IGCSE Business: Human resource management (HRM) (Cambridge 0264) – 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 – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

This set covers section 2.1 (Human resource management (HRM)) of the Cambridge IGCSE Business 0264 syllabus for examination in 2027, 2028 and 2029. Both papers are based on all the subject content. Revise first with the study guide and revision notes. See also the course hub, the printable checklist and the free diagnostics.

Money figures are in dollars. All businesses and people are invented, and any legal minimum wage is made up for practice.

Questions

1. Define the term person specification. [2]

2. Identify two methods a business could use to select a new employee. [2]

3. (a) State two contents of an employment contract. [2] (b) Explain one benefit of an employment contract to an employer. [2]

4. Ardent Lane Bakery needs a new manager on an annual salary of 30,000 dollars. An employment agency would charge a fee of 12% of the first year’s salary. Advertising online would cost 450 dollars. (a) Calculate the agency fee. [2] (b) Calculate how much more the agency would cost than online advertising. [1] (c) Explain one reason why the bakery might still choose the agency. [2]

5. Outline two advantages of internal recruitment. [4]

6. Oriel Park Dental pays a receptionist 7.80 dollars an hour for a 35-hour week. The legal minimum wage is 8.20 dollars an hour. (a) Calculate the weekly shortfall in the receptionist’s pay. [3] (b) Calculate the annual shortfall, assuming 52 weeks. [1] (c) Explain how a legal minimum wage may affect the employer. [3]

7. Explain one effect of health and safety controls on employers and one effect on employees. [4]

8. (a) Explain why training is important to a business. [3] (b) Identify one advantage and one disadvantage of off-the-job training. [2]

9. Marden Toys hires 10 new packers. Option A is off-the-job training: a course costing 220 dollars per person, with each packer away for 2 days. A packer’s output is worth 95 dollars a day. Option B is on-the-job training: an experienced packer supervises each new packer for 3 days, and the lost output from the supervisor costs 60 dollars per trainee per day, and damaged stock during this training is expected to cost 400 dollars. Option A is expected to cause no damaged stock. (a) Calculate the total cost of each option, including lost output. [5] (b) Justify which option Marden Toys should choose. [4]

10. Yarrow Bay Hotel needs a head receptionist. The person specification asks for three years of hotel front-desk experience, two foreign languages and experience of leading a small team. Bashir is an internal candidate. He has worked as a night receptionist at the hotel for five years, speaks one foreign language and has never led a team. Imogen applied from outside. She has four years at a larger hotel, speaks three languages and led a team of five. Imogen wants a salary 2,000 dollars a year higher than Bashir would be paid, and she would need induction training. Recommend and justify who the hotel should employ. [8]

11. Kiran was dismissed from Marden Toys after three years with no reason given and no warning. Explain how legal controls over unfair dismissal affect: (a) employers [3] (b) employees. [3]

12. Explain one way in which controls over discrimination affect how a business recruits and selects employees. [3]

Answers

1. A document that lists the qualifications, skills, experience and personal qualities [1] wanted in the ideal person for a particular job [1]. [2] Examiner insight: A definition is stronger when it separates the person specification from the job description. Saying only that it “describes the job” describes the wrong document.

2. Any two from: curriculum vitae (CV) or resumé [1]; application form, references, testing or assessment centre, interview [1]. [2] Examiner insight: An identify question asks only for the names. Adding explanation takes time and gains nothing extra here.

3. (a) Any two from: duties and responsibilities [1]; working hours [1]; holiday entitlement; sick pay. [2] (b) The duties and working hours are agreed in writing [1], so there are fewer disputes about what the employee must do [1]. [2] Examiner insight: A benefit explanation reads best as a short chain of reasoning. A bare statement such as “it is legal” does not say why it helps the employer.

4. (a) 12% × 30,000 [1] = 3,600 dollars [1]. [2] (b) 3,600 − 450 = 3,150 dollars [1]. [1] (c) The agency already knows the labour market and may find suitable candidates quickly [1], which saves the owner’s time for running the bakery [1]. [2] Examiner insight: Show the percentage step in a calculation, then state the units. A reason in part (c) should link to the situation, not merely say “it is better”.

5. Cheaper than external recruitment, because there is no agency fee or large advertisement [1] and the money saved can be used elsewhere in the business [1]. The person already knows the business [1], so they need less induction and can start work faster [1]. [4] Examiner insight: For outline questions, each advantage needs a small development. A list of four one-word advantages shows knowledge but has little else to credit.

6. (a) Pay actually received = 35 × 7.80 = 273 dollars [1]. Pay required = 35 × 8.20 = 287 dollars [1]. Shortfall = 287 − 273 = 14 dollars a week [1]. [3] (b) 14 × 52 = 728 dollars [1]. [1] (c) The business must pay higher wages to low-paid staff [1], so its wage costs rise (here by 14 dollars a week for this one receptionist) [1]. It may have to raise prices, cut hours or accept lower profit [1]. [3] Examiner insight: Show both the actual and the required pay before subtracting. In part (c), tie the effect to the employer, not to the receptionist.

