IB DP Business Management: Motivation and demotivation – 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 2.4, Motivation and demotivation, from Unit 2 (Human resource management) of the IB Business management guide, first assessment 2024. Questions on labour turnover, appraisal, recruitment and the equity and expectancy theories are labelled HL only, as the guide labels them. All businesses and figures are invented. Money amounts are in dollars. See also the study guide, the revision notes, the Business Management hub and the printable checklist.

Questions

1. Outline how a business following Taylor’s approach would try to motivate its workers. [2]

2. Wynstead Bakehouse pays packers a piece rate of 0.85 per box packed. The alternative is a time rate of 12.80 per hour for a 40-hour week.

(a) Calculate the weekly pay of a packer who packs 640 boxes at the piece rate. [2] (b) Calculate the smallest whole number of boxes a packer must pack in a week for piece-rate pay to be at least equal to the time-rate pay. [2]

3. Hawkridge Print Works has three new policies: permanent contracts for all press operators; a public certificate for the employee of the month; and a monthly team lunch. Identify the level of Maslow’s hierarchy that each policy mainly addresses. [3]

4. (HL only) Kinlet Dental Group began the year with 46 employees and ended it with 54. During the year 15 employees left.

(a) Calculate labour turnover for the year, showing your working. [2] (b) Explain one cost to Kinlet of a high rate of labour turnover. [2] (c) State one way Kinlet could reduce labour turnover. [1]

5. A property agent at Fairhollow Estates earns a base salary of 1,900 a month plus 3.5% commission on the value of the sales she arranges. Last month she arranged sales valued at 54,000.

(a) Calculate her total pay for the month. [3] (b) State one disadvantage to the business of paying commission. [1]

6. Distinguish between job enrichment and job enlargement. [4]

7. Caldrey Cycle Hire takes on 12 seasonal mechanics each summer. It is choosing between on the job training with a senior mechanic and sending staff on a two-day external course. Explain one advantage of each method for Caldrey. [4]

8. (HL only) At Selborne Software, a new developer was hired on a higher salary than existing developers doing the same duties. Managers have also set bonus targets that most developers believe they cannot reach.

(a) Using equity theory, explain why existing developers may be demotivated. [3] (b) Using expectancy theory, explain why the bonus targets may weaken motivation. [3]

9. (HL only) Merriweather Care Homes has one annual review for each carer, which decides the pay rise. The manager is considering adding regular coaching talks and collecting views from colleagues.

(a) Identify the type of appraisal described by (i) the annual review and (ii) the coaching talks. [2] (b) Explain one benefit of 360-degree feedback for Merriweather. [2]

10. (HL only) Lenwood Furniture has a supervisor vacancy. A senior carpenter has applied, and an outside candidate with supervision experience is also available. Explain two advantages and one disadvantage of filling the vacancy internally. [6]

11. Quarrington Lodges has 38 employees across four holiday sites. Housekeeping staff are paid close to the local minimum, and many complain that the cleaning rotas are repetitive. Last year the profit was 380,000. The owner is considering two options.

Option A: profit-related pay, with 6% of profit shared equally among all 38 employees. Option B: job rotation across the four sites, and empowering housekeepers to plan their own rotas and handle guest requests.

Evaluate which option Quarrington Lodges should choose to improve motivation. [10]

Answers

1. Taylor saw pay as the main motivator, so the business would link pay to output, for example through a piece rate [1]. It would design jobs scientifically, with narrow tasks, one trained method and close supervision [1]. [2] Examiner insight: An outline gains from two distinct features of the approach. Repeating “pay” twice in different words is unlikely to be treated as two points.

2. (a) Pay = 640 × 0.85 [1] = 544 [1]. [2] (b) Time-rate pay = 12.80 × 40 = 512. Boxes needed = 512 ÷ 0.85 = 602.35 [1]. Rounded up, the answer is 603 boxes [1]. [2] Examiner insight: Rounding up is a reasoned step here, since 602 boxes gives 511.70, which is below 512. Show the unrounded value first so that the reason for rounding is visible.

3. Permanent contracts address safety (security) needs [1]. The public certificate addresses esteem needs [1]. The team lunch addresses love/belonging (social) needs [1]. [3] Examiner insight: Naming the level is the task. Adding a reason for each choice is a good habit because it shows the link between the policy and the need, but it is not required by “identify”.

4. (a) Average employees = (46 + 54) ÷ 2 = 50 [1]. Labour turnover = 15 ÷ 50 × 100 = 30% [1]. [2] (b) Replacing leavers means recruitment costs such as advertising and interviewing time [1]. Each new dental nurse also needs induction and is slower at first, which cuts output and income [1]. [2] (c) Raise pay or offer a clear promotion path (any one valid method). [1] [1] Examiner insight: The guide gives no formula for labour turnover, so showing the formula you use makes the method clear. Using 46 or 54 instead of the average is a common slip.

5. (a) Commission = 0.035 × 54,000 [1] = 1,890 [1]. Total pay = 1,900 + 1,890 = 3,790 [1]. [3] (b) It may encourage pressure selling, which damages customer relations (or pay costs vary, making budgeting harder). [1] [1] Examiner insight: In a multi-step calculation, setting out the commission and the total as separate lines makes it easy to see where an early slip occurred.

