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IB Business Management: Unit 2 · Human resource management

Workforce planning, structure, leadership, motivation, culture. 7 subtopics, 35 key terms.

In this topic: 2.1 · 2.2 · 2.3 · 2.4 · 2.5 · 2.6 · 2.7

2.1Introduction to human resource management

Key terms

Human resource planning

Forecasting the number and type of employees needed, now and in future.

Labour turnover

The % of staff who leave in a period.

Recruitment

Attracting and selecting suitable applicants.

Induction / on-the-job / off-the-job training

Introducing new staff / learning while working / learning away from the workplace.

Appraisal

Formal assessment of an employee's performance.

Gig economy

Work done as short-term tasks or freelance “gigs”, often via apps.

Factors affecting HR planning: demographic change, migration and labour mobility, flexible work patterns (part-time, teleworking, gig work), technology, competitors' pay.

The full notes, worked example and check questions for this subtopic are in the app.

Exam tip: Interpret every number you calculate: say whether it is high or low and what it means for the business.

2.2Organisational structure

Key terms

Hierarchy

The levels of authority in an organisation.

Span of control

The number of subordinates directly managed by one person.

Chain of command

The line of authority from the top to the bottom.

Delegation

Passing authority to a subordinate to carry out a task.

Delayering

Removing layers of management, giving a flatter structure.

Centralisation / decentralisation

Decisions made at the top / spread down the hierarchy.

Tall structure: many levels, narrow spans of control; close supervision but slow communication. Flat structure: few levels, wide spans; faster communication and more empowerment, but managers can be overloaded.

The full notes, worked example and check questions for this subtopic are in the app.

Exam tip: Link the structure to the business's situation: a creative tech start-up and a nuclear power station need very different structures.

2.3Leadership and management

Key terms

Management

Planning, organising, coordinating and controlling resources to meet objectives.

Leadership

Influencing and inspiring people towards a goal.

Autocratic

The leader makes decisions alone and gives orders.

Democratic

Employees are involved in decision-making.

Laissez-faire

Staff are given freedom to make their own decisions.

Situational leadership

The style changes to fit the task and the people.

Managers focus on systems, plans and control; leaders focus on vision, people and change. Good managers can lead and good leaders can manage.

The full notes, worked example and check questions for this subtopic are in the app.

Exam tip: There is no “best” style. Top answers explain why a style fits this business, these workers and this situation.

2.4Motivation and demotivation

Key terms

Motivation

The desire to do a job well and achieve goals.

Taylor (scientific management)

Workers are motivated by money; pay by output (piece rate).

Maslow

Hierarchy of needs: physiological, safety, social, esteem, self-actualisation.

Herzberg

Hygiene factors (pay, conditions) prevent dissatisfaction; motivators (achievement, recognition, responsibility) create satisfaction.

Job enrichment

Giving more challenging, responsible work.

Financial rewards: salary, wages (time rate or piece rate), commission, profit-related pay, performance-related pay (PRP), employee share ownership, fringe payments (perks).

The full notes, worked example and check questions for this subtopic are in the app.

Exam tip: Apply a theory to the case, then evaluate it (e.g. Maslow's hierarchy may not apply the same way in every culture).

2.5Organisational (corporate) culture HL

Key terms

Organisational culture

The shared values, beliefs and norms that shape “how things are done here”.

Elements of culture

Symbols, rituals, stories, routines, power structures, control systems.

Culture clash

Conflict when two different cultures meet, e.g. after a merger.

Hofstede's dimensions

Toolkit model comparing national cultures (power distance, individualism, uncertainty avoidance, etc.).

Culture affects motivation, decision-making, attitude to risk and how change is received.

The full notes, worked example and check questions for this subtopic are in the app.

Exam tip: Culture is invisible but has visible effects: give concrete evidence from the case (dress code, meetings, rules).

2.6Communication

Key terms

Formal communication

Through official channels (reports, meetings, emails from management).

Informal communication

Unofficial channels: conversations, the “grapevine”.

Barriers to communication

Anything that stops a message being received and understood.

Methods: verbal, written, visual, non-verbal; face-to-face or digital (email, intranet, video calls, messaging apps).

The full notes, worked example and check questions for this subtopic are in the app.

Exam tip: Always pick barriers that fit the case: time zones only matter if the business operates across them.

2.7Industrial / employee relations HL

Key terms

Trade union

An organisation that represents workers in negotiations with employers.

Collective bargaining

Negotiation between unions and employers on behalf of many workers.

Industrial action

Work-to-rule, go-slow, overtime ban, strikes.

Conciliation / arbitration

A third party helps the sides reach agreement / makes a decision (binding or not).

Resistance to change

Opposition by employees to new methods, structures or technology.

Sources of conflict: pay, working conditions, job security, changes in work practices, redundancies.

The full notes, worked example and check questions for this subtopic are in the app.

Exam tip: Show both sides: the union's concerns and the business's needs. The judgment usually involves a compromise.

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