7. Employers: must spend money on safety equipment, training or inspections, which raises costs [1], but accidents and absence may fall [1]. Employees: work in safer conditions [1], so there is less risk of injury or illness [1]. [4] Examiner insight: The question names two groups, so each needs its own effect. Putting both in one sentence about “everyone” leaves one group unanswered.

8. (a) Training improves workers’ skills [1], so productivity and quality rise [1], which can lower costs per unit or increase customer satisfaction [1]. [3] (b) Advantage: expert teachers or a recognised qualification [1]. Disadvantage: costly, or workers are away from their jobs [1]. [2] Examiner insight: An “explain why” answer is strongest as a chain from training to skills to a business result. Stopping at “workers learn more” shows only the first link.

9. (a) Option A: course cost = 10 × 220 = 2,200 dollars [1]. Lost output = 10 × 2 × 95 = 1,900 dollars [1]. Total = 4,100 dollars [1]. Option B: supervisor cost = 10 × 3 × 60 = 1,800 dollars [1]. Add damaged stock: 1,800 + 400 = 2,200 dollars [1]. [5] (b) Option B is cheaper by 4,100 − 2,200 = 1,900 dollars [1], and packing methods are specific to Marden Toys, so the training is directly relevant [1]. However, supervisors lose output and trainees may make mistakes or pick up bad habits [1]. Overall I would choose Option B for these packers, because it saves 1,900 dollars and teaches the firm’s own methods, though off-the-job training could suit a skill that needs an outside expert [1]. [4] Examiner insight: A justify answer should use the figures from part (a), not just repeat them. A choice stated without a weighed alternative leaves the answer one-sided.

10. Recommend Imogen [1]. She meets the leadership requirement, having led five people, which Bashir has not [1]. She speaks three languages against his one, so she exceeds the language requirement and he falls short [1]. Both have enough front-desk experience, so that point does not separate them [1]. The drawbacks are the extra 2,000 dollars a year in salary and the cost of induction [1]. Bashir knows the hotel and would be motivated by promotion, and rejecting him may disappoint him and other staff [1]. The hotel could reduce this by explaining the decision and offering Bashir leadership training for a future post [1]. Overall, Imogen is the better fit for the specification, and her skills are likely to be worth the extra cost [1]. [8] Examiner insight: A recommend and justify answer is built from evidence matched to the specification. A choice supported by “she has more experience” does not use the data in the question.

11. (a) The employer must have a fair reason and follow a proper process before dismissing someone [1]. Failing to do so may lead to compensation claims or legal costs [1], so the employer needs to keep records and train managers [1]. [3] (b) Employees have more job security [1], because they cannot be sacked without a fair reason [1]. This may make them feel more confident and more motivated [1]. [3] Examiner insight: Describe the control in general terms and apply it to the case. Quoting a named law adds nothing, and a wrong detail may cost credibility.

12. The business must treat applicants fairly regardless of, for example, sex, race or age [1], so it should base selection on the person specification and not on personal characteristics [1]. This widens the pool of talent it can choose from, and breaking the rule risks legal action and damage to its reputation [1]. [3] Examiner insight: A strong answer links the control to a stage of recruitment, such as the advertisement or the interview, and says what the employer does differently.

Where marks are usually lost

• Defining a person specification as a list of duties, which is the job description.
• Giving a list in an outline question with no development of each point.
• Forgetting to show both the actual and required pay in a minimum wage calculation.
• Leaving out units in cost calculations, or leaving out lost output from training costs.
• Choosing an option in a justify question without using the figures or weighing the alternative.
• Writing one-sided effects of legal controls, covering only employers or only employees.
• Recommending a candidate without matching each point to the person specification.
• Quoting named laws and details from memory instead of describing the control in general terms.

Next steps

• Revise the revision notes.
• Re-read the study guide.
• Visit the course hub and the printable checklist.
• Try all free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

What is the difference between a job description and a person specification? A job description sets out the duties of the job. A person specification describes the qualities, skills and experience the right person needs; defining it as a list of duties is a common error.

What are common mistakes on HRM questions in IGCSE Business 0264? Students often give a list in an outline question with no development, forget to show both actual and required pay in a minimum wage calculation, leave lost output out of training costs, and describe legal controls for only employers or only employees. Recommending a candidate without matching each point to the person specification also loses marks.

How do you check whether a worker is paid the minimum wage? Divide weekly pay by hours worked to find the hourly rate, then compare it with the legal minimum wage given in the question and state the conclusion.

Which syllabus section covers human resource management? Human resource management is section 2.1 of the Cambridge IGCSE Business 0264 syllabus, covering recruiting and selecting employees, employment contracts and legal controls, and training.

Official syllabus

Cambridge IGCSE Business 0264 syllabus for examination in 2027, 2028 and 2029, published by Cambridge University Press & Assessment (Cambridge International Education), section 2.1.