# Business Studies Grade 12 KZN June 2017 Memo > Grade 12 Business Studies memorandum from the KZN June 2017, 26 pages. Read online or get the free PDF download, question paper linked when available. - Page: https://www.hlayiso.com/library/2017-kzn-june-memo/0c795359-a968-4013-9705-b5a8c1e01e58 - Updated: 2026-09-27 - Subject: Business Studies - Grade: Grade 12 - Document type: Memorandum - Year: 2017 - Exam period: KZN June - Curriculum: CAPS - Pages: 26 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Business Studies](https://www.hlayiso.com/library/grade-12/business-studies) › [Business Studies Grade 12 KZN June 2017 Memo](https://www.hlayiso.com/library/2017-kzn-june-memo/0c795359-a968-4013-9705-b5a8c1e01e58) ## About this document Business Studies · Grade 12 · KZN June · 2017. Memorandum, 26 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com Education Business Studies June 2017 Common Test 2 NSC NOTES TO MARKERS KwaZulu-Natal Department of Education REPUBLIC OF SOUTH AFRICA NATIONAL SENIOR CERTIFICATE {| Marks: 300 Time: 3 hours This memorandum consists of 42 pages. Please Tum Over Copyright Reserved PREAMBLE The notes to markers are provided for quality assurance purposes to ensure the following: (a) Fairness, consistency and reliability in the standard of marking (b) Facilitate the moderation of candidates’ scripts at the different levels \(c) Streamline the marking process considering the broad spectrum 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 been 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. Please Tum Over Copyright Reserved ### Page 2 Downloaded from hlayiso.com Business Studies 3 June 2017 Common Test NSC 7. Subtotals to questions must be written in the right-hand margin. Circle the subtotals as 10. 11. 13. Please Tum Over 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 response must be relevant and related to the question. Incorrect numbering of answers to questions or sub questions in Sections A and B will be severely penalised. Therefore, correct numbering is strongly recommended in all sections. No additional credit must be given for repetition of facts. Indicate with an ‘R’. Note that no marks will be awarded for indicating Yes/No in evaluation type questions requiring substantiation or motivation. (Applicable to SECTIONS B and C.) The differentiation between ‘evaluate’ and ‘critically evaluate’ can be explained as follows: 12.1 When ‘evaluate’ is used, candidates are expected to respond in either a posifive/negative manner or take a neutral (positive and negative) stance, @.g. Positive: ‘COIDA eliminates time and costs spentv’ on lengthy civil court proceedings.’ ¥ 12.2 When ‘critically evaluate’ is used, candidates are expected to respond in either a positive/negative manner or take a neutral (positive and negative) stance. In this instance candidates are also expected to support their responses with more depth, e.g. ‘COIDA eliminates time and costs spent Von lengthy civil court proceedings, v because the employer will not be liable for compensation to the employee for injuries sustained during working hours as long as it can be proved that the business was not negligent.’ ” NOTE: The above could apply to ‘analyse’ as well. The allocation of marks must be informed by the nature of the question, cognitive verb used, mark allocation in the memorandum and the context of each question. Cognitive verbs, such as: 13.1 Advise, devise, name, state, mention, recommend, suggest, (list not exhaustive) do not usually require much depth in candidates’ responses. Therefore, the mark allocation for each statement/answer appears at the end. 13.2 Describe, explain, discuss, elaborate, justify, analyse, evaluate, critically evaluate (list nof exhaustive) require a greater depth of understanding, application and reasoning. Therefore, the marks must be allocated more objectively fo ensure that assessing is conducted according to established norms so that uniformity, consistency and fairness are achieved. Copyright Reserved Business Studies 4 June 2017 Common Test NSC. 14. SECTIONB 14.1 If, for example, FIVE facts are required, mark the candidate's FIRST FIVE responses and ignore the rest of the responses. Indicate by drawing a line across the unmarked portion or use the word 'MAX’. NOTE: This applies only to questions where the number of facts is specified. 14.2 If two facts are written in one sentence, award the candidate FULL credit. Point 14.1 above still applies. 14.3. If candidates are required to provide their own examples/views, brainstorm this at the marking centre to finalise alternative answers. 14,4 Use of cognitive verbs and allocation of marks: 14.4.1 If the number of facts is specified, questions that require candidates to ‘describe/discuss/explain' may be marked as follows: « Fact 2 marks (or as indicated in the memorandum) * Explanation 1 mark The ‘fact’ and ‘explanation’ are given separately to facilitate mark allocation. 14.4.2 If the number of facts required is not specified, the allocation of _ marks must be informed by the nature of the question and the maximum mark allocated in the memorandum. 14.5 ONE mark may be awarded for answers that are easy to recall, requires one-word answers or is quoted directly from a scenario/case study. This applies to SECTION B and C in particular (where applicable). 15. SECTIONC 15.1 The breakdown of the mark allocation for the essays is as follows: Introduction Content Maximum: Conclusion 32 Insight 3 TOTAL 40 Please Turn Over Copyright Reserved % ### Page 3 Downloaded from hlayiso.com — Business Studies 5 June 2017 Common Test Business Studies 6 June 2017 Common Test NSC Ns 15.2 _ Insight consists of the following components: 15.6 At the end of each essay indicate the allocation of marks for facts and marks for insight as follows: Layout/Structure 1S there an inkroduction, body, proper paragraphs and | 2 L— Layout, A - Analysis, S — Synthesis, O — Originality as in the tabie below. a lusion? Analysis and Leamers' ability to break down the question/interpret 2 interpretation it correctly to show understanding of what is being CONTENT MARKS asked. Facts 32 (max.) Synthesis Are there relevant decisions/facts/responses made 2 L 2 based on the questions? A 2 Marks to be allocated using this guide: 5 2 No relevant facts: 0 (Two '-S') 0 2 Some relevant facts: 1 (One '-S') Only relevant fa 2 (Zero "-S') TOTAL 40 NB: If there are no '-S' award the maximum of TWO (2) marks. 18.7 When awarding marks for facts, take note of the sub-maxima indicated, especially Originality Examples, recency of information, current trends 2 if candidates do not use the same subheadings. and developments. Remember, headings and subheadings are encouraged and contribute to insight TOTAL FOR INSIGHT: TOTAL] 8 (structuring/logical flow/sequencing) and indicate clarity of thought. MARKS FOR FACTS: TOTAL| 32 (See MARK BREAKDOWN at the end of each question.) MARKS FOR ESSAY (8 + 32)| 40 15.