Practice 2.1 Introduction to HR management with authentic IB Business Management exam questions for both SL and HL students. This question bank mirrors Paper 1, 2, 3 structure, covering key topics like systems and structures, human behavior and interaction, and sustainability and ethics. Get instant solutions, detailed explanations, and build exam confidence with questions in the style of IB examiners.
Paper
Level
Question 1
HLPaper 3
LuminaCare
Resource 1 – Company profile and financial context
LuminaCare is a Ghana-based, for-profit social enterprise that manufactures solar-powered medical devices for rural clinics and maternal health centers across Sub-Saharan Africa. Its flagship product is a solar fetal heart monitor, which allows midwives to detect complications during pregnancy without relying on grid electricity. The company raised seed capital from impact investors but has now reached an inflection point: demand has grown by 300%, and LuminaCare must decide whether to pursue a $2.5M Series A equity round or take on $1.2M in concessional debt from a development bank.
Resource 2 – CFO’s internal memo (Finance)
“Our burn rate is steady, but we’ve reached our credit limit with suppliers. We operate on 90-day payment terms with clinics, so cash flow is always tight. Series A equity gives us the scale to meet demand and build a second facility—but would dilute founder control and introduce board-level oversight. The concessional loan is low-interest and non-dilutive but comes with covenants: quarterly EBITDA targets, strict capex limits, and donor-style reporting. Any miss could trigger loan restructuring or early repayment.”
Resource 3 – HR performance dashboard (Q1–Q2 2025)
| Metric | Value |
|---|---|
| Staff turnover (last 6 months) | 22% |
| Time to fill technical roles | 49 days (↑ 24%) |
| % of roles with formal job descriptions | 58% |
| Managerial span of control | Avg. 12 direct reports |
| Avg. team engagement score | 67/100 (↓ from 78) |
| The head of HR notes that burnout and unclear career paths are leading to attrition, especially among product engineers and field deployment staff. |
Resource 4 – Marketing team proposal
“Clinics love our mission—but most have no idea who we are until we show up at trade shows. We need to invest in inbound marketing, including a multilingual website, CRM tools, and a referral rewards program for midwives. More crucially, we’re perceived as a donor-funded nonprofit, not a serious tech company. To attract hospital procurement officers and larger buyers, we must reposition the brand to emphasize product quality, not just affordability and ethics.”
Resource 5 – Email thread: CEO to CFO and Marketing Lead
Resource 6 – Feedback from key field partners
“We rely on LuminaCare’s devices, but their response time for repairs has worsened.” “Sometimes we get different pricing from different reps. There’s no standard process.” “I love the mission—but our procurement officer wants a brand that feels serious. A logo change isn’t enough.”
1.[2]
With reference to Resource 3, describe one HR issue that may be impacting LuminaCare’s ability to scale sustainably.
2.[6]
Explain one financial challenge and one marketing challenge LuminaCare may face if it accepts the concessional loan.
3.[17]
Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for LuminaCare over the next five years.
Question 2
HLPaper 3
With reference to Resource 2, describe one human resource concern that may affect BioBox’s operations performance.
1.[2]
With reference to Resource 2, describe one human resource concern that may affect BioBox’s operations performance.
Question 3
HLPaper 3
SolvoHealth
Resource 1 – Business model and service offering
SolvoHealth is a rapidly growing mobile health company based in Vietnam. It operates a network of telehealth pods—solar-powered kiosks placed in rural communities that allow patients to consult doctors remotely, order basic diagnostics, and schedule medicine delivery.
Each pod includes a screen, smart diagnostic tools, and a local “health navigator” who guides users. SolvoHealth employs:
40 health navigators (frontline staff)
15 remote doctors (contracted)
30 staff at its operations HQ in Ho Chi Minh City (marketing, product, supply chain, HR)
SolvoHealth positions itself as affordable, hyper-local, and technology-enabled. The leadership team now plans to launch 60 pods in Indonesia and Bangladesh over the next 18 months.
