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BTEC Business Level 3 Unit 6 Principles of Management January 2024 Exam
Saxon Fields Theme Park Ltd Notes
Sections:
● Brief overview of the case study............................................ 2
● Comparison of before and after Nina (leadership style,
motivational theory etc).......................................................2-
● Functions of management & leadership…......................4- 5
● Data calculations..................................................................... 6
● Challenges & link to strategic objectives..........................7- 9
● Proposals & link to strategic objectives...........................9- 13
● Recommendations............................................................13- 15
● Charts (6)...........................................................................16- 18
● Updates................................................................…18-onwards
The purpose of this document is to provide lots of content you can use in the
January 2024 exam for the Saxon Fields case study, helping you achieve a
Distinction. All areas of Unit 6 are covered from leadership styles, functions of
management & leadership, motivational theory, appraisals, quality culture
etc. The comparison of before and after Nina shows how Saxon Fields was run
prior to Nina, what changes Nina implemented and how these changes impacted
Saxon Fields and its stakeholders (staff and customers). There is also a section on
data calculations , where the table presented in the case study has been used to
calculate rise/decline in certain metrics ( charts are also included for each piece of
data).
There are five challenges, five proposals and five recommendations explored in this
document, however you should only pick 2-3 so you can go into detail during the
exam and bring in enough theory , analysis and evaluation.
*Note: this document will be updated up until the exam, you will be
automatically emailed the updated version if you have purchased*
Brief overview: ● Overview of Saxon Fields ○ Family owned for over 50 years, well-established brand ○ Business goals: Top 10 UK attraction, increased customer satisfaction, higher profit ○ Chris retired and left Nina as Managing Director ● Workforce Structure and Characteristics ○ Seasonal operations affects staffing: 20% full-time (management & maintenance), 80% temporary (mostly students, under 25) ○ Previously provided on-site low cost accommodation, subsidy in staff canteen and many social activities ● Nina’s Changes ○ Outsourced training, reduced full-time contracts, introduced zero- hour contracts with lower pay ○ Sold on-site accommodation, removed staff canteen subsidies and social activities ○ Dissatisfaction rising , difficulty retaining staff and safety concerns It is clear that the management change from Chris to Nina has caused many issues. Was the change in management justified considering Steven and Sam have 25 years of experience whereas Nina has no relevant experience? The next section will compare how the company was run before and after Nina, so we can identify what changes happened (to leadership, motivation, staffing etc) that have caused the challenges that are negatively impacting the business goals. Before and After Nina: ● Before: Leadership style - Paternalistic ○ When Chris Smith was running Saxon Fields, the leadership style shared aspects of paternalistic , where the manager still makes all of the decisions but incentivises the staff to make them feel empowered. Staff were empowered through low cost accommodation, subsidies in the canteen and many social activities ○ This style has the benefit of high staff empowerment and satisfaction but is often slower in decision making ● After: Leadership style - Autocratic ○ It is clear that Nina is an Autocratic leader as she is the Managing Director, makes changes without consultation , patrols staff with checklists, a sign of micromanagement where staff are controlled and have no autonomy ○ On the leadership continuum she is furthest left at the ‘Tells’ stage ○ The benefit of the Autocratic style is quick decisions, however as Nina has no relevant experience, these decisions are ineffective and have led to major consequences (discussed in the next section) ○ Nina was ‘furious’ after Steven and Sam acted without her permission, this could suggest that they are in the ‘Storming’ phase of Tuckman’s model where conflicts start to arise ○ There is an imbalance in John Adair's Action Centred Leadership Model which suggests focus should be balanced between Achieving the Task, 2