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she NOTE: may still obtain marks for layout. 1. No marks will be awarded for contents repeated from the introduction and conclusion. 15.8 Ifa different approach is used by candidates, ensure that the answers are 2. The candidate forfeits marks for layout if the words INTRODUCTION and assessed according to the mark allocation/subheadings as indicated in the CONCLUSION are not stated. memorandum. 3. No marks will be allocated for layout, if the headings INTRODUCTION and CONCLUSION are not supported by an explanation. 15.10 15.10.1 Award TWO marks for complete sentences. Award ONE mark for phrases, incomplete sentences and vague answers. 15.3 _ Indicate insight in the left-hand margin with a symbol, e.g. (‘L, A, S and/or 0’) 15.10.2 With effect from November 2015, the TWO marks will not . necessarily appear at the end of each completed sentence. The 15.4 The breakdown of marks is indicated at the end of the suggested answer! ticks (¥) will be separated and indicated next to each fact, e.g. marking guidelines to each question. ‘Product development is a growth strategy, ¥ where businesses aim to introduce new products into existing markets.'V This will be informed by the nature and context of the question, as 15.5 Mark all relevant facts until the SUB MAX/MAX mark in a subsection has well as the cognitive verb used. been attained. Write ‘SUB MAX'/MAX' after maximum marks have been obtained. Please Turn Over Copyright Reserved Please Turn Over Copyright Reserved ### Page 4 Business Studies SECTION A (COMPULSORY) QUESTION 1 44 11.4 Cvv 11.2 D¥Y 413 AVY 114 AVY 115 BYY 116 Dv¥¥ 11.7 CVY 118 BYY 119 BYY 14.10BYY 1.2 1.21 AVY 122 Dv¥v 123 GYv 124 Evy 125 CVv Please Tum Over Downloaded from hlayiso.com 7 June 2017 Common Test Business Studies 8 1.3 1.3.1 Triple Bottom Line ¥~ 1.3.2 Threais vv 4.3.3 Storming vY 1.3.4 Primary vv 1.3.5 Walk-ins ¥¥ {10 x 2) (20) (6x2) (10) Copyright Reserved Please Tum Over dune 2017 Common Test (x 2) (10) BREAKDOWN OF MARKS QUESTION 1 MARKS 1.4 20 1.2 10 1.3 10 TOTAL Copyright Reserved ### Page 5 Downloaded from hlayiso.com Business Studies 9 June 2017 Common Test NSC SECTION B QUESTION 2 24 2.1.1 Threat of substitutes “~ 2.1.2 Power of buyers “VW 2.1.3. Rivalry amongst business within the same industry / competitive rivalry VY” 2.1.4 Newentrant to an industry vv” 2.1.5 Bargaining power of supplier / power of supplier “~ (10) 2.2 Fronting is generally regarded as the superficial inclusion of black people vin order to have the advantages of high BEE rating of where non-empowered companies win contracts by faking its BEE credential. ¥ Verification agencies promoted misrepresentation V by issuing B-BBEE that do not give a true reflection of ihe transformation status in companies. ” 4 2.3 Implications of BBBEE pillars on businesses 2.3.1 Ownership * Businesses should include black people Vin shareholding/partnerships/franchises. ~ * Exempted microenterprises (EMEs) with a black ownership of 50% or more v have a better BEE rating/score. ” + More opportunities are created for black people V to become owners/entrepreneurs. “ * Businesses sometimes find it difficult ~ to attract suitable black partners/shareholders. * Many black peopie cannot afford shares/contributions ~ to partnerships. “ Any other relevant answer related to the implication of ownership as a BBBEE pillar on businesses. Sub max (4) Please Tum Over Copyright Reserved Business Studies 10 NSC 2.3.2 Management * Appointing black people v in senior executive positions/ management. ” Ensuring black female v representation in management. ¥ * When businesses sell 25% of their shares to black investors to become directors, v the business will score points in both management and ownership. ~ * Due to a shortage of skilled black managers/directors, Y some businesses may find it difficult to make appointments. “ Any other relevant answer related to the implication of management as a BBBEE pillar of businesses. Sub max (4) Max 24 « The purpose of BBBEE is to enable wealth to be spread more broadly. Vv“ « Through BBBEE the government strives io involve all businesses (profit and non-profit organisations). v” + BBBEE Act includes a wider group of previously disadvantaged people, 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 enterprise 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 businesses, nurturing black entrepreneurship and building black SMMEs by means of affirmative action. vv Any other relevant answer related to the introduction of Broad-Based Black Economic Empowerment (BBBEE). Max (6) 2.5 Practical ways on how businesses can comply with EEA Promote/Provide equal opportunities in the workplace. V~ * Compile employment equity plans that indicate how they will implement affirmative action. v~ + Ensure that affirmative action measures promote diversity in the workplace. VY * Assign a manager to ensure that the employment equity plan will be implemented/regularly monitored. Vv” * Display a summary of the Act where employees can clearly see itfhave access to it. vv * Report to the Department of Labour on the progress in the implementation of the equity plan. vv” * Conduct medical/psychological tests fairly to employees/when deemed necessary. ¥~ Please Tum Over Copyright Reserved June 2017 Common Test ### Page 6 Downloaded from hlayiso.com ‘Business Studies M1 June 2017 Common Test Business Studies 12 June 2017 Common Test NSC NSC Equal pay for work of equal value. Vv Negatives 26 27 Please Tum Over « Ensure that the workplace represents the demographics of the country at all levels. VY * Appointment process should be clearly defined to inform all parties. vv” * Restructure/Analyse current employment policies/practices/procedures to accommodate designated groups. Vv” * Retrain/Develop/Train designated groups through skills development programmes. ¥~ Any other relevant answer related to practical ways on how businesses can comply with the EEA. Max (4) Actions regarded as discriminatory by the EEA * Not employing a young woman because she will want to have children. vv e Refusing to employ a person because he/she has strong religious beliefs/has a disability. v~ Doing HIV testing unless justifiéd by the Labour Court. ¥” « Denying people access to the workforce based on gender/race/ culture/etc. and treating them unfairly. v” 28 Any other relevant actions that can be regarded as discriminatory by EEA. NOTE: Mark the first THREE (3) only. Any (3 x 2) (6) Impact of EEA on businesses Positives © Promotes equal opportunities “ and fair treatment in employment. ~ « Encouragés consultation “ between employer and employees. ~ * Motivates employees ~ because the workforce is more diverse/representative/incusive. ¢ Prevents unfair discrimination Yas it ensures that the workforce represents the demographics of the country/promotes diversity in the workplace. ¥ © Creates a framework ~ of acceptable employment practices/affirmative