use due to high administrative cosis. ¥ - May be time consuming and complicated to analyse data” received from experts. “ - Not all experts are willing/interested” to give feedback/complete questionnaires. ¥ - Some experts might not have an in-depth knowledge” of certain topics. ¥ - Questionnaires may be completed by experts without giving it much thought”, so solutions might not be suitable/applicable. “ - This technique may nat be suitable to all types of business problemsv and may not always be reliable. “ - Any other relevant negative evaluation related to the use of the Delphi technique in solving business problems. Max (6) Please turn over Copyright reserved Please tum over Copyright reserved

Downloaded from hlayiso. com Business Studies 31 NSC - Memorandum 6.8.1 Marketing function (2) 6.8.2. Human resource function {2) 6.8.3 Purchasing function {2) 6.9 Positive impact on induction programmes Please tum over New employees are introduced” to the company's policies and procedures. v New employees learn more about the business. increased productivity” and quality of service/performance ¥ Minimises the need for on-going” training and development. ¥ New employees will know where everything is“and who the supervisors/low-level managers are. Vv New employees will have basic knowledge of what is expected in the job. “ New employees may feel part of the team v resulting in positive morale and motivation. ¥ Better/More focussed trainingY may be provided based on the results obiained from the induction process. ~ Any other relevant answer related to the benefits of an induction programme. Max (8) [60] Preparatory EMMhation September 2016 BREAKDOWN OF MARKS QUESTION 4 | MARKS 6.1.1 6.1.2 6.2 40 6.3. 6.4.1 6.4.2 6.5 6.6 6.7 6.8.4 6.8.2 6.9 mom} ml om} a) of al a TOTAL a c) Copyright reserved Business Studies 32 Preparatory Examination September 2016 NSC - Memorandum QUESTION 7 BUSINESS ENVIROMENTS 74 72 Introduction ° Any other relevant introduction related to CPA The Consumer Protection Act was introduced to create awareness of consumer rights and protect consumer rights. . ~ Consumers in South Africa need protection against the actions of dishonest businesses. CPA deals mainly with regulating consumer credit and businesses must comply with the act. v The CPA encourages consumers to take action if their rights are violated. Max (2) Purpose of Consumer Protection Act CPA promotes and advances the social” and economic welfare of consumers. ” . It promotes the rights” and full participation of historically disadvantaged individuals as consumers; “ Enables access to goods and services“ by low-income communities and vuinerable consumers; Promotes fair” business practices; ¥ Promotes business innovation” and excellence; “ Promotes access to information for consumers” to make informed choices; ~ Protects consumers against misleading suppliers” of goods and services; ¥ Promotes consumer safety” from hazards to their wellbeing: “ Strengthens the culture of consumer rights “and responsibility. “ Any other relevant answer related to the purpose of CPA. Max 12 Consumer tights e Please turn over Right to choose “~¥ Consumers have the right to o choose suppliers and/or goods. v shop around for the best prices. ” reject goods that are unsafe/defective for a full refund. v cancel/renew fixed term agreements. W request written quotations and cost estimates. “ Any other relevant answer related to the consumer's right to choose as defined in the CPA. e0000 Sub max (4) Copyright reserved

Downloaded from hlayiso.com _ Business Studies NSC - Memorandum * Right to return goods/have goods replaced/claim a refund “” 0 Goods that are unsafe/defective may be replaced by the supplier. ¥ o Faulty items may be retumed for a full refund. ~ o They may return faulty items if the fault occurs within six months after purchasing the item. ¥ o Any other relevant answer related to the consumer's right to return goods/have it replaced/claim a refund as defined in the CPA. Sub max (4) « Right to complain vv © Consumers may use various methods/channels to complain about poor quality goods/services. v o They can complain via customer care desks/consumer hotlinesfombudsman etc. o Any other relevant answer related to the consumer's right to complain as defined in the CPA. Sub max (4) « Right to privacy/confidentiality VW” o Consumers have the right to stop/restrict unwanted direct marketing. ¥ They can object to unwanted promotional e-mails and telesales. “ 2 They have the right to stop/odge complaints about sharing personal details. Vv eo Any other relevant answer related to the consumer's right to privacy and confidentiality as defined in the CPA. ° Sub max (4) «Right to fair/honest dealingsv o Suppliers may not use physical force/harass customers. ” o They may not give misleading/false information about the product/service/transaction. ~ o Businesses cannot promote pyramid/chain-letter schemes. “ o Businesses may not overbook/oversell goods/services and