NOTES TO MARKERS

1. PREAMBLE
   

   The notes to markers are provided for quality assurance purposes to ensure the following: Fairness, consistency and reliability in the standard of marking  Facilitate the moderation of candidates' scripts at the different levels Streamline the marking process considering the broad spectrum of markers across the country Implement appropriate measures in the teaching, learning and assessment of the subject at schools/institutions of learning

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 marking guideline 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 guidelines
   • Comes from another credible source
   • Original
   • A different 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 and moderation purposes.
7. 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 number.
8. In an indirect question, the theory as well as the response must be relevant and related to the question.
9. Correct numbering of responses to questions is recommended in SECTION A and B. However, if the numbering is incorrect, follow the sequence of the candidate’s responses. Candidates will be penalised if the latter is not clear.
10. No additional credit must be given for repetition of facts. Indicate with an R.
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, 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 Define, describe, explain, discuss, elaborate, distinguish, compare, tabulate, differentiate, 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.
    NOTE:
    1. This only applies to questions where the number of facts is specified.
    2. The above also applies to responses in SECTION C (where applicable)

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.
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 guidelines)
Explanation 1 mark (two marks will be allocated in SECTION C)
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 guidelines.
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 SECTIONS B and C in particular (where applicable).

15. SECTION C
    15.1 The breakdown of the mark allocation for the essays is as follows:
    

    Introduction	Maximum: 32
    Content
    Conclusion
    Insight	8
    TOTAL	40

    
    15.2 Insight consists of the following components:
    

    Layout/Structure	Is there an introduction, paragraphs and a conclusion?	2
    Analysis and interpretation	Is the candidate able to break down the question into headings/sub-headings/interpret it correctly to show understanding of what is being asked? Marks to be allocated using this guide: All headings addressed: 1 (One ‘A’) Interpretation (16 to 32 marks): 1 (One ‘A’)
    Synthesis	Are there relevant decisions/facts/responses made based on the questions? Marks to be allocated using this guide: 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. 2 Option 3: Some relevant facts: 1 mark (One ‘-S’) Where candidates write FOUR sub-questions, but one/two/three sub-questions with no relevant facts; one ‘-S’ appears in the left margin. Award a maximum of ONE (1) mark for synthesis Option 4: No relevant facts: 0 marks (Two ‘-S’) Where a candidate answers less than 50% (only one sub-question) of the questions with no relevant facts: two '-S' appear in the left margin. Award a ZERO mark for synthesis.
    Originality	Is there evidence of one example per topic/subtopic based on recent information, current trends and developments?	2
    	TOTAL FOR INSIGHT: TOTAL MARKS FOR FACTS: TOTAL MARKS FOR ESSAY (8 + 32)	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.
    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 SUB-MAX./MAX. after maximum marks have been obtained but continue reading for originality “O”.
    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 marking guideline.
    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 business 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.

SECTION A
QUESTION 1
1.1
1.1.1 A √√
1.1.2 C √√
1.1.3 D √√
1.1.4 C √√
1.1.5 B √√
(5 x 2) (10)

1.2
1.2.1 dividends √√
1.2.2 reinstatement √√
1.2.3 nominal group √√
1.2.4 communication √√
1.2.5 code of ethics √√
(5 x 2) (10)

1.3
1.3.1 G √√
1.3.2 E √√
1.3.3 F √√
1.3.4 J √√
1.3.5 I √√
(5 x 2) (10)
TOTAL SECTION A: 30

BREAKDOWN OF MARKS

SECTION B
Mark the FIRST TWO answers only.

QUESTION 2: BUSINESS VENTURES
2.1 Example of non-insurable risks

• Nuclear weapons/war/political disturbances √
• Changes in fashion √
• Improvement/Changes in technology √
• Irrecoverable debts √
• Financial loss due to bad management √
• Possible failure of a business√
• Shoplifting during business hours √
• Loss of income if stock is not received in time/Time that elapses between the placing of orders and delivery √
• Losses caused by the marketing malpractices of the business √
• Changes in price levels from one place to another/Different prices in different places √
• Any other relevant examples of non-insurable risks.
  NOTE:
  Mark the first THREE (3) only. (3 x 1) (3)

2.2 Difference between simple and compound interest

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 simple or compound interest only.
   Max. (4)

2.3 Investment
2.3.1 Calculation of compound interest

Option 1
Year 1: R50 000 x 12% = R6 000 √
Year 2: R56 000 √ x 12% = R6 720 √
Year 3: R62 720 √ x 12% = R 7 526,40 √
Total interest = R20 246,40 √
OR
Option 2
FORMULA:
P x (1 + r)n √
R50 000 √ x (1+12/100)3 √
R50 000 x (1.12)³ = R70 246,40 √
Total interest = R70 246,40 – R50 000 √
= R20 246,40 √

