IB DP Business Management: Communication and Industrial/employee relations (HL only) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – the IB holds copyright in its own papers. Use these alongside the official past papers available through your school or the IB store.

These questions cover sections 2.6 (Communication) and 2.7 (Industrial/employee relations) of the IB Business management guide, first assessment 2024. Questions 3 and 6 to 11 are HL only because section 2.7 is labelled HL only in the guide. All businesses and figures are invented, and money is in dollars. Command words follow the guide’s glossary. Study first with the study guide or the revision notes. See also the course hub and checklist.

Questions

1. Define the term grapevine. [2]

2. A food factory runs day, evening and night shifts. Identify two barriers to communication that could arise. [2]

3. (HL only) Distinguish between a strike and a work-to-rule. [4]

4. Tolvaney Bakeries has six outlets with 8 staff in each. The owner wants everyone at one 1.5-hour meeting to explain a new allergen-labeling routine.

(a) Calculate the total staff-hours the meeting uses. [1] (b) Explain one advantage and one limitation of using the meeting. [4]

5. At Ilsmere Care, 45 of 75 staff say they heard about a rota change from colleagues before the official notice.

(a) Calculate the percentage who heard it informally first. [1] (b) Analyse the possible effects of this on the business. [4]

6. (HL only) State two sources of conflict in the workplace. [2]

7. (HL only) Distinguish between conciliation and arbitration. [4]

8. (HL only) Explain two risks to an employer of threatening redundancies during a pay dispute. [4]

9. (HL only) Caldervane Engineering has 200 staff on fixed 40-hour weeks. It plans a change of contract to annualized hours so that hours rise and fall with orders. The union opposes the change. Analyse the possible effects on employee relations. [5]

10. (HL only) Merriott Textiles employs 250 people. Evaluate employee participation and industrial democracy as a way of reducing conflict there. [8]

11. (HL only) Merriott Textiles has a payroll of 250 staff averaging 31,000 each. The union claims a 4% pay rise and the company offers 1.5%. Of the 90 union members, 81 voted to strike. A stoppage would lose sales of 64,000 a day.

(a) Calculate the difference between the cost of the claim and the cost of the offer. [3] (b) Calculate the sales lost in a three-day strike. [1] (c) Recommend whether Merriott should raise its offer. [6]

Answers

1. The unofficial network of staff communication [1] through which news or rumour passes outside official channels [1]. [2] Examiner insight: A definition is stronger when it says what makes the grapevine different, namely that it is unofficial, rather than only saying it is “talking”.

2. Any two, one mark each: staff on the night shift have little contact with managers, who work days [1]; messages are posted where only some shifts can see them [1]. Other valid barriers include language, noise or hand-over gaps. [2] Examiner insight: “Identify” asks only for a choice, so extra explanation is not needed. Two distinct barriers are needed, not one barrier worded twice.

3. In a strike staff stop work completely [1] and normally lose pay [1]. In a work-to-rule staff stay at work but do only what the contract and rules require [1], so output slows while pay continues [1]. [4] Examiner insight: A distinguishing answer needs the difference stated, such as stopping versus working slowly. Two separate definitions with no contrast can leave the comparison unclear.

4. (a) 6 × 8 = 48 staff; 48 × 1.5 = 72 staff-hours [1] (b) Advantage: a formal meeting lets the owner explain a detailed routine and take questions [1], so misunderstanding of allergen rules is less likely [1]. Limitation: gathering 48 staff means outlets close or lose service while 72 staff-hours are used [1], which costs sales and may annoy staff on days off [1]. [4] Examiner insight: Each side needs a reason and a consequence tied to the bakery. A generic “meetings are slow” is thin without the closing outlets.

5. (a) 45 ÷ 75 × 100 = 60% [1] (b) Staff may hear an incomplete or distorted version [1], which creates worry about their hours and may raise absence [1]. Managers lose control of how the message is received [1], so trust in official notices falls, and staff may stop reading them [1]. [4] Examiner insight: Answers tend to gain credit when the effect is placed on a business outcome, such as absence or trust, and not left as “rumours spread”.

6. Any two, one mark each: pay [1]; working conditions or hours [1]. Others include job security, change and management style. [2] Examiner insight: A source of conflict is a cause. Naming a method such as a strike is not a source.