Resource 2 – Internal HR report
“Navigator turnover remains high at 28% annually. Interviews cite poor training, emotional fatigue, and a disconnect between field roles and central ops decisions. Navigators receive basic onboarding but no career pathway or local adaptation in training. They also report being treated more as hardware support than as care professionals.
Headquarters recently introduced a CRM-linked performance bonus system based on call completion and upsell conversions—but this has increased pressure on already fatigued staff.”
Resource 3 – Weekly Ops Brief (March 2025)
Visual suggestion: This operations table can be converted into a bar chart or dashboard screenshot to test interpretation skills.
| Metric | Vietnam (live) | Indonesia (pilot) |
|---|---|---|
| Avg. pod uptime | 94% | 71% |
| Avg. medicine delivery time | 26 hours | 61 hours |
| Navigator-reported escalations | 9.2/week | 18.4/week |
| Inventory out-of-stock events | 3.1/week | 7.5/week |
Resource 4 – Brand perception audit (external)
In Vietnam, SolvoHealth scores high for accessibility and usefulness, but low for empathy and personalisation. Many patients feel “talked to” by doctors, not “heard.”
In Indonesia (pilot), users were confused by medical terms and unable to complete video sessions. 47% believed the navigator was “just a receptionist.”
A competitor, SehatNow, offers similar services but invests heavily in navigator-patient relationship-building and community health workshops to build trust.
Resource 5 - Email from Head of Marketing to CEO
Resource 6 – Slack thread
@Linh (HR): “One navigator resigned mid-shift—said she felt like a vending machine operator.”
@Dara (Marketing): “How are we still pushing bonuses on upsells when trust is crumbling?”
@Tung (Ops): “I’ll review the KPIs. But we can’t rebuild loyalty with posters.”
@Dara: “Maybe not. But we can’t scale a service that feels robotic either.”
*Note Slack is an internal team communications tool
1.[2]
With reference to Resource 2, describe one HR issue that may impact SolvoHealth’s service performance.
2.[6]
Explain one marketing challenge and one operations challenge SolvoHealth may face as it expands across Indonesia and Bangladesh.
3.[17]
Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for SolvoHealth over the next five years.
Question 4
HLPaper 3
Global Solar Solutions (GSS)
Resource 1 – Background of the social enterprise
Three years ago, electrical engineer and entrepreneur Nadira Khan founded Global Solar Solutions (GSS) as a social enterprise in Morocco. Her goal was to provide affordable, modular solar lighting kits to off-grid rural communities. These kits, manufactured at GSS’s urban facility, include rechargeable LED lights and mobile charging ports. GSS reinvests 100% of profits into R&D and local hiring.
GSS operates in partnership with local NGOs and community councils. Its workforce includes 40 technicians and 20 community trainers who educate households about solar usage and maintenance. GSS applies lean production, Kaizen, and maintains a strong internal emphasis on quality control and after-sales support.
Resource 2 – Recent internal report on workforce issues
"High staff turnover and trainer burnout have increased over the past 12 months. Trainers, who work in remote villages for weeks at a time, report fatigue and a lack of recognition. Some have requested additional health support and clearer promotion opportunities."
The HR department suggested non-financial incentives such as increased job rotation and monthly feedback sessions but reported mixed engagement.
Resource 3 – Email from the Director of Rural Development (DRD)
To: nadira.khan@GSS.org
Subject: Expansion proposal
Dear Ms. Khan,
We are impressed by GSS’s impact. The Ministry would like to propose a contract to expand the solar program to 80,000 homes across North and West Africa over five years. Your team would need to train local technicians and build capacity in three new countries. Please note, the contract requires local sourcing of at least 60% of parts.
We will require an initial trial rollout in 5,000 homes and evidence of social impact.
Regards,
Director, DRD
Resource 4 – Extract from a marketing audit summary
GSS currently relies on word-of-mouth and NGO referrals. Its brand is associated with trust and affordability. However, a 2024 brand perception survey in new markets revealed low awareness and concerns about product durability compared to larger multinationals such as SolarX.