NOTE:

1. Allocate full marks (6) if the answer is correct and no workings are shown.
2. If workings were shown correctly, but the final answer is wrong, award a maximum of FIVE (5) marks.
3. If there are no workings shown and the answer is incorrect, allocate a ZERO mark.
   Max.
   (6)

2.3.2 Advantages of investing in fixed deposits

• Interest is earned at a fixed rate √ regardless of changes in the economic climate. √
• The period of investment can be over a short √/medium/long term. √
• Investors can choose √ the investment period that suits them. √
• Principal amount plus interest earned is paid out √ on the maturity date. √
• Ensures financial discipline √ as investors cannot withdraw their funds before the maturity date. √
• Investors earn a better return on investment √ than on an ordinary savings account. √
• It has low risk √ as investors are guaranteed of the final payment. √
• The higher the principal amount/the longer the investment period, √ the higher the interest rate offered by a financial institution. √
• Any other relevant answer related to the advantages of investing in fixed deposits.
  Max. (4)

2.4 Role of personal attitude in successful leadership

• Positive attitude releases √ leadership potential. √
• A leader’s good/bad attitude √ can influence the success/failure of the business. √
• Leaders must know their strengths and weaknesses √ to apply their leadership styles effectively. √
• Great leaders understand that the right attitude √ will set the right atmosphere. √
• Leaders’ attitude √ may influence employees’/teams’ thoughts/behaviour. √
• Leaders should model the behaviour √ that they want to see in team members. √
• Successful leaders consider the abilities/skills of team members √ 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 personal/professional success. √
• Leaders with a positive attitude know √ that there is always more to learn/space to grow. √
• Any other relevant answer related to the role of personal attitude in successful leadership. Max. (6)

2.5 Leadership styles

2.5.1 Autocratic leadership style √√ (2)

Motivation
Ben, the production manager, applies direct supervision and strict control to ensure high quality products and service. √ (1)
NOTE:

1 Award marks for the leadership style even if the quote is incomplete
2 Do not award marks for the motivation if the leadership style was incorrectly identified.
Max. (3)

2.5.2 Situations in which the autocratic leadership style can be applied

• In crisis situations, e.g. in the case of unforeseen challenges/ accidents. √√
• When all the information is available to solve the problem. √√
• In a crisis/urgent situation, e.g. after an accident/meeting tight deadlines. √√
• When employees are motivated and the leader has already earned the trust of the followers. √√
• When dealing with employees who are not cooperative. √√
• When employees are new/not fully trained. √√
• Any other relevant answer related to the situations in which the autocratic leadership style can be applied.
  NOTE:
  1. Mark the first TWO (2) situations only.
  2. Accept relevant facts if the leadership style was incorrectly identified as an answer in QUESTION 2.5.1. (2 x 2) (4)

2.6 Principles of insurance

Indemnity/Indemnification √√

• Usually applies to short term insurance, as the insured is compensated for specified/proven harm/loss. √
• Insurer agrees to compensate the insured for damages/losses specified in the insurance contract, in return for premiums paid by the insured to the insurer. √
• Protects the insured against the specified event that may occur. √
• Pay-outs from insurance companies/insurer will only be made; if there is proof that the specified event took place/if the insured can prove the amount of the loss/ damage. √
• The amount of indemnification/compensation is limited to the amount of provable loss/damage, even if the amount in the policy/insurance contract is higher. √
• The insured must be placed in the same position as before the occurrence of the loss/damage/The insured may not profit from insurance. √
• Any other relevant answer related to indemnity/indemnification as a principle of insurance.
  Principle (2)
  Discussion (1)
  Sub-max. (3)

Security/Certainty √√

• Applies to long-term insurance where the insurer undertakes to pay out an agreed upon amount in the event of loss of life. √
• A predetermined amount will be paid out when the insured reaches a predetermined age/or gets injured due to a predetermined event. √
• Aims to provide financial security to the insured at retirement/ dependents of the deceased. √
• Any other relevant answer related to security/certainty as a principle of insurance.
  Principle (2)
  Discussion (1)
  Sub-max. (3)

Utmost good faith √√

• Insured has to be honest in supplying details when entering in an insurance contract. √
• Both parties/insurer and insured must disclose all relevant facts. √
• Insured must disclose everything that may affect the extent of the risk. √
• Details/Information supplied when claiming should be accurate/true. √
• Any other relevant answer related to utmost good faith as a principle of insurance. Principle (2)
  Discussion (1)
  Sub-max. (3)

