IBDP Business Management Mock Exam Revision Notes

What is demographic change?

Changes in the characteristics and trends in a population that affect the supply of human resources.

How does a high net birth rate impact human resource supply?

It leads to a larger supply of human resources in the long term.

What is the effect of a positive net migration rate on human resources?

It increases the supply of human resources.

How does a later retirement age affect the labor pool?

It increases the available pool of human resources.

What is the impact of women entering or returning to the workforce?

It boosts the supply of human resources, especially for part-time work.

How does an aging population affect the supply of human resources?

It leads to a shrinking supply of human resources long-term.

What is the impact of increasing labor shortage on firms?

Firms need to appoint and retain older employees, possibly past retirement age.

What is labour mobility?

The extent to which labor can move to different locations (geographical mobility) and be flexible in changing to different jobs (occupational mobility).

What are limitations on occupational mobility?

Worker attributes such as education, qualifications, skills, and experience, and being highly specialised.

What are limitations on geographical mobility?

Ties to friends and family, mature workers being less willing to take risks, relocation costs, fear of the unknown, discrimination, costs of living in a new area, and language and cultural differences.

How does globalization encourage migration for work purposes?

Firms, especially MNCs, need workforce planning with migration in mind due to opportunities and needs arising from globalization.

List reasons for worker migration

Attractive pay and remuneration, employment opportunities, seasonal factors, domestic instability, and a higher standard of living.

What is flexitime?

A system where staff determine their working hours, completing work by set deadlines.

What are forms of flexitime?

Teleworking and homeworking.

What is teleworking?

Working away from the office using electronic communication.

What is homeworking?

Employees working from their own homes instead of an office.

What are advantages of teleworking and homeworking for employees?

Job opportunities, suitability for family commitments, flexible working hours, reduced commuting time, money, and stress, autonomy in decision making, possible income tax allowances, and increasingly affordable due to lower technology costs.

What are disadvantages of teleworking and homeworking for employees?

Reliance on ICT software and hardware, workers often exceeding contracted hours, social isolation and boredom, less job security and trade union representation, distractions at home, and lack of authentic training and career development opportunities.

What are advantages of teleworking and homeworking for employers?

Reduced overheads from renting prime locations, flexible and extended working hours for customers, adjustment for peak and off-peak trade, continuity of services from workers with dependents, lower rates of absenteeism, and flexibility to deal with working time directives (laws).

What are disadvantages of teleworking and homeworking for employers?

High set-up costs, tight recruitment processes needed to ensure self-motivation and initiative, difficult management, monitoring, and control, technological breakdowns can cause major disruptions, and not always possible due to lack of space or security for sensitive data.

What is the gig economy?

Labor markets with short-term, flexible, and temporary contracts where gig workers and independent contractors provide services on-demand or on-call, and workers do not have permanent employment contracts.

What are benefits of the gig economy?

Flexibility for workers, businesses, and consumers, workers working for multiple employers, lower costs for businesses, contractors and freelancers making extra income, and more control of work-life balance.

What are limitations of the gig economy?

Lack of regular income, job security, and fringe benefits for workers, lack of clear professional career path or social support, independent contractors filing their own tax returns, burnout due to multiple jobs/contracts, and risk to firm reputation from poor-quality outsourced services.