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NATIONAL
SENIOR CERTIFICATE
GRADE 12
BUSINESS STUDIES P1
SEPTEMBER 2022
MARKING GUIDELINE
MARKS: 150
This marking guidelines consist of 31 pages.
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Business Studies Grade 12 Paper 1 MP Prelim 2022 Memo
Grade 12 Business Studies Paper 1 memorandum from the MP Prelim 2022, 31 pages. Read online or get the free PDF download, question paper linked when available.
Business Studies · Grade 12 · MP Prelim · 2022. Memorandum, 31 pages. Read online or download the PDF.
- Subject
- Business Studies
- Grade
- Grade 12
- Document type
- Memorandum
- Year
- 2022
- Exam period
- MP Prelim
- Paper
- 1
- Curriculum
- CAPS
- Pages
- 31
- File size
- 455.5 KB
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Business Studies/P1 2 MDE/September 2022
NSC- Marking Guideline
NOTES TO MARKERS
1. Candidates' responses must be in full sentences for SECTIONS B and C. However,
this would depend on the nature of the question.
2. Comprehensive marking guidelines have 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 marking guideline
- Comes from another source
- Is original
- A different approach issued
NOTE: There is only ONE correct answer in SECTION A.
3. 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.
4. The word 'Submax' is used to facilitate the allocation of marks within a question or
sub-question.
5. 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 and moderation purpose.
6. 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 the marking
guideline. Only the total for each question should appear in the left-hand margin next
to the appropriate question numbers.
7. In an indirect question, the theory as well as the response must be relevant and
related to the question.
8. 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.
9. No additional credit must be given for repetition of facts. Indicate with an R.
10. 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.)
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NSC- Marking Guideline
11. The differentiation between 'evaluate' and 'critically evaluate' can be explained as
follows:
11.1 When 'evaluate' is used, candidates are expected to respond in either a
positive/negative manner or take a neutral (positive and negative) stance,
e.g. Positive: 'COIDA eliminates time and costs spent√ on lengthy civil court
proceedings.'√
11.2 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√ on
lengthy civil court proceedings√, 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: 1. The above could apply to 'analyse' as well.
2. Note the placing of the tick (√) in the allocation of marks.
12. The allocation of marks must be informed by the nature of the question, cognitive
verb used, mark allocation in the marking guidelines and the context of each
question.
Cognitive verbs, such as:
12.1 Advise, name, state, mention, outline, motivate, 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.
12.2 Describe, explain, discuss, elaborate, compare, distinguish, differentiate,
justify, devise, analyse, evaluate, critically evaluate (list not exhaustive)
require a greater depth of understanding, application and reasoning.
Therefore, the marks must be allocated more objectively to ensure that
assessing is conducted according to established norms so that uniformity,
consistency and fairness are achieved.
13. Mark only the FIRST answer where candidates offer more than one answer for
SECTION B and C questions that require one answer.
14. SECTION B
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 'Cancel'.
NOTE: This only applies 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 to come up with alternative answers.
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NSC- Marking Guideline
14.4 Use of the cognitive verbs and allocation of marks:
14.4.1 If the number of facts are specified, questions that require candidates
to 'describe/discuss/explain' may be marked as follows:
• Fact 2 marks (or as indicated in the marking guideline)
• Explanation 1mark
The 'fact' and 'explanation' are given separately in the marking guidelines
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
marking guideline.
14.5 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 marking guideline.
15. SECTION C
15.1 The breakdown of the mark allocation for the essays is as follows:
Introduction
Content Maximum: 32
Conclusion
Insight 8
TOTAL 40
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NSC- Marking Guideline
15.2 Insight consists of the following components:
Layout/Structure Is there an introduction, body, proper paragraphs and a 2
conclusion?
Analysis and Is the candidate able to break down the question into
interpretation headings/subheadings/interpret it correctly to show
understanding of what is being asked? 2
Synthesis Are there relevant decisions/facts/responses made 2
based on the questions?
Option 1: Only relevant facts: 2 marks (No'-S')
Where a candidate answers 50% or
more (two to four sub-questions) of the
question with only relevant facts; no '-S'
appears in the left margin. Award the
maximum of TWO (2) marks for
synthesis.
Option 2 Some relevant facts: 1 mark (One '-S')
Where a candidate answers less than
50% (only one sub-question) of the
question with only OR some relevant
facts; one '-S' appears in the left margin.
Award a maximum of ONE (1) mark for
synthesis.
Option 3: Some relevant facts: 1 mark (One '-S')
Where a candidate writes FOUR sub-
questions, but one/two/three sub-
question with irrelevant facts; one '-S'
appears in the left margin. Award a
maximum of ONE (1) mark for
synthesis..
Option 4: No relevant facts: 0 mark (Two '-S')
Where a candidate answers less than
50% (only one sub-question) of the
questions with no relevant facts; two '-S'
appears in the left margin. Award a
ZERO mark synthesis.
Originality Is there evidence of one or two examples, not older than
two (2) years, that are based on recent information, 2
current trends and developments?
