IB DP Business Management: Leadership and management – 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 section 2.3, Leadership and management, of the IB Business management guide, first assessment 2024. Question 10 is HL only because scientific and intuitive thinking/management is labelled HL only in the guide. All businesses and figures are invented. Command words follow the guide’s glossary. Study first with the study guide or the revision notes, and see the course hub and checklist.

Questions

1. Define the term leadership. [2]

2. Distinguish between management and leadership. [3]

3. Odessa Ridge Outfitters is a retailer with 60 staff. The owner, Tomas, pinned a new weekly rota to the staff room wall and wrote “These changes are final.” No employee was asked for their views. Identify the leadership style Tomas shows and give one reason for your answer. [2]

4. Outline what is meant by a laissez-faire leadership style and state one situation in which it could be suitable. [3]

5. Fenwick Rowe Print has 18 staff and 2 supervisors. The supervisors plan to ask the staff how the new digital press should be scheduled. Explain one advantage and one limitation of this democratic approach. [4]

6. Contrast an autocratic leadership style with a paternalistic leadership style. [4]

7. Odessa Ridge Outfitters had 60 staff in each of the last two years. In the earlier year, 3 employees left. In the year after Tomas began issuing rotas without consultation, 9 employees left.

(a) Calculate staff turnover (leavers as a percentage of staff) for each year. [2] (b) Explain one way the autocratic style could be linked to the change. [2]

8. Explain what is meant by situational leadership. [3]

9. Veltrix Labs, a software firm, logged who made each decision over six weeks. Of 70 decisions in total, 66 were made by the managing director alone.

(a) Calculate the percentage of decisions made by the managing director alone, to one decimal place. [2] (b) Explain what this suggests about the leadership style at Veltrix Labs and one possible consequence for staff. [3]

10. (HL only) Fenwick Rowe Print chose to buy its new press after comparing costed forecasts of output and repayments. Later, the owner promoted a supervisor mainly because of her sense that the person would handle pressure well. Explain why scientific thinking suited the first decision and why intuitive thinking might have been used for the second. [4]

11. Tomas, the owner of Odessa Ridge Outfitters, is considering a democratic approach to rota planning, after staff turnover rose from 5% to 15%. Evaluate whether he should change to a democratic style. [8]

12. Fenwick Rowe Print will install its new digital press over two weeks. The installation includes strict safety steps. Once the press is running, the skilled operators will help set up its daily workflow. Justify the leadership approach the supervisors should take. [6]

Answers

1. Leadership is the process of influencing and guiding people [1] so that they work toward a vision or goal [1]. [2] Examiner insight: For “define”, a precise meaning earns credit and an example does not replace it. Saying “being the boss” gives no sense of influence or direction.

2. Management is about organizing and controlling resources, tasks and systems to meet objectives [1]. Leadership is about influencing people and setting direction, often involving change [1]. The key difference is that management focuses on how work gets done, whereas leadership focuses on where the business is going and on gaining people’s willing commitment [1]. [3] Examiner insight: “Distinguish” needs an actual difference. Two definitions placed side by side without a contrasting point tend to leave the third mark unearned.

3. Autocratic [1], because Tomas made the decision alone, declared it final and did not consult staff [1]. [2] Examiner insight: Naming a style alone is not enough on an “identify” with a reason requested. Quote the evidence from the stem.

4. In a laissez-faire style the leader gives staff wide freedom to decide how they work [1], with little direct supervision or instruction [1]. It could suit a team of highly skilled specialists, such as software researchers, who need little guidance [1]. [3] Examiner insight: “Outline” asks for a short account. Do not go on to evaluate, but do give the situation if the question asks for it.

5. Advantage: staff know how the press is used in daily work, so their ideas may produce a better schedule [1], and involvement may raise their commitment to follow it [1]. Limitation: consultation takes time, which may delay a decision when the press is waiting to be used [1], and different views may lead to disagreement or a compromise [1]. [4] Examiner insight: An advantage or limitation should come with a reason that links to the case. A bare word such as “slow” is a statement, not an explanation.

6. Autocratic: the leader decides alone [1] and gives instructions without needing to justify them or consider staff welfare as the main reason [1]. Paternalistic: the leader also decides [1] but presents the decision as being in the staff’s interest, often explaining it and caring for welfare, for example through benefits [1]. [4] Examiner insight: “Contrast” is about differences. A strong answer refers to both styles in each point rather than describing one and then the other with no link.

7. (a) Earlier year: 3 ÷ 60 × 100 = 5% [1]. Later year: 9 ÷ 60 × 100 = 15% [1]. [2] (b) Staff were given no say in their rota [1], so they may have felt undervalued and less committed, which could make some choose to leave [1]. [2] Examiner insight: A calculation shown with the formula is safer than a bare answer. In part (b) a link is needed, and a careful candidate notes that turnover can have other causes.

