IB · BM SL

Business Management SL

Human resource management — Unit 2

Name: ____________________Date: October 2, 2026

1.
A manufacturing company had an average of 200 employees over the past year, of whom 20 left the company during the year. (a) Calculate the labor turnover rate. (b) Suggest one possible cost to the company of a high labor turnover rate.
[3 marks]
Marking points
- Uses the formula: labor turnover rate = (number of staff leaving / average number of staff) × 100.
- Substitutes to obtain (20/200) × 100 = 10%.
- Suggests a valid cost, such as recruitment and training costs for replacement staff, lost productivity while positions are vacant or new staff are learning, or loss of experienced staff knowledge.
Examiner tip: A labor turnover rate is always expressed as a percentage of the average workforce size over the period, not the total number who ever worked there during the year.
2.
Marking analysis: A learner attempts the following task: “A manufacturing company had an average of 200 employees over the past year, of whom 20 left the company during the year. (a) Calculate the labor turnover rate. (b) Suggest one possible cost to the company of a high labor turnover rate.” Their response addresses only this point: “Uses the formula: labor turnover rate = (number of staff leaving / average number of staff) × 100.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks]
Marking points
- Recognises credit for the stated point: Uses the formula: labor turnover rate = (number of staff leaving / average number of staff) × 100.
- Identifies the missing requirement: Substitutes to obtain (20/200) × 100 = 10%.
- Identifies the missing requirement: Suggests a valid cost, such as recruitment and training costs for replacement staff, lost productivity while positions are vacant or new staff are learning, or loss of experienced staff knowledge.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
3.
A factory produced 5,000 units last month using 50 employees. (a) Calculate the labor productivity per employee. (b) State one method the factory could use to increase labor productivity.
[3 marks]
Marking points
- Uses the formula: labor productivity = total output / number of employees.
- Substitutes to obtain 5,000/50 = 100 units per employee.
- States a valid method, such as additional staff training, improved equipment or technology, or performance-related incentive schemes.
Examiner tip: Labor productivity measures output per worker, which is distinct from labor turnover (the rate of staff leaving) — do not confuse the two formulas.
4.
Marking analysis: A learner attempts the following task: “A factory produced 5,000 units last month using 50 employees. (a) Calculate the labor productivity per employee. (b) State one method the factory could use to increase labor productivity.” Their response addresses only this point: “Uses the formula: labor productivity = total output / number of employees.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks]
Marking points
- Recognises credit for the stated point: Uses the formula: labor productivity = total output / number of employees.
- Identifies the missing requirement: Substitutes to obtain 5,000/50 = 100 units per employee.
- Identifies the missing requirement: States a valid method, such as additional staff training, improved equipment or technology, or performance-related incentive schemes.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
5.
Explain, using Maslow's hierarchy of needs, why offering only a pay rise may fail to motivate an employee whose main concern at work is feeling socially isolated from colleagues.
[3 marks] · no calculator
Marking points
- States that Maslow's hierarchy proposes that needs must generally be satisfied in order, from the most basic (physiological, safety) up to social, esteem, and self-actualization needs.
- Explains that a pay rise mainly addresses lower-level needs (physiological/safety, through greater financial security) rather than the social need for belonging and positive relationships with colleagues.
- Concludes that if the employee's unmet need is specifically social, a pay rise alone is unlikely to resolve the underlying cause of their dissatisfaction or lack of motivation.
Examiner tip: Maslow's theory predicts that money only motivates effectively when it addresses the specific level of need that is currently unsatisfied — always match the proposed motivator to the need described in the scenario.
6.
Marking analysis: A learner attempts the following task: “Explain, using Maslow's hierarchy of needs, why offering only a pay rise may fail to motivate an employee whose main concern at work is feeling socially isolated from colleagues.” Their response addresses only this point: “States that Maslow's hierarchy proposes that needs must generally be satisfied in order, from the most basic (physiological, safety) up to social, esteem, and self-actualization needs.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator
Marking points
- Recognises credit for the stated point: States that Maslow's hierarchy proposes that needs must generally be satisfied in order, from the most basic (physiological, safety) up to social, esteem, and self-actualization needs.