○ The reduction in pay goes against Taylorism as he suggested that staff are motivated by money, so reducing wages will negatively impact staff productivity and satisfaction ○ There is no effort to meet the higher levels of Maslow’s Hierarchy of Needs ○ Herzberg's two factor theory suggested that the hygiene factor involved good working conditions and job security. As the working conditions are poor and there is low job security due to zero hour contracts, this factor is not met ○ Mayo’s Human Relations can be brought in here as he stated that employees are not only motivated by money, they are also motivated by social factors, such as social events, which Nina removed ○ Nina does not consult staff and micromanages them, likely making them feel stressed, overworked and ‘over-stretched’ ○ 2022-13 labour turnover of temporary staff was 67% and employee satisfaction was 32% , showing clear decline in comparison to the previous management and is the result of what is mentioned above Competitor theme park: ● Reward Structure ○ Staff are rewarded when they go above and beyond , this gives them an incentive to be more productive and provide customers with a better experience ● Quality circles, Kaizen (continuous improvement) ○ Staff are rewarded for putting forward ideas for improvement ○ Increased engagement, satisfaction and strong improvements ● Clear two-way communication between staff, customers ● Democratic leadership style ○ Staff have a good level of autonomy over their own work Functions of management: ● Planning ○ Low ○ Nina’s decision to make some full-time permanent staff redundant has led to temporary staff to become overworked trying to fill in the vacancies ● Organising, Coordinating ○ Low 4
○ Rides are frequently breaking down due to lack of staff and lack of maintenance procedures, showing that there is a lack of organising and coordinating staff and resources ● Controlling ○ Very high ○ Nina’s Autocratic management style means staff are controlled ● Delegating ○ High/Low ○ High delegation in the sense that Nina ‘passes-down’ tasks, and low delegation in the sense that they’re not meaningful or help staff to grow ● Monitoring ○ Very high ○ Nina constantly monitors staff by following them around with a checklist, scrutinising them ○ Can be argued to be low due to staff ignoring maintenance procedures and monitoring the state of the rides Functions of leadership: ● Inspiring, Energising ○ Very low ○ All initiatives to motivate staff such as low-cost accommodation, subsidies and social events have been removed. The Autocratic management style does not empower staff. ● Envisioning ○ Medium ○ The three strategic objectives shows that this function is present as they’re setting a vision for where they want the business to go ● Influencing stakeholders ○ N/A, case study does not mention stakeholders ● Determining the best path to success ○ Very low ○ The worsening ranking position, declining satisfaction, sales revenue and net profit indicate that this function of leadership is not shown as Nina’s decisions have pushed Saxon Fields into decline across all metrics
Challenges and link to strategic objectives:
1. Unsuitable management style a. Nina’s Autocratic management style paired with her lack of experience has caused catastrophic damage to the business b. Some of her autocratic decisions include: removing the accommodation, subsidies, activities, decreasing wages and reducing staff c. These changes have led to negative impacts on the welfare of staff with some reporting that they feel ‘under scrutiny’ and ‘over- stretched’ , seemingly creating a hostile working environment d. This could be the reason why labour turnover has increased from 40% in 2018-19 to 67% in 2022- e. This has massive repercussions for achieving the strategic objectives: i. Reduced motivation as under the autocratic style, staff do not feel valued and in the case study they are also overworked. This impacts all three of the strategic objectives as lower staff motivation will cause customer experience reducing satisfaction and lowers their rating causing even less customers to attend which reduces net profit. ii. Furthermore, the higher levels of labour turnover means that the business needs to spend more on recruiting staff to fill vacancies , this can be extremely expensive and further reduces net profit. 2. Lack of Motivation a. The lack of motivation is likely caused due to their being no effort to meet any levels of Maslow’s Hierarchy of Needs b. When Chris Smith managed Saxon Fields tiers: physiological, safety and social were met as staff were given low-cost accommodation, subsidies, meals, there was a good level of maintenance on rides and equipment and there were many social activities for staff to attend c. However, Nina has removed all of those, meaning that no levels of Maslow’s Hierarchy of Needs are met. The case study mentions that Nina has rejected proposals to improve working conditions, as the working conditions are poor with no prospect of improving, staff feel that they are not appreciated enough for their hard work. Herzberg’s two-factor theory can be discussed here, as the hygiene factor involves good working conditions d. Mayo’s Human Relations can be discussed as well, as Nina removed the social events and reduced staff involvement, so she is neglecting the ‘Social’ factor which Mayo argues is crucial for a motivated workforce e. This could explain why there is such low motivation and why employee satisfaction has decreased from 70% in 2018-19 to 32% in 2022-23. f. This point can also be extended to the decline of customer satisfaction, as lower levels of staff motivation means that staff are unable to provide customers with a fun experience , something that is critical for a tourist attraction g. The clear lack of motivation and motivational theory has a negative impact on all of the objectives i. As mentioned above low levels of motivation leads to a decline in customer experience, this could provide a reason why Saxon
Fields
result in their permanent closure, therefore this challenge needs to be critically addressed.