Insurable interest √√

•  Insured must prove that he/she will suffer a financial loss if the insured object is damaged/lost/ceases to exist. √
• An insurable interest must be expressed in financial terms. √
• Insured must have a legal relationship with the insured object in the contract. √
• Any other relevant answer related to insurable interest as a principle of insurance. Principle (2)
  Discussion (1)
  Sub-max. (3)
  NOTE: Mark the first TWO (2) only. Max. (6)

2.7 Advantages of insurance for businesses

• Transfers the risk from businesses/insured to an insurance company/ insurer. √√
• Transfer of risk is subject to the terms and conditions of the insurance contract. √√
• Protects businesses against theft/loss of stock and/or damages caused by natural disasters such as floods, storm damage, √√ etc.
• Businesses will be compensated for insurable losses, e.g. destruction of property through fire. √√
• Businesses’ assets, e.g. vehicles/equipment/buildings are insured√ against damage and/or theft. √√
• Businesses are protected against the loss of earnings, such as strikes by employees which may result in losses worth millions. √√
• Protects businesses against dishonest employees. √√
• Life insurance can be taken on the life of partners in a partnership to prevent unexpected loss of capital. √√
• Should the services of key personnel be lost due to accidents/death, the proceeds of an insurance policy can be paid out to the business/ beneficiaries. √√
• Replacement costs for damaged machinery/equipment are very high, therefore insurance can reduce/cover such costs. √√
•  Protects businesses from claims made by members of the public for damages that the business is responsible for. √√
• Protects businesses against losses due to death of a debtor. √√
• Any other relevant answer related to other advantages of insurance for businesses. Max. (4)
  [40]

BREAKDOWN OF MARKS

QUESTION 3: BUSINESS ROLES
3.1 Types of unethical business practices

• Unfair advertising √
• Pricing of goods in rural areas √
•  Taxation/Tax evasion √
  NOTE: Mark the first THREE (3) only.
  (3 x 1) (3)

3.2 Differences between ethical and professional behaviour

NOTE:

1. The answer does not have to be in tabular format.
2. The differences do not have to link but must be clear.
3. Award a maximum of TWO (2) marks if the difference is not clear/Mark either ethical or professional behaviour only.
   Max. (4)

3.3 Problem-solving technique
3.3.1 Delphi technique √√ (2)
Motivation
AK requested experts to suggest ways on how to solve her business problem. √ (1)

NOTE:

1. Award marks for the problem-solving technique even if the quote is incomplete.
2. Do not award marks for the motivation if the problem-solving was incorrectly identified.
   Max. (3)

3.3.2 Advantages of Delphi technique

• Businesses may use a group of experts √ without bringing them together. √
• The experts will give the business clear ideas/solutions √ on how to improve on productivity/profitability. √
• Information received from experts can be used √ to solve complex business problems. √
•  Experts may give honest/credible opinions √ as they do not have a direct/personal interest in the business. √
• Conflict may be avoided √ especially if all employees are knowledgeable and well qualified. √
• Dominating employees may not take over the process √ as they do not form part of the problem-solving process. √
• It reduces noise levels in an office environment √ since there is no group discussion. √
• Any other relevant answer related to the advantages of the Delphi technique as a problem-solving technique.
  NOTE: Accept relevant facts if the problem-solving technique was
  incorrectly identified as an answer in QUESTION 3.3.1
  Max.
  (4)

3.4 Ways to create an environment that promotes creative thinking in the workplace

• Businesses must emphasise the importance of creative thinking √ to ensure that all staff know that their ideas will be heard. √
• Make time for brainstorming sessions √ to generate new ideas, e.g. regular workshops/follow up sessions to build on one another’s ideas. √
• Place suggestion boxes around the workplace √ and keep communication channels open for new ideas. √
• Businesses should train staff in innovative techniques √/creative problem-solving skills/mind-mapping/lateral thinking. √
• Encourage job swops √ within the organisation √/ Studying how other businesses √ are doing things. √
•  Encourage alternative ways √ of working/doing things. √
• Respond enthusiastically to all ideas √ and never let anyone feel less important. √
• Reward creativity with reward schemes for teams √/ individuals that come up with creative ideas. √
• Provide a working environment conducive to creativity, √ free from distractions. √
• Any other relevant answer related to ways in which businesses can create an environment that promotes creative thinking in the workplace.
  Max. (4)

3.5 Importance of team dynamic theories in improving team performance

• Team dynamic theories explain how √ effective teams work/operate. √
• Businesses are able to allocate tasks √ according to the roles of team members. √
• Team members can maximise performance √ as tasks are allocated according to their abilities/skills/attributes/personalities. √
• Team members with similar strengths may compete for team tasks/responsibilities √ that best suit their abilities/competencies. √
• Theories assist team leaders to understand the personality types √ of team members so that tasks are assigned more effectively. √
• Conflict may be minimised √ when team members perform different roles. √
• Any other relevant answer related to the importance of team dynamic theories in improving team performance.
  Max. (6)