- Identifies the missing requirement: Explains that a pay rise mainly addresses lower-level needs (physiological/safety, through greater financial security) rather than the social need for belonging and positive relationships with colleagues.
- Identifies the missing requirement: Concludes that if the employee's unmet need is specifically social, a pay rise alone is unlikely to resolve the underlying cause of their dissatisfaction or lack of motivation.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
7.
Distinguish between Herzberg's 'hygiene factors' and 'motivators', giving one example of each.
[4 marks] · no calculator
Marking points
- Defines hygiene factors as aspects of a job that do not motivate employees when present, but cause dissatisfaction when absent or inadequate.
- Gives a valid example of a hygiene factor, such as salary, working conditions, company policy, or job security.
- Defines motivators as aspects of a job that actively increase job satisfaction and motivation when present.
- Gives a valid example of a motivator, such as recognition, responsibility, achievement, or opportunities for advancement.
Examiner tip: A common error is treating hygiene factors as equivalent to 'demotivators' — they do not actively motivate even when generous, they only prevent dissatisfaction when adequate.
8.
Marking analysis: A learner attempts the following task: “Distinguish between Herzberg's 'hygiene factors' and 'motivators', giving one example of each.” Their response addresses only this point: “Defines hygiene factors as aspects of a job that do not motivate employees when present, but cause dissatisfaction when absent or inadequate.” Evaluate the response against the complete 4-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[4 marks] · no calculator
Marking points
- Recognises credit for the stated point: Defines hygiene factors as aspects of a job that do not motivate employees when present, but cause dissatisfaction when absent or inadequate.
- Identifies the missing requirement: Gives a valid example of a hygiene factor, such as salary, working conditions, company policy, or job security.
- Identifies the missing requirement: Defines motivators as aspects of a job that actively increase job satisfaction and motivation when present.
- Identifies the missing requirement: Gives a valid example of a motivator, such as recognition, responsibility, achievement, or opportunities for advancement.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
9.
A company has 4 layers of hierarchy and a total of 81 employees at the bottom level, each reporting up through the structure. If each manager at every level supervises exactly 3 subordinates, state the term for this '3 subordinates per manager' ratio, and explain one advantage of having a narrow span of control like this.
[2 marks] · no calculator
Marking points
- States the term as 'span of control'.
- Explains a valid advantage of a narrow span of control, such as managers being able to supervise and support each subordinate more closely, or clearer communication and tighter control over each employee's work.
Examiner tip: A narrow span of control generally means more layers of hierarchy are needed to manage the same total workforce, which is the key trade-off against a wide span of control's flatter structure.
10.
Marking analysis: A learner attempts the following task: “A company has 4 layers of hierarchy and a total of 81 employees at the bottom level, each reporting up through the structure. If each manager at every level supervises exactly 3 subordinates, state the term for this '3 subordinates per manager' ratio, and explain one advantage of having a narrow span of control like this.” Their response addresses only this point: “States the term as 'span of control'.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator
Marking points
- Recognises credit for the stated point: States the term as 'span of control'.
- Identifies the missing requirement: Explains a valid advantage of a narrow span of control, such as managers being able to supervise and support each subordinate more closely, or clearer communication and tighter control over each employee's work.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
11.
Explain one advantage and one disadvantage of a company recruiting a new manager internally (promoting an existing employee) rather than externally (hiring from outside the company).
[2 marks] · no calculator
Marking points
- Explains a valid advantage of internal recruitment, such as the candidate already being familiar with the company's culture and processes, lower recruitment cost, or the promotion itself motivating other staff by demonstrating career progression is possible.
- Explains a valid disadvantage, such as a narrower pool of candidates and skills to choose from, the risk of internal conflict or jealousy among colleagues passed over for the role, or missing out on fresh ideas and perspectives that an external hire could bring.
Examiner tip: Internal and external recruitment trade off familiarity and cost against breadth of talent and fresh perspective — a strong answer links the chosen advantage/disadvantage directly to this core trade-off.
12.
