IB DP Business Management: Organizational (corporate) culture (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 section 2.5, Organizational (corporate) culture, of the IB Business management guide (first assessment 2024). The section is HL only, so every question is HL. Read the study guide and revision notes first. The course hub is IB DP Business Management and the printable list is the syllabus checklist. All businesses and figures are invented. The free diagnostics are linked again at the end.

Questions

1. Define the term organizational culture. [2]

2. Identify the Handy culture described in each case. Name the god and the type.

(a) Every decision at a small firm is made by the owner. [1] (b) Staff at a large insurer follow written job descriptions and fixed approval steps. [1] (c) A software company forms teams around each project, picking members for their skills. [1]

3. Distinguish between a role culture and a task culture. [3]

4. Torrin Marine plans to merge with Fjordek Shipping, which is based in another country. The table gives invented Hofstede-style index scores.

Dimension	Torrin Marine	Fjordek Shipping
Power distance	75	45
Individualism	35	75
Uncertainty avoidance	80	50
Long-term orientation	65	60

(a) Calculate the mean gap between the scores. Give your answer to 1 decimal place. [3] (b) State the dimension with the largest gap and explain one likely problem it could cause. [2]

5. After Hallow Quay Bakeries opened a second site and merged two teams, 42 staff left in one year. Average staff numbers were 300. The previous year’s turnover rate was 5%. Each leaver costs the business USD 3,500 to replace.

(a) Calculate the staff turnover rate for the year. [2] (b) Calculate the extra replacement cost compared with a year at the previous rate. [2]

6. Anvil Reach Joinery began with 9 staff and a founder who approved every job. It now has 60 staff on three sites with new supervisors. Analyse the cultural problems that growth may cause the business. [5]

7. Explain two ways in which a change of leadership style could cause a cultural clash. [4]

8. Juniper Wharf (900 staff) buys Sundial Analytics (70 staff). Juniper Wharf uses strict approval chains. In a survey, 36 of 45 Juniper staff (80%) said they must ask a manager before acting. Only 6 of 40 Sundial staff (15%) said the same, as Sundial teams choose their own projects. In the year before the purchase, 7 Sundial staff left. In the first year after, 14 left. Average Sundial staff numbers were 70 in both years. Replacing one analyst costs USD 12,000. Juniper Wharf says the purchase will save USD 600,000 a year.

(a) Identify the Handy culture of each business. [2] (b) Calculate the change in the Sundial staff turnover rate, in percentage points. [2] (c) Evaluate whether Juniper Wharf should move Sundial fully onto its own approval system. [8]

9. A chain of clinics is merging with a rival. Managers expect cost savings and a shared brand. Doctors fear job losses, and nurses at the rival like their flexible rota. Use force field analysis to identify two driving forces and two restraining forces. [4]

10. Explain one way in which a strong culture can help a business and one way it can harm it. [4]

11. Explain two limitations of using Hofstede’s cultural dimensions to plan a merger across borders. [4]

Answers

1. The shared values, beliefs and attitudes [1] that shape how people in a business behave, “the way we do things here” [1]. [2] Examiner insight: A definition that only lists rules or dress code, with no idea of shared values, is likely to miss the central point.

2. (a) Zeus, a power culture [1]. (b) Apollo, a role culture [1]. (c) Athena, a task culture [1]. [3] Examiner insight: Naming only the god or only the type may not give full credit, so give both each time.

3. Role culture: authority comes from position and written rules, so work follows set procedures [1]. Task culture: power comes from expertise and the job to be done, with teams formed around tasks [1]. Distinction: a role culture favours stability and consistency, while a task culture favours flexibility and teamwork [1]. [3] Examiner insight: “Distinguish” asks for a difference between the two, so a link such as “whereas” or “while” makes the contrast clear.

4. (a) Gaps: 30, 40, 30, 5 [1]. Total 105 [1]. Mean = 105 / 4 = 26.25, so 26.3 [1]. [3] (b) Individualism has the largest gap, 40 [1]. Fjordek staff expect more personal choice, so Torrin Marine’s tightly controlled routines may feel restrictive and cause resistance [1]. [2] Examiner insight: Show each gap before the mean, and take the difference as a positive number; the rounding instruction means the answer must be given to 1 decimal place.

5. (a) 42 / 300 x 100 [1] = 14% [1]. [2] (b) At 5%, expected leavers = 0.05 x 300 = 15, so extra leavers = 27 [1]. Extra cost = 27 x 3,500 = USD 94,500 [1]. [2] Examiner insight: Use the average staff figure as the base, and include the unit in a cost answer.