action measures. ¥ Promotes the implemeniation of affirmative action ~ to address the imbalances of the past. Any other relevant answer related to the positive impact of EEA on businesses. AND/OR Copyright Reserved * Increased administration burden, “ as businesses must compile/submit employment equity reports every two years. ~ « Expensive to trainfemploy someone ¥ who knows little about the Act. * Other groups may not respect the knowledge/skills/experience of an EE appointment ~ and may lead to conflict. v « Fines/Penalties for non-compliant businesses V may be expensive for the business. v « Employers have to appoint one or more senior managers to ensure the implementation of the plan, “ which increases salary expenditure. “ * Businesses must submit a compliance certificate V before they can conduct business with state businesses. v * Businesses are sometimes pressurised to appoint an unsuitable EE person ~ io meet EE requirements. “ * Often positions go unfilled Y because there are no suitable EE candidates. Any other relevant answer related to the negative impact of the EEA on businesses: Max (6) Differences between National Skills Development Strategy and Human Resources Development Strategy National Skills Development Strategy Human Resources Development Strategy » Encourages good quality training in | Addresses skills shortages ~’ in the the workplace “ to ensure on-going South African work force. ¥ development of skills. * Provides for the participation ofthe |» Aims at achieving faster economic government, ¥ organised business growih/nigher employment levels and labour. and reduced levels of poverty. v «Improves social development e Promotes social devetopment/social through economic development. ~ justice V and helps to alleviate poverty. v * Indicates how Sector Education and |« Develops short term ~ and long Training Authorities (SETAs), ~ term workforce skills. ¥ should use the money allocated from the Skills Development Levy. ” « Increase/Improve access V to «Improves ~ the supply of skills. training programmes, ¥ « Builds/Provides Y career/vocational Increases employee participation ~ guidance/training centres. in lifelong learning. . ‘ Any other relevant answer related to |* Any other relevant answer related the National Skills Development to Human Resources Development Strategy. Strategy. Sub Max (4) Sub Max (4) Please Tum Over NOTE: The answers don't have to be in tabular format but differences must be clear. Max & Copyright Reserved ry ### Page 7 Downloaded from hlayiso.com Business Studies 18 dune 2017 Common Test Business Studies 14 June 2017 Common Test. NSC NSC 2.9 Strategic Management Process QUESTION 3: BUSINESS VENTURES Option 1 34 * Have a clear vision, a mission statement V and measurable/realistic 3-4-1 Delphi technique v7” . Ident oppor veaknessesitrenghaltreat ¥ by conducting 3.1.2 SCAMPER vv . Tools avalale for emvfonmertal scanning may include a SWOT/ 3-18 Forced combination 77” . Fomulate Sitervative aber vespond to the challenges. “ 3.1.4 Empty chair technique vv * Develop an action plan(s), “ including the tasks to be done/deadlines 3.1.5 Nominal group technique vY (10) to be met/resources to be procured V etc. Implement selected strategies v by communicating it to all stakeholders/ organising the business's resources/motivating staff. “ 32 Continuously evaluate, ~ monitor, ¥ measure strategies, ~ in order to take corrective action. Any other relevant answer related to a description of the strategic management process. Option 2 Please Tum Over Review ~ vision statement. Analyse/Re-examine ¥ mission statement. ¥ Conduci an analysis “ using models such as SWOT/PESTLE/Porter’s Five Forces. ~ Formulate a strategy, V such as a defensive/retrenchment strategy. Implement a strategy, V using a template such as an action plan. W Conirol/Evaluate/Monitor the implemented strategy ~ to identify gaps/ deviations in implementation. ~ Take corrective action “ to ensure goals/objectives are met. ” Any other relevant answer related to a description of the strategic management process. NOTE: The steps may be in any order. Max 8 BREAKDOWN OF MARKS QUESTION 2 | MARKS 2.1 10 2.2.41 2.3.1 2.3.2 24 25 2.6 27 28 29 TOTAL Bjo|oo|a]o| aol al ala Copyright Reserved Please Tum Over 3.2.1 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 invesied. 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. “” * Itis nota single action but rather an approach to doing business that guides all decision making in the firm. YY” * It is the way in which companies manage their business operations so that it does not negatively affect all stakeholders. V~ Any other relevant answer related to corporate social responsibility. Sub Max (2) Max (4) 3.22 « Supports the training of future maths and science teachers. “ * Offers weekly sessions on campus to selecied learners to increase their ability in physical science. ~ * Offers bursaries “ * Contributes to skills development. ~ Max (4) Copyright Reserved ### Page 8 Business Studies 45 Downloaded from hlayiso.com June 2017 Common Test NSC 3.2.3. Recommendations on advancing the wellbeing of communities. *® SANRAL should improve the general quality of life of the workforce, their families and the community, e.g. pay fair wages/ develop skills in the community/ invest in education etc. VW © Ensure that the product they supply do not harm consumers. ¥~ « Refrain from engaging in illegal or harmful practices such as employing children under the legal age/selling illegal substances, etc. VY” « Start a nutritional programme so that employees can enjoy one meal per day to keep them in a healthy condition. vv” * Make ethically correct business decisions, ¢.g. not engage in unfair/misleading advertising etc. Vv“ * Sponsor housing/Offer free accommodation for their employees. Vv” * Give time to staff to get involved in projects they choose/ Business Studies 16 June 2017 Common Test NSC * Should the employee not be satisfied, “ then he/she could refer the matter to the highest level of management. “ = Top management should arrange a meeting” with all relevant parties concerned. v « Minutes of this meeting should be filed/recordedv arid 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. CCMAY who will make a final decision on the matter. Any other relevant answer related to the correct procedure to deal with grievances in the workplace. NOTE: The procedure may be in any order. Max (8) allow staff to use some of the working hours to participate in the 34 Differences between ethics and professionalism projects of their choice. vv * Participate in community projects invelving HIV/AIDS, education, ETHICS PROFESSIONALISM. counselling and other useful causes. Vv” - Conforms to a set of values~ that - Set of standards~ of expected * Donate money to a community project/run a project to uplift the are morally acceptable. W behaviour. W community. ¥~ - Applying a code of conduct” set by | - Forms part of a Code of Conduct” e