then not honour the agreement. ~ Any other relevant answer related to the consumer's right to fair and honest dealings as defined in the CPA. Sub max (4) ¢ Right to information about products/agreements/disclosure of Information vv Contracts and agreements should be in plain language and easy fe] to understand. ~ ° Businesses should display prices fully inclusive of all costs. “ ° Consumers may request the unit and bulk price of the same product. ” ° Businesses should label products and trade descriptions correctly. v ° Any other relevant answer related to the consumer's right to information as defined in the CPA. Sub max (4) Please turn over Copyright reserved Prepefatory Examination September 2016 Business Studie” . ° ° Preparatory Examination September 2016 NSC - Memorandum + Right to fair/responsible marketing/promotion VV Businesses should not mislead consumers on pricing/benefits/uses of goods. ¥ Consumers may cancel purchases made through direct marketing within five working days/cooling off-period. ~ All information related to the country of origin/expiry dates/ingredients of the products should be disclosed. “ Any other relevant answer related to the consumer's right fo fair/responsible marketing/promotion as defined in the CPA. Sub max (4) * Right to fair value/good quality/safety “v ° Consumers may demand quality services/goods. ” ° They may receive an implied/Awritten warranty. ¥ ° Any other relevant answer related to the consumer's right to fair value/quality as defined in the CPA. ‘Sub max (4) * Right to accountability from suppliersY Y ° Consumers have the right to be protected in lay-bye agreements. ” ° Businesses should honour credit vouchers/prepaid services. ” ° Any other relevant answer related to the consumer's right to accountability from suppliers as defined in the CPA. Sub max (4) « Right to fairjust/reasonable terms/conditionsY Y ° Businesses should provide consumers with written notices of clauses that may limit consumer rights. “ ° Businesses may not market/sell goods at unfair prices. “ fo} Any other relevant answer related to the consumer's right to fair terms and conditions as defined in the CPA. Sub max (4) ¢ Right to equality in the consumer market placev ° Businesses should not limit access to goods/services. “ ° They may not vary the quality of their goods/services supplied to different types of consumers. “ ° Different prices for identical goods/services may not be charged. ” ° Businesses should not discriminate when marketing their products/services in different areas/places. V ° Any other relevant answer related to consumer rights to equality in the consumer market place as defined in the CPA. Sub max (4) Max 16 NOTE: Mark the first Four only Please turn over Copyright reserved

Downloaded from hlayiso. com | Preparatory Examination September 2016. Business Studies woo, orandum Preparatory SMination September 2016 Business Studies NSC - Mecrorandum . 7.4 Impact of Consumer Protection Act on businesses 78 Penalties for non-compliance: Positive impact/Advantages - The Act imposes fines of up to R1 million “or 10% of turnover for - There is now only one law for protecting consumers” and this makes each offence.” it easier to enforce and apply the law” . - seein fe onsible for ing” - Protects the consumers from unfair, exploitative and aggressive The National Consumer Commission 'S Fespy v overseeing business “and marketing activities. “ the compliance by businesses with the CPA. - Promotes consumer rights “and ensures that businesses do not - Failure to adhere with CPA may result in a fine” or even imprisonment violate these rights. v in severe cases; ¥ . aes at consumers fa out how ooo ane ‘nthe go ods and - In special cases an employer will be held jointly and severally liable “ services market responsibly. v with its employee for contravening the CPAY - Enables consumers and businesses to resolve disputes fairly” and 5 Max (6) i in a way that respects the rights of both parties. ~ 07.6 Conclusion - Disputes may also be addressedy by the National Consumer Commission. “ . - . - Ensures that consumers do not buy goods of poor quality “which ° Businesses have a duty to perform quality services and supply do not meet quality standards. © quality goods; | - . w - Forces businesses to promote “and provide consumer education. ~ © Consumers must act responsibly when purchasing goods and/or services. o Any other relevant conclusion relating to CPA, - Consumers are forced to make responsible “and informed decisions. ¥ Max (2) - Any other relevant answer related to the advantages of CPA. BREAKDOWN OF MARK ALLOCATION AND/OR Negative impact /Disadvantages - DETAILS MAXIMUM TOTAL 741 Introduction 2 - Take and Pay must disclose more information” about their products and processes. ¥ 7.2.2 Purpose of CPA 12 - The Act encourages” consumers to complain. ¥ - Consumers can take advantage” of businesses. “ 7.3 Consumer rights 16 32 - ‘The processes and procedures required of the businesses” by the