Practice IB Business Management Topic 2.1 Introduction to HR Management with authentic exam-style questions for both SL and HL students. This question bank focuses on the exact syllabus content for 2.1 Introduction to HR Management and mirrors Paper 1, 2, 3 style where relevant.
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LuminaCare
(a) With reference to Resource 3, one HR issue that may be impacting LuminaCare’s ability to scale sustainably.
(b) one financial challenge and one marketing challenge LuminaCare may face if it accepts the concessional loan.
(e) the current ratio for TechEdge Solutions. Show all your working.
Global Solar Solutions (GSS)
(a) With reference to business management motivation theory, one need that GSS satisfies for rural households requiring solar lighting.
(b) one human resource challenge and one operations challenge GSS may face if it accepts the DRD expansion contract.
(c) Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for GSS over the next five years.
SteelForm Ltd. is a manufacturer of prefabricated steel components for the construction industry. The company recently hired a new operations director to improve productivity and staff performance. She introduced a range of human resource practices, including performance-linked bonuses, internal promotions, and a revamped recruitment process.
The new director also noticed that the company's leadership style across middle management was inconsistent and often lacked accountability. To address this, she initiated workshops to develop a more task-oriented culture focused on meeting deadlines and production quotas. However, some staff have expressed frustration, stating that the company's previously person-oriented culture is being lost.
The finance team prepared the following financial statements for 2024.
Table 1: SteelForm Ltd. – Financial Data for 2024
| Item | Amount ($) |
|---|---|
| Revenue | 4,200,000 |
| Cost of sales | 2,300,000 |
| Gross profit | 1,900,000 |
| Operating expenses | 1,250,000 |
| Net profit | 650,000 |
| Current assets | 340,000 |
| Current liabilities | 200,000 |
| Non-current liabilities | 400,000 |
| Total equity | 1,000,000 |
(a) one way human resource management practices can improve business performance.
(b) the net profit margin and current ratio for SteelForm Ltd. Show all your working.
(c) how the shift toward a task-oriented culture and greater accountability in middle management might affect employee motivation at SteelForm Ltd.
(d) on how the net profit margin might influence future HR investment decisions.
TechEdge Solutions
TechEdge Solutions is an IT services company that provides technical support and web design services. The company places a strong emphasis on human resource management, offering regular training sessions and performance appraisals to improve staff skills and job satisfaction.
The business is led by a transformational manager who motivates employees through a clear vision and regular team meetings. Communication within the company is maintained via weekly emails and in-person meetings.
Table 1 shows selected financial data from TechEdge Solutions' final accounts Q4 2024.
Table 1: Selected final account data for TechEdge Solutions Q4 2024
| Item | Amount ($) |
|---|---|
| Revenue | 200,000 |
| Cost of Sales | 120,000 |
| Expenses | 50,000 |
| Net Profit | 30,000 |
| Current Assets | 50,000 |
| Current Liabilities | 25,000 |
(a) one feature of effective human resource management employed by TechEdge Solutions
(b) two characteristics of transformational leadership as demonstrated by TechEdge’s manager.
(c) one benefit of using regular team meetings as a communication method in a company like TechEdge Solutions.
(d) the net profit margin for TechEdge Solutions. Show all your working.
Elevate Health Tech (EHT)
(a) With reference to the stimulus, one internal issue that might arise from EHT’s current ownership structure.
(b) one human resource challenge and one financial challenge that EHT may face if it accepts the DIB loan and scales up
(c) Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for EHT over the next five years.
(c) Using the resources and relevant business management tools and theories, recommend a plan of action for LuminaCare over the next five years. Your plan must make a clear recommendation on financing (choose Series A now, choose the concessional loan now, or propose a staged sequence using both at different times) and your choice.