Encourage people to stay fit and healthy by getting them involved @ profession or business. to guidé employees to act in health activities to minimise substance abuse. V~ professionally. * Provide transport for their employees who work unusually long hours. “~~ - Focuses on upholding the - Focuses on developing a moral Any other relevant recommendations related to ways in which reputation” of a compass~ to use in decision SANRAL can contribute time and efforts to advance the wellbeing business/profession. V” making. ~ of others. Max (8) - Involves following the principles of - Includes guidelines“ on employees’ right or wrong” in business appearance/communication/attitude/ activities/practices/dealings. ~ responsibility, etc. 3.3. Procedure for dealing with grievances in the workplace Any other relevant answer related to Any other relevant answer related to ethics in a business enterprise. professionalism in a business © Anaggrieved employee must verbally report the incident/grievance enterprise. to his/her supervisor/manager, v who needs to resolve the issue within Sub max (4) Sub max (4) 3 to 5 working days. « Should the employee and supervisor not be able to resolve NOTE: 1. The comparison must be clear. the grievance, “ the employee may take it to the next level 2. Examples must demonstrate the differences between ethics of management. and professionalism. Max (8) * The employee may move to a more formal process V where the grievance must be lodged in writing/completes a business grievance . form. ¥ 3.5 Professional, ethical and effective business practices * He/She must receive a written reply” in response io the written grievance. ¥ * Businesses should treat” all employees equally. “ * grievance hearing/meetingY must be held with all relevant parties » Plan properly and put preventative measures in place. present. “ * Pay fair wages/salaries”’ which is in line with the minimum requirements Minutes of the meeting must be recorded” and any resolution passed of the BCEA. “ . must be recorded on the formal grievance form. ~ « Remunerate employees” for working overtime and during public holidays. ~ * Engage in environmental awareness” programmesv/Refrain from polluting the environment, v e.g. by not disposing or dumping toxic waste illegally. Please Tuim Over Please Tum Over Copyright Reserved Copyright Reserved ### Page 9 Downloaded from hlayiso.com Business Studies 7 June 2017 Common Test Business Studies 18 June 2017 Common Test NSC NSC e Refrain from starting a venture’ using other businesses’ ideas that are QUESTION 4: BUSINESS ROLES protected by law. * Business decisions and actions must be clear/transparentv to all stakeholders. Vv 4d . Businesses should be accountable/responsible” for their decisions and 4.1.1 Public relations v” actions. Any other relevant answer related to how professional, ethical and effective business practices should be conducted. 4.1.2 Administrative function Max (10) . — 4.1.3 Financial function vw 3.6 Creative thinking * Emphasise the importance of creative thinking to ensure that all staff know 4.1.4 Human resource function vv (8) that you want to hear their ideas. vv * Encourage staff to come up with new ideas/opinions/solutions. v“ 42 * Make time for brainstorming sessions to generate new ideas, e.g. regular 4.2.1 Extemal recruitment “ workshops/generate more ideas/build on one another's ideas. VY ® Place suggestion boxes around the workplace and keep communication Motivation channels open for new ideas. v” * Train staff in innovative techniques/creative problem solving skills/mind- ¢ The business has advertised the vacancy on social media and mapping/lateral thinking. v~ newspapers. VW @) * Encourage job swops within the organisation/studying how other businesses are doing things. vv * Encourage alternative ways of working/doing things. vv * Respond enthusiastically to all ideas and never let anyone feel less important. vv * Reward creativity by introducing reward schemes for teams/individuals who come up with creative ideas. “vv « Provide a conducive working environment free from distractions. vv Any other relevant recommendations related to ways in which businesses can promote creative thinking in the workplace. 4.2.2 Positives/Advantages of external recruitment e New candidates bring new talents/ideas/insight/experience that will benefit the business. * There are more candidates ~ to choose from. * Changes are better of finding suitable candidates Y with the right skills/qualifications/competencies. ¥ * Prevents unhappiness/conilict ~ between existing employees who have applied for the post. ~ * Recruitment agencies may also be used/paid to find candidates “ [60] which saves time/costs. * Businesses are able to achieve their equity plan ~ by recruiting according to equity targets set. NOTE: The emphasis is on ‘ways’, not necessarily advantages. Max (8) BREAKDOWN OF MARKS Any other relevant answer related to the positives/advantages of QUESTION 3 | MARKS extemal recruitment. $23 t ANDIOR 3.2.2 4 3.2.3 8 3.3 8 34 8 3.5 10 3.6 8 TOTAL 60 Please Tum Over Copyright Reserved Please Tum Over ‘Copyright Reserved ### Page 10 Business Studies 19 Downloaded from hlayiso.com dune 2017 Common Test NSC Negatives/Disadvantages of external recruitment « External sources may be expensive, ¥ e.g. recruitment agencies’ fees/publishing costs of advertisements in newspapers/magazines. © Selection process may not be effective v resulting in an incompetent candidate being chosen. © Information on CVs/references Y may not be reliable. “ e Recruitment process takes longer/is more expensive v as background checks must be conducted. ” * New candidates generally take longer ” to adjust to a new work environment. ¥ «In-service training may be needed V which decreases productivity during the time of training. “ * Many unsuitable applications v can slow down the selection process. ¥ Any other relevant answer related to the negatives/ disadvantages of external recruitment. Max (10) 4.2.3. Internal recruitment ¥ (1) 43 Selection process . oe ee eoe Please Tum Over Determine fair assessment criteria V on which selection will be based. “ Use the assessment criteria to assess all CVs/application forms received during recruitment “/ Preliminary screening “ is done by sorting the applications received according to the criteria for the job. ~ Check that applicants are not submitting false documents v such as forged certificates/degrees. ¥ Make a preliminary list of all applicants“ who qualify for the post. ~ Screen and cheek references, “ e.g. check applicants’ criminal records/credit history/social media, v etc. Conduct preliminary interviews ~’ to identify suitable applicants. ~ Inform all applicants “about the outcome of the application. “ Compile a shorilist Y of approximately five people. ~ Invite the shortlisted applicants/candidate Y for an interview. ~ Shortlisted candidates “ may be subjected to various types of selection tests, e.g. skills