TOTALFORINSIGHT: 8
TOTAL MARKS FORFACTS: 32
TOTAL MARKS FOR ESSAY (8 +32) 40
NOTE:
1. No marks will be awarded for contents repeated from the introduction and
conclusion.
2. The candidate forfeits marks for layout if the words INTRODUCTION and
CONCLUSION are not stated.
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NSC- Marking Guideline
3. No marks will be allocated for layout, if the headings 'INTRODUCTION and
CONCLUSION are not supported by an explanation.
15.3 Indicate insight in the left-hand margin with a
symbol e.g. ('L, A, -S and/or O').
15.4 The breakdown of marks is indicated at the end of the suggested
answer/ marking guidelines to each question.
15.5 Mark all relevant facts until the SUBMAX/MAX mark in a subsection
has been attained. Write SUBMAX/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
S 2
O 2
TOTAL 40
15.7 When awarding marks for facts, take note of the sub-maxima indicated,
especially if candidates do not make use of the same subheadings.
Remember headings and sub-headings are encouraged and contribute to
insight (structuring/logical flow/sequencing) and indicate clarity of thought.
(See MARKS 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 If a 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 (√) will be separated and indicated next to each fact,
e.g. 'Product development is a growth strategy/where
businesses aim to introduce new products√ into existing
markets.'√
This will be informed by the nature and context of the question,
as well as the cognitive verb used.
15.11
With effect from November 2017, the maximum of TWO (2) marks for facts
shown as headings in the memo, will not necessarily apply to each
question. This would also depend on the nature of the question.
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SECTION A (COMPULSORY)
QUESTION 1
1.1
1.1.1 A√√
1.1.2 D√√
1.1.3 C√√
1.1.4 D√√
1.1.5 A√√
(5×2) (10)
1.2
1.2.1 National Credit Act√√
1.2.2 retrenched√√
1.2.3 selection√√
1.2.4 continuous improvement to processes and systems √√
1.2.5 threat√√
(5x2) (10)
1.3.1 J√√
1.3.2 G√√
1.3.3 I√√
1.3.4 A√√
1.3.5 C√√
(5x2) (10)
TOTAL SECTION A (30)
BREAKDOWN OF MARKS
QUESTION 1 MARKS
1.1 10
1.2 10
1.3 10
TOTAL 30
SECTION B
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QUESTION 2: BUSINESS ENVIRONMENTS
2.1 Intensive strategies
- Market penetration. √
- Market development √
- Product development√
NOTE: Mark the first THREE (3) only
(3)
(3x1)
2.2 The role of SETAs in supporting the Skills Development Act
- Report to the Director General. √√
- Promote and establishes learnerships. √√
- Collect levies and pays out grants as required.√√
- Provide accreditation for skills development facilitators. √√
- Register learnership agreements/learning programmes. √√
- Approve workplace skills plans and annual training reports√√
- Monitor/Evaluate the actual training by service providers.√√
- Allocate grants to employers, education and training providers. √√
- Oversee training in different sectors of the South African economy. √√
- Develop skills plans in line with the National Skills Development Strategy√√
- Draw up skills development plans for their specific economic sectors. √√
- Provide training material/programmes for skills development facilitators.√√
- Pay out grants to companies that are complying with the requirements of
the Skills Development Act. √√
- Promote learnerships and learning programmes by identifying suitable
workplaces for practical work experience.√√
- Any other relevant answer relating to the role of SETAs in supporting the
Skills Development Act (SDA.
Max (6)
2.3 Porter’s Five Forces model from statements
2.3.1 Power of competitors/Competitive rivalry√√
2.3.2 Threat of substitution/substitutes√√
2.3.3 Power of buyers√√ (6)
2.4 Penalties of no-compliance with the Skills Development Act
- Businesses that do not pay the Skills Development Levy√ may not offer
learnerships/claim grants from the SDA. √
- A labour inspector could order the business to stop operating√ should the
business be found guilty of illegal practices. √
- Businesses will be fined√ if they fail to comply with the SDA. √
- Any other relevant answer related to penalties of no-compliance to the
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Skills Development Act.
Max (4)
2.5 Diversification strategy from the scenario
2.5.1 Horizontal diversification√√ (2)
Motivation
VCM decided to combine with Bargain Bed Manufacturers to include a
new product line. √ (1)
NOTE: Do not award marks for the motivation if the type of strategy
was incorrectly identified.
2.5.2 Advantages of diversification strategies
- Increase sales√ and business growth. √
- Improves the business brand √and image√.
- Reduces the risk √of relying only on one product. √
- More products can be sold √to existing customer and additional
more new markets can be established. √
- Businesses gain more technological capabilities√ through product
modification. √
- Diversification into a number of industries or product line√ can help
create a balance during economic fluctuations. √
- Business produces more output√ using less inputs as one factory
may be used to manufacture more products. √
- Any other relevant answer related to advantages of diversification
strategies.