GSS’s marketing team is small (3 staff) and has no formal digital strategy. There is also no localized messaging for francophone West African markets.
Resource 5 – Operations update from the Head of Production
Our current facility is operating at 92% capacity. To meet a major scale-up, we would need to either expand production or outsource subassembly. We have identified two regional partners with experience in sustainable component manufacturing. However, we are concerned about quality assurance if we lose full process control.
Resource 6 – Excerpt from a local newspaper article
“Access to solar power has transformed daily life in remote villages. Children now study at night, families charge phones to access mobile banking, and kerosene usage has dropped. However, NGOs report that replacement parts for some GSS kits have been slow to arrive, creating frustrations in isolated regions.”
1.[2]
With reference to business management motivation theory, describe one need that GSS satisfies for rural households requiring solar lighting.
2.[6]
Explain one human resource challenge and one operations challenge GSS may face if it accepts the DRD expansion contract.
3.[17]
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.
Question 5
HLPaper 2
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.
To evaluate the company’s financial performance during the transition, the finance team prepared a statement of financial position and income statement for 2024.
Table 1: SteelForm Ltd. – Financial Data for 2024
| Item | Amount ($) |
|---|---|
| Revenue | 4,200,000 |
| Cost of goods sold | 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 |
1.[2]
Explain one way human resource management practices can improve business performance.
2.[2]
Calculate the net profit margin and current ratio for SteelForm Ltd.
Show all your working.
3.[2]
Analyse how changes in leadership style and corporate culture might affect employee motivation at SteelForm Ltd.
4.[2]
Comment on how the net profit margin might influence future HR investment decisions.
Question 6
SLPaper 2
NutriWell Ltd (NW)
NutriWell Ltd (NW) is a rapidly growing business in Canada specializing in health supplements and wellness products. Due to significant growth, NW recently restructured its organizational structure, changing from a flat organizational structure to a hierarchical structure with clearly defined roles and formal reporting lines.
The new structure created communication challenges, resulting in employees feeling disconnected from senior management. This has led to declining employee motivation and productivity, increasing the need for effective human resource management (HRM).
NW is also planning to launch a new range of vegan supplements targeting young adults. To support this launch, NW must undertake comprehensive market research to identify consumer preferences and behavior.
The company's marketing team argues that a successful marketing strategy depends heavily on effective internal communication between departments, including marketing, production, and HR.
1.[2]
Define the term ‘organizational structure’.
2.[4]
Explain two roles of human resource management (HRM) at NW.
3.[4]
Explain two benefits of effective internal communication for NW’s marketing strategy.
4.[4]
Explain two reasons why NW should conduct market research before launching its new vegan supplements
5.[10]
Evaluate whether NW should revert to a flat organizational structure or retain its current hierarchical structure, considering communication, HR management, and marketing implications.
Question 7
HLPaper 3
UrbanEats Ltd.
Resource 1 - Excerpt from Company Website
Resource 2 - Balance Sheet (2023)
UrbanEats Ltd.
Balance Sheet as of December 31, 2023
Assets
Current Assets
Non-Current Assets
Liabilities
Current Liabilities
Non-Current Liabilities
Total Assets | £5,800,000 |
Total Liabilities | £2,500,000 |
Equity
Despite recent revenue growth, UrbanEats’ increasing liabilities raise concerns about long-term financial sustainability.
| Item | Amount |
|---|---|
| Cash | £1,200,000 |
| Inventory | £600,000 |
| Accounts Receivable | £800,000 |
| Total Current Assets | £2,600,000 |
| Item | Amount |
|---|---|
| Property, Plant & Equipment | £3,000,000 |
| Intangible Assets | £200,000 |
| Total Non-Current Assets | £3,200,000 |
| Item | Amount |
|---|---|
| Accounts Payable | £700,000 |
| Short-term Debt | £300,000 |
| Total Current Liabilities | £1,000,000 |
| Item | Amount |
|---|---|
| Long-term Debt | £1,500,000 |
| Total Non-Current Liabilities | £1,500,000 |
| Item | Amount |
|---|---|
| Shareholder Equity | £3,300,000 |
| Total Liabilities & Equity | £5,800,000 |
Resource 3 - Email from CFO to CEO
Resource 4 - Interview Excerpt with the CEO
In a recent interview with Finance Today, CEO Maya Simmons shared her vision for UrbanEats. “We are excited about our growth but know we must be strategic to maintain profitability.