3.6 Unprofessional business practices
3.6.1 Types of unprofessional business practices from the scenario

NOTE

1. Mark the first TWO (2) only.
2. Award marks for the types of unprofessional business practices even if quotes were incomplete.
3. Do not award marks for motivations if the types of unprofessional business practice were incorrectly identified.
4. Accept responses in any order.
   Max. (6)

3.6.2 Dealing with unprofessional business practices

NOTE:

1. The answer does not have to be in tabular format.
2. Mark the ways to deal either with sexual harassment OR unauthorised use of workplace resources as the type of unprofessional business practice.
   Max. (4)

3.7 Application of the force-field analysis

• Describe the current situation/problem √ and the desired situation. √
• List all driving/pros and restraining/cons forces √ that will support and resist change. √
• Allocate a score to each force √ using a numerical scale, where 1 is weak and 5 is strong. √
• Weigh up the positives and negatives √ then decide if the project is viable. √
• Choose the force √ with the highest score as the solution. √
• If the project is viable, √ find ways to increase the forces for change. √
• Identify priorities √ and develop an action plan. √
• Any other relevant answer related to the application of the force-field analysis when solving business problems.
  Max. (6)
  [40]

BREAKDOWN OF MARKS

QUESTION 4: MISCELLANEOUS TOPICS
BUSINESS VENTURES
4.1 Types of benefits paid out by the Unemployment Insurance/UIF

• Unemployment benefits √
• Maternity benefits √
•  Sick/Illness/Disability √
• Adoption benefits √
•  Dependents benefits √
• Paternity benefits √
• Parental benefits √
• Covid-19 temporary employer-employee relief scheme/TERS √
•  Any other relevant answer related to types of benefits paid out by the UIF.
  NOTE:
  Mark the first FOUR (4) only. (4 x 1)
  (4)

4.2 Meaning of leadership

• The ability of an individual or a group of individuals to influence √ and guide followers or other members of an organization. √
• Leadership is a way of inspiring subordinates √ to perform in order to achieve goals. √
•  It cannot be taught, √ although it may be learned as it is an inborn trait. √
• Involves establishing a clear vision √ and sharing it with others so that they can willingly follow. √
•  A leader steps up in times of crisis √ and is able to think and act creatively in difficult situations. √
•  Any other relevant answer related to the meaning of leadership.
  Max. (4)

4.3 Investment: Insurance
4.3.1 Average clause √√ (2)
4.3.2 Formula:

Insured amount  x Damages √
 Actual value

=    R400 000    x R40 000 √
       R500 000

= R32 000 √√

NOTE:

1. Award full marks (4) if the answer is correct and no workings are shown.
2. If workings were shown correctly, but the final answer is wrong, award a maximum of TWO (2) marks.
3. If the answer is incorrect, award a maximum of ONE mark for the understanding of concept and method.
   Max. (4)

4.4 Impact of the democratic leadership style

Positives/Advantages

• The leader allows the employees to participate in the decision-making process, √ so they feel empowered/positive. √
• Staff gives a variety of ideas/inputs/feedback/viewpoints √ that can lead to innovation/improved production methods/increased sales. √
• Clear/Two-way communication √ ensures group commitment to final decision(s). √
• Authority is delegated √ which can motivate/inspire workers to be more productive. √
• Complex decisions can be made √ with inputs from specialists/skilled workers. √
• Any other relevant answer related to the positive impact/advantages of the democratic leadership style on businesses.
  AND/OR

Negatives/Disadvantages

• Incorrect decisions may be made √ if staff is inexperienced/not fully informed. √
• Decision making may be time consuming √ because stakeholders have to be consulted. √
• Employees may feel discouraged √ if their opinions/inputs are not considered. √
• Leaders can rely too much on the input of the followers √ and fail to make a final decision. √
• Not effective in times of crisis √/when quick decisions need to be made. √
• Some employees only pretend to participate in decision making √ and their feedback may not always be accurate. √
• Any other relevant answer related to the negative impact/disadvantages of the democratic leadership style on businesses.
  Max. (6)

BUSINESS ROLES
4.5 Steps in problem-solving

• Identify the problem. √
• Define the problem. √
• Identify possible solutions to the problem. √
• Select the most appropriate alternative. √
• Develop an action plan. √
• Implement the suggested solution/action plan. √
• Monitor the implementation of the solution/action plan. √
• Evaluate the implemented solution. √
• Any other relevant answer related to the steps in problem-solving.