test. Vv Awwitten offer is made ~ to the chosen candidate. “ Any other relevant answer related to the selection process when appointing new employees. NOTE: Procedure can be in any order. Max {8} Copyright Reserved Business Studies 44 20 NSC Distinction between quality performance and quality management QUALITY PERFORMANCE QUALITY MANAGEMENT. Total performance of each department measured ~’ against the specified standards. ” * tis techniquesfools V used to design/improve the quality of a product. ~ Can be obtained if all departments work together ~ towards the same quality standards. e Can be used for accountability ~ within each of the business functions. ~ Quality is measured ¥ through physical product/statistical output of processes/surveys of the users. and/or buyers of goods/services. V » Aims fo ensure that the quality of goods/services V is consistent v/ Focuses on the means ~ to achieve consistency. V7 Any other relevant answer related to quality performance. Any other relevant answer related to quality management. Sub Max (2) Sub Max (2) June 2017 Common Test NOTE: 1. The answer does not have to be in tabular format. 2. The distinction must be clear. Max (4) 4.5 Quality indicators of the marketing function * Acquire a greater market share through good customer service. v¥” » Win customers loyalty by satisfying their needs and wants/building positive relationships. Vv“ « Adhere to ethical advertising practices when promoting products and services. VY Identify competitive edge and conduct regular market research. ¥ ~ Differentiate products to increase the target market/profitability. ~~” Constantly review value issues. VW Communicate effectively with customers to get their feedback about their experiences of the products and services sold. v” Ensure that the production and advertising strategies are aligned. Vv” Use pricing techniques io ensure a competitive advantage. Vv = Measure the gaps between customer expectations and their actual experiences so that problems regarding quality of products can be diagnosed and addressed. “~ » Make adjustments and changes to products and services based on feedback received from customers. ¥¥ * Use aggressive advertising campaigns to sustain the market share. Vv” Any other relevant answer related to quality indicators of the marketing function. Max (4) Please Tum Over Copyright Reserved ### Page 11 Downloaded from hlayiso.com Business Studies 24 June 2017 Common Test NSC 46 Reduction of cost of quality through TQM 47 Please Tum Over * Introduce quality circles/small teams of five to ten employees, Vv who meet regularly to discuss ways of improving the quality of their work. ~ * Schedule activities “to eliminate duplication of tasks/activities. v ¢ Share responsibility for quality output “ between management and workers. * Train employees at all levels, v’ so that everyone understands their role in quality management. ~ * Develop work systems that empower employees ¥ to find new ways of improving quality. ” « Work closely with suppliers v to improve the quality of raw materials/ inputs. ¥ « Improve communication about the quality challenges/deviations, ~ so that everyone can learn from past experiences. ¥ « Reduce investment “on expensive, but ineffective inspection procedures in the production process. ~ « Implement pro-active maintenance programmes for equipment/ machinery ¥ to reduce/eliminate breakdowns. “ Any other relevant answer related to ways in which business can reduce the cost of quality through TQM. Max (6) 4.7.1 Continuous skills development/Education and training * Askills audit should be conducted” to determine the qualifications and competence of staff that can influence the quality of products/ processes. ¥ Workers who lack skills” should be trained in line with their job descriptions. ~ Regular evaluation of training material” improves the effectiveness of the training. ~ * Suitable induction programmes” promoting quality should be implemented. ~ © Quality guidelines for managers” should be used to monitor continuous ‘skills development. ¥ Any other relevant answer related to continuous skills development’ education and training. Max (6) Copyright Reserved Business Studies June 2017 Common Test 22 NSC 4.7.2 Continuous improvement to systems and processes * Processes and systems are the flow of activities implemented to create or deliver products and services to customers. ” * Businesses that have quality processes and systems in place” will produce good quality products and can provide excellent customer services. ” « It should be easy for customers to understand processes” so that they do not waste their time with long and complicated procedures. ¥ * Employees need to understand” the operating system and the service delivery system. “ * Identify problem areas of the business” to be able to devise relevant solutions thereof. ¥ * Encourage team work” by introducing the idea of corporate culture change. ¥ * Give detailed and specific instructions” on improvement sirategies. V * Encourage team work” and delegate responsibilities. “ Any other relevant answer related to continuous improvement to systems and processes. Max (6) [60] BREAKDOWN OF MARKS QUESTION 4 | MARKS 4A 8 421 3 4.2.2 10 4.2.3 1 43 8 44 4 45 8 46 6 4.7.41 6 47.2 6 TOTAL 60 Please Tum Over Copyright Reserved ### Page 12 Business Studies 23 Downloaded from hlayiso.com June 2017 Common Test NSC QUESTION 5: MISCELLANEOUS 54 5.2 BUSINESS ENVIRONMENT 5.1.1 Conglomerate diversification v~ 5.1.2 Horizontal integration vv” 5.1.3 Product development v~ 5.1.4 Divestiture v~ 5.1.5 Backward vertical integration v” (6x 2) (10) Ways to comply with Skills Development Act (SDA) Businesses should register with SARS. Vv“ Skills development levy must be paid. vv Register employees with SARS to be able to claim back after training. ~~ Businesses with more than 50 employees must appoint a skills development facilitator. “” Assess the skills of the employees to determine areas in which skills development are needed. ¥” « Encourage employees to participate in leamerships and other training programmes. “~~” * Provide all employees with the opportunity to improve their skills. v~” * Businesses should register with the relevant SETA’s. Vv” Any other relevant answer related to the ways in which businesses may comply with the SDA. Max (6) eooe . Please Tum Over Copyright Reserved Business Studies 24 June 2017 Common Test NSC BUSINESS VENTURES 5.3.1 laissez-faire / free reign VV @ 5.3.2 Reasons why employees prefer a laissez-faire/free-reign jeadership style * Workers/Followers are allowed to make their own decisions. vv e Subordinates have maximum freedom and can work independently. v~ » Leader motivates workers by trusting them to do things themselves/on their own. Vv” « Authority is delegated, which can motivate workers and increase productivity. vv” * Subordinates are experts and know what they want/can take responsibility for their