8. Situational leadership means there is no single best style [1]. The leader chooses or changes style according to the task, the people and the circumstances [1]. For example, a manager may give direct orders during an emergency but consult skilled staff on a long-term plan [1]. [3] Examiner insight: Reward goes to the idea of adapting. Describing situational leadership as “a mix of everything” without the reason for adapting is vague.

9. (a) 66 ÷ 70 × 100 = 94.2857… [1], so 94.3% [1]. [2] (b) The very high share suggests a mainly autocratic style, since nearly all decisions are taken alone [1]. A consequence could be fast decisions with clear accountability [1], or lower motivation because staff have little voice [1]. [3] Examiner insight: “Explain” needs both the inference and the consequence. Refer to the 94.3% figure in your answer so the judgement rests on the data given.

10. The first decision involved forecasts of output and repayments, so there was data that could be analysed [1]. Scientific thinking suits this because the sum is large and the facts can be tested, which reduces the risk of costly error [1]. For the promotion, there was no simple data on how a person copes with pressure [1], so judgement based on the owner’s experience and impressions, which is intuitive thinking, would be used [1]. [4] Examiner insight: Tie each approach to a feature of its decision (data available, risk, type of information). Saying only that one is “better” scores less than showing why it fits.

11. Points for changing: Turnover rose from 5% to 15% [1], so the present approach may be costing Tomas recruitment and training expense and the loss of experienced staff [1]. Staff know which shifts suit them, so consulting them can produce a rota that works better in practice [1]. Points against: Consultation takes time and a rota must be ready each week [1]. Staff preferences may conflict, so Tomas could face disputes or a compromise that suits nobody [1]. The rise in turnover may have other causes such as pay or hours, so the evidence for a link is incomplete [1]. Judgement: On balance, Tomas should move toward a democratic approach for the rota, because the rota affects staff directly and they hold useful knowledge, but keep the right to decide quickly in urgent matters, which is a situational approach [1]. This is reasonable because the cost of high turnover and the benefit of staff input outweigh the delay, unless a busy trading period makes the speed of decisions critical [1]. [8] Examiner insight: For “evaluate”, a one-sided list leaves the judgement marks unearned. Weigh both sides against criteria such as time, staff knowledge and cost, then reach a supported conclusion.

12. During installation, the safety steps are strict and mistakes could cause injury or damage [1], so a directive, mainly autocratic style is justified because clear instructions are needed and time for debate is limited [1]. Once the press is running, the operators are skilled and know the daily work [1], so a democratic style is justified because consulting them is likely to improve the workflow and raise commitment [1]. Choosing a different style for each stage is a situational approach, as the best style depends on risk, skill and urgency [1]. Overall, the supervisors should use a situational approach and explain to staff why the style changes, to avoid confusion [1]. [6] Examiner insight: A “justify” answer must give valid reasons for the chosen approach, supported by evidence from the stem. Naming a style without reasons from the case earns little.

Where marks are usually lost

• Writing a definition of leadership that is really a definition of management.
• Naming a style with no quotation or evidence from the case.
• Confusing paternalistic with autocratic and ignoring the stated concern for staff welfare.
• Treating laissez-faire as “no leader” instead of leaders who set goals and then step back.
• Calculating turnover without a formula, or leaving out the percentage sign.
• Listing advantages and drawbacks with no reasons linked to the business.
• Ending an “evaluate” or “justify” answer with no conclusion, or one that repeats the question.
• Forgetting that a democratic style costs time, or that an autocratic style can be right in an emergency.
• Giving one-sided answers when the case supports a situational view.

Next steps

• Revisit the revision notes and the study guide.
• Return to the Business Management hub and tick your progress on the checklist.
• Take the free 10-minute diagnostics to find other gaps.
• Book a free trial class.

Frequently asked questions

What are the five leadership styles in IB Business Management? Section 2.3 of the IB Business management guide names autocratic, paternalistic, democratic, laissez-faire and situational leadership.

What are common mistakes on leadership and management questions? Students often write a definition of leadership that is really a definition of management, name a style without evidence from the case, confuse paternalistic with autocratic, and treat laissez-faire as “no leader”. Ending an “evaluate” or “justify” answer with no conclusion also loses marks.

How do you identify a leadership style in a case study? Look for clues about who makes the decision and how staff are involved: a decision announced without consulting anyone points to autocratic, a vote points to democratic, and a leader who adapts to an emergency points to situational. Quote the evidence from the case to support your choice.

Can an autocratic style ever be the right choice? Yes. An autocratic style can suit an emergency, routine or safety-critical work, or an inexperienced team, because decisions are fast and accountability is clear. Strong answers weigh this against its effect on morale and staff turnover.

Official syllabus

IB Diploma Programme Business management guide, first assessment 2024, published by the International Baccalaureate Organization. This page covers section 2.3, Leadership and management.