Max (4)
2.6 Challenges posed by PESTLE factors to businesses
2.6.1 Economic factors
- High inflation/Interest rate may decrease the market share of
business√ as customers cannot afford high prices/Increase in
taxes will result in lower customer spending√
- Loans may be expensive √ due to high interest rates. √
- Fluctuations in foreign currency √ may restrict import. √
- Any other relevant answer related to how the economic factor pose
a challenge to businesses
Max (4)
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2.6.2 Environmental factors
- Chemicals/Ingredients in business’ products√ may be harmful to
customers√
- Measures to dispose of business waste√ may be expensive. √
- Packaging of some products √may not be environmentally friendly
may not be recyclable. √
- Any other relevant answer related to how the environment factor
as a PESTLE factor pose a challenge to businesses. (4)
Max
2.7 Ways in which businesses can comply with Basic Conditions of
Employment Act.
- Workers should only work 9 hours per day in a 5 day work week. /8 hours
per day in a 6 day work week./Overtime should not exceed 10 hours per
week.√√
- Workers can take up to six weeks paid sick leave during a 36-month
cycle√√
- Workers must receive double if they work during public holidays/Sunday√√
- They must have a break of 60 minutes after five hours of work√√
- Businesses should not employ children under the age of 16.√√
- Any other relevant answer related to ways in which businesses can comply
with Basic Conditions of Employment Act.
Max (6)
[40]
BREADOWN OF MARK ALLOCATION
QUESTION MARKS
2.1 3
2.2 6
2.3 6
2.4 4
2.5.1 3
2.5.2 4
2.6.1 4
2.6.2 4
2.7 6
TOTAL 40
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QUESTION 3: BUSINESS OPERATIONS
3.1 Examples of fringe benefits
- Pension fund√
- Medical Aid√
- Provident fund√
- Funeral benefits√
- Car/Travel/Housing/Cell phone/Clothing allowance√
- Performance based incentives√
- Issuing of bonus shares√
- Staff discount/Free or low-cost meal/Canteen facilities√
- Any other relevant answer related to examples of fringe benefits.
NOTE: Mark the first TWO (2) only
(2x1) (2)
3.2 Role of the interviewee during the interview
- Greet the interviewer by name with a solid handshake and a friendly
smile.√√
- Listen carefully to the questions before responding. √√
- Make eye contact and have good posture/body language. √√
- Show confidence and have a positive attitude/be assertive. √√
- Be inquisitive and show interest in the business. √√
- Ask clarity seeking√ questions.√√
- Show respect and treat the interview with its due importance.√√
- Be honest about mistakes and explain how you dealt with it.√√
- Know your strengths and weaknesses and be prepared to discuss
it√√
- Thank the interviewer for the opportunity given to be part of the
interviews. √√
- Any other relevant answer related to the role of the interviewee during
the interview
Max (6)
3.3 Recruitment method from the scenario (2)
3.3.1 Internal recruitment√√
3.3.2 Advantages of Internal recruitment
- Cheaper/Quicker √to fill the post. √
- Provides opportunities for career paths√ within the business. √
- Reduces the chances of losing employees√, as future career prospects
are available √
- Placement is easy√, as management knows the employees'
skills/personality/ experience/strengths. √
- The employee already has an understanding of how the business
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operates. /√ Induction/Training is not always necessary. √
- Detailed, reliable information can be obtained√ from the supervisors/
Employee records. √
- Any other relevant answer related to the advantages of internal
recruitment.
Max (4)
3.4 Selection procedure
Option 1
- Determine fair assessment criteria√on which selection will be based. √
- Applicants must submit the application forms√/curriculum vitae and
certified copies of personal documents/IDs/proof of qualifications, etc.√
- Sort the received documents√/CVs according to the
assessment/selection criteria.√
- Screen/Determine which applications meet the minimum job
requirements √and separate these from the rest.√
- Preliminary interviews are conducted √if many suitable applications were
received.√√
- Reference checks should be made√ to verify the contents of CV's, e.g.
contact previous employers to check work experience. √
- Compile a shortlist√of potential candidates identified.√
- Shortlisted candidates may be subjected to various types of selection
tests√ e.g. skills tests, etc.√
- Invite shortlisted candidates√ for an interview.√
- A written offer is made to the selected candidate.√
- Inform unsuccessful applicants about the outcome√ of their application.√
/Some adverts indicate the deadline√ for informing only successful
candidates.√
OR
Option 2
- Receive documentation, √e.g. application forms and sort it according to
the criteria of the job. √
- Evaluate CVs and create a shortlist√/Screen the applicants.√
- Check information in the CVs√ and contact references.√
- Conduct preliminary sifting interviews √ to identify applicants who are not
suitable for the job, although they meet all
requirements.√
- Assess/Test candidates who have applied for senior positions√/to ensure
the best candidate is chosen. √
- Conduct interviews√ with shortlisted candidates. √
- Offer employment in writing √ to the selected candidate(s).√
- Any other relevant answer related to the selection procedure.
Max (6)
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3.5 Differences between quality management and quality performance
Quality management Quality performance
- Techniques/tools used to design/ - Total performance of each
improve the quality of a product√√ department measured against√ the
specified standards√√
- Can be used for accountability - Can be obtained if all departments
within each of the business work together towards the same
functions √√ quality standards √√
- Aims to ensure that the quality of - Quality is measured through
goods/ services are consistent/ physical product/ statistical output of
focuses on the means to achieve processes/ surveys of the users
consistency√√ and/ or buyers of goods/ services√√
- Any other relevant answer related - Any other relevant answer related to
to quality management quality performance
Submax (2) Submax (2)
NOTE: 1. The answer does not have to be in tabular format.