6. Job enrichment gives an employee more responsibility, planning or challenge in the role [1], for example letting a worker decide how to organize their own tasks [1]. Job enlargement gives an employee more tasks at the same level of skill [1], for example adding a second similar machine to operate [1]. [4] Examiner insight: The clearest answers state the vertical or horizontal difference in the definitions, not only in the examples.

7. On the job: staff learn with real bikes and customers under a senior mechanic, so the training is relevant and cheap [1], and the new mechanics can start contributing quickly in a short season [1]. Off the job: an external course can teach wider or specialist skills than Caldrey has in-house [1], so repairs may be to a higher standard and fewer bikes are returned [1]. [4] Examiner insight: Each method needs an advantage explained in the context of seasonal mechanics. A generic “it is cheaper” with no link to the case is less likely to gain the second mark.

8. (a) Equity theory says employees compare their inputs and rewards with others [1]. The new developer does the same duties for more pay, so existing developers see the ratio as unfair [1]. This may reduce effort, or lead them to leave [1]. [3] (b) Expectancy theory says motivation depends on believing effort will lead to performance, and performance to a reward [1]. Developers believe the targets cannot be reached, so effort does not seem to lead to the bonus [1]. The reward is therefore not worth trying for, and effort may fall [1]. [3] Examiner insight: Both parts ask for a theory to be applied. Descriptions of the theory with no reference to the developers or the targets are unlikely to gain full credit.

9. (a) (i) Summative [1]. (ii) Formative [1]. [2] (b) Collecting views from managers, colleagues and others gives a more rounded picture than one manager’s view [1]. Carers may then see their review as fairer, which supports motivation and acceptance of the pay decision [1]. [2] Examiner insight: A benefit needs a reason. “It is fairer” gains more when it is tied to who gives the feedback.

10. Advantage one: it is cheaper and faster, because there is no external advertising or agency fee [1] and the carpenter already knows the business, so little induction is needed [1]. Advantage two: it shows other staff that promotion is possible [1], which can raise motivation across the workshop [1]. Disadvantage: the outside candidate’s supervision experience and fresh ideas are lost [1], and filling the role leaves a carpenter vacancy to fill [1]. [6] Examiner insight: The question asks for a set number of points, so each is developed separately. Extra points beyond those asked for are unlikely to replace a thin one.

11. Option A pool = 6% × 380,000 = 22,800 [1], which is 22,800 ÷ 38 = 600 each [1]. Profit-related pay is a financial reward. In Herzberg’s terms pay is a hygiene factor, so 600 once a year may reduce dissatisfaction but is unlikely to create lasting motivation [1]. The payment also depends on profit, which housekeepers cannot fully control, and it arrives after the year ends, so the link between daily effort and reward is weak [1]. This is also a delay in feedback [1]. Option B targets the stated complaint. Rotation adds variety and empowerment gives responsibility and recognition, which are Herzberg motivators and fit Maslow’s esteem level [1]. Together they address the repetitive rotas [1]. Option B has a counter-argument: if basic pay is seen as unfair, rotation may not be enough, and giving housekeepers more authority needs training and may risk inconsistent standards [1]. Judgment: Option B should be chosen because it targets the cause of the complaint and costs little [1], though the owner should review the base pay to stop it becoming a source of dissatisfaction [1]. [10] Examiner insight: An “evaluate” answer is more likely to reach the top band when it weighs both options, uses the data in the stem, and ends with a justified choice. Calculating 600 and stopping there is unlikely to count as evaluation.

Where marks are usually lost

• Describing a theory but not applying it to the named business.
• Calculating labour turnover from the opening headcount instead of the average.
• Giving a number without units or without the working.
• Confusing job enrichment with job enlargement.
• Treating “identify” or “state” as if they need long explanations, and “explain” as if a bare statement is enough.
• Saying one option is best without weighing the other.
• Treating pay as irrelevant because of Herzberg, or as the only motivator because of Taylor.
• Writing generic points that would suit any business instead of using the data given.

Next steps

• Revisit the revision notes and the study guide.
• Open the Business Management hub and tick off topics on the printable checklist.
• Try all free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

How do you calculate labour turnover? Labour turnover (%) is the number of employees leaving in a period divided by the average number of employees, multiplied by 100. Using the opening headcount instead of the average is a common error; labour turnover is HL only in section 2.4.

What are common mistakes on motivation questions in IB Business Management? Students often describe a theory without applying it to the named business, confuse job enrichment with job enlargement, and give a number without units or working. Treating pay as irrelevant because of Herzberg, or as the only motivator because of Taylor, also loses marks.

How should you evaluate two options for improving motivation? Weigh both options against each other using the data in the case, such as cost, the type of employee and the time frame, and link each to a motivation theory. Saying one option is best without weighing the other loses marks.

Which motivation theories are on the SL syllabus? At SL and HL, section 2.4 of the IB Business management guide covers Taylor, Maslow and Herzberg’s motivation-hygiene theory. McClelland, Deci and Ryan, and equity and expectancy theory are HL only.

Official syllabus

IB Diploma Programme Business management guide, first assessment 2024, International Baccalaureate Organization. Section 2.4, Motivation and demotivation, in Unit 2: Human resource management.