6. The founder can no longer approve every job, so decisions are delegated to supervisors [1]. Rules and procedures are likely to be added, so the culture may drift from Zeus (power) towards Apollo (role) [1]. Original staff may feel the closeness has been lost, reducing motivation [1]. New staff on other sites may not know the unwritten habits, so sites may develop subcultures [1]. A judgement or consequence, for example that if the founder keeps control, decisions slow and good staff may leave [1]. [5] Examiner insight: “Analyse” rewards cause and effect linked to the case figures, such as the move from 9 to 60 staff, not a general list of growth problems.

7. First way: staff used to clear instructions under an autocratic leader may be unsure what is expected under a democratic leader [1], so decisions slow and morale falls [1]. Second way: a leader who replaces participation with tight control may be seen as showing distrust [1], so experienced staff resist or leave [1]. [4] Examiner insight: Two developed points score better than four undeveloped ones, so link each style change to a stated effect.

8. (a) Juniper Wharf: Apollo (role culture) [1]. Sundial Analytics: Athena (task culture) [1]. [2] (b) Before: 7 / 70 x 100 = 10% [1]. After: 14 / 70 x 100 = 20%, so the change is 10 percentage points [1]. [2] (c) For full integration: it keeps one system and may help deliver the USD 600,000 saving [1]. Consistency reduces confusion across the group [1]. Against: the survey shows a large gap, 80% against 15% [1]. Turnover has doubled from 10% to 20% [1], and 7 extra leavers at USD 12,000 each cost USD 84,000 [1]. Sundial’s staff are skilled and hard to replace, so forcing Apollo rules may cause more losses [1]. A judgement with a reason, for example that it is better to integrate in stages and keep project autonomy for now [1], because the extra cost of USD 84,000 is small against the saving but a much bigger exodus would remove the business Juniper Wharf paid for [1]. [8] Examiner insight: “Evaluate” requires a reasoned conclusion; points on one side only, however well calculated, are likely to be limited.

9. Driving: expected cost savings [1]; a shared brand [1]. Restraining: doctors’ fear of job losses [1]; nurses’ attachment to the flexible rota [1]. [4] Examiner insight: Take forces directly from the case, and sort them correctly into driving and restraining.

10. Help: a strong culture gives staff shared values, which improves consistency and loyalty [1], for example service that is the same on every site [1]. Harm: it can make staff resist new ideas [1], so the business adapts slowly when the market changes [1]. [4] Examiner insight: Do not just state “helps” and “harms”; show the result for the business.

11. First: scores are national averages, so they may not describe the staff of one firm or team [1], so planning from them may mislead [1]. Second: the scores can be out of date or simplify a country [1], so managers still need to survey the actual staff [1]. [4] Examiner insight: A limitation is credited when you add its consequence for the merger plan.

Where marks are usually lost

• Defining culture as rules or dress code, with no shared values.
• Naming a Handy type with no evidence from the case.
• Confusing Apollo (role) with Athena (task).
• Calculating turnover with the wrong base, such as the starting staff figure.
• Giving a percentage-point change as a percentage.
• Listing clash problems in an “evaluate” question with no judgement.
• Writing a general essay on mergers that never names the cultural difference.
• Putting a restraining force in the driving column.
• Using Hofstede scores as if every person in a country were the same.

Next steps

• Review the revision notes and the study guide.
• Open the IB DP Business Management hub and the syllabus checklist.
• Take all free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

Is organizational culture HL only in IB Business Management? Yes. All of section 2.5, Organizational (corporate) culture, is HL only in the IB Business management guide, first assessment 2024.

What are common mistakes on organizational culture questions? Students often define culture as rules or dress code with no mention of shared values, name a Handy type with no evidence from the case, confuse Apollo (role) with Athena (task), and list clash problems in an “evaluate” question with no judgement. Treating Hofstede scores as true of every person in a country also loses marks.

How do you tell a role culture from a task culture? A role culture (Apollo) runs on rules, defined roles and procedures within a hierarchy. A task culture (Athena) forms teams around projects, with members chosen for their expertise.

What are the limitations of using Hofstede’s dimensions to plan a cross-border merger? Hofstede’s scores describe national averages, not individuals, and firms and teams can differ from their country’s culture. Answers that use the scores as if every person in a country were the same lose marks.

Official syllabus

IB Diploma Programme Business management guide (first assessment 2024), International Baccalaureate Organization, Unit 2, section 2.5 Organizational (corporate) culture (HL only).