2. The difference does not have to link, but must be clear
3. Award a maximum of TWO (2) marks if the difference is not clear/Mark
either quality management or quality performance only.
Max (4)
3.6
BUSINESS FUNCTIONS MOTIVATIONS
1 Purchasing√√ ZM ensures that there is no interruption in
production due to stock shortages. √
2 Public relations√√ They also handle complaints quickly and
effectively√.
Submax (4) Submax (2)
NOTE: 1 Mark the first TWO (2) only.
2 Award marks for the business functions even if the
motivations were incomplete.
3 Do not award marks for the motivations if the business
functions were incorrectly identified.
Max (6)
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3.7 Quality indicators of the financial function
- Obtain capital from the most suitable√/available/reliable sources. √
- Negotiate better interest rates√ in order to keep financial cost down. √
- Draw up budgets√ to ensure sufficient application of monetary resources.
- Keep financial records up to date√ to ensure timely/accurate tax payments. √
- Analyse strategies√ to increase profitability. √
- Invest surplus funds√ to create sources of passive income. √
- Implement financial control measures√/systems to prevent fraud.√
- Implement credit granting√/debt collecting policies to monitor cash flow. √
- Draw up accurate financial statements√ timeously/regularly. √
- Accurately analyse and interpret√ financial information. √
- Invest in strategies that will assist the business √ to remain profitable. √
- Avoid over/under-capitalisation √ so that financial resources will be utilised
effectively√.
- Any other relevant answer related to quality indicators of the financial function.
Max (4)
3.8 Benefits of a good quality management system
- Effective customer services are rendered, resulting in increased customer
satisfaction. √√
- Time and resources are used efficiently. √√
- Productivity increases through proper time management/using high quality
resources. √√
- Products/Services are constantly improved resulting in increased levels of
customer satisfaction. √√
- Vision/Mission/Business goals may be achieved. √√
- Business has a competitive advantage √over its competitors.√√
- Regular training will continuously improve the quality√ of employees' skills/
knowledge.√√
- Employers and employees will have a healthy working relationship√ resulting in
happy/productive workers.√√
- Increased market share√/more customers improve profitability. √√
- Improves business image√ as there are less defects/returns. √
- Any other relevant answer related to benefits of a good quality management
system
Max (6)
[40]
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BREAKDOWN OF MARKS
QUESTION MARKS
3.1 2
3.2 6
3.3.1 2
3.3.2 4
3.4 6
3.5 4
3.6 6
3.7 4
3.8 6
TOTAL 40
QUESTION 4: MISCELLANEOUS TOPICS
BUSINESS ENVIRONMENTS
4.1 Consumer rights as stipulated in the Consumer Protection Act/CPA
- Right to choose√
- Right to privacy√
- Right to fair and honest dealings√
- Right to disclosure and information√
- Right to fair and responsible marketing√
- Right to fair value/good quality and safety√
- Right to accountability by suppliers√
- Right to fair, just and reasonable terms and conditions√
- Right to equality in the consumer market√
NOTE:1. Mark the first THREE (3) only (3x1) (3)
2. Only award marks for the consumer rights as mentioned above
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4.2 Challenges and business environments from the scenario
CHALLENGES BUSINESS EXTENT OF
4.2.1 ENVIRONMENT CONTROL
S 4.2.3
4.2.2
Bil Restaurant experienced a decline in Macro√ No control√
profitability because of load shedding.√
The business income could not cover Micro√ Full control√
salary expenses for two months.√
Many clients are visiting Buya Restaurant Market√ Partial/Some/
on the same building as they are not Limited/Less/Little
affected by load shedding. √ control√
Submax (3) Submax (3) Submax (3)
NOTE: 1. Mark the first TWO (2) only.
2. The answer does not have to be in tabular format.
3. Award marks for the business environments even if the extent of
control was not indicated/incorrect.
4. The extent of control must be linked to the business
environment.
5. Do not award marks for the extent of control if the business
environment is not mentioned.
6 Responses can be in any order.
Max (9)
4.3 Actions regarded as non-compliance by the Employment Equity Act
- Not employing a young woman√ because she would want to have children in
future. √
- Refusing to employ a person√ because he/she has strong religious
beliefs/has a disability√
- Doing HIV testing√ unless justified by the Labour Court. √
- Denying people access to the workforce√ based on gender/race/culture/etc.
and treating them unfairly. √
- Any other relevant answer related to the actions regarded as non-compliance
by the Employment Equity Act.
Max (4)
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4.4 Steps in strategy evaluation
- Examine the underlying basis of a business strategy. √√
- Look forward and backwards into the implementation process. √√
- Compare the expected results in order to determine the reasons for
deviations and analyse these reasons. √√
- Take corrective action so that deviations may be corrected. √√
- Set specific dates for control and follow up. √√
- Draw up a table of the advantages and disadvantages of a strategy. √√
- Decide on the desired outcome. √√
- Consider the impact of the strategic implementation in the internal and
external environments of the business. √√
- Any other relevant answer related to the steps in strategy evaluation.
