IB DP Business Management: Introduction to human resource management and Organizational structure – 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 2.1 (Introduction to human resource management) and 2.2 (Organizational structure) of the IB Business management guide, first assessment 2024. Everything is SL and HL except question 11, which is HL only. All businesses and figures are invented.

Read the study guide first if a topic is new, and use the revision notes to check terms. The course hub and checklist show where this unit sits.

Questions

1. Define the terms (a) span of control and (b) chain of command. [4]

2. Explain one internal factor and one external factor that can influence a business’s human resource planning. [4]

3. Stonebrook Clinics employs 90 nurses. It is considering three arrangements, with 6, 9 or 15 supervisors, each supervising an equal number of nurses.

(a) Calculate the span of control of a supervisor under each arrangement. [3] (b) Outline one effect on the clinic of choosing the 6-supervisor arrangement rather than the 15-supervisor one. [2]

4. Explain two reasons why employees may resist a change such as the introduction of new software. [4]

5. Outline two differences between a flat and a tall organizational structure. [4]

6. Ravensgate Courier Services has one director. Three regional managers report to the director. Each regional manager has four depot managers. Each depot manager has four team leaders.

(a) Calculate the total number of people in this structure and the span of control of a regional manager. [3] (b) The director removes the level of depot managers, so team leaders report directly to regional managers. Calculate the new span of control of a regional manager, and analyse one benefit and one drawback of this delayering. [5] (c) Recommend one HR strategy to reduce resistance from the depot managers, with a reason. [3]

7. Explain one advantage and one disadvantage of a matrix structure for a firm that runs many projects. [4]

8. (a) Define bureaucracy. [2] (b) Explain one disadvantage of a bureaucratic structure for a fast-growing technology start-up. [3]

9. Stonebrook Clinics operates in a region where the population is ageing quickly and many nurses are near retirement. Meanwhile, some nurses want to work by the shift through online platforms rather than hold permanent posts. Analyse how these two external factors could affect the clinic’s human resource planning. [6]

10. Inglewick Pharmacies has one chief executive, 4 regional managers, 24 branch managers and 144 pharmacists and assistants. Pricing and stock decisions are made at head office. Online rivals are winning customers by offering faster delivery and prices that change weekly. The chief executive proposes removing the regional manager level, at an annual salary cost of 61,000 each, and giving branch managers authority over local prices and stock.

Evaluate the appropriateness of this proposal. [10]

11. (HL only) Explain Charles Handy’s “Shamrock Organization” and one reason a business might adopt it. [4]

Answers

1. (a) The number of subordinates who report directly to one manager [1], not the total staff in the section [1]. (b) The line of authority and communication [1] running from the top of the organization to each employee [1]. [4] Examiner insight: Definitions tend to gain credit when they contain the defining feature (direct reports; line of authority), so a vague phrase such as “how many people a manager has” may not be enough.

2. Internal factor, for example the age profile of the existing workforce [1]: if many employees are near retirement, the business must plan recruitment and training of replacements [1]. External factor, for example immigration [1]: it can widen the supply of skilled labour if rules allow it, so the business can fill shortages without raising pay [1]. [4] Examiner insight: Naming a factor and stopping usually leaves the explanation marks unearned. Answers that state the effect on the workforce plan tend to do better.

3. (a) 90 / 6 = 15 nurses per supervisor [1]; 90 / 9 = 10 [1]; 90 / 15 = 6 [1]. (b) With 6 supervisors the wage bill for supervisors is lower [1], but each supervisor oversees 15 nurses, so there may be less coaching and slower responses to problems [1]. [5] Examiner insight: In a calculation, writing the division you performed shows the method, and stating it makes your method clear. State what the figure measures (nurses per supervisor).

4. Fear of job loss [1]: new software may automate tasks, so staff worry their posts are no longer needed and may slow the roll-out [1]. Skills gap or lack of confidence [1]: staff who feel they cannot learn the system quickly may avoid using it or make errors that weaken the change [1]. (Other reasons, such as loss of routine or distrust of management, can be credited if developed.) [4] Examiner insight: Strong answers keep each reason distinct. Two reasons that are really the same idea, such as “worry about jobs” and “afraid of losing work”, may count as one.

5. A tall structure has many levels whereas a flat one has few [1]; tall structures usually have narrow spans of control, flat ones wide spans [1]. Communication is slower through a longer chain of command in a tall structure, but faster in a flat one [1]. Tall structures usually cost more in management salaries [1]. (Any two differences, each stated and contrasted.) [4] Examiner insight: For “outline” with two differences, each difference should compare both structures. Describing only the tall structure twice tends to leave the comparison incomplete.