Act 74 — Impact of Consumer Protection 12 can be expensive and time consuming. “ Act on businesses - Some businesses feel they are unnecessarily burdened v1 by the processes 7.5 Penalties for non-compliance 6 required by the CPA. ¥ 7.6 Conclusion 2 - Non-compliancev’e may result in heavy penalties. v INSIGHT - Staff need to be trained and legal experts need to be consulted, “ Layout 2 which can be expensive for smaller businesses. ¥ Analysis, interpretation 2 - Take and Pay documents need to be redone/translated” in order to ‘Synthesis 2 comply with the requirement that consumers have a right fo receive Originality, examples 2 contracts in simple and understandable language. V TOTAL MARKS 40 - ‘The provisions in the Act increase the risks for insurance companiesv in protecting LASO — For each component: businesses against unforeseen claims and lawsuits. ” - Supply chain management for stock levels will have to be managed differently” as defective goods have to be replaced within six months at the request of the customer. ~ - Legal contracts must be worded in plain language and pitched” at the level of the consumer who is being targeted. V Any other relevant answer related to impact on CPA. Max 12 - Copyright reserved Please turn over Copyright reserved Please turn over

Downloaded from hlayiso.com Business Studies Prepefatory Examination September 2016 NS¢-Memorandum QUESTION 8 BUSINESS VENTURES 8.1 8.2 Introduction Leaders have vision for their businesses. Leaders encourage workers through motivation. “ Leaders who take calculated risks are able to make use of profitable opportunities. ¥ Managers are able to manage the business effectively. v Any other relevant introduction related to leadership and management. Max (2) Distinguish between leadership and management Business Studie__/ MANAGEMENT LEADERSHIP Demands respect, . “ authority and wants to control. Invites and motivates . “freedom of speech and inspires trust. Gives orders. ~/instructions. “ Seeks to empowe. ~‘r/facilitates employees. v Thinks that they know. v all the answers. Asks the right questions . “to get to the tight answers. “ Focuses v’ on the task. v” Focuses on individuals/groups. ” Focuses Y on the implementation of policies. Vv Focuses on motivating workers. “ to help with the implementation processes. ¥ Follows/Implemenis . v'the vision of the enterprise, ¥ Provides a vision. “ for the enter- prise. Vv Minimises. V and controls risk. ~ Always on the lookout . “for business opportunities, Ensures that profit targets. V are met. 4 Strategises. V to increase profitability. Administer Vmanagement. “ Innovate v calculated risk. v Have a short-term. ¥ view ¥ Have a long-term view Monitor people Inspire people ” Implement plans “ Develop goals ” Maintain. ¥ and monitor ¥ Challenge staff “and managers “ Ask when, how,. “ where and who Ask. “why % Any other relevant distinction between management and leadership. Copyright reserved Please turn over Max (8) Copyright reserved Preparatory Examination September 2016 NSC-Memorandum 8.3.1 Consensus/democratic leadership Positives: /Advantages . Has the expertise and needs to consult with the subordinates. ” . Involves the subordinates” in decision- -making/policy formulation/ problem solving. ~ « Seeks opinions and ideas from subordinates’ , but the leader remains accountable and has the authority to make the final decision. “ . Wins the support of the subordinatesv because they feel part of the team. ¥ © Beiter decisions are made, V because of various inputs. ¥ . New leaders may benefit from ideas obtained from experienced subordinates. Vv . Any relevant answer related to the evaluation of the Consensus/ democratic leadership style. Negatives: /Disadvantages . ‘This leadership styie is time-consuming “especially when urgent decisions have to be made. ” . Some leaders are reluctant fo use this style, “because they may view it as a sign of weakness to ask for advice from subordinates. Vv © Leaders who do not consider the inputs” from subordinates may discourage any future inputs. “ . Any relevant answer related to the evaluation of the Consensus/ democratic leadership siyle. Any other relevant answer Sub max (8) Application: . This leadership style is useful when the leader and the subordinates need to contribute towards decision making. V~ ° May be used when making decisions that affect the whole business. Vv” . Cannot be applied in urgent/quick decision making. vv . Applied only if subordinates have necessary knowledge/information to contribute towards decisions. vv ° Applied when the leader knows the problem, but does not have all the information to make a final decision. v” . Any relevant application of the Consensus/democratic leadership style. ‘Sub max (4) (Max) (12) Please turn over