Max (4)
BUSINESS OPERATIONS
4.5 Aspects that must be included in an employment contract
- Personal details of the employee. √
- Details of the business/employer e.g. name/address, etc. √
- Job title/Position√
- Job description e.g. duties/ working conditions √
- Job specification e.g. formal qualifications/willingness to travel. √
- Date of employment/commencement of employment. √
- Place where employee will spend most of his/her working time√.
- Hours of work, e.g. normal time/overtime. √
- Remuneration, e.g. weekly or monthly pay. √
- Benefits/Fringe benefits/Perks/Allowances. √
- Leave, e.g. sick/maternity/annual/adoption leave. √
- Employee deductions (compulsory/non-compulsory).
- Period of contract/Details of termination. √
- Probation period. √
- Signatures of both the employer and employee. √
- List of documents that form part of the contract, e.g. appointment letter/code
of conduct/ethics. √
- Disciplinary policy, e.g. rules and disciplinary procedure for unacceptable
behaviour√
- Any other relevant answer related to the aspects of an employment contract.
NOTE: Mark the first TWO(2) only. (2x1) (2)
4.6 The purpose of an interview
- To determine a candidate's suitability for the job. √√
- Obtains information about the strengths and weaknesses of each candidate.
- Evaluate the skills and personal characteristics√ of the applicant√√
- Helps the employer in choosing/making an informed decision about the most
suitable candidate.√√
- Matches information provided by the applicant to the job requirements.√√
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- Creates an opportunity where information about the business and applicant
can be exchanged√√
- Any other relevant answer related to the purpose of an interview
Max (4)
4.7 Distinction between piecemeal and time related salary determination methods
PIECEMEAL TIME-RELATED
- Workers are paid according to the - Workers are paid for the amount of
number of items√/units time they spend √at work/on a task.
produced/action performed√ √
- Workers are not remunerated for the - Workers with the same
number of hours worked√, experience/qualifications are paid on
regardless of how long it takes them salary scales regardless√ of the
to make the items√ amount of work done. √
- Mostly used in factories√ particularly - Many private and public sector
in the textile/technology industries. √ businesses √ use this method√
- Any other relevant answer related to - Any other relevant answer related to
piecemeal. time-related.
Submax (2) Submax (2)
NOTE: 1. The answer does not have to be in a tabular format
2. The distinction does not have to link, but must be clear
3. Award a maximum of (4) marks if the distinction is not clear/ Mark
either Piecemeal or Time-related only
Max (4)
4.8 TQM elements from the scenario
4.8
TQM ELEMENTS MOTIVATIONS
1 Adequate financing and capacity√√ GP has sufficient financing to test
everything before implementing. √
2 Monitoring and evaluating quality They also allow for quality control
processes. √√ checks at key points. √
Submax (4) Submax (2)
NOTE: 1. Mark the first TWO (2) only
2. Award marks for the TQM elements even if the quotes were
incomplete.
3. Do not award marks for the motivation s if the TQM elements were
incorrectly identified.
Max (6)
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4.9 The impact of total quality management (TQM) if it is poorly implemented by
businesses
- Setting unrealistic deadlines that may not be achieved.√√
- Employees may not be adequately trained resulting in poor quality products.
√√
- Decline in productivity, because of stoppages. √√
- Businesses may not be able to make necessary changes of products/services
to satisfy the needs of customers. √√
- Business reputation/image may suffer because of poor quality/defective
goods. √√
- Customers will have many alternatives to choose from and the impact could
be devastating to businesses. √√
- Investors might withdraw investment, if there is a decline in profits. √√
- Decline in sales as more goods are returned by unhappy customers. √√
- High staff turnover, because of poor skills development. √√
- Undocumented/Uncontrolled quality control systems/processes could result in
errors/ deviations from pre-set quality standards. √√
- Any other relevant answer related to the impact of total quality management
(TQM) if poorly implemented by businesses.
Max (4)
[40]
TOTAL SECTION B [80]
BREAKDOWN OF MARKS
QUESTION MARKS
4.1 3
4.2.1 3
4.2.2 3
4.2.3 3
4.3 4
4.4 4
4.5 2
4.6 4
4.7 4
4.8 6
4.9 4
TOTAL 40
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SECTION C
QUESTION 5: BUSINESS ENVIRONMENTS(LEGISLATION)
5.1 Introduction
- The Act was introduced in order to ensure full economic participation of previously
disadvantaged individuals. √
- BBBEE achieves sustainable change in the racial composition and increase the
access to economic activities and skills training of previously disadvantaged
individuals.√
- Businesses enjoy the benefits of the BBBEE Act even though this Act may
disadvantage other businesses.√
- Consequences for no-compliance encourage businesses to comply with this Act. √
- Any other relevant introduction related to the purpose of BBBEE/impact of the
Act/Implications of BBBEE pillars/ penalties for non-compliance with the BBBEE.
