1.4.1 Approaches to staffing Quiz: Pearson Edexcel Business, Unit 1

The 20 questions

1. Treating employees as a key source of competitive advantage reflects which staffing approach?

   • Labour standardisation
   • Staff as an asset
   • Staff as a cost
   • Outsourced workforce

2. What process involves training employees to perform a variety of different tasks and roles?

   • Redundancy
   • Offshoring
   • Outsourcing
   • Multi-skilling

3. Which option is an example of a flexible workforce arrangement?

   • Fixed annual hours
   • Temporary contracts
   • Permanent full-time
   • Salaried overtime

4. What term describes contracting an external organisation to carry out business tasks?

   • Internal recruitment
   • Multi-skilling
   • Outsourcing
   • Offshoring

5. What type of contract termination occurs when a job role is no longer required?

   • Redundancy
   • Dismissal
   • Resignation
   • Retirement

6. Pay negotiations between employers and trade unions representing workers are known as what?

   • Performance appraisal
   • Collective bargaining
   • Individual bargaining
   • Dismissal

7. How are terms and conditions agreed under an individual approach to employee relations?

   • National agreements
   • Direct negotiation
   • Collective bargaining
   • Union representation

8. A firm has 120 staff costing £1.8m a year in total. What is the average annual cost per employee?

   • £150,000
   • £15,000
   • £18,000
   • £1,500

9. A firm needs 2,400 labour hours a month. A full-time employee works 160 hours a month. How many full-time staff are needed?

   • 12
   • 15
   • 16
   • 20

10. What is a key financial benefit to a business of outsourcing a non-core function?

    • Higher staff loyalty
    • Lower fixed costs
    • Increased direct control
    • Guaranteed product quality

11. What is a major operational benefit of developing a multi-skilled workforce?

    • Lower training costs
    • Higher capital intensity
    • Greater workforce flexibility
    • Reduced wage rates

12. What is the main financial advantage of employing temporary staff during peak trading periods?

    • Greater worker loyalty
    • Reduced idle labour
    • Lower recruitment costs
    • Higher staff retention

13. What is a typical feature of pay rate negotiations conducted through collective bargaining?

    • Individualised pay scales
    • Standardised wage rates
    • Decreased union power
    • Performance-only bonuses

14. Which management practice treats employees primarily as a cost rather than an asset?

    • Offering career progression
    • Minimising wage rates
    • Investing in training
    • Providing health benefits

15. What is a primary disadvantage for employees working under highly flexible staffing contracts?

    • Excessive promotion opportunities
    • High job security
    • Rigid working hours
    • Unpredictable income

16. Which drawback is most commonly associated with outsourcing a core business activity?

    • Reduced operational capacity
    • Lower specialist expertise
    • Loss of control
    • Increased fixed costs

17. What is a key disadvantage to a business of using a highly flexible workforce?

    • Higher fixed costs
    • Lower employee loyalty
    • Increased wage rigidities
    • Reduced capacity flexibility

18. What is a long-term risk of treating staff purely as a cost to be minimised?

    • Greater worker flexibility
    • Higher fixed costs
    • Lower employee motivation
    • Increased staff training

19. A firm makes 60 workers redundant, paying £2,500 per worker. What is the total cost?

    • £15,000
    • £120,000
    • £250,000
    • £150,000

20. A firm has 50 full-time staff at £24,000 a year each and adds 10 part-time staff at £12,000 a year each. What is the total annual staff cost?

    • £1,200,000
    • £1,320,000
    • £1,440,000
    • £1,212,000

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