tw Business Studies 39 8.3.2 Autocratic leadership style Downloaded from hlayiso. com Preparatory EXiifination September 2016 NSC-Memorandum Positives: /Advantages Negatives/Disadvantages Gives directives and instructions” as a way of communicating Business. Studies Preparatory Examination September 2016 nse: Memorandum Negatives:/Disadvantages Incorrect decisions can be taken’ if the staff are inexperienced “ This style can prevent goals from being reached ~‘if the staff loses their direction. Can be timev consuming. ~ with subordinates. ” Bd This leadership style can be used when urgentv /quick decisions ° Team members might misunderstand” the objectives. v must be made. “ . Could lead“ to under performance. “ Works well’ with inexperienced employees. ” . Productivity” might be low. “ Deadlines may be met, “as work is completed according to the . Could lead to conflict” when some team members assume the leader's specification. ” role of leaders and dictate the work to others ” Any other relevant answer related fo the evaluation of the Any other relevant disadvantages related to the Autocratic leadership style Laissez-faire/free reign leadership/management style Sub max (8) Application Can de-motivate Vsubordinates/followers. “ . Makes all decisions alone v with little or no consideration for the inputs of subordinates. Subordinates are told what to do and how to do it” without being . given the opportunity to give inputs or make suggestions. Employees' inputs” and innovations may be lost. “ Any other relevant answer related to the evaluation of the Autocratic leadership style. Sub max (8) Application: . Used in crisis situations, e.g. disaster relief management. VY . Applied when implementing business policies/government legislation. “V . Used when all the information is available to solve the problem. vv . Used when dealing with employees who are not cooperative in the workplace. Vv” Any other relevant application of the Autocratic leadership style. Sub max (4) (Max) (12) 8.3.3 Laissez-faire/free reign leadership/management style Positives/Advantages Copyright reserved The leader is not part of the decision making process, V but allows employees to make all the decisions within the framework/limits of the policy. The leader gets involved” when requested.“ ~ The leader is responsible and accountablev for the employees’ decisions and actions. Employees are left on their own’ with minimal interference. “ This may lead to frustration on the part of employees” when they lack experience or have not earned the trust of the leader. “ Any other relevant advantages related to Laissez-faire/free reign feadership/management style. Please tum over Copyright reserved This leadership style can be used when the leader is empowering his/her employees through the delegation of duties. “” Useful when employees are knowledgeable and experienced. vv It works well in situations where employees are highly skilled in analysing situations and offering solutions. VW” Any other relevant answer reiated to the application of Laissez-faire/ free reign Leadership/management style Sub max (4) (Max) (12) Please turn over

Downloaded from hlayiso.ccom Business Studies Ns A, emorandurn Prepstatory Examination September 2016 Business Studie NSC alemorandum Preparatory Examination September 2016 . 8.4 Conclusion QUESTION 9 . Not all people are able to be both leaders and managers. vv BUSINESS ROLES . ts Cee ere er gre Success of a business to have managers 4 INTRODUCTION . Any other relevant conclusion on leadership and management. Max (2) . Team work refers to a number of people collaborating/working together effectively in order to reach a common goal. ” NOTE: 1. Candidates should be awarded marks when examples demonstrate understanding. 2. — If another approach is used in answering this question, take into consideration the sub max's as Each team member should contribute towards the success of the team. “ The success of a business depends on the successful collaboration within a team to contribute to the objectives of the indicated above. business. “ - Diversity in teams may lead to better ideas/solutions, but may Breakdown of mark allocation also cause conflict. v Details Maximum Total - Conflict is a result of differences in values and attitudes. ¥ Introduction 2 - Effective conflict management may have a positive influence Distinguish between leadership and management 8 on team performance. Consensus leadership style 12 - Poor conflict management may lead to team failure or the Autocratic leadership style 12 Max dissolution of a team. W Laissez-faire/free reign 42 32 - Any other relevant introduction to team work and conflict. Conclusion 2 Max (2) INSIGHT Layout 2 9.2 Possible causes of conflict within a team eyes ereataien 3 9.2.1 Personal differences/Different personalities” “ | Originality, Examples 2 - Conflict is inevitable when people from different ; TOTAL MARKS 0 backgrounds/cultures/values races/gender’ work in the same environment. - When employees fail to understand or accept the differences LASO — For each component: in each other's personalities’, problems arise in the workplace. ” 7 employees of other cultures/backgrounds. Allocate 0 marks where requirements are not met at all. . Biterent personality types within a group can cause conflicts” because some employees! may be introverts while others are [40] extroverts resulting in different perceptions. ” - Different opinions” may make it difficuit to reach agreements. ¥ - Any other relevant answer related tc personal differences/different personalities as a possible cause of conflict. Cause (2) Discussion (2) Submax (4) Copyright reserved Please turn over Copyright reserved Please turn over