7. Conciliation: a neutral third party helps the two sides to reach their own agreement [1], and cannot impose a settlement [1]. Arbitration: a neutral third party hears both sides [1] and makes a ruling [1]. [4] Examiner insight: The contrast is who decides. Answers that only say both involve a third party do not show the difference.

8. Risk 1: skilled staff may leave early for other jobs [1], so the firm loses expertise and output [1]. Risk 2: the threat may harden the union’s stance and provoke a strike [1], which stops production and costs sales [1]. Other valid risks: lower morale, damaged reputation as an employer. [4] Examiner insight: Each risk needs a developed consequence. Two risks listed with no development leave much of the question unanswered.

9. Possible negative effect: staff face unpredictable hours [1], which can hurt trust and lead to a work-to-rule or strike [1]. Possible positive effect: the firm can match labor to orders, cutting idle time and giving a stronger case for job security [1], if the firm consults staff first [1]. Judgement: the outcome depends on how much say staff have over the schedules and how the change is explained [1]. [5] Examiner insight: An “analyse” answer breaks the effect into parts and links each to the case. A balanced view with a short judgement is the stronger answer.

10. Definition: staff take part in decisions through consultation, councils or representation [1]. Strength: staff with a voice feel heard, so grievances are raised before they become disputes [1], and managers get practical ideas from a 250-strong workforce [1]. Limitation: decisions take longer [1], and participation may be token if managers ignore the views, which can increase distrust [1]. Application: with 250 staff, representatives would be needed, so how they are chosen matters [1]. Judgement: it is likely to reduce conflict over time if the company acts on staff views [1], but it is not enough alone for a live pay dispute, where conciliation or arbitration may still be needed [1]. [8] Examiner insight: Evaluate answers tend to gain credit when strengths and limitations both appear and the judgement is conditional on the case, not a repeated summary.

11. (a) Payroll = 250 × 31,000 = 7,750,000 [1]. Claim = 4% = 310,000 and offer = 1.5% = 116,250 [1]. Difference = 193,750 [1] (b) 3 × 64,000 = 192,000 [1] (c) Recommendation: raise the offer, and use conciliation to settle [1]. A three-day strike loses 192,000, almost the whole 193,750 gap [1], so refusing is poor value [1]. A midpoint offer of 2.75% costs 213,125, only 96,875 more than the current offer, which is about half the cost of the strike [1]. 90% of the union members voted to strike, so the threat is real [1]. Counter-point: only 90 of 250 staff are union members, and a higher offer sets a precedent, so arbitration remains a fallback if conciliation fails [1]. [6] Examiner insight: A recommendation is stronger when it uses the figures from (a) and (b) as evidence and states its own limit. A calculation with no link to the decision gains little.

Where marks are usually lost

• Defining grapevine or informal communication as “gossip” without saying it sits outside official channels.
• Listing barriers with no link to the business in the stem.
• Confusing conciliation with arbitration, or describing both as “talking”.
• Calling a work-to-rule a strike, or a lockout a union action.
• Giving a calculation result with no working shown on a multi-step question.
• Stopping at the cost gap and not using it to support a decision.
• Writing one-sided answers to evaluate and recommend questions.
• Ending with a summary that repeats points instead of a judgement.

Next steps

• Review the revision notes and the study guide.
• Open the course hub and the checklist.
• Take one of the free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

What is the difference between conciliation and arbitration in IB Business Management? In conciliation a neutral third party helps the two sides reach their own agreement and cannot impose a settlement. In arbitration a neutral third party hears both sides and makes a ruling, so the key contrast is who decides.

Is industrial/employee relations HL only in IB DP Business Management? Yes. Section 2.7 (Industrial/employee relations) is labelled HL only in the guide, while section 2.6 (Communication) is studied at both SL and HL.

Where do students commonly lose marks on communication and employee relations questions? Common losses include defining the grapevine as “gossip” without saying it sits outside official channels, listing barriers with no link to the business in the stem, and calling a work-to-rule a strike. On evaluate and recommend questions, one-sided answers and a closing summary instead of a judgement also cost marks.

How should you use a calculation in a recommend question on a pay dispute? Use the figures you have worked out, such as the cost gap between a pay claim and an offer and the sales lost in a strike, as evidence for your recommendation. A calculation with no link to the decision gains little credit.

Official syllabus

IB Business management guide, first assessment 2024, International Baccalaureate Organization: sections 2.6 and 2.7 (2.7 is HL only).