Marking analysis: A learner attempts the following task: “Explain one advantage and one disadvantage of a company recruiting a new manager internally (promoting an existing employee) rather than externally (hiring from outside the company).” Their response addresses only this point: “Explains a valid advantage of internal recruitment, such as the candidate already being familiar with the company's culture and processes, lower recruitment cost, or the promotion itself motivating other staff by demonstrating career progression is possible.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator
Marking points
- Recognises credit for the stated point: Explains a valid advantage of internal recruitment, such as the candidate already being familiar with the company's culture and processes, lower recruitment cost, or the promotion itself motivating other staff by demonstrating career progression is possible.
- Identifies the missing requirement: Explains a valid disadvantage, such as a narrower pool of candidates and skills to choose from, the risk of internal conflict or jealousy among colleagues passed over for the role, or missing out on fresh ideas and perspectives that an external hire could bring.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
13.
Distinguish between an autocratic leadership style and a democratic leadership style, and suggest one situation in which an autocratic style might be more appropriate than a democratic one.
[3 marks] · no calculator
Marking points
- Defines an autocratic leader as one who makes decisions alone, with little or no consultation of employees.
- Defines a democratic leader as one who consults employees and involves them in the decision-making process before reaching a final decision.
- Suggests a valid situation favouring an autocratic style, such as an emergency or crisis requiring an immediate decision, or managing a large team of low-skilled, inexperienced workers who need clear direction.
Examiner tip: No single leadership style is universally best — the most effective style depends on the situation, the urgency of the decision, and the skill/experience level of the employees involved.
14.
Marking analysis: A learner attempts the following task: “Distinguish between an autocratic leadership style and a democratic leadership style, and suggest one situation in which an autocratic style might be more appropriate than a democratic one.” Their response addresses only this point: “Defines an autocratic leader as one who makes decisions alone, with little or no consultation of employees.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator
Marking points
- Recognises credit for the stated point: Defines an autocratic leader as one who makes decisions alone, with little or no consultation of employees.
- Identifies the missing requirement: Defines a democratic leader as one who consults employees and involves them in the decision-making process before reaching a final decision.
- Identifies the missing requirement: Suggests a valid situation favouring an autocratic style, such as an emergency or crisis requiring an immediate decision, or managing a large team of low-skilled, inexperienced workers who need clear direction.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
15.
Explain how job enrichment differs from job enlargement as a method of motivating employees through job design.
[2 marks] · no calculator
Marking points
- Explains job enlargement as giving an employee a greater number or variety of tasks at the same level of skill and responsibility (a 'horizontal' expansion of the role).
- Explains job enrichment as giving an employee greater responsibility, autonomy, or decision-making authority within their role (a 'vertical' expansion involving more challenging, meaningful work).
Examiner tip: Job enlargement can sometimes feel like 'more of the same work' to an employee and may not motivate on its own, while job enrichment specifically targets higher-level motivators such as responsibility and achievement.
16.
Marking analysis: A learner attempts the following task: “Explain how job enrichment differs from job enlargement as a method of motivating employees through job design.” Their response addresses only this point: “Explains job enlargement as giving an employee a greater number or variety of tasks at the same level of skill and responsibility (a 'horizontal' expansion of the role).” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator
Marking points
- Recognises credit for the stated point: Explains job enlargement as giving an employee a greater number or variety of tasks at the same level of skill and responsibility (a 'horizontal' expansion of the role).
- Identifies the missing requirement: Explains job enrichment as giving an employee greater responsibility, autonomy, or decision-making authority within their role (a 'vertical' expansion involving more challenging, meaningful work).
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
17.
A company is planning to make 30 out of its 150 employees redundant due to falling demand. Explain one financial cost and one non-financial (human) cost of this redundancy process for the company.
[2 marks] · no calculator
Marking points
- Explains a valid financial cost, such as redundancy payments owed to departing employees, or potential legal costs if the redundancy process is challenged.
- Explains a valid non-financial cost, such as reduced morale and motivation among remaining employees (survivor syndrome), damage to the company's reputation as an employer, or loss of valuable skills and experience.
Examiner tip: 'Survivor syndrome' (anxiety, guilt, and reduced morale among employees who keep their jobs after colleagues are made redundant) is a frequently tested non-financial cost that is easy to overlook.
