3.2b Different Ways of Working Practice Questions

Question 1

13 marks

Text 2 — Varley Heating Ltd

Varley Heating Ltd installs and services gas boilers in homes across Yorkshire. The business was started by Priya Varley and now employs 24 engineers. The engineers work whilst mobile: they drive company vans from their own homes directly to each customer and record every job on a tablet. The business rents one small office and storage unit, where six administrators take bookings and order spare parts. Three of the administrators work full-time and three have flexible working hours.

Demand is highest in winter, when boilers are most likely to break down. To cope with the extra work, Varley Heating Ltd hires self-employed engineers on short contracts between October and March. Priya believes that customers judge the business mainly on how quickly an engineer arrives at their home.

Jobs completed by Varley Heating Ltd

Quarter Boiler installations Service and repair jobs
January–March 310 1 240
April–June 180 420
July–September 165 360
October–December 295 1 180
(a)

Working whilst mobile is one way of working.

State two other ways of working.

(b)

Explain one advantage to Varley Heating Ltd of employing some of its administrators on flexible working hours.

(c)

Analyse one advantage for Varley Heating Ltd of its engineers working whilst mobile.

(d)

Analyse one advantage and one disadvantage for Varley Heating Ltd of hiring self-employed engineers between October and March.

  • Advantage
  • Disadvantage

Question 2

13 marks

Larchway Claims Ltd

Larchway Claims Ltd handles insurance claims for 30 insurance companies. It employs 180 claims handlers at a two-floor office in Stockport, where they deal with customers by phone and email. When storms cause a sudden rise in claims, Larchway takes on extra staff on temporary contracts for a few weeks at a time.

Director Helen Marsh is considering allowing claims handlers to work from home for three days a week. A staff survey found that 64% of claims handlers would like to work from home, and that many spend over an hour travelling to work each day. If they did, Helen could give up one floor of the office.

New claims handlers learn the claims system by sitting next to an experienced colleague for their first month. Team leaders worry that this would be harder if staff were at home.

Table 1: Larchway's office costs per year

Cost Whole office (two floors) One floor only
Rent £240 000 £130 000
Heating, lighting and cleaning £60 000 £34 000
(a)

Other than saving travel time, identify two benefits to employees of working from home.

(b)

Explain one disadvantage to a business of employing staff on temporary contracts.

(c)

Calculate the percentage saving in Larchway Claims Ltd's yearly office costs if it gives up one floor of the office. Give your answer to two decimal places.

(d)

Analyse one advantage and one disadvantage to Larchway Claims Ltd of allowing its claims handlers to work from home for three days a week.

Advantage

Disadvantage

Question 3

11 marks

Grindell Coffee plc

Grindell Coffee plc runs 240 coffee shops in the UK and Ireland and employs 4 000 people. Most baristas are employed part-time on flexible hours contracts, so each shop can put extra staff on duty during the busy morning rush and send staff home when the shop is quiet in the afternoon.

Shop managers and assistant managers work full-time on permanent contracts. Shop managers write the weekly rota, train new baristas and are responsible for meeting their shop's sales targets.

Some baristas have complained that their hours change at short notice, and shop managers say that it is hard to keep experienced baristas.

Table 1: Grindell Coffee employees by region

Region Full-time employees Part-time employees
North of England 300 700
Midlands 250 600
South of England 450 1 000
Ireland 200 500
Total 1 200 2 800
(a)

Using Table 1, identify the region with the largest number of part-time employees.

(b)

Calculate the percentage of Grindell Coffee plc's employees who work part-time.

(c)

Other than having more staff on duty at busy times, explain one benefit to a business of employing staff part-time.

(d)

Analyse one disadvantage to Grindell Coffee plc of employing most of its baristas part-time on flexible hours contracts.

(e)

Analyse one benefit to Grindell Coffee plc of employing its shop managers full-time on permanent contracts.