tw Business Studies 43 922 9.2.3 9.2.4 Downloaded from hlayiso. com NSC-Memorandum Poor communication’ Y Poor communication can lead to all types of misunderstanding” and can become very destructive. if employees or management decide to sidestep each other's opinions’, team members may become unhappy. ” Any other relevant answer related to poor communication as a possible cause of conflict. Cause (2) Discussion (2) Submax (4) Competition’ ~ Although competition may be a good motivator, “ it can become negative if the focus is on competition only, as team members may lose their team spirit. ¥ ‘Team members who always loose when competing’, may feel incompetent/ demotivated and may not complete their tasks/reach deadlines. ” Unhealthy workplace competition may spark conflict’ as it demoralises employees who cannot always meet targets. “ When salary is linked to employee productivity”, a workplace may experience strong competition between employees. ” Any other relevant answer related to competition as a possible cause of conflict. Cause (2) Discussion (2) Submax (4) Ignoring rules/proceduresY “ Copyright reserved Employees who do not follow the rules/proceduresY can cause conflict as tasks may not be performed according to the business specification. “ Team members who ignore/disobey rules/procedures” may delay the completion of tasks. ¥ Any other relevant answer related to ignoring rules/procedures as a possible cause of conflict. Cause (2) Discussion (2) Submax (4) Please tum over Preparatory S8ination September 2016 Business Studies nse ‘Memorandum 9.2.5 Poor organisation/leadership/administrative procedures and systemsv ¥ Poor systems and procedures cause stress to workers” and makes them frustratedv’. If there are not enough guidelines for team members’, they will be unorganised/uncoordinated in their work. Any other relevant answer related to poor organisation/leadership/ admini-strative procedures and systems as a possible cause of conflict. Cause (2) Discussion (2) Submax (4) 9.2:6 Workload and stress/Unrealistic expectation Vv“ When employees are overloaded with workv’, they become stressed/feel unappreciated/burnt-out. “ Some employees may depend on their colleagues ~’to help them to complete their work. v Any other relevant answer related to workload and stress/unrealistic expectation as a possible cause of conflict. Cause (2) Discussion (2) Submax (4) 9.2.7 Confusion about scheduling and deadlines“” - Individual deadlines and the team schedules that are not clearly communicated/are not easily available”’can cause confusion. ” - Employees working in a team may be available at different times/finding a suitable time when everyone is availablev, which can be a challenge in reaching deadlines. “ - Any other relevant answer related to confusion about scheduling and deadlines as a possibie cause of conflict. Cause (2) Discussion (2) Submax (4) 9.2.8 Unclear responsibilities” Vv - Employees who are not clear about their responsibilities“ are more likely to avoid and blame others for work not done. “ - They may not effectively perform” their task as expected. Vv - Any other relevant answer related to unclear responsibilities as a possible cause of conflict. - Cause (2) Discussion (2) Submax (4) Copyright reserved Please turn over Preparatory Examination September 2016

Downloaded from hlayiso.com Business Studies 48 NSC-Memorandum 9.2.9 Distracted by personal objectives” “” - Some employees may pursue their own personal objectives” and they will try to force their own desires onto the team. “ - They may lose focus of the task at hand” and distract others from performing their tasks effectively. v - Any other relevant answer related to being distracted by personal objectives as a possible cause of conflict. Cause (2) Discussion (2) Submax (4) 9.2.10 Lack offinsufficient resources” ¥ - Limited resources may cause conflict, because employees may All “ want to use the resources at the same time. ¥ - Team members may fight over the limited resources availablev to accomplish their/the team's tasks. Vv - Any other relevant answer related to insufficient resources as a possible cause of conflict. Cause (2) Discussion (2) Submax (4) 9.2.11 Constant changes” - Constant changes in a business may cause instabilityflack of clarity” regarding the roles and responsibilities of each employee/team member. ~ - Staff of businesses that continuously changev’, may experience ‘change fatigue’. “ - People may have less patience” and