5. Unsuitable Workforce Structure a. Another challenge is the unsuitable workforce structure , where before Nina 20% of staff were on full-time permanent contracts (management and maintenance who were needed year round) and the other 80% were temporary staff (used for when the theme park was open). b. Nina reduced the number of full-time permanent staff i. Reducing the number of management and maintenance staff meant that temporary staff had to fill in the vacancies , they reported feeling ‘over-stretched’ and doing roles that they felt ‘unqualified’ for ii. This can be attributed to the rising faults and closures of rides to to lack of maintenance staff c. Nina switched all temporary staff to zero hour contracts i. This does have the advantage of higher flexibility, however the case study hints that the staff are upset with the decision. ii. Staff that are on zero hour contracts had a second job which they chose to do instead of working at the theme park, this could also be behind the staff shortages and closures iii. A major disadvantage to zero hour contracts is that labour turnover rises d. Impact on strategic objectives i. Negatively impacts objective 1 as the workforce structure has led to shortages of staff, staff feeling overworked and staff filling roles that they are unqualified for. This has caused rides to close and unhappy customers, negatively impacting the theme parks ranking as a tourist attraction ii. Customer satisfaction has halved from 2018-19 to 2022-23, which could be due to the workforce structure as the shortages and unqualified staff has caused poor experiences for customers iii. Negative impact to the increase profit objective as an unsuitable workforce structure causes higher costs , and as customers are less satisfied with their experience, visitor count will fall , reducing sales revenue and profit as a result **Corresponding proposals and link to strategic objectives:
- Democratic leadership style** a. The first proposal is to change the leadership style from Autocratic to Democratic , the benefits are; i. Staff feel more valued and empowered as they are involved in the decision making process ii. Decision will be more effective as Steven, Sam and other staff have more experience than Nina b. This also improves some of the functions of management and leadership as under a Democratic style there is higher levels of delegation, and envisioning as staff are involved in decision making
c. Democratic style moves management to the right side of the leadership continuum where staff ‘join’ the decision making process d. Rebalances John Adair’s Action Centred Leadership Model where before, Nina was too focused on Managing the Individual. A Democratic style will involve more Teamwork and staff are actively involved in Achieving the Task e. Impact on strategic objectives: i. The Democratic style will help more effective decisions to take place as more experienced staff (Steven, Sam etc) are involved. These more effective decisions can help the theme park become a top 10 tourist attraction. ii. As staff feel more empowered under the Democratic leadership style, they are inspired/energising (leadership functions) to provide customers with an exceptional experience which will help improve strategic objective two of increasing customer satisfaction
2. Initiatives to meet the high levels of Maslow’s Hierarchy of Needs a. Implement initiatives to meet the ‘social’ and ‘esteem’ tiers of Maslow’s Hierarchy of needs b. Meeting the social tier: i. They should bring back the social activities as staff reported that they enjoyed the activities. Gives staff the opportunity to develop strong relationships, feel loved , accepted and a sense of belonging c. Meeting the esteem tier: i. Implement a reward system using performance appraisals. One way this could be done is to use ‘Rating Scales’ where the appraiser ranks the appraisee on a scale of high to low. This is a fast appraisal method. If staff achieve a certain score/ranking they can be rewarded financially (Example: Amazon gift cards) or non- financially (Example: Written award). They should also implement a ‘Great Work’ award (as mentioned at the end of the case study) ii. The appraisal and Great Work award incentivises staff to go above and beyond their expectations to provide customers with an outstanding experience. Also reduces absenteeism iii. This also relates to Mgregor’s Y Theory as it empowers staff to ‘enjoy’ working d. Impact on strategic objectives: i. Objective 1 and 2 will improve because a more motivated workforce means staff will provide a better experience to customers which will lead to higher customer satisfaction and better ranking as a tourist attraction ii. High levels of staff motivation can increase profit in three-ways:
- Staff become more productive as they are incentivised to work hard, this means that productivity per hour rises and cost decreases
- High levels of motivation reduces labour turnover as staff have a good working experience (are satisfied ) and so recruitment costs fall 10
i. Staff currently ignoring procedures and maintenance ii. To reduce faults and ride closures iii. Provide customers with a safer and better experience iv. Meet the guidelines set by industry standards agencies such as Amusement Device Inspection Protection Scheme (ADIPS) c. Implement quality circles i. Quality circles are regular management and staff meetings aimed to address any concerns and put forward ideas for improvement ii. This is particularly efficient because staff interact with the theme park equipment as part of their job and can provide effective insights and improvements that the management of Saxon Fields can implement iii. Similar to a focus group, discussions are held and solutions are investigated d. Work with standards agencies i. Standards agencies (such as ADIPS ) provide professional advice , run yearly inspections on equipment and award businesses if they meet the requirements (such as a Kitemark , representing quality & safety verified) e. Implementing