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 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.
With reference to Resource 3, describe one HR issue that may be impacting LuminaCare’s ability to scale sustainably.
Explain one financial challenge and one marketing challenge LuminaCare may face if it accepts the concessional loan.
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 justify your choice.
Global Solar Solutions (GSS)
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.
With reference to business management motivation theory, describe one need that GSS satisfies for rural households requiring solar lighting.
Explain one human resource challenge and one operations challenge GSS may face if it accepts the DRD expansion contract.
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 |
Explain one way human resource management practices can improve business performance.
Calculate the net profit margin and current ratio for SteelForm Ltd. Show all your working.
Analyse how the shift toward a task-oriented culture and greater accountability in middle management might affect employee motivation at SteelForm Ltd.
Comment 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 |
Outline one feature of effective human resource management employed by TechEdge Solutions
Identify two characteristics of transformational leadership as demonstrated by TechEdge’s manager.
State one benefit of using regular team meetings as a communication method in a company like TechEdge Solutions.
Calculate the net profit margin for TechEdge Solutions. Show all your working.
Calculate the current ratio for TechEdge Solutions. Show all your working.
Elevate Health Tech (EHT)
Elevate Health Tech (EHT) is a social enterprise based in Peru. Founded in 2021 by two biomedical engineers, it develops low-cost, portable diagnostic devices (such as digital stethoscopes and glucose meters) for use in rural and underserved communities across Latin America. EHT reinvests all profits into R&D and local employment programs.
EHT has grown quickly, scaling from 5 to 38 employees in two years. It operates as a private limited company, with both founders holding equal ownership and decision-making authority.
With reference to the stimulus, describe one internal issue that might arise from EHT’s current ownership structure.
Explain one human resource challenge and one financial challenge that EHT may face if it accepts the DIB loan and scales up
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.