fail to undersiand the reasons for change. ” - Any other relevant answer related to constant changes as a possible cause of conflict. Cause (2) Discussion (2) Submax (4) Max (18) Please tum over Copyright reserved Prepetatory Examination September 2016 Business Studitu-” 46 Preparatory Examination September 2016 NSC Memorandum 9.3 Conflict resolution procedure/steps - identify/Acknowledge. v that there is conflict. “ ~ Analyse the cause(s) of conflict. v by breaking it down into different parts. “ - Pre-negotiations may be arranged where members. ~ will be allowed to state their case/views separately. “ - Arrange a meeting “between conflicting team members. “ - A time and place for discussion is arranged. ¥ for negotiations where all members are present. Vv - Each member has the opportunity to express his/her own opinions/feelings/. “Conflicting members may recognise that their views are different. ¥ - Devise/Brainstorm possible ways. “ of resolving the conflict. ¥ - Conflicting members agree on criteria. V to evaluate the altematives. v - The best possible solution(s) is/are selected. “ and implemented. “ - Evaluate/Follow up on the implementation. “ of the solution(s). ~ - Monitor progress . v’to ensure that the conflict has been resolved. v - Any other relevant answer related to a positive analysis of conflict resolution techniques. Max (10) 9.4 Characleristics for team's success 94.1 Interpersonal attitudes and behaviour Vv” . Members have a positive attitude of support and motivation towards each other. ¥ ¥ . Good/Sound interpersonal relationships will ensure job satisfaction! increase productivity of the team. Vv“ e Members are committed/passionate towards achieving a common goal/objectives. v~ . Team leader acknowledges/gives credit to members for positive contributions. v “ . Any other relevant answer related to interpersonal attitudes and behaviour of successful teams. 9.4.2 Shared values/Mutual trust and support’ ” . Shows loyalty/réspect/trust towards team members despite differences. vv . Shows respect to the knowledge/skills of other members. “” ° Perform team tasks with integrity/pursuing responsibility/meeting team deadlines with necessary commitment to team goals. v~ e Any other relevant answer related to shared values/mutuai trust and support of members in successful teams. Copyright Reserved Please Tum Over

Business Studies Downloaded from hlayiso.com Business Studies 47 Preparatory Seetination September 2016 NSC — Memorandum 9.4.3 Communication’ ~ A clear set of processes/procedures for team work ensures that every team member understands his/her role. vv Ability to communicate well and make quick decisions. ¥ “ Communicates with team members and allows for feedback. Vv Encourages discussion about the problem so that solutions can be found. vv Continuous review of team progress ensures that team members can rectify mistakes/act pro-actively to ensure that goalsfargets are reached. Vv ¥ Any other relevant answer related to communication in successful teams. 9.44 Co-operation/Collaboration’Y Clearly defined realistic goals are set, so that all members know exactly what is to be accomplished. v ” Willingness to co-operate as a unit to achieve team objectives, “” Co-operate with management to achieve team/business objectives. VY Agree on methods/ways to get the job done effectively without wasting time on conflict resolution. ¥ v All members take part in decision making. vv A balanced composition of skills/knowledge/experience/expertise ensures that teams achieve their objectives. vv Any other relevant answer related to co-operation/collaboration in successful teams. 96 Consider any other relevant criteria for a successful team. Max (10) 9.5 Ways of dealing with difficult people OPTION 1 Copyright Reserved Get perspective from others who have experienced the same kind of situation to be able to understand the difficult employee. “” Act pro-actively if possible, as a staif/personnel problem is part of a manager's responsibilities. vw” Regular meetings with supervisors/departmental heads should help to identify difficultfproblem behaviour. Vv” Ask someone in authority for their input into the situation. vw” Identify the type of personality which is creating the problem. “” Meet privately with difficult employees, so that there are no distractions from other employees/issues. VV Make your intentions and reasons for your actions known so that they will feel at ease. vv" Please Tum Over Copyright Reserved 48 Preparatory Examination September 2016 NSC —- Memorandum - Employees should be told what specific behaviours are acceptable by giving details about what is wrong/unacceptable and also an opportunity to explain their behaviour. “” - A deadline should be set for improving bad/difficutt behaviour. ““” - ‘The deadline date should be discussed with the employee and his/her progress should be monitored/assessed prior to the deadline. Vv“ - Guidelines for improvernent should be given. “~~ - Do not