Day: May 28, 2023

Alex Motors has a system of consultation where managers encourage employees to be involved by challenging procedures and suggesting improvements.

Consultation is most likely to lead to a long-term increase in…..?

Select ONE answer:

1. the span of control
2. labour turnover
3. employee productivity
4. supervision by managers

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct – because the span of control will be unaffected because consultation is concerned with employee views rather than the number of workers responsible to a manager.
2. Not correct – because labour turnover is likely to decrease as employees feel valued and will be less likely to leave.
3. Correct – Definition of consultation e.g. discussions with employees about working methods/non-financial technique to improve staff performance. Employees may therefore feel more motivated. This results in an increase in employee productivity because their views are listened to.
4. Not correct – because supervision is likely to be reduced because employees are more motivated to work independently.

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