NOTE:

1. Mark the first FOUR (4) only.
2. Steps may be in any order.
3. Award marks when different approaches in problem-solving are used.
   (4 x 1) (4)

4.6 Causes of conflict
4.6.1 Causes of conflict from the scenario

• Employees at MFS are subjected to heavy workloads that lead to stress. √
• Lack of employee development increase frustration levels as workers may repeat errors due to a lack of skills. √
  NOTE: Mark the first TWO (2) only. (2 x 1) (2)

4.6.2 Other causes of conflict in the workplace

•  Lack of proper communication between management and workers. √√
• Ignoring rules/procedures may result in disagreements and conflict. √√
• Management and/or workers may have different personalities/ backgrounds. √√
• Different values/levels of knowledge/skills/experience of managers/ workers. √√
• Little/no co-operation between internal and/or external parties/ stakeholders. √√
• Lack of recognition for good work, e.g., a manager may not show appreciation for extra hours worked to meet deadlines. √√
• Unfair disciplinary procedures, e.g. favouritism/nepotism. √√
• Little/no support from management with regards to supplying the necessary resources and providing guidelines. √√
• Leadership styles used, e.g. autocratic managers may not consider worker inputs. √√
• Lack of agreement on mutual matters, e.g. remuneration/working hours. √√
• Unhealthy competition/Inter-team rivalry may cause workers to lose focus on team targets. √√
• Lack of commitment/Distracted by personal objectives which may lead to an inability to meet pre-set targets. √√
• Constant changes may cause instability. √√
• Lack of clarity regarding employees’ roles and responsibilities. √√
• Any other relevant answer related to other causes of conflict in the workplace.
  NOTE: Do not award marks for responses quoted in QUESTION 4.6.1.
  Max. (4)

4.7 Application of transparency as a King Code principle

•  Decisions/Actions must be clear √ to all stakeholders. √
• Staffing and other processes √ should be open and transparent. √
• Employees/Shareholders/Directors should be aware √ of the employment policies of the business. √
• Auditing and other reports must be accurate/available √ to shareholders/ employees. √
• Regular audits should be done √ to determine the effectiveness of the business. √
• Business deals should be conducted openly √ so that there is no hint/sign of dishonesty/corruption. √
• Businesses should give details of shareholders’ voting rights to them √ before/at the Annual General Meeting (AGM). √
• The board of directors must report on both the negative and positive impact √ of the business on the community/environment. √
• The board should ensure that the company’s ethics √ are effectively implemented. √
• Any other relevant answer related to how businesses can apply transparency as a King Code principle for good corporate governance.
  Max. (4)

4.8 Ways in which professional, responsible, ethical and effective business practices should be conducted

• Mission statement should include the values of equality/respect. √√
• Businesses should develop equity programmes/promote strategies to ensure that all employees are treated equally regardless of status/rank/power. √√
• Treat workers with respect/dignity by recognising work well done/the value of human capital. √√
• Plan properly and put preventative measures in place. √√
• Pay fair wages/salaries which are in line with the minimum requirements of BCEA/Remunerate employees for overtime/during public holidays. √√
• Engage in environmental awareness programmes/Refrain from polluting the environment. E.g., by legally disposing of toxic waste. √√
• Refrain from starting a venture using other businesses ideas that are protected by law. √√
• Business decisions and actions must be clear/transparent to all stakeholders. √√
• Businesses should be accountable/responsible for their decisions and actions/ patens rights. √√
• Hire honest/trustworthy accountants/financial officers with good credentials. √√
• Regular/Timeous payment of taxes. √√
• All workers should have access to equal opportunities/positions/resources. √√
• Ensure that employees work in a work environment that is conducive to safety/fairness/free from embarrassment. √√
• Employers and employees need to comply with legislation with regard to equal opportunities/human right in the workplace. √√
• Training/Information/Business policies should include issues such as diversity/ discrimination/harassment. √√
• Orders/Tasks should be given respectfully and allow the recipient/employee to have a say in the way the task should be performed. √√
• Draw up a code of ethics/conduct. √√
• On-going development and training for all employees. √√
• Performance management systems/Appraisals should be in place. √√
• Adequate internal controls/monitoring/evaluation. √√
• Any other relevant answer related to ways in which professional, responsible, ethical and effective business practices should be conducted.
  Max. (6)
  [40]
  BREAKDOWN OF MARKS
  

  QUESTION 4	MARKS
  4.1	4
  4.2	4
  4.3.1	2
  4.3.2	4
  4.4	6
  4.5	4
  4.6.1	2
  4.6.2	4
  4.7	4
  4.8	6
  TOTAL	40

  TOTAL SECTION B: 80

SECTION C
Mark only ONE answer in this section.