18.
Marking analysis: A learner attempts the following task: “A company is planning to make 30 out of its 150 employees redundant due to falling demand. Explain one financial cost and one non-financial (human) cost of this redundancy process for the company.” Their response addresses only this point: “Explains a valid financial cost, such as redundancy payments owed to departing employees, or potential legal costs if the redundancy process is challenged.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator
Marking points
- Recognises credit for the stated point: Explains a valid financial cost, such as redundancy payments owed to departing employees, or potential legal costs if the redundancy process is challenged.
- Identifies the missing requirement: Explains a valid non-financial cost, such as reduced morale and motivation among remaining employees (survivor syndrome), damage to the company's reputation as an employer, or loss of valuable skills and experience.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
19.
Explain how effective training can benefit both the employee and the employer.
[2 marks] · no calculator
Marking points
- Explains a benefit to the employee, such as improved skills and confidence, increased job satisfaction, or better prospects for career progression and higher future earnings.
- Explains a benefit to the employer, such as higher labor productivity, improved product/service quality, reduced errors or accidents, or greater staff loyalty and lower labor turnover.
Examiner tip: Linking training to a measurable employer benefit, such as labor productivity or turnover, makes for a stronger exam answer than a vague claim that training 'improves the business'.
20.
Marking analysis: A learner attempts the following task: “Explain how effective training can benefit both the employee and the employer.” Their response addresses only this point: “Explains a benefit to the employee, such as improved skills and confidence, increased job satisfaction, or better prospects for career progression and higher future earnings.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator
Marking points
- Recognises credit for the stated point: Explains a benefit to the employee, such as improved skills and confidence, increased job satisfaction, or better prospects for career progression and higher future earnings.
- Identifies the missing requirement: Explains a benefit to the employer, such as higher labor productivity, improved product/service quality, reduced errors or accidents, or greater staff loyalty and lower labor turnover.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
21.
Explain why a trade union might negotiate on behalf of employees for better pay or working conditions, and state one potential drawback for a company of having a highly unionized workforce.
[2 marks] · no calculator
Marking points
- Explains that individual employees often have little bargaining power alone, while a trade union represents many employees collectively, giving it greater negotiating strength ('collective bargaining') with the employer.
- States a valid drawback for the company, such as higher labor costs if negotiations succeed, the risk of strikes or industrial action disrupting production, or reduced management flexibility in decision-making.
Examiner tip: Collective bargaining power is the central concept here: a union's influence comes from representing many workers together, not from any single worker's individual negotiating skill.
22.
Marking analysis: A learner attempts the following task: “Explain why a trade union might negotiate on behalf of employees for better pay or working conditions, and state one potential drawback for a company of having a highly unionized workforce.” Their response addresses only this point: “Explains that individual employees often have little bargaining power alone, while a trade union represents many employees collectively, giving it greater negotiating strength ('collective bargaining') with the employer.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator
Marking points
- Recognises credit for the stated point: Explains that individual employees often have little bargaining power alone, while a trade union represents many employees collectively, giving it greater negotiating strength ('collective bargaining') with the employer.
- Identifies the missing requirement: States a valid drawback for the company, such as higher labor costs if negotiations succeed, the risk of strikes or industrial action disrupting production, or reduced management flexibility in decision-making.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
23.
Distinguish between a piece-rate pay system and a salary, and explain one disadvantage of piece-rate pay for a business that values quality.
[3 marks] · no calculator
Marking points
- States that piece-rate pay rewards workers per unit produced, so earnings rise directly with output.
- States that a salary is a fixed payment per period regardless of output.
- Explains that piece-rate pay can encourage workers to rush, lowering product quality and increasing waste or rework costs.
Examiner tip: Link the pay method to the behaviour it encourages: piece rate rewards speed, which can conflict with quality.
24.
Marking analysis: A learner attempts the following task: “Distinguish between a piece-rate pay system and a salary, and explain one disadvantage of piece-rate pay for a business that values quality.” Their response addresses only this point: “States that piece-rate pay rewards workers per unit produced, so earnings rise directly with output.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator
Marking points
- Recognises credit for the stated point: States that piece-rate pay rewards workers per unit produced, so earnings rise directly with output.