judge the employee, but try to understand him/her! understand the person's intentions and why they seact in a certain way. “¥ - Keep communication channels open and encourage employees to communicate their grievances to management. VW - Build rapport/sound relations by re-establishing personal connection with colleagues, instead of relying on e-mails/messaging/social media. V“ - Help difficult employees to be realistic about the task at hand. Vv” - Remain calm and in contro! of the situation to get the person(s) to collaborate. vv - Treat people with respect, irrespective of whether they are capable/competent or not. “~ - Sometimes it may be necessary to ignore but monitor a difficult person. “~~ - Identify and provide an appropriate support program to address areas of weakness. ¥¥ - Any other relevant answer related to managing difficult employees. - Max (10) Conclusion - Effective team work will contribute to achieving goals and improve productivity. “. ¥ - Continuous team assessment will ensure that teams remain focused on the tasks/targeis. “. “ - Constructive/Positive conflict should be encouraged fo promote creativity and effective problem solving. v. . - Teams generally take longer to arrive at a decision. Vv V - The use of teams may have greater cost implications. ” - Any other relevant conclusion related to team performance and conflict Management (2) [40] Please Tum Over

Business Studies Propatatory Examination Septernber 2016 NSC ~ Memorandum Breakdown of mark allocation Details Maximum Total Introduction 2 Possible causes of conflict within a team 16 Conflict resolution procedure/steps. 10 Characteristics for team's success 10 Mex Ways of dealing with difficult people 10 Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 Synthesis. 2 Originality, Examples 2 TOTAL MARKS 40 LASO - For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. [40] QUESTION 10 BUSINESS OPERATIONS 10.1 Introduction . TQM is a quality assurance and control system that was developed by the Japanese. v . ‘This system involves every part of the business and quality is everyone’s responsibility, including every department and every employee. ” . The principles and value of quality are embedded in the organizational culture and ethics. “ . All employees take responsibility for the quality of their work and outputs, and machines and equipment are checked regularly. “ . All inputs including raw materials are checked thoroughly and discussions are often held on how to improve quality. ° The quality management process includes a customer satisfaction survey, which informs the business of any changes that need to be made. . Any other relevant introduction related to TQM. Max (2 Copyright Reserved Please Tum Over Downloaded from hlayiso.com ; Business Siudicn_” 50 Preparatory Examination September 2016 NSC — Memorandum = 10.2 Benefits of a good quality management system - Effective customer services will be rendered, resulting in an increased customer satisfaction. vv - Time and resources are used efficiently. Vv - Productivity increase through proper time management when using high quality resources, VY - Products and services are constantly improved, resulting in greater customer satisfaction. v~ - Vision and mission may be achieved. Vv” - The business may achieve a competitive advantage over its competitors. vv - Continuous training will constantly improve the quality of employees’ skills and knowledge. Vv“ - Employers and employees will have a healthy working relationship which results in happy workers. vv” - increased market share and profitability. vv” - Any other relevant answer related to the benefits of a good quality management system. Max (6) 10.3 Quality of performance within the general management function - Develop, implement and monitorv effective strategic plans. - Efficient organisation and allocation of business resources” to allow for the successful achievement of long-term and short-term plans. ~ - Ensure that structured standards and noms are in placev’ so that control mechanisms can be implemented. ” - Learn about/Understand changes in the business environmenty on an on-going basis. “ - Set direction” and estabiish priorities for their business. - Effectively communicatev’ shared vision/mission/values. ” - Be prepared to set an example of the behaviour they expect from employeesv’ in terms of ethics/productivity. “Ensures that employees have the resources” needed fo do their work “/Effective allocationy’ of resources. v - Be proactive and always seek to improve comparative advantage” over competitors. “ - Any other relevant answer related to how the quality of performance in the General Management function will ensure success of a business. Max (4) Copyright Reserved Piease Turn Over