QUESTION 5: BUSINESS VENTURES (INVESTMENT: SECURITIES)

5.1 Introduction

• Preference shares can be considered as a viable investment option as investors have various options to choose from as compared to ordinary shares. √
• Investors set financial goals and consider different factors before making informed decisions. √
• Shares represent the parts of the company that a person/group of people own. √
• The Johannesburg Security Exchange (JSE) is a formal market comprising of all the public companies that have been listed. √
• Various services are offered to listed companies by the JSE. √
• Any other relevant introduction related the rights and preference shareholders/factors that must be considered when making investment decisions/impact of shares as a form of investment/functions of Johannesburg Security Exchange.
  (Any 2 x 1) (2)

5.2 Rights of preference shareholders

• Receive interim and annual reports. √√
• They have a preferred claim on company assets in the event of bankruptcy/ liquidation of the company. √√
• They only have voting rights at the AGM under particular circumstances/for certain resolutions. √√
• Receive dividends regardless of how much profits are made. √√
• Receive a fixed rate of return/dividend. √√
• They are paid first/enjoy preferential rights to dividends. √√
• Cumulative shareholders must receive outstanding/accrued dividends from previous years. √√
• Participating preference shareholders have the right to share in surplus profits. √√
• Any other relevant related to the rights of preference shareholders.
  Max. (10)

5.3 Factors that should be considered when making investment decision

Taxation

•  Refers to a compulsory payment √ made by citizens to the government. √
• A good investment√ will yield good after-tax returns. √
•  Income tax implications must be considered √ in order to ensure a high net after-tax return. √
• Tax rates are not necessarily the same √ for different investments. √
• Any other relevant answer related to taxation as a factor to be considered when making investment decisions.
  Sub-max. (4)

Risk

• Refers to the chance that the invested amount may be reduced in value/ lost in total over a period of time, √ due to unforeseen circumstances. √
• The higher the potential return, √ the higher the risk of a potential loss. √
• Investing in shares has a higher risk √ than investing in a fixed deposit. √
• Shares have low/medium risk √ over a longer investment period. √
• Shares with higher risks √ have a greater potential for higher returns. √
• Ordinary shares have the highest risk √ as the investor may lose the full/part of the investment when the company is dissolved/ bankrupt/ liquidated. √
• Preference shareholders’ risk is lower, √ as they have preferential claims on the assets of the liquidated company/may receive some compensation before ordinary shareholders. √
• Share prices are linked to factors such as economic conditions/operational success of the company √ which investors cannot always control. √
• Share prices are volatile/unstable/unpredictable/may increase/decrease sharply within hours √ which contribute to the uncertainty of the value of an investment in shares on the short term. √
• Any other relevant answer related to risk as a factor to be considered when making investment decisions.
  Sub-max. (4)

Liquidity

• A sum of money could be invested in a type of investment √ that can easily be converted to cash. √
• The term is used to describe the ease and speed √ with which investors can convert an investment into cash. √
• Example: funds in a savings account/unit trust will be easier to convert into cash √ than an investment in a fixed deposit which is usually deposited for a fixed period of time. √
• Any other relevant answer related to liquidity as a factor that may be considered when making investment decisions.
  Sub-max. (4)
  Max. (12)

5.4 Impact of shares as a form of investment

Positives/Advantages

• Can be freely transferred √/traded on the JSE. √
• Shareholders' liability to the debt of the company is limited √ to what was invested √/Shareholders have limited liability √ for company debts. √
• Shareholders have voting rights √ at the annual general meeting (AGM). √
• Investing in shares provides protection √ against inflation. √
• Investing in shares can provide solid returns √ at retirement age. √
• Rate of return on investment (ROI) √ is linked to the performance of the company. √
• Ordinary shares are usually cheaper √ than preference shares on the open market. √
• Holding a higher number of shares √ may result in higher proportional dividend pay-outs. √
• Any other relevant answer related to the positive impact/advantages of shares as a form of investment.
  
  AND/OR

Negatives/Disadvantages

1. Shareholders may receive less dividends √/no dividends when company profits are low. √
2. Companies have no legal obligation to pay dividends √ to shareholders. √
3. Risk may be high, √ as investment may be lost when companies are liquidated. √
4. Dividends declared √ may be determined by the management/directors of the company/business. √
5. Any other relevant answer related to the negative impact/disadvantages of shares as a form of investment.
   Max. (14)