Our commitment to sustainability and affordability is essential, but we also recognize the importance of financial health. Exploring franchising is one option, though I want to ensure it aligns with our brand values.”
Resource 5 - Social Media Post by UrbanEats (Instagram)
1.[2]
Identify a human need that UrbanEats Ltd. fulfills through its mission of providing plant-based and sustainable meals. Explain how UrbanEats addresses this need through its products and initiatives.
2.[6]
Discuss two significant challenges UrbanEats Ltd. faces in maintaining profitability and competitive advantage in the fast-casual dining sector. Use relevant resources from the case study to support your answer.
3.[17]
Based on the resources provided and your knowledge of business management principles, outline a strategic plan for UrbanEats Ltd. to enhance its financial performance and market positioning over the next five years. Your plan should include recommendations on product differentiation, digital marketing strategies, consumer engagement initiatives, and adaptability to market trends.
Question 8
HLPaper 3
Alpha Robotics – Optimizing HR and Operations for Growth
Resource 1 – News Article
Alpha Robotics Struggles with HR and Operational Efficiency
Alpha Robotics, a technology firm specializing in AI-powered industrial robots, is experiencing rapid expansion as demand for automation increases globally. The company was founded in 2015 and has since grown to 2,500 employees across four locations: the United States, Germany, Japan, and India.
Key Challenges:
(1) HR management issues – Employees complain about unclear leadership, poor communication, and lack of motivation due to a highly hierarchical structure.
(2) Production inefficiencies – The company’s batch production method is increasing lead times and reducing product quality.
(3) Location challenges – With rising costs in the US and Germany, Alpha Robotics must decide whether to expand in India (lower labor costs) or develop a new R&D facility in Singapore.
CEO Daniel Carter is considering the following strategic changes:
(1) Restructuring the organization to improve communication and motivation.
(2) Shifting to lean production and just-in-time (JIT) inventory management.
(3) Relocating part of production to India or Singapore while maintaining efficiency.
Resource 2 – Internal HR Survey Results
Key Insights:
(1) Employees feel disconnected from leadership, affecting productivity.
(2) A lack of career growth opportunities is reducing motivation and increasing turnover.
(3) Middle management struggles with effective communication due to a rigid hierarchical structure.
| Issue | Percentage of Employees Concerned |
|---|---|
| Lack of leadership clarity | 42% |
| Poor communication from managers | 38% |
| Low motivation and workplace morale | 45% |
| Limited career advancement | 41% |
Resource 3 – Cost-Benefit Analysis for Production Relocation
Alpha Robotics – Cost Analysis for Facility Expansion
Key Considerations:
(1) India offers lower costs, but efficiency gains are lower compared to Singapore.
(2) Singapore provides greater efficiency but has significantly higher setup costs.
| Location | Labor Costs per Hour ($) | Setup Costs ($M) | Expected Efficiency Gains |
|---|---|---|---|
| India | 12 | 30 | 10% increase |
| Singapore | 22 | 50 | 18% increase |
1.[2]
Using an appropriate business management theory, describe an HR challenge that Alpha Robotics is facing.
2.[6]
Explain two operational challenges Alpha Robotics faces in improving production efficiency.
3.[17]
Using all the resources provided and your knowledge of business management, recommend a possible plan of action to improve both HR and operations management at Alpha Robotics.
Question 9
HLPaper 3
FreshFusion – Scaling a Global Organic Beverage Brand
Resource 1 – News Article
🥤 FreshFusion aims to revolutionize the organic beverage industry worldwide!
FreshFusion is a privately owned health beverage company that started in Canada in 2015. The company produces organic, sustainably sourced fruit juices and smoothies, emphasizing health-conscious consumers and eco-friendly packaging.