actions. v”” * Suitable for coaching/mentoring to motivate employees to achieve more/better things. V~” * Empowers competent followers as they are completely trusted to do their job. vv e Individual team members may improve/develop leadership skills. vv Any other relevant answer related to a positive evaluation of a laissez-faireffree-reign leadership style. Max (6) NOTE: 1. Mark the first THREE (3) only. Please Tum Over Copyright Reserved ### Page 13 Business Studies 54 Downloaded from hlayiso.com 25 June 2017 Common Test NSC Distinction between management and leadership MANAGEMENT LEADERSHIP. Demands respectv’, authority and wants to conirol. v Invites and motivates v freedom of speech and inspires trust. ~ Gives orders/instructions to the sub- ordinates. ~ Seeks to empower/facilitates~ employees. Thinks that they know all the answers. V Asks the right questions to get to the right answers. ¥ FocusesY on the task. v” Focuses” on individuals/groups. V Focuses on the implementation” of policies. Vv Focuses on motivating workers to v help with the implementation processes. Follows/Implements ~‘the vision of the enterprise. “ Provides a vision’ for the enterprise “ Minimises “and controls risk. v” Always on the fookout” for business opportunities. v7 Ensures that profit targets“ are met. ~ Strategies v to increase profitability. Administer v to delegatew” Innovate v’ to bring about change~ Have a short-term v view v Have a long-term “view Monitor” people v Inspire v people ~ Implement “plans ~ Develop v goals v Maintain Vand monitor Challenge staff “and managers ¥ Asks questions which include” : when, how, where and who v/ more detailsv” are required” Asks why a task is done “/ fewer details Vare required ” Sub Max (4) Sub Max (4) Any other relevant distinction between management and leadership. Note: The distinction need not be in tabular form as long as the distinction is clear. BUSINESS ROLES 55 Please Tum Over Economic rights of employees Free from forced labour. ” Free to accept or choose work. ” Fair wages/Equal pay. ” Max (8) Reasonable limitation of working hours. Safe and healthy working conditions. ” Join/form trade unions. “ Right to participate in a legal strike. “ Any other relevant answer related to the economic rights of employees. eee eres NOTE: 4. Mark the first FOUR (3) only. 2. Do not allocate marks for human and/or social rights. Any (4 x 1) (4) Copyright Reserved Business Studies 26 June 2017 Common Test NSC 5.6 5.6.1 Independence vv (2) 5.6.2 Responsibility Vv (2) 5.7 Addressing environmental issues. Comply with laws and regulations put in place by SA government “such as National Environmental Management Act, Environment Conservation Act and other strategies. v Promote environmental sustainability” through minimising pollution. ~ Use alternative sources of energy” with minimum impact on the environment. ¥ Take an active role in environmental sustainability initiatives~ organised by government or communities, e.g. by funding those initiatives. ¥ Reduce input and increase output v'to save natural resources” Use recyclable packaging” to avoid unnecessary waste and thus save the natural resources. Any relevant answer related to how South African businesses should address environmental issues. Max (8) BUSINESS OPERATIONS 5:8 Advantages/benefits of a good quality management system Effective customer services will be rendered, resulting in increased customer satisfaction. v~ * Time and resources are used efficiently. “” ¢ Productivity increase through proper time management and using high quality resources. Vv“ * Products and services are constantly improved. “¥ © Vision and mission/Business goals may be achieved. “~ * The business may achieve a competitive advantage over its competitors.“ ¢ Continuous training will continuously improve the quality of employees’ skills and knowledge. Vv“ * Employers and employees will have a healthy working relationship which generally results in happy workers. “~ « Increased market share/profitability may result in business growth/expansion. V~ Any other relevant answer related to the advantages of a good quality control system. Max (6) Please Tum Over Copyright Reserved ### Page 14 Business Studies 27 5.9 Please Tum Over Downloaded from hlayiso.com June 2017 Common Test impact of fringe benefits Positivesiadvantages Attractive fringe benefit packages “ may result in higher employee retention/ reduces employee tumover. It increases employee satisfactionMoyalty, v as they may be willing to work under pressure/improve personal performance. Leads to higher productivity, as workers work for longer hours/more days. V Aitracts good/qualified employees v who do not always need extra training. Any other relevant positive aspect related to fringe benefits. AND/IOR Negatives/disadvantages ° Fringe benefits are additional costs for businesses, “ which may result in cash flow problems. ~ Administrative costs increase “as payments need to be correctly allocated and recorded for tax purposes. ~ Décreases business profits, “ as remuneration costs are increasing. It may create conflictlead to corruption ~’ if allocated unfairly. Workers only stay with the business because of fringe benefits, “ and may not be committed to their tasks/loyal to the business. ~ Any other relevant negative aspect related to fringe benefits. Max (6) [60] BREAKDOWN OF MARKS QUESTION 5 MARKS 5.1 10 5.2 6 5.3.1 2 $3.2 6 5.4 8 5.5 4 5.6.1 2 5.6.2 2 57 8 5.8 6 5.9 6 TOTAL 60 Copyright Reserved Business Studies 28 June 2017 Common Test NSC SECTION C QUESTION 6: BUSINESS ENVIRONMENTS (LEGISLATION) 6.1 6.2 6.3 Please Tum Over Introduction * COIDA was introduced to protect the health and safety of employees in the workplace. ~ « COIDA provides guidelines for the compensation of employees who are disabled because of injuries sustained/diseases contracted at work. ~ * talso provides for compensation if a worker dies due to a work-related injury/disease. ” e Injuries and diseases for which claims can be made are specified in the Act. ¥ Any other relevant introduction related to COIDA. Max (2) Nature of COIDA « COIDA applies to all casual and full-time workers who become illinjured/disabled/killed V due to a workplace accident/disease. ~” « ttexcludes workers” who are guilty of wilful misconduct/workers working outside South Africa for at least twelve months/members of the SA Defence Force/Police services. v e It provides for the establishment of a Compensation Board v whose function is to advise the Minister of Labour on the application/provisions of COIDA. ¥ « Medical expenses/Other types of compensation are paid io employees and/or their families v depending on the type/severity of the injuries. v « Employers have to pay a monthly amount to the Compensation Fund. ” depending on the number of employees/the level of risk they are exposed tov Any other relevant answer related to the nature of COIDA. Max (10) Rights of employees outlined in COIDA « Ensure they are