Any (2x1) (2)
5.2 The purpose of Broad Based Black Economic Empowerment/BBBEE
- Enable wealth to be spread more broadly across all population groups. √√
- Outline areas that would give the government a platform for bringing equitable spread
of wealth. √√
- Allows for the development of Codes of Good Practice. √√
- It aims at targeting inequality in the South African economy. √√
- Bridges the gap between formal and substantive equality to ensure that all people in
South Africa fully enjoy the right to equality. √√
- Any other relevant answer related to the purpose of BBBEE.
Max (8)
5.3 Impact of BBBEE Act on business
Positives/advantages
- Encourages businesses to address the demands√ for redress/equity directly. √
- Provides a variety of business codes to improve employment equity. √
- Provides for human resources development through training and development. √
- A good BEE rating√ improves the image of the business. √
- Fronting is discouraged√, as it may lead to the disqualification of a business's entire
scorecard/BBBEE status√
- Promotes enterprise development√, by developing entrepreneurial skills of
designated people to start their own businesses√
- Businesses that comply with BBBEE regarding the pillars will be rated high on the
BEE scorecard√/may get government tenders/may attract other BBBEE business
partners/-suppliers. √
- Businesses will have a good overview on how it is performing√ in comparison to other
businesses in the rest of the country. √
- By focusing on BBBEE, the business will show commitment√ towards the
social/education/economic developments in the community/country. √
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- Once rated, the business will understand how to develop BBBEE strategies√ that will
increase its BBBEE ratings on an annual basis. √
- Share prices of BBBEE compliant businesses√ are likely to increase as they attract
more business. √
- Businesses that support Small, Micro, Medium Enterprises (SMMEs), may increase
their own BBBEE ratings√
- Complying with BBBEE requirements gives businesses experience/exposure√ to be
able to provide better employment opportunities/staff development. √
- Any other relevant answer related to the positive impact/advantages of BBBEE Act
on businesses.
AND/OR
Negative/Disadvantages
- Businesses could experience large financial implications/penalties√ if they do not
comply with BBBEE. √
- Processes may lead to corruption/nepotism if not monitored properly. √
- Processes and procedures may be costly for a business√ as there are many legal
requirements for scoring enough points to be compliant. √
- Investment/Ownership issues can cause unhappiness√ amongst existing share-
holders/owners. √
- Provides for preferential procurement√, so certain businesses may be excluded from
supplying goods/services. √
- Businesses will have to spend money√ in areas covered by five BBBEE pillars to
obtain a good BBBEE rating. √
- Businesses that want to do business with the government√ must have their BEE
status assessed annually√.
- Businesses have to go through the process of having their BBBEE compliance
measured√/verified by an independent BEE verification agency. √
- Many businesses have been disadvantaged due to BBBEE ratings√ as they may not
be able to meet all the scoring. √
- Any other relevant answer related to the negative impact/disadvantages of BBBEE
Act on businesses.
Max (10)
5.4 The implications of Broad Based Black Economic the following revised FIVE pillars of
BBBEE on businesses
5.4.1 Management control√√
- Business must ensure that transformation√ is implemented at all levels. √
- Appoint black people√ in senior executive positions/to management. √
- Involve black people√ in the decision-making processes. √
- Ensure that black females√ are represented in management. √
- Businesses score points in both management and ownership√ when selling more
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than 25 % of their shares to black investors so that some of them can become
directors. √
- Due to a shortage of skilled black managers√/directors, some businesses find it
difficult to make appointments√
- Businesses are directly penalised√ for not implementing this pillar. √
- Any other relevant answer relating to management and control as a BBBEE pillar.
Pillar (2)
Explanation (4)
Submax (6)
5.4.2 Ownership√√
- Business should include black people√ in shareholding/partnerships/franchises. √
- Encourage small black investors to invest in big companies√ and share ownership. √
- Exempted Micro Enterprises (EMEs) with an ownership of 50% or more√ of black
people are promoted to level 3 of the BEE scorecard. √
- More opportunities are created for black people√ to become owners/ entrepreneurs. √
- Large businesses should form joint ventures with small black owned businesses√ and
share business risks. √
- Businesses sometimes find it difficult to locate√ suitable black business partners/
shareholders√.
- Many black people cannot afford shares√ in companies/contributions to
partnerships√.
- Any other relevant answer relating to ownership as a BBBEE pillar.
Pillar (2)
Explanation (4)
Submax (6)
5.4.3 Skills development√√
- Business must engage black employees√ in skills development initiatives. √
- Provide learnerships√ and learning programmes to black employees. √
- Business must contribute 1% of their payroll√ to fund the skills development
programmes. √
- Business benefits from the increased pool√ of skilled/trained workers. √
- Business must go the extra mile to train staff√ where learnerships are not offered. √
- Productivity is compromised√ as mentors/coaches have to find the time to participate
in learnerships/training. √
- Any other relevant answer relating to skills development as a BBBEE pillar.
