IB Business Management – Unit 2 Human Resource Management Review

These flashcards cover key definitions, advantages, disadvantages and evaluation points from Unit 2 (Human Resource Management) of the IB Business Management syllabus, including workforce planning, organizational structure, leadership styles, motivation theories, reward systems, training, corporate culture, communication and industrial relations.

What is the main purpose of Human Resource Management (HRM)?

To deploy and develop people within an organization so that business objectives are met.

Name four inter-related roles performed by HRM.

Workforce planning, recruitment & induction, training & development, performance management (appraisals), and pay & remuneration review.

Define workforce (human-resource) planning.

The ongoing process of anticipating and meeting an organization’s current and future staffing needs.

Give two short-term reasons a firm conducts workforce planning.

To replace staff who resign, retire or take maternity/paternity leave, and to meet seasonal demand changes.

List three key internal sources of data used in workforce planning.

Historical staffing trends, labor-turnover rates, and flexibility/workload of existing employees.

Which four demographic factors most directly affect the supply of labor?

Net birth rate, net migration rate, retirement age, and female participation in the workforce.

What is labor turnover and how is it calculated?

The percentage of the workforce that leaves in a given year: (Number leaving ÷ Total staff) × 100.

State two advantages and two disadvantages of part-time staff.

Advantages: cheaper to employ and flexible hours. Disadvantages: may feel less valued and higher recruitment time due to turnover.

What is meant by a ‘gig economy’?

A labor market characterized by short-term, on-demand, freelance or independent-contractor work instead of permanent employment.

Identify two benefits and two drawbacks of gig work for businesses.

Benefits: lower fixed labor costs and access to specialized talent. Drawbacks: quality risk from external freelancers and weaker organizational loyalty.

Give four common reasons for employee resistance to change.

Self-interest, low tolerance/comfort with uncertainty, misinformation, and different assessments of the situation.

Which change-management strategy involves giving incentives in exchange for support?

Negotiation and agreement.

Explain the difference between accountability and responsibility in an organizational structure.

Accountability is being answerable upward for results; responsibility is the downward obligation to control subordinates and resources.

What does ‘span of control’ measure?

The number of subordinates directly accountable to one manager.

State one advantage of a wide span of control and one advantage of a narrow span of control.

Wide: fewer layers → lower costs and faster communication. Narrow: closer supervision and clearer control.

Differentiate between centralized and decentralized structures.

Centralized: decision-making concentrated among senior leaders; Decentralized: authority delegated down the hierarchy.

What is delayering and why might a firm do it?

Removing one or more hierarchical levels to flatten the structure, improve communication and cut costs.

Describe a matrix organizational structure.

Employees from different departments work together on cross-functional project teams while still reporting to their functional line managers.

List the three ‘leaves’ of Charles Handy’s Shamrock Organization.

Core professional staff, peripheral (contingent) workers, and outsourced contract workers.

What is the key idea behind scientific management (Taylor)?

Workers are primarily motivated by money; productivity rises when pay is linked to output using piece-rate systems and task specialization.

According to Maslow, which need must be satisfied before esteem needs can motivate?

Love/belonging (social) needs.

Give two hygiene factors and two motivators in Herzberg’s theory.

Hygiene: pay, working conditions. Motivators: achievement, responsibility.

In McClelland’s theory, what characterizes someone high in n-Power (need for power)?

They seek to influence or control others and enjoy responsibility; can be personal or institutional power oriented.

Name the three core needs in Deci & Ryan’s Self-Determination Theory.

Autonomy, competence, and relatedness.

Summarize Adams’ Equity Theory in one sentence.

Employees compare their input–output ratio with others and are motivated when they perceive equity (fairness).

What does Vroom’s formula state about motivation?

Motivation = Expectancy × Instrumentality × Valence; all three perceptions must be positive to motivate effort.

Distinguish between salary and wages.

Salary is a fixed annual amount paid monthly; wages are based on time worked or units produced and paid weekly/daily.

When might piece-rate payment be unsuitable?

Jobs where quality is more important than quantity or where output is hard to measure (e.g., teaching, creative services).

Define performance-related pay (PRP).

A reward system that gives pay rises or bonuses to individuals or teams that meet set performance targets.

Give two examples of fringe (perks) payments.

Private health insurance and company car.

What is job enrichment and how does it differ from job enlargement?

Job enrichment adds depth by increasing responsibility/challenge; job enlargement adds variety by increasing number of tasks at the same level.

State two advantages of empowerment for employees.

Greater autonomy leading to higher motivation and valuable career experience.

List three common on-the-job training methods.

Demonstration, shadowing/mentoring, and job rotation.

Why might a firm use off-the-job training despite higher cost?

To access specialist expertise, fresh perspectives, and facilities unavailable in-house.