not injured ~ as a result of serious/wilful misconduct. ” * Notify the employer of the accident v as soon as possible. “ * Comply with the necessary medical assessment ~ to assess the nature of the injury/disease. ~ * May claim for compensation, ~ if he/she is partially/permanently disabled. v + Employees’ dependants have a right to claim “ when the employee dies as a result of injuries at work. Any other relevant answer related to the rights of employees outlined in COIDA. Max (8) Copyright Reserved ### Page 15 Downloaded from hlayiso.com Business Studies 29 June 2017 Common Test Business Studies 30 June 2017 Common Test NSC NSC AND/OR 6.4 The COIDA does not apply te ... Negatives/Disadvantages ¢ A person employed by the state to perform military service; ““ * Amember of the permanent force; v~ Employers e Amember of the South African Police Force; vv . A person who contracts for the carrying out of work and himself engages other people to perform such work; ¥~ A domestic servant in a private household. “~ Max (6) 6.5 The impact of COIDA on businesses Positives/Advantages Employers « Promotes safety in the workplace. “ e Creates a framework ~ for acceptable employment practices/safety regulations. ” * Supply administrative guidelines/mechanisms ~ for dealing with/processing claims. ¥ « Eliminates time and costs spent ~’ on lengthy civil court proceedings. * Covers all employees at the workplace ~ if both parties meet all the necessary safety provisions in the Act. ~” « Employers are protecied from financial burden should an accident occur in the workplace ¥’ provided that the employer was not negligent. * The processes are relatively simple. 66 ° Makes businesses more socially responsible v as they cannot just employ . workers at random in dangerous working conditions. ~ AND OR Employees * Employees are compensated financially for any injury/disability “ resulting from performing their duties at their workplace. “ e Inthe event of the death of an employee as a result of a work-related accident/ disease, ’ his/her dependani(s) will receive financial support. “ * Employees do not have to contribute “ towards this fund. ~ « Employees receive medical assistance Y provided there is no other party involved. ” « Any compensation to an employee/the family “ is exempt from income tax. ¥ ¢ Employees are treated with dignity/respect V as businesses view them as valuable assets and not just as employees. v Any other relevant answer related to the advantages/positives of COIDA. Please Turn Over Copyright Reserved Please Tum Over ¢ Claiming processes/procedures v’ can be time consuming. « Processes/Procedures required by this Act may be costly “ as paperwork places an extra administrative burden on businesses. “ « Employers have to register all their workers/make annual contributions to COIDA, “ which may result in cash flow problems. ¥ e Employers may be forced to pay heavy penalties v if they are found guilty of negligence/not enforcing safety measures. ¥ AND OR Employees « Employees who are temporarily/permanently employed in foreign countries ~ are not covered. ¥ « Domestic/Military employees ~ are not covered. ~ Any other relevant answer related to the disadvantages/negatives of COIDA. Max (12) Recommendations on ways to comply with COIDA * Businesses should provide a healthy/safe working environment. v~ e They should register with the Compensation Commissioner and provide the particulars of the business. v” * Must keep records of employees’ income and details of work for four years. Vv * Obliged to report all incidents causing death/injury/iliness of employees.v ¥ « Businesses should submit retums of earnings by no later than 1 March annually. v~ « Levies must be paid to the Compensation Fund. vv * Ensure that the premises/equipment/machinery is in good working condition. v~ « Should allow regular assessment of the workplace by inspectors in order to determine the level of risk their employees are exposed to. ¥” + Employers may not make deductions for COIDA from employees’ remuneration packages. v¥ * Businesses must ensure that claims are lodged within twelve months of the date of the accident. vv Any other relevant answer related to ways in which businesses have to comply with COIDA. Max (10) Copyright Reserved ### Page 16 Business Studies 31 67 Downloaded from hlayiso.com Business Studies. Nsc Conclusion * Good progress has been made as businesses are now more socially responsible in improving safety measures/working conditions/being responsible for workers and their dependents. v” * Workers in some industries are being compensated for contracting diseases such as tuberculosis, silicosis, vv etc. Any other relevant conclusion related to COIDA. [40] Max (2) BREAKDOWN OF MARK ALLOCATION Details Maximum Total introduction 2 Nature 10 Righis. 8 Types of employees 6 7 eg Impact 12 Recommendations 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 some requirements are met. Allocate 0 marks where requirements are not het at all. QUESTION 7: BUSINESS VENTURES (Management and Leadership) 7A Please Tum Over Introduction: * Today, many business persons are familiar with the different leadership and management theories that can be adopted in their business venture. ” © They will apply different theories and choose and adapt a style fo suit their business. * 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. Any other relevant introduction related to leadership and management. Max (2) dune 2017 Common Test Copyright Reserved 72 32, NSC Distinguish between followers and leaders FOLLOWERS. LEADERS A follower is only responsible for getting his/her task vdone ~ A leader is responsible for the whole organisation” ,and not just one specific task” A follower has limited”, structured goal to achieve. A leader is responsible for ail the other team members, their individual goals as well as the larger goals. v A follower is part of the entire organizationy’, accountable for a particular goal. v” A leader has to maximize others potential and strength’ to enhance the organisation. ~ Followers turn to the leader for direction and advice“ and how to function in a situation’ A leader decides what has to be done”, No matter how new or unpredictable or difficult a situation might be. v” A follower is only concerned with getting a task completed” and needs inspiration, usually by the leader. A leader must be able to inspirev’, earn respect and win the confidence of others. Followers usually wait around for things to happen and wait for someone to suggest a change. v Leaders put their ideas “into action. ” Ensures that profit targets ~- are met. Strategies to increase ~ profitability. W Have a short-term v view ¥ Have a long-term view Monitor” people v Inspirev’ people ~ Implement” plans ~ Developy goals Vv Maintain Vand monitor v Challenge staff “and managers Ask when, howv’, where and who v7 Ask Ywhy ¥ Any other relevant distinction between followers and leaders Note: Award 