- Identifies the missing requirement: States that a salary is a fixed payment per period regardless of output.
- Identifies the missing requirement: Explains that piece-rate pay can encourage workers to rush, lowering product quality and increasing waste or rework costs.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
25.
A firm has 50 employees who each should work 250 days a year. Employees were absent for a total of 300 days last year. (a) Calculate the absenteeism rate. (b) Suggest one way the firm could reduce absenteeism.
[3 marks]
Marking points
- Uses absenteeism rate = days absent / total working days available × 100.
- Calculates total working days as 50 × 250 = 12,500, so the rate is 300/12,500 × 100 = 2.4%.
- Suggests a valid method, such as flexible working, attendance bonuses or addressing low morale through job enrichment.
Examiner tip: The denominator is total available working days across all staff, not the number of employees.
26.
Marking analysis: A learner attempts the following task: “A firm has 50 employees who each should work 250 days a year. Employees were absent for a total of 300 days last year. (a) Calculate the absenteeism rate. (b) Suggest one way the firm could reduce absenteeism.” Their response addresses only this point: “Uses absenteeism rate = days absent / total working days available × 100.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks]
Marking points
- Recognises credit for the stated point: Uses absenteeism rate = days absent / total working days available × 100.
- Identifies the missing requirement: Calculates total working days as 50 × 250 = 12,500, so the rate is 300/12,500 × 100 = 2.4%.
- Identifies the missing requirement: Suggests a valid method, such as flexible working, attendance bonuses or addressing low morale through job enrichment.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
27.
Distinguish between on-the-job training and off-the-job training, and state one advantage of each.
[2 marks] · no calculator
Marking points
- States that on-the-job training takes place in the normal workplace while doing the actual job, with an advantage such as low cost and immediate relevance.
- States that off-the-job training takes place away from the workplace (e.g. courses or workshops), with an advantage such as access to specialist expertise and new ideas.
Examiner tip: The key contrast is location and relevance: on-the-job is cheap and practical, off-the-job is broader but costs time and money.
28.
Marking analysis: A learner attempts the following task: “Distinguish between on-the-job training and off-the-job training, and state one advantage of each.” Their response addresses only this point: “States that on-the-job training takes place in the normal workplace while doing the actual job, with an advantage such as low cost and immediate relevance.” Evaluate the response against the complete 2-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[2 marks] · no calculator
Marking points
- Recognises credit for the stated point: States that on-the-job training takes place in the normal workplace while doing the actual job, with an advantage such as low cost and immediate relevance.
- Identifies the missing requirement: States that off-the-job training takes place away from the workplace (e.g. courses or workshops), with an advantage such as access to specialist expertise and new ideas.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.
29.
Distinguish between a centralized and a decentralized organizational structure, and explain one advantage of decentralization.
[3 marks] · no calculator
Marking points
- States that in a centralized structure decision-making authority is held by senior managers at the top.
- States that in a decentralized structure decision-making is delegated to lower levels or local managers.
- Explains an advantage of decentralization, such as faster, better-informed decisions by managers close to customers, and greater motivation through empowerment.
Examiner tip: Delegation is the key idea: decentralization pushes decisions down the hierarchy, trading control for speed and motivation.
30.
Marking analysis: A learner attempts the following task: “Distinguish between a centralized and a decentralized organizational structure, and explain one advantage of decentralization.” Their response addresses only this point: “States that in a centralized structure decision-making authority is held by senior managers at the top.” Evaluate the response against the complete 3-mark task. Identify what earns credit and state every additional requirement needed for full marks.
[3 marks] · no calculator
Marking points
- Recognises credit for the stated point: States that in a centralized structure decision-making authority is held by senior managers at the top.
- Identifies the missing requirement: States that in a decentralized structure decision-making is delegated to lower levels or local managers.
- Identifies the missing requirement: Explains an advantage of decentralization, such as faster, better-informed decisions by managers close to customers, and greater motivation through empowerment.
Examiner tip: Treat each marking point as a separate requirement. Do not award the same idea twice, and do not infer work the learner did not show.