6. (a) Layers: 1 + 3 + 12 + 48 [1] = 64 people [1]. Regional manager span = 4 depot managers [1]. (b) New span = 48 / 3 = 16 [1]. Benefit, for example lower salary cost and a shorter chain of command, so decisions reach team leaders faster [1] because 12 managers’ salaries are removed [1]. Drawback, for example regional managers now supervise 16 people each, so they may be overloaded and give less support [1], which could cut quality or raise errors [1]. [5] (c) Strategy, for example consultation, by asking depot managers to help design the new role or choose where they move [1]. Reason: they are likely to resist from fear of losing status or jobs [1], and involvement gives them ownership and reduces the fear [1]. Redeployment into team-leader or specialist roles would also be creditable. [3] Examiner insight: When a question gives the structure in words, drawing the layers quickly can prevent miscounting. For “recommend”, a reason linked to the cause of resistance is usually the part that separates answers.

7. Advantage, for example employees can be shared across projects so skills are used well [1] and communication between functions improves, which speeds up work on each project [1]. Disadvantage, for example employees report to two managers, so they may receive conflicting instructions [1], which can slow decisions and cause stress or unclear accountability [1]. [4] Examiner insight: A matrix structure is defined by dual reporting. Answers that tie both the benefit and the drawback to that feature usually read as more convincing than general remarks about “teamwork”.

8. (a) A system of clear rules and procedures [1] with formal roles and set routes for decisions [1]. (b) A start-up needs quick changes as it grows [1]. Bureaucracy requires approval through set procedures, so decisions are slow [1] and new ideas from staff may be discouraged, so the firm could lose its edge over rivals [1]. [5] Examiner insight: Context matters in part (b). A comment true of every firm may earn less than one that connects bureaucracy to the stated need for speed in a start-up.

9. Ageing population: the supply of experienced nurses will shrink as retirements rise [1], so the clinic must plan recruitment, training or apprenticeship pipelines early [1], while demand for care from older patients rises, which raises the number of staff needed [1]. Gig platforms: they offer flexible cover for peaks and absences [1], reducing the need for permanent posts and wage costs when demand is low [1], but agency or gig nurses may be less familiar with clinic procedures, which affects quality and continuity, so the plan must include induction and a limit on how much work is outsourced [1]. [6] Examiner insight: An analysis answer generally needs a chain of cause and effect for each factor. Points that name the factor and then list HR actions with no link between them tend to remain descriptive.

10. Calculation: 4 x 61,000 = 244,000 saved each year [1]. Chief executive’s span rises from 4 to 24 [1]. In favour: decentralizing pricing and stock decisions lets branch managers react to local competition and weekly price changes [1]; a flatter structure shortens the chain of command so decisions are faster [1]; the saving of 244,000 can be reinvested in delivery or training [1]. Against: a span of 24 is wide and the chief executive may be overloaded [1]; branch managers may lack experience in pricing, causing inconsistent prices or errors [1]; regional managers may resist because of loss of status, and their local knowledge is lost [1]. Judgement: the proposal is appropriate if decision authority is moved with training and clear pricing limits [1], because the external factors (fast competitors) favour decentralization more than the cost saving does; a smaller step, such as keeping a few regional coordinators, might reduce the overload risk [1]. [10] Examiner insight: For “evaluate”, a judgement that depends on a stated condition tends to be stronger than a one-word verdict. Both sides need to be tied to the figures and the external change in the stem.

11. (HL only) Handy’s Shamrock Organization has three parts or leaves: a core of essential permanent staff [1], contractors who carry out non-core work [1], and a flexible workforce of part-time or temporary staff [1]. A business might adopt it to cut fixed labour costs while keeping the skills it needs, because only the core is permanent [1]. [4] Examiner insight: The three leaves need to be named and described. A reason must refer to a benefit of the model, not just repeat its description.

Where marks are usually lost

• Defining span of control as total employees instead of direct reports.
• Naming a factor in human resource planning without stating its effect on numbers, skills or cost.
• Offering two reasons for resistance that are the same idea in different words.
• Giving only one side of a comparison in an “outline the differences” question.
• Forgetting to show the division or sum in a span of control or levels question.
• Describing delayering as cutting workers rather than removing a level of the hierarchy.
• Ending an evaluation without a judgement, or with a judgement that is not linked to the case data.
• Writing general points about structures when the stem names a specific business and a specific external change.

Next steps

• Revise terms in the revision notes.
• Re-read explanations in the study guide.
• Return to the course page and tick the checklist.
• Take any of the free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

What is the difference between span of control and chain of command? Span of control is the number of subordinates who report directly to one manager. Chain of command is the line of authority and communication from the top of the organization to each employee, so one describes width and the other length.

What are common mistakes on HRM and organizational structure questions? Students often define span of control as total employees rather than direct reports, describe delayering as cutting workers rather than removing a level of the hierarchy, and name a planning factor without its effect on staff numbers, skills or cost. Ending an evaluation without a judgement linked to the case data also loses marks.

Is Handy’s Shamrock Organization HL only? Yes. In section 2.2 of the IB Business management guide, changes in organizational structure such as project-based organization and Charles Handy’s “Shamrock Organization” are HL only.

How should you show working in span of control questions? Show the division or sum you used, for example dividing staff by the number of supervisors or adding the people at each level. Forgetting to show it is a common way to lose marks.

Official syllabus

IB Diploma Programme Business management guide, first assessment 2024, International Baccalaureate Organization, sections 2.1 and 2.2.