Department Labour turnover Year 1 (%) Labour turnover Year 2 (%) Kitchen staff 18 22 Service staff 30 35 Management 5 6 Casa Bonita is a chain of eight fami...

Assessment: Business Studies 0450 | Paper 1 Mock 01 | Short Answer and Data Response Subject: Business Studies - 0450

Question 1 Report

DepartmentLabour turnover Year 1 (%)Labour turnover Year 2 (%)
Kitchen staff1822
Service staff3035
Management56

Casa Bonita is a chain of eight family-style restaurants in Guadalajara, Mexico, employing 160 staff across kitchen, service, and management roles. The owner, Elena Ramirez, has been tracking labour turnover by department for the last two years, shown in the table below. Elena is concerned that high turnover in the service department is leading to inconsistent customer service and higher recruitment costs, as new waiting staff must constantly be trained. She is considering ways to apply Maslow's hierarchy of needs to keep staff longer, and is also thinking about introducing team working among service staff during busy weekend shifts.

(a) Define 'labour turnover'. [3]

(b) Using Maslow's hierarchy of needs, explain two ways Elena could motivate kitchen staff at Casa Bonita. [6]

(c) Analyse the data in the table and explain possible reasons for the differences in labour turnover between the three departments. [5]

(d) Evaluate whether introducing team working would help Casa Bonita reduce labour turnover in the service department. [6]

Answer Details

(a) Labour turnover is the rate or percentage at which employees leave a business [1] over a given period of time, usually one year [1]. It is commonly calculated using the formula: \(\frac{\text{number of staff leaving}}{\text{average number of staff employed}} \times 100\) [1].

(b) Two ways Elena could motivate kitchen staff using Maslow's hierarchy of needs:

  1. Safety needs [1]: Elena could offer kitchen staff secure employment contracts and invest in proper safety equipment and training to reduce the risk of burns, cuts and other kitchen injuries [1]. When workers feel their jobs are secure and their physical safety is protected, their anxiety decreases and they are more likely to remain with the business rather than seeking work elsewhere [1].
  2. Esteem needs [1]: Elena could recognise skilled chefs through formal titles (such as head chef or sous chef), awards for performance, or public praise for signature dishes that receive positive customer feedback [1]. Satisfying the need for recognition and status motivates kitchen staff to take pride in their work and builds loyalty, reducing the 22% turnover rate in that department [1].

(c) Analysis of the table data and reasons for turnover differences:

  • Service staff have the highest turnover (30% rising to 35%) [1]. This is likely because waiting staff typically receive lower pay, have less job security (often on variable-hours contracts), and face more stressful working conditions through direct, continuous contact with demanding customers during busy restaurant shifts [1].
  • Kitchen staff turnover is moderate (18% rising to 22%). Although the work is physically demanding and can involve long hours in hot, pressured environments, kitchen roles often require trained skills (cooking, food preparation) that give workers a stronger professional identity and potentially better pay than service staff [1].
  • Management turnover is lowest (5% rising to 6%). Managers typically receive higher pay, have greater responsibility and status (satisfying esteem needs), and have a stronger career investment in the business. These factors make them less likely to leave [1].
  • The rising trend across all three departments (from Year 1 to Year 2) suggests a general, business-wide issue rather than a problem isolated to one team. This could indicate company-wide factors such as below-market wages, poor working conditions, or management practices that are affecting all staff [1].

(d) Whether introducing team working would help reduce service staff turnover:

Arguments that it would help:

  • Team working could improve service staff motivation by increasing social interaction and mutual support during stressful weekend shifts, satisfying belonging needs in Maslow's hierarchy and making the job feel less isolating [1].
  • It allows experienced waiting staff to informally mentor newer team members, which reduces the training burden on management and helps new starters settle in more quickly [1].
  • Shared responsibility during busy periods spreads the workload more evenly, reducing the stress that is a likely driver of the 35% turnover rate.

Arguments that it would not be sufficient:

  • Team working alone does not address fundamental issues such as low pay or job insecurity, which are likely bigger drivers of the high turnover in service roles. If the pay is significantly below competitors, social improvements will not compensate [1].
  • Some staff may dislike shared responsibility, particularly if they are held accountable for mistakes made by weaker team members. This could create frustration rather than motivation [1].
  • The rising turnover trend across all departments suggests systemic issues that team working in one department cannot solve [1].

Conclusion: Team working would help as a partial solution but is not sufficient on its own. It addresses belonging and social needs, which matter in a high-pressure restaurant environment, but does not tackle the likely root causes of 35% turnover: pay levels and job security. Elena should combine team working with a review of service staff wages (are they competitive with other restaurants in Guadalajara?), clearer career progression opportunities, and possibly the introduction of tip-sharing or performance bonuses. A multi-layered approach targeting different levels of Maslow's hierarchy will be more effective than relying on a single initiative. [6]

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