1.1 Social Environment of a Globalising Organisation (2 marks)
The social environment of a globalising organisation refers to the cultural and social factors that
influence how the organisation operates in different countries. This includes the values, beliefs,
customs, and behaviours of people in those societies. For example, in some cultures, teamwork is
highly valued, while in others, individual achievement may be prioritized. Understanding these
social dynamics is crucial for businesses as they expand globally, ensuring they respect local
customs and effectively engage with their customers and employees.
1.2 Difference Between Prevention, Appraisal, and Failure Costs (3 marks)
Prevention costs are expenses incurred to prevent defects in products or services before they
occur. This includes things like training employees, improving processes, and investing in
quality materials. Appraisal costs are related to evaluating and inspecting products to ensure they
meet quality standards. This could involve quality audits and testing. Finally, failure costs arise
when products or services fail to meet quality standards, leading to rework, returns, or warranty
claims. Essentially, prevention is about avoiding issues, appraisal is about checking quality, and
failure is the cost of problems that occur.
1.3 Forms of Power in Leadership (5 marks)
For effective leadership, power must be shared with followers. There are several forms of power
in this context:
1. Legitimate Power: This comes from a person’s position within the organization. People
comply because they recognize their authority.
2. Reward Power: Leaders can influence followers by offering rewards or incentives for
desired behaviour or performance.
3. Coercive Power: This is based on the ability to punish or sanction followers if they do
not comply with directives or expectations.
4. Expert Power: This arises from a leader's expertise or skills. Followers are likely to trust
and follow someone who is knowledgeable in their field.
5. Referent Power: This is based on the personal traits and respect the leader commands.
Followers admire and identify with the leader, leading to influence through charisma and
relationships.
1.4 Conditions of a Guarantee (5 marks)
A guarantee is essential for building customer confidence and protecting their rights. Here are
the key conditions it should meet:
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