5.5 Functions of JSE

• Gives opportunities to financial institutions such as insurance companies to invest their funds in shares. √√
• Serves as a barometer/indicator of economic conditions in South Africa. √√
• Keeps investors informed on share prices by publishing the share prices daily. √√
• Acts as a link between investors and public companies. √√
• Shares are valued and assessed by experts. √√
• Small investors are invited to take part in the economy of the country through the buying/selling of shares. √√
• Venture capital market is made available on the open market. √√
• Orderly market for securities serves as a disciplined market for securities. √√
• Mobilises the funds of insurance companies and other institutions. √√
• Raises primary capital by encouraging new investments in listed companies. √√
• Regulates the market for dealing with shares. √√
• Plans, researches and advises on investment possibilities. √√
• Ensures that the market operates in a transparent manner. √√
• Provides protection for investors through strict rules/legislation. √√
• Encourages short-term investment. √√
•  Facilitates electronic trading of shares/STRATE. √√
• Any other relevant answer related to the functions of the Johannesburg Securities Exchange (JSE).
  Max. (10)

5.6 Conclusion

•  Dividends paid out on preference shares will attract more people to invest in a company. √√
• A business that is managed successfully will make a number of investments over a period of time. √√
• Businesses should invest extra cash in shares to generate more income rather than leaving it in the business's current account. √√
• Listed companies on the JSE will get more exposure to possible investors. √√
• Any other relevant conclusion related the rights of preference shareholders/ factors that must be considered when making investment decisions/impact
  of shares as a form of investment/functions of Johannesburg Security Exchange. (Any 2 x 1) (2)
  [40]

BREAKDOWN OF MARKS ALLOCATION

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.

QUESTION 6: BUSINESS ROLES (TEAM PERFORMANCE ASSESSMENT AND CONFLICT MANAGEMENT)

6.1 Introduction

• Teamwork refers to a number of people collaborating/working together effectively in order to reach a common goal. √
• Successful teams go through different stages of team development in order to become successful/effective. √
• The grievance procedure is a process/steps that ensures the well-being of employees is alerted to the management. √
• Difficult employee may influence their colleague to adapt the same behaviour/attitudes if the business does not handle them in the correct manner. √
• Any other relevant introduction related to the characteristics of team performance/stages of team development/procedure to deal with grievances in the workplace/ways in which businesses can deal with difficult employees in the workplace.
  (Any 2 x 1) (2)

6.2 Characteristics of successful team performance

• Successful teams share a common goal as team members are part of the process of setting goals for the group. √√
• There is a climate of respect/trust and honesty. √√
• Share a set of team values and implement group decisions. √√
• Successful teams have sound intra-team relations. √√
• Teams value the contributions of individual members and reach consensus on differences. √√
• Team members enjoy open communication and deal with items of conflict immediately. √√
• Teams are accountable and members know the time frame for achieving their goals. √√
• Teams pay attention to the needs of the individual team members. √√
• Creates an environment where team members are given opportunities to develop so that team members grow and learn from the experience of working in a team. √√
•  Regular reviews of team processes and progress may detect/solve problems sooner. √√
• Balance the necessary skills/knowledge/experience/expertise to achieve the objectives. √√
• Any other relevant answer related to the characteristics of successful team performance.
  Max. (8)

6.3  Stages of team development

6.3.1 Forming √√

• Individuals gather information/impressions about each other/the scope of the task √ and how to approach it. √
• This is a comfortable stage √ to be in as the work has not yet started. √
• Individuals focus on being busy with routine tasks, √ such as team organisation/who does what/when to meet each other, √ etc.
• Individuals are motivated by the desire/drive √ to be accepted by fellow team members. √
• Team members can determine how each one, as an individual, √ will respond under pressure. √
• Any other relevant answer related to forming as a stage in team development.
  Stage (2)
  Explanation (2)
  Sub-max. (4)

6.3.2 Storming √√

• Teams go through a period of unease/conflict √ after formation. √
• Different ideas from team members √ will compete for consideration. √
• Team members open up to each other √ and confront each other's ideas/perspectives. √
• Tension/struggle/arguments occur √ and upset the team members/ there may be power struggles for the position of team leader. √
• In some instances, storming can be resolved quickly; √ in others, the team never leaves this stage. √
•  Many teams fail during this stage √ as they are not focused on their task. √
• This phase can become destructive for the team/will negatively impact on team performance, √ if allowed to get out of control. √
• This stage is necessary/important √ for the growth of the team. √
• Some team members tolerate each other √ to survive this stage. √
• Any other relevant answer related to storming as a stage in team development.
  Stage (2)
  Explanation (2)
  Sub-max. (4)

6.3.3 Norming/Settling/reconciliation √√

• Team members come to an agreement√ and reach consensus. √
• Roles and responsibilities are clear√ and accepted. √
• Processes/working style√ and respect develop amongst members. √
• Team members have the ambition to work√ for the success of the team. √
• Conflict may occur, √ but commitment and unity are strong. √
• Any other relevant answer related to norming/settling/reconciliation as a stage in team development.
  Stage (2)
  Explanation (2)
  Sub-max. (4)