4 marks for each direct comparison. Max (8) Please Tum Over Copyright Reserved June 2017 Common Test ### Page 17 Business Studies 33 7A Please Tum Over Downloaded from hlayiso.com NSC Role of personal attitude in successful leadership * Positive attitude V releases leadership potential ~ * Aleader's good/bad attitude ~ can influence the success/failure of the business. “ « Leaders must know their strengths and weaknesses ~ to apply their leadership style effectively. “ * Great leaders understand that the right attitude v’ will set the tight atmosphere. ~ « Leaders’ attitude can influence employees'fteams' thoughts ~ and behaviour. ~ e Leaders should model the behaviour ~ that they want to see in team members. ¥ « Leaders must know/understand their teams v to be able to allocate tasks/roles effectively. « Enthusiasm “ produces confidence in a leader. “ ¢ A positive attitude is critical for good leadership“ because good leaders will stay with the task regardless of difficulties/challenges. “” « Successful employees and leaders have a constant desire to work” and achieve persona! and professional success. “ + Leaders with a positive attitude know that there is always more to lear ~ and space to grow. “ Any other relevant answer related to the role of personal attitude in successful leadership. Max (10) 7.4.1 Bureaucratic Leadership Positives * Managers ensure that government policies/business rules/proceduresY are always followed accurately. ® Tight coritrol measures implemenied/followedv’ 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 Copyright Reserved dune 2017 Common Test Business Studies 34 June 2017 Common Test NSC 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 error”, so workers feel they are not treated as humans. “ Lack of creativity/innovation/self-fulfilmenty may lead to stagnation/ decrease in productivity. Any other relevant answer related to negatives of a bureaucratic leadership style. Sub Max (8) 7.4.2 Transactional leadership style Positives/Advantages 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” as workers are motivated. Employees know ~ what is expected of them. Disciplinary actions/procedures ~ is well communicated. ~ Any other relevant answer related to the positives/advantages of the transactional leadership style. AND/OR Negatives/Disadvantages Please Turn Over Employees can become bored” because they have to follow rules/ Pprocedures/ there is no creativity in the workplace. ¥ A transactional leader will have to monitor the work performance of employees/ ensure that expectations are met” which can be time-consuming. ~ Some employees may be demoralised/unmotivated, V if they fail to reach/ meet targets despite having worked very hard. “ Usually not suitable for team work, ~ because all team members can be punished for poor performance caused by a member of a team. “ Any other relevant answer related to the negatives/disadvantages of the transactional leadership style. Sub max (8) Max (16) Copyright Reserved ### Page 18 Business Studies 35 Downloaded from hlayiso.com June 2017 Common Test 7.5 Leadership theories: 7.5.1 Situational theory Different leadership characteristics “ are needed for different situations. “ The task/situation dictates the leadership style that should be applied, ~ so leaders are adaptable/flexible/self-assured. “ Relationships between leaders and employees “ are based on mutual trust/ respect/loyaity/ integrity/honesty. . Leaders have the ability to 'read' the situation v and get the most suitable people in the right positions fo complete tasks successfully. ¥ It enables leaders to.use different leadership styles v’ to accomplish their goals. “ Leaders analyse group members/objectives/time constraints, ¥ then adopt a suitable/relevant leadership style. ~ May lead to conflict ~ when leaders use different leadership styles when managing employees in different situations. ~ Its success depends on the kind of relationship that exist v between the leader and followers/subordinates/employees. Any other relevant answer related to an explanation of the situational leadership theory. Sub max (4) 7.5.2 Transformational theory Please Tum Over The passion/vision/personality of leaders inspire followers ¥ to change their expectations/perceptions/motivations to work towards a common goal. ~ Strategic thinking leaders develop a long term vision for the organisation v and ‘sell it to subordinates/employees. “ Leaders have the trust/respect/admiration ~ of their followers/subordinates. ~ Leaders promote intellectual stimulation/creative thinking/problem solving “ which result in the growth/development/success of the business. ¥ Followers are coached/mentored/emotionaily supported ~ so that they can share their ideas freely. “ Leaders will encourage followers ~ to explore/try new things/opportunities. ¥ Leaders lead by example Y and make workers interested in their work. ~ Leaders have strong, charismatic personalities ~ and are very good at motivating staff to achieve results. “ Enable employees t6 take greater ownership for their work ¥ and to know their strengths and weaknesses. Any other relevant answer related to an explanation of the transformational theory. Sub max (4) Max (8) Copyright Reserved Business Studies 36 76 Please Turn Over June 2017 Common Test Application of theories 7.6.1 Situational theory Application of the theory depends on the particular situation/ circumstance that prevails within the organisation. v” Used when it matches the needs of followers, e.g. inexperienced employees/followers require a different form of leadership than more experienced employees/followers. W~ Applied to address a crisis/conflict in the workplace. v~ Any other relevant answer related to the application of the situational leadership theory in the workplace. Sub max (2) 7.6.2 Transformational Theory May be applied when followers/employees have a low morale/are demotivated/ are underperforming. v¥ Applied during the strategic planning process, where vision/mission/ objectives have to be developed/changed. “¥ When a business is restructuring and exploring new ways of doing things. vv Any other relevant answer related to the application of the transformational leadership theory in the workplace. Sub max (2) Max (4) 7.7 ~~ Conclusion A leader who is positive/ enthusiastic/energetic will inspire his followers to improve /empower /uplift themselves to achieve their own personal goals. Managers can also be successful leamers if they not only focus on the task at hand, but also the people/works who will execute the task. Leaders who understand various leadership styles and theories may be able to lead effectively and handle any situation. Any other relevant conclusion related to leadership styles/theories between followers and leaders management and leadership that will ensure the success of any business. Max (2) 140] ‘Copyright Reserved Text truncated here. 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