Business Studies Downloaded from hlayiso.com Business Studies 5 Preparatory SSemhration September 2016 NSC — Memorandum 10.4 Impact of Total Quality Management System on large Business 10.4.1 Continuous skills development/Education and Training Positives/Advantages Large businesses have a human resources department” dedicated to skills training and development. ” Human resources expertsv’ ensure that training programmes are relevant to increased customer satisfaction. “ Ability to afford’ specialised/skilled employees. May be able to conduct skills audits” to establish the competency/ education levels of staff performing work which could affect the quality of products/processes. ” May be able to hire qualified trainers” to train employees on a regular basis. ¥ Any other relevant answer related to the positives/advantages of continuous skilis development. AND/OR Negatives/Disadvantages 10.4.2 Copyright Reserved Poor communication systemv may prevent effective training from taking place. “ Trained employees may leave for better jobs” after they gained more skills. De-motivates employees”, if they do not receive recognition for training. ¥ Employees who specialise in narrowly defined jobs” may become frustrated/demotivated. ” Employees may not be aware of the level of competency they should meet” in order to achieve their targets. ¥ It may be difficult to monitor/evaluatev the effectiveness of training. ~ Any other relevant answer related to the negatives/disadvantages of continuous skills development. Sub max (12) Total client/customer satisfaction Positives/Advantages Large businesses use market research/customer surveys~’ to measure/ monitor customer satisfaction/analyse customers’ needs. “ . Continuously promote a positive company image. ” May achieve a state of total customer satisfaction, if businesses follow sound business practices” that incorporate all stakeholders. “ Strive to understand and fulfil customer expectations“ by aligning cross-functional teams across critical processes. V Ensures that cross-functional teams understand its core competencies” and develop/strengthen it. Vv May lead to higher customer retention/loyalty” and businesses may be able to charge higher prices. “ Businesses may be able to gain access” to the global market. “ May lead to increased” competitiveness/profitability. “ Please Tum Over NSC ~ Memorandum - Any other relevant answer related to the positives/advantages of total client/customer satisfaction. ANDIOR Negatives/Disadvantages - Employees who seidom come inio contact with customers” often do not have a ciear idea of what will satisfy their needs. “ ~ Monopolistic companies have an increased bargaining power so they ‘do not necessarily have to please customers. ” - Not all employees” may be involved/committed to total client satisfaction. ” - Any other relevant answer related to the negatives/disadvantages of iota! client/customer satisfaction. Sub max (12) 10.4.3. Continuous improvements to systems and processes Sub max (12) Max (24) 10.8 Conclusion TQM is about more than just the quality of the products or service Copyright Reserved Please Turn Over Positives/Advantages - Large businesses have more resources” to check on quality performance in each unit. ~ - Enough capital resources are availableY for new equipment required for systems and processes” - Large businesses have a person dedicated” to the improvement of systems and processes. “ - Willing to take risk on/try new processes and systemsvV because they are able to absorb the impact of losing money. “ - They can afford fo use the services of the quality circlesv io stay ahead of their competitors. “ - Any other relevant answer related to the positives/advantages of continuous improvement fo systems and processes. AND/OR Negatives/Disadvantages - Large scale manufacturing” can complicate quality control. Vv ~ Systems and processes take time and effort to implement in a jarge business” as communication/buy-in may delay the process. - Risk of changing parts of the businessv that are actually working well. ¥ - Not all negative feedback from employees and customers is going te be accuratev’ which may result in incorrect/unnecessary changes to systems and processes. ¥ - Any other relevant answer related to the negatives/disadvantages of continuous improvement to systems and processes. 52 Preparatory Examination September 2016

Downloaded from hlayiso.com Business Studies 5 Picjaitatory Examination September 2018 NSC — Memorandum . but includes the whole organisation from the customer's point of view. vv itis about continuously planning, doing and checking quality.“ “ In this way, customer satisfaction is considered by each employee and business in all their tasks and activities. vv Max (2) * Any other relevant conclusion related to TQM. [40} Breakdown of mark allocation Details Maximum Total Introduction 2 Benefits 6 General management 4 Continuous Skills Development 12 Max ‘Total Client Satisfaction 12 32 Continuous Improvements 12 Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 Synthesis 2 Originality, Examples 2 TOTAL MARKS : 40 GRAND TOTAL: [300} < Copyright Reserved Please Turn Over

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