6.3.4 Performing/Working as a team towards a goal √√

• Team members are aware of strategies √ and aims of the team. √
• They have direction √ without interference from the leader. √
• Processes √ and structures are set. √
• Leaders delegate √ and oversee the processes and procedures. √
• All members are now competent, autonomous √ and able to handle the decision-making process without supervision. √
• Differences among members are appreciated √ and used to enhance the team's performance. √
• Team members find ways √ to complete tasks without conflict/ external supervision. √
• Any other relevant answer related to performing/working as a team towards a goal as a stage in team development.
  Stage (2)
  Explanation (2)
  Sub-max. (4)

6.3.5 Adjourning/Mourning √√

• The focus is on the completion √ of the task/ending the project. √
• Breaking up the team may be traumatic √ as team members may find it difficult to perform as individuals once again. √
• All tasks need to be completed √ before the team finally dissolves. √
• Any other relevant answer related to adjourning/mourning as a stage in team development.
  Stage (2)
  Explanation (2)
  Sub-max. (4)
  NOTE: Mark the first FOUR (4) only.
  Max.
  (16)

6.4 Procedure dealing with grievances in the workplace

• An aggrieved employee must verbally report the incident √/grievance to his/ her supervisor/manager. √
• Supervisor/manager needs to resolve √ the issue within 3 to 5 working days. √
• Should the employee and supervisor not be able to resolve the grievance, √ the employee may take it to the next level of management. √
• The employee may move to a more formal process where the grievance must be lodged in writing √/completes a business grievance form. √
•  He/she must receive a written reply √ in response to the written grievance. √
• A grievance hearing/meeting must be held √ with all relevant parties present. √
• Minutes of the meeting must be recorded √ and any resolution passed must be recorded on the formal grievance form. √
• Should the employee not be satisfied, √ then he/she could refer the matter to the highest level of management. √
• Minutes of this meeting should be filed/recorded √ and 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 CCMA. √
• If the employee is still not satisfied, he/she may refer the matter to the Labour Appeals Court √ 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. (12)

6.5 Ways to deal with difficult employees in the workplace

• Get perspective from others who have experienced the same kind of situation to be able to understand difficult employees. √√
• Act pro-actively, if possible, as a staff/personnel problem is part of a manager's responsibilities. √√
• Regular meetings with supervisors/departmental heads should help to identify difficult/problem behaviour. √√
• Ask someone in authority for their input into the situation. √√
•  Identify the type of personality which is creating the problem. √√
• Meet privately with difficult employees, so that there are no distractions from other employees/issues. √√
• Make intentions and reasons for action known, so that difficult person/ people feel at ease. √√
• Employees should be told what specific behaviours are acceptable by giving details about what is wrong/ unacceptable and also an opportunity to explain their behaviour. √√
• A deadline should be set for improving bad/difficult behaviour. √√
• The deadline date should be discussed with the difficult employee and his/her progress should be monitored/ assessed prior to the deadline. √√
• Guidelines for improvement should be given. √√
• Do not judge the person, but try to understand him/her/Understand his/her intentions and why he/she reacts in a certain way. √√
• Keep communication channels open/Encourage employees to communicate their grievances to management. √√
• Build rapport/sound relations by re-establishing personal connection with colleagues, instead of relying on e-mails/messaging/social media. √√
• Help difficult employees to be realistic about the task at hand. /Be supportive of them and their issues. √√
• Remain calm and in control of the situation to get the person(s) to collaborate. /Don’t become difficult yourself. √√
• Treat people with respect, irrespective of whether they are capable/ competent or not. /Don’t try to change them, rather see where you can use them effectively. √√
• Sometimes it may be necessary to ignore and only monitor a difficult person. /Take a step back and analyse the situation before you respond. √√
• Identify and provide an appropriate support program to address areas of weakness. √√
• Any other relevant answer related to ways in which the businesses could deal with difficult employees in the workplace.
  NOTE: Do not accept strategies to deal with difficult personalities.
  Max. (10)

6.6 Conclusion

• The success of a business depends on the successful collaboration within a team to ensure that the objectives of the business will be met. √√
•  It is important that a business understand the stages of team development so that they are able to manage conflict effectively. √√
• Businesses must ensure that the process is fair and transparent when dealing with all grievances. √√
• Dealing with difficult employees will enable businesses to find better ways to manage employees. √√
• Any other relevant conclusion related to the characteristics of team performance/stages of team development/correct procedure to deal with grievances in the workplace/ways in which businesses can deal with difficult employees in the workplace.
  (Any 1 x 2) (2)
  [40]

BREAKDOWN OF MARK ALLOCATION

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