quality circles and working with standards agencies will help Saxon Fields to transform their current quality culture featuring inexperience and avoiding inspections/maintenance to a quality culture where staff are empowered to suggest improvements and are guided by professional standards agencies f. Impact on strategic objectives: i. Helps Saxon Fields become a top 10 tourist attraction in the UK as their safety score will improve ii. Customer satisfaction will increase because a strong quality culture means that there are less closures and customers feel safer due to recognising safety marks such as Kitemarks iii. Although costs will rise in some areas as implementing the quality circles, routine and thorough inspections and working with professional standards agencies can be costly , costs in other areas such as significant maintenance and revenue loss due to facility closures are reduced. As a result, developing a quality culture will positively impact the increase profit objective in the long-term
5. Upskill staff, on-site training and remove zero hour contracts a. Upskilling is a form of training that focuses on teaching staff new skills and enhancing their current skills. This is a proposal because the case study mentions that some staff feel ‘unqualified’ , and so upskilling, will give them the skills and confidence needed to complete the job role efficiently b. Upskilling can also improve the lack of motivation and increase employee satisfaction (which has declined from 2018-19) as staff feel that the business wants to invest in their career progression , success and empowerment c. Nina outsourced the training ( external ), which does have the benefit of no consequences of mistakes during training (as staff are trained elsewhere), but the main drawback is that staff are trained in a different environment which may not accurately reflect how Saxon Fields operates. Therefore, on- site
iii. Could consult Chris Smith (former owner) about the changes as this change will likely cause conflict between Nina and Steven & Sam
- Steven and Sam should implement most aspects of proposal two, because it is centred around human resources a. Appraisal system will be designed by Steven and Sam as they are the functional managers of the HR department b. Staff should be involved in creating social activities to help meet the ‘social’ tier of Maslow’s Hierarchy of Needs. This will be particularly effective as the staff can decide on activities that interest them the most c. Another recommendation here is to also increase the wage to match what is was before Nina cut it
- Six sigma should be implemented by Nina a. Nina has a university degree in business and experience in other industries, so she likely has more technical knowledge compared to Steven and Sam. On top of this, Nina strongly demonstrates ‘controlling’ and ‘monitoring’ functions of management which are key aspects of six sigma b. There also needs to be ‘managerial commitment and staff buy-in’, meaning that managers are responsible for setting the quality standards, are committed to uphold them and communicate & reassure staff about the changes to ensure that they understand & follow the new procedures
- This links to Learning Aim F (developing a quality culture) a. ‘Transparent and open communication’ is needed for developing a quality culture. For instance, staff need to understand the importance of proper maintenance and routine inspection b. Contingency leadership is also needed where there are procedures and standard protocols to prevent or resolve problems. This will help management and staff to follow clearly laid out rules , helping to prevent/reduce closures c. Steven and Sam should be responsible for developing a quality culture i. Quality circles will be implemented by Steven and Sam as they are HR managers. The case study mentions that they held a meeting with staff to find out how they feel about Nina’s changes; demonstrating that Steven & Sam have the knowledge and resources to hold regular meetings with open discussion (which is crucial for quality circles) ii. Responsible for ‘staff buy-in’ , for the proposal to be successful, staff must actively be engaged in working towards a quality culture which can only be done if management (Steven & Sam) ‘sell’ them the changes
- Recommendations for each part of the fifth proposal: Upskilling, on-site training and removal of zero hour contracts a. Upskilling i. Steven and Sam will be responsible for upskilling, as HR managers they have the knowledge, experience and resources to do so. Effective human resource planning is needed here to ensure that staff are not ‘under-skilled’ or ‘over-skilled’ post training (e.g. what skills need to be enhance and how) b. On-site training 14
i. Steven and Sam will be responsible for implementing this and staff with strong experience will be responsible for shadowing staff who need training c. Remove zero hour contracts i. As Nina implemented the zero hour contracts she should be responsible for reverting back to the temporary contracts
- Effective two-way communication with management and staff is needed to ensure that they understand the changes to their contract and work duties/expectations ii. Another recommendation here is to also increase the wage to match what is was before Nina cut it Summary table of challenges and the corresponding proposals and recommendations: Challenges Proposals Recommendations Unsuitable management style Democratic leadership style Two-way communication Functions of management & leadership Steven and Sam, potential involvement from Chris Smith Lack of motivation Initiatives to meet the higher levels of Maslow’s Hierarchy of Needs Steven and Sam Declining sales revenue and profit Six sigma (DMAIC) to reduce closures Two-way communication Nina Poor quality culture Kaizen and developing a quality culture Staff buy-in Steven and Sam Unsuitable workforce structure Upskill staff, on-site training and remove zero hour contracts Steven, Sam, Nina and experienced staff