After rapid growth in North America, FreshFusion has expanded into Europe and Asia, facing significant HR and marketing challenges.
Key Issues:
(1) High employee turnover due to inconsistent leadership styles.
(2) A rigid organizational structure has slowed decision-making and international adaptation.
Weak brand recognition in Asia due to limited marketing research and localization.
FreshFusion’s CEO, Alicia Torres, is considering two strategic changes:
(1) Restructuring the company’s management hierarchy to improve communication and flexibility.
(2) Revising marketing strategies for international expansion, focusing on better sales forecasting, local market research, and targeted branding.
Resource 2 – Internal HR Report on Employee Satisfaction
Key Findings from FreshFusion’s HR Department:
Employees feel disconnected from leadership and desire more autonomy and opportunities for advancement.
| Issue | Percentage of Employees Concerned |
|---|---|
| Lack of career progression | 47% |
| Poor communication from leadership | 39% |
| Motivation issues due to rigid hierarchy | 42% |
| Stress and workload complaints | 35% |
Resource 3 – Sales & Marketing Data
📈 FreshFusion – Sales Performance & Market Research Findings
Key Insights:
(1) Sales growth in Asia is weak due to low brand awareness and lack of localized marketing strategies.
(2) North America remains strong, but competition is increasing.
| Region | Sales Growth Rate | Brand Awareness (%) |
|---|---|---|
| North America | 18% | 75% |
| Europe | 10% | 50% |
| Asia | 5% | 20% |
1.[2]
Using an appropriate business management theory, describe an HR issue that FreshFusion is facing.
2.[6]
Explain two marketing challenges FreshFusion faces in expanding internationally.
3.[17]
Using all the resources provided and your knowledge of business management, recommend a possible plan of action to improve both HR management and marketing strategy at FreshFusion.
Question 10
HLPaper 3
FreshFusion – Scaling a Global Organic Beverage Brand
Resource 1 – News Article
🥤 FreshFusion aims to revolutionize the organic beverage industry worldwide!
FreshFusion is a privately owned health beverage company that started in Canada in 2015. The company produces organic, sustainably sourced fruit juices and smoothies, emphasizing health-conscious consumers and eco-friendly packaging.
After rapid growth in North America, FreshFusion has expanded into Europe and Asia, facing significant HR and marketing challenges.
Key Issues:
(1) High employee turnover due to inconsistent leadership styles.
(2) A rigid organizational structure has slowed decision-making and international adaptation.
Weak brand recognition in Asia due to limited marketing research and localization.
FreshFusion’s CEO, Alicia Torres, is considering two strategic changes:
(1) Restructuring the company’s management hierarchy to improve communication and flexibility.
(2) Revising marketing strategies for international expansion, focusing on better sales forecasting, local market research, and targeted branding.
Resource 2 – Internal HR Report on Employee Satisfaction
Key Findings from FreshFusion’s HR Department:
Employees feel disconnected from leadership and desire more autonomy and opportunities for advancement.
| Issue | Percentage of Employees Concerned |
|---|---|
| Lack of career progression | 47% |
| Poor communication from leadership | 39% |
| Motivation issues due to rigid hierarchy | 42% |
| Stress and workload complaints | 35% |
Resource 3 – Sales & Marketing Data
FreshFusion – Sales Performance & Market Research Findings
Key Insights:
(1) Sales growth in Asia is weak due to low brand awareness and lack of localized marketing strategies.
(2) North America remains strong, but competition is increasing.
| Region | Sales Growth Rate | Brand Awareness (%) |
|---|---|---|
| North America | 18% | 75% |
| Europe | 10% | 50% |
| Asia | 5% | 20% |
1.[2]
Using an appropriate business management theory, describe an HR issue that FreshFusion is facing.
2.[6]
Explain two marketing challenges FreshFusion faces in expanding internationally.
3.[17]
Using all the resources provided and your knowledge of business management, recommend a possible plan of action to improve both HR management and marketing strategy at FreshFusion.