Improving Employer-Employee Relations (AQA AS Business): Exam Questions

Napara plc

Napara plc is a large mass market manufacturer of cars. Currently it produces four models of cars. Napara plc’s reputation had previously been for reliability. This reputation has declined in recent years. Napara plc carried out some market research. This research highlighted that customers want:

• reliable cars

• cars supplied without waiting times.

Table 3 Operational data for 2021

The employees in the Napara plc factory are highly skilled but have low motivation. There is high trade union membership amongst the employees. The union members took industrial action last year when they felt management bought incorrect safety equipment that put employees at risk. The action caused negative news headlines. The employees distrust management as a result. None of Napara plc’s management have experience working on the production line. Employees worry their jobs are not being done safely and efficiently. This distrust has led to poor employee performance.

In 2023, the business has made the decision to move into the rapidly growing and highly profitable electric car market. Two of the company’s current models will be replaced with electric models. The move would require the high-end skills of many of the workers. However, some jobs may be lost.

Customers in the electric car market:

• expect high-quality cars

• are very concerned with the ethics of the brand

• are willing to pay high prices.

Napara plc knows the market for these cars is rapidly changing. Napara plc’s shareholders want the company to launch its first electric car as quickly as possible. The business is considering involving employees in the planning for the new production line.