Which Charles Handy ‘god of management’ represents a power culture?

Zeus.

Explain what is meant by a culture gap.

The difference between the desired corporate culture and the culture actually experienced by employees.

Give four common consequences of cultural clashes during a merger.

Miscommunication, unhappy staff, resistance to change, and higher costs of implementing change (e.g., extra training).

Differentiate between formal and informal communication channels.

Formal channels follow official lines and documents; informal channels (‘grapevine’) are unofficial and social.

Provide two advantages of verbal (oral) communication.

Immediate feedback and low direct cost.

Name three typical barriers to effective communication.

Technical breakdown, excessive jargon, and poor body language.

What is collective bargaining?

Negotiation between employer representatives and employee representatives (usually trade unions) to reach agreements on pay and conditions.

Identify three industrial actions employees might take.

Work-to-rule, go-slow, and strike action (or walk-out).

Describe an employer’s ‘lockout’.

Management temporarily prevents workers from entering the workplace during a dispute.

What is conciliation in conflict resolution?

An independent mediator helps the parties reach a mutually acceptable agreement; the outcome is not imposed.

How does arbitration differ from conciliation?

An independent arbitrator hears both sides and makes a legally binding decision.

Explain the purpose of a no-strike agreement.

A union pledges not to strike, often in return for certain guarantees from the employer, ensuring continuity of operations.

What is a single-union agreement and one advantage for employers?

The firm bargains with only one recognized union, reducing time and complexity of negotiations.

Which leadership style allows subordinates maximum autonomy in how they complete tasks?

Laissez-faire leadership.

Give one situation where an autocratic style may be appropriate.

During a crisis requiring quick, decisive action (e.g., factory safety incident).

Define situational leadership.

Adapting leadership style to the competence, motivation, and circumstances of followers and tasks.

State the five classical functions of management identified by Fayol.

Planning, commanding, controlling, coordinating, and organizing.

Why can piece-rate systems lead to quality problems?

Workers may prioritize speed and quantity over accuracy, necessitating extra supervision and quality control.

Give two warning signs of poor employee motivation.

High absenteeism and frequent customer complaints.

What is formative appraisal?

An ongoing process that uses feedback and evidence to help employees improve performance before final evaluation.

Contrast 360-degree feedback with self-appraisal.

360° collects views from multiple stakeholders; self-appraisal relies on the employee’s honest self-evaluation.

Which recruitment method targets passive senior executives through specialized search?

Headhunting (executive search).

Give two advantages of internal recruitment.

Lower recruitment cost/time and better knowledge of the candidate’s performance and cultural fit.

What type of payment links employee reward directly to overall company profits?

Profit-related pay (profit-sharing).

Explain the concept of ‘purpose’ as a non-financial motivator.

Employees feel motivated by knowing their work makes a meaningful difference to others or society.

List three typical objectives of employee training.

Increase efficiency/productivity, improve quality/customer service, and help staff adapt to change.

What is induction training and give one key benefit.

Orientation for new hires; benefit: helps them integrate quickly and avoid costly mistakes.

State two potential disadvantages of providing extensive training.

High financial cost and the risk that trained employees leave the firm.

Define organizational (corporate) culture.

The shared values, beliefs, and norms that influence the way employees think and act within an organization.

Give two reasons why a strong corporate culture benefits a business.

Creates a sense of belonging/motivation and reduces mistakes through shared understanding of procedures.

What is cultural intelligence (CQ)?

An individual’s capability to understand and adjust to different occupational, corporate, and national cultures.

Name four visual communication tools often used in business reports.

Bar charts, pie charts, line graphs, and infographics.

Identify two main advantages of video-conferencing for multinational teams.

Saves travel time/cost and allows verbal plus visual cues for clearer communication.

Why might excessive use of jargon hinder communication?

Recipients who do not understand the technical terms may misinterpret or ignore the message.

What is the purpose of a memo inside an organization?

To send a short, specific written message for internal use, often reminding or requesting simple actions.

List four common causes of workplace conflict.

Unmet needs/wants, differing perceptions, incompatible values, and power imbalances.

Explain go-slow industrial action.

Employees deliberately work at the minimum legally accepted pace, reducing productivity without breaching contract.

How can flexible working practices improve work-life balance?

Options such as flexitime, teleworking, and job sharing allow employees to fit work around personal commitments.

State two elements considered when choosing between centralization and decentralization.

The size of the organization and the level of risk/importance attached to decisions.

What is a project-based organization?

Structure where teams are formed around specific projects, dissolving upon completion to maximize flexibility.

Give one advantage and one disadvantage of tall (vertical) structures.

Advantage: clearer lines of authority and specialization. Disadvantage: slower communication and higher administrative costs.

When is explicit or implicit coercion used in change management?

As a last resort to force acceptance of change through intimidation or threats.