Part A

Person Specification (7 marks)

The person specification plays a key role in the recruitment process as it outlines the qualifications, experience, and skills needed for the job. It allows the HR department to define the ideal candidate and write an accurate job advertisement. By providing specific criteria, such as academic qualifications, leadership ability, or retail management experience, the process becomes fair and unbiased. This ensures only those who meet the requirements are shortlisted. For example, an Area Manager would need detailed knowledge of the retail trade, the ability to meet deadlines, and at least three years' experience in a leadership role. This helps the business attract the most suitable candidates for the position.

Job Description (7 marks)

The job description is directly related to the role itself and provides potential candidates with a clear understanding of the job. It includes details such as the main duties and responsibilities, the job title, salary, and who the Area Manager will report to. It also highlights the targets and expectations for the role. By providing this information, it helps candidates assess whether the job suits their skills and career goals. Additionally, the job description forms the basis of the interview questions, ensuring candidates understand what is expected of them if hired. For instance, an Area Manager would need to oversee store operations, manage staff performance, and ensure sales targets are met.

Panel Interview (6 marks)

A panel interview is a key part of the selection process as it involves several interviewers assessing the candidate together. This reduces the likelihood of personal bias and ensures a fair evaluation of each candidate. Panel interviews also allow different perspectives to be considered, ensuring the best candidate is chosen. For example, for an Area Manager role, the panel may include senior management who assess leadership and communication skills, and HR representatives who evaluate the candidate's fit with the company culture. This approach ensures that the selected candidate is the best fit for the organisation.

Part B

One appropriate leadership style for a manager in a retail outlet is democratic leadership. This style involves;

1. Sharing decision-making with employees.
2. Listening to their views.
3. Keeping them informed.

It fosters a sense of belonging and trust between managers and staff.

Democratic leadership works well in a retail setting because it allows managers to delegate tasks like stocking shelves or handling customer issues. This frees up their time for more important tasks and reduces stress, leading to better decisions.

By involving employees in decisions, democratic leadership encourages teamwork and innovation. When staff are given responsibility, such as resolving customer queries, they feel motivated and loyal to the business, improving morale and performance.

Democratic leadership is effective in retail as it improves staff satisfaction, decision-making, and business outcomes through collaboration and trust.

Part C

Step 1: Determine Ben's Taxable Income

• Gross Salary = €55,000
• Holiday Voucher = €5,000 (treated as income for tax purposes)

Taxable Income = €55,000 + €5,000 = €60,000 (2 marks awarded here for correctly calculating taxable income.)

Step 2: Calculate PAYE

PAYE rates:

• 20% on the first €34,550
• 40% on the remaining income

1. First €34,550 taxed at 20%: €34,550 × 0.20 = €6,910

2. Remaining balance (€60,000 - €34,550 = €25,450) taxed at 40%: €25,450 × 0.40 = €10,180

3. Total PAYE before credits: €6,910 + €10,180 = €17,090

Next, subtract Ben's tax credits:

• Single Person Tax Credit = €1,650
• PAYE Tax Credit = €1,650
• Dependent Relative Tax Credit = €70

Total Tax Credits = €1,650 + €1,650 + €70 = €3,370

Final PAYE payable: €17,090 - €3,370 = €13,720

(8 marks awarded for correctly calculating PAYE.)

Step 3: Calculate Universal Social Charge (USC)

USC rates:

• 0.5% on the first €12,012
• 2% on the next €7,360
• 4.75% on the remaining balance (€60,000 - €12,012 - €7,360)

1. 0.5% on €12,012: €12,012 × 0.005 = €60.06

2. 2% on €7,360: €7,360 × 0.02 = €147.20

3. 4.75% on remaining balance (€60,000 - €12,012 - €7,360 = €40,628): €40,628 × 0.0475 = €1,929.83

4. Total USC: €60.06 + €147.20 + €1,929.83 = €2,137.09

(7 marks awarded for correctly calculating USC.)

Step 4: Calculate PRSI

PRSI rate:

• 4% of gross income (€60,000)

1. PRSI: €60,000 × 0.04 = €2,400

(1 mark awarded for correctly calculating PRSI.)

Step 5: Calculate Net Annual Take-Home Pay

Net Pay = Gross Income - PAYE - USC - PRSI

1. Gross Income: €60,000
2. PAYE: €13,720
3. USC: €2,137.09
4. PRSI: €2,400

Net Annual Take-Home Pay = €60,000 - €13,720 - €2,137.09 - €2,400 = €36,742.91

(2 marks awarded for correctly calculating net pay.)

Final Answer:

1. PAYE: €13,720
2. USC: €2,137.09
3. PRSI: €2,400
4. Net Annual Take-Home Pay: €36,742.91