Pillar (2)
Explanation (4)
Submax (6)
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5.4.4 Enterprise and supplier development (ESD)
- Business must create jobs. √ as ESD promotes local manufacturing. √
- Identify black owned suppliers that are able to supply goods and services. √
- Outsource services to suppliers √ that are BBBEE compliant. √
- Businesses are encouraged to invest√/support black owned SMMEs. . √
- Develop the business skills of small √/black owned suppliers, e.g. sales techniques,
legal advice, etc. √
- Support the cash flow of small suppliers √ by offering them preferential terms of
payment. √
- Businesses should invest in √/support black owned SMMEs . √
Contribution can be monetary,√ e.g. loans/investments/donations. √
- Contribution can be non-monetary, √ e.g. consulting services/advice/entrepreneurial
programmes, etc.
- SMMEs will be encouraged to use their own business initiatives. √ to make them
sustainable. √
- Develop and implement a supplier development plan √/supply chain.
- Small/Large businesses may not be able to afford enterprise. √development
investment/support√.
- Black owned SMMEs may become too reliant. √on support from other businesses/
unable to take their own initiatives. √
- BBBEE suppliers. √ may be without good workmanship. √
- Smaller businesses that are not BBBEE compliant √ lose business. √
- Businesses are forced to choose. √ from a smaller pool of suppliers. √
- Any other relevant answer related to eenterprise and supplier development (ESD)
development as a BBBEE pillar.
pillar (2)
Explanation (4)
Submax (6)
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5.4.5 Social responsibility/Socio-economic development
- Businesses should focus on critical areas which can affect growth and development
in the country. √ e.g. environmental awareness/education/ housing,
poverty/unemployment etc. √
- They should distribute scarce CSI resources √ to selected beneficiaries in the
community. √
- Any other relevant answer related to social responsibility/ Socio-economic
development as a BBBEE pillar.
Pillar (2)
Explanation (4)
Submax (6)
NOTE: Mark the first THREE (3) pillars only
Max (18)
5.5 Penalties for non-compliance with BBBEE
- Businesses may face imprisonment for non-compliance and fronting practices. √√
- The penalty could be a fine of up to 10% of the company’s annual turnover. √√
- Government will cancel any contract awarded that was based on false information
regarding B-BBEE status. √√
- A business can be banned from participating in government contracts for a period of
10 years. √√
- Business licenses may not be renewed, and authorisations may not be issued
- Businesses that fail to achieve at least a minimum 40% of compliance with
ownership, skills development and new enterprise and supplier development will be
automatically downgraded the by one level. √√
Max (10)
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5.6 Conclusion
- Businesses should know the benefits and challenges which accompanies the
implication of the Act√√
- The inclusion of all economically active people in South Africa enables the
government to achieve its national empowerment goal. √√
- Businesses must ensure that BBBEE pillars are implemented at all levels to avoid
penalties. √√
- Some businesses use of the services of legal experts to avoid penalties for not
complying with this Act.√√
- BBBEE promotes economic transformation by changing the racial profile of
companies, owners, managers and skilled professionals.√√
- Any other relevant conclusion related to the purpose of BBBEE/impact of the Act/
implications of BBBEE pillars/penalties for non-compliance with the BBBEE.
Any (1x2) (2)
(40)
Question 5: BREAKDOWN OF MARK ALLOCATION
DETAILS MAXIMUM TOTAL
Introduction 2
The purpose of Broad Based Black Economic 8
Empowerment, 2003 (Act 53 of 2003) (BBBEE)
Impact of Broad Based Black Economic 10
Empowerment, 2003 (Act 53 of 2003) (BBBEE)
on businesses.
The implications of the revised THREE pillars of 18
BBBEE on businesses.
Penalties for non-compliance 10
Conclusion 2
Max 32
INSIGHT
Layout 2
Analysis/interpretation 2
Synthesis 2
Originality/Examples 2
TOTAL MARKS 40
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LASO for each component
Allocate 2 marks if all the requirements are met
Allocate 1 mark if only some of the requirements are met
Allocate 0 marks where requirements are not met at all
QUESTION 6: BUSINESS OPERATION (TOTAL QUALITY MANAGEMENT)
Introduction
6.1 - A job description and job specification assist the human resource manager to clarify
the details of the vacancy and the candidates who apply for the post√
- Induction helps new employees to have a basis knowledge of what is expected of
the job√
- Continuous skill development enables employees to complete their tasks
successfully and contribute to the achievement of business objectives√
- Total client satisfaction can be defined as a measurement that determines how
happy customers are with a company's products/services/capabilities. √
- The correct implementation of TQM elements may enable businesses to reduce the
cost of quality in the long run√
- Any other relevant introduction related to the differences between job description
and job specification/purpose of induction/ impact of continuous skills
development/total client satisfaction/ways in which TQM can reduce the cost of
quality.
Any (1x2) (2)
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6.2 Differences between job description and quality job specification
JOB DESCRIPTION JOB SPECIFICATION
- Describes duties/responsibilities of a - Specifies the minimum acceptable
specific job/summary of the nature/type of personal qualities/skills/qualifications
the job√√ needed for the job√√
- Written description of the job and its - Written description of specific
requirements√√ qualifications/skills/experience needed
for the job√√
- Describes key performance areas/tasks - Describes key requirements of the
for a specific job, e.g. job title/working person who will fill the position , e.g.
conditions/relationship of the job with formal qualifications/willingness to
other jobs in the business, etc. √√ travel/work unusual hours, etc. √√
- Any other relevant answer related to job - Any other relevant answer related to
description job specification
Submax (4) Submax (4)
NOTE:
1. The answer does not have to be in a tabular format.
2. The differences do not have to link, but must be clear.
3. Award a maximum of FOUR (4) marks if the differences are not
clear/ Mark either job description or job specification only.
Max (8)
6.3 Purpose of induction
- Introduce new employees to management/√colleagues to establish relationships
with fellow colleagues at different levels. √
- Give new employees a tour/information about the layout of the building/office
- Make new employees feel welcome√ by introducing them to their physical work
space. √
- Improve skills√ through in-service training√
- Familiarise new employees √with the organisational structure/their supervisors√
- Allow new employees the opportunity to ask questions√ that will put them at
ease/reduce insecurity/anxiety/fear.
- Create opportunities for new employees √to experience/explore different
departments. √
- Explain safety regulations and rules, √ so that new employees will understand
their role/responsibilities in this regard.
- Ensure that employees understand their roles/responsibilities√ so that they will be
more efficient/productive. √
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- Communicate information about the products√/services offered by the business
- Communicate business policies regarding ethical/professional
conduct/procedures/employment contract/conditions of employment, etc. √
- Any other relevant answer related to the purpose of induction.
Max (12)
6.4 Impact of continuous skills development and total client/customer satisfaction on
large businesses
6.4.1 Impact of continuous skills development
Positives/Advantages
- Large businesses have a human resources department √ dedicated to skills training
and development. √
- Human resources experts ensure that training programmes are relevant√ to
increased customer satisfaction. √
- Ability to afford specialised√/skilled employees.√
- Large businesses could conduct skills audits to establish the competency/education
levels of staff performing work √ which could affect the quality of products/processes
positively. √
- May be able to hire qualified trainers√ to train employees on a regular basis.√
- Any other relevant answer related to the positive impact/advantages of continuous
skills development on large businesses.
AND/OR
Negatives/Disadvantages
- Poor communication systems in large businesses √ 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√/evaluate the effectiveness of training. √
- Any other relevant answer related to the negative impact/disadvantages of
continuous skills development on large businesses.
Submax (8)
6.4.2 Impact of 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
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business practices that incorporate all stakeholders. √
- Strive to understand and fulfil customer expectations by aligning cross-functional
teams across critical processes. √
- Ensures that cross-functional teams understand its core competencies√ and
develop/strengthen it. √
- May lead to higher customer retention√ /loyalty and businesses may be able to
charge higher prices. √
- Large businesses may be able to gain access √ to the global market.
- May lead to increased competitiveness√/profitability. √
- Any other relevant answer related to the positive impact/advantages of total
client/customer satisfaction on large businesses.
AND/OR
Negatives/ Disadvantages
- Employees who seldom come into contact with customers√ often do not have a
clear 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 negative impact/disadvantages of total
client/customer satisfaction on large businesses.
Submax (8)
Max (16)
6.5 Ways in which TQM can reduce the cost of quality:
- Introduce quality circles to discuss ways of improving the quality of
work/workman-ship√√
- Schedule activities to eliminate duplication of tasks√√
- Share responsibility for quality output amongst management and workers√√
- Train employees at all levels, 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 to improve the quality of raw materials/inputs√√
- Improve communication about quality challenges/deviations, so that everyone can
learn from experience√√
- Reduce investment on expensive, but ineffective inspection procedure in the
production processes√√
- Implement pro-active maintenance programmes for equipment/machinery to
reduce/terminate breakdowns√√
- Any other relevant answer related to ways in which TQM can reduce the cost of
quality.
Max (12)
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6.6 Conclusion
- The human resources manager must ensure that an accurate jo analysis is
performed to avoid hiring ineffective employees√√
- The correct job description and job specification enable business to place new
employees in appropriate departments√√
- Induction allows for the retention of competent employees who add value to the
business√√
- Continuous skill development allows businesses to improve their processes and
systems while staying ahead of the competition. √√
- Customer satisfaction information can help businesses to determine how to best
improve or changes its products and services. √√
- Cost reduction through effective TQM implementation may lead to sustainability
and productivity. √√
- Any other relevant conclusion related to the differences between job description/
job specification/ purpose of induction/ impact of continuous skills
development/total client satisfaction/ways in which TQM can reduce the cost of
quality.
Any (1x2) (2)
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BREAKDOWN OF MARKS
DETAILS MAXIMUM TOTAL
Introduction 2
Distinction between job description and job 8
specification
Purpose of induction 12
Impact of continuous skills development 8 Max 32
Impact of total client satisfaction 8
Ways in which TQM can reduce cost of quality
10
Conclusion 2
IINSIGHT
Layout 2
Analysis, interpretation 2
Synthesis 2
Originality/Examples/ recent information 2
TOTAL 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.
TOTAL SECTION C :40
GRAND TOTAL: 150
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