Industrial Relations (DP IB Business Management: HL): Exam Questions

Bright Spark Publishing is a medium-sized company that produces educational textbooks for schools. Recently, the company has faced disputes with its employees over workload and pay. Employees argue that long hours and tight deadlines have increased stress and decreased morale. The trade union representing the employees has called for improved pay and more reasonable deadlines, threatening strike action if their demands are not met.

Bright Spark’s management is concerned about the potential impact of a strike on its reputation and profitability. They are considering collective bargaining to resolve the conflict and avoid a prolonged dispute.

Bright Spark Publishing is a medium-sized company that produces educational textbooks for schools. Recently, the company has faced disputes with its employees over workload and pay. Employees argue that long hours and tight deadlines have increased stress and decreased morale. The trade union representing the employees has called for improved pay and more reasonable deadlines, threatening strike action if their demands are not met.

Bright Spark’s management is concerned about the potential impact of a strike on its reputation and profitability. They are considering collective bargaining to resolve the conflict and avoid a prolonged dispute.

Evergreen Packaging produces eco-friendly packaging materials for businesses. The company recently faced conflict after announcing changes to employee contracts, including the introduction of fixed-term agreements for some roles. Employees, supported by their trade union, argued that these changes created job insecurity and undermined their loyalty to the company.

The union has proposed conciliation to resolve the dispute, while Evergreen’s management is considering whether to proceed with this approach or explore other conflict resolution methods. Management is also concerned about the long-term impact on employee morale if the conflict remains unresolved.

Evergreen Packaging produces eco-friendly packaging materials for businesses. The company recently faced conflict after announcing changes to employee contracts, including the introduction of fixed-term agreements for some roles. Employees, supported by their trade union, argued that these changes created job insecurity and undermined their loyalty to the company.

The union has proposed conciliation to resolve the dispute, while Evergreen’s management is considering whether to proceed with this approach or explore other conflict resolution methods. Management is also concerned about the long-term impact on employee morale if the conflict remains unresolved.

Harmony Airlines, a budget airline, has been facing conflict with its cabin crew over working hours and pay. The crew, represented by their union, has raised concerns about being overworked, especially during peak holiday seasons. In response, the airline introduced a no-strike agreement, offering modest pay increases in exchange for the union’s commitment to avoid industrial action.

While the agreement has prevented immediate disruptions, some employees feel it limits their ability to negotiate further improvements. Harmony’s management is evaluating whether no-strike agreements are an effective long-term solution or if alternative conflict resolution methods are needed.

Harmony Airlines, a budget airline, has been facing conflict with its cabin crew over working hours and pay. The crew, represented by their union, has raised concerns about being overworked, especially during peak holiday seasons. In response, the airline introduced a no-strike agreement, offering modest pay increases in exchange for the union’s commitment to avoid industrial action.

While the agreement has prevented immediate disruptions, some employees feel it limits their ability to negotiate further improvements. Harmony’s management is evaluating whether no-strike agreements are an effective long-term solution or if alternative conflict resolution methods are needed.

BuildPro Ltd. is a construction company employing 347 workers across various sites. In 2024, the company faced industrial action due to disputes over working conditions. The strike lasted for 5.3 days, with 278 workers participating. Each worker works an average of 7.8 hours per day, and BuildPro operates 257 working days in a year.

Precision Law is a partnership that provides legal services to small and medium-sized enterprises (SMEs). The firm was founded ten years ago by four partners who each invested the same amount of money and share decision-making equally. They specialise in areas such as contract law, employment law, and mergers and acquisitions. The firm has built a strong reputation for providing personalised advice and practical solutions, which has helped it attract a loyal client base

The business has grown steadily, and its client list now includes over 200 SMEs from industries such as retail, technology and construction. This growth has created challenges. The partners and staff are struggling to manage the increased workload, with many handling multiple cases at the same time. A recent staff survey revealed that fewer than half of the employees feel their workload is manageable, and this has caused tensions between staff and partners. Some staff feel that expectations are too high, while the partners argue that managing workloads is essential for maintaining profitability

One partner has proposed converting Precision Law from a partnership into a private limited company (Ltd). This would allow the firm to sell shares and raise funds to hire more staff and invest in advanced management information systems (MISs). These systems could help automate tasks such as scheduling and document management, which would reduce workloads and improve efficiency. Additionally, becoming a Ltd would limit the personal liability of the partners, protecting their personal assets. However, other partners worry about losing control of decision-making if external shareholders become involved. They are also concerned about the added legal and administrative requirements of operating as a Ltd

Precision Law has recently taken steps to improve its reputation by introducing corporate social responsibility (CSR) initiatives. It now provides free legal advice to underserved communities through a local charity. This has been praised by clients and has boosted the firm’s profile. However, some employees feel the additional work created by these activities adds to their stress

The partners must decide how to handle these challenges. Should they focus on raising funds to expand, invest in MIS technology or work on improving relationships between staff and management to address workload concerns?

Table 1: Financial information (2023)

Table 2: Employee feedback survey (2023)

BrightClean manufactures and supplies cleaning products to industrial clients, including large factories, hospitals and schools. The company recently adopted a just-in-time (JIT) stock management system to improve efficiency and reduce costs. With JIT, raw materials are delivered only when needed and production schedules are closely aligned with client orders. This approach has significantly reduced stockholding costs and improved cash flow

However, JIT has introduced significant challenges, particularly for BrightClean’s employees. The system relies heavily on punctual supplier deliveries to avoid disruptions. When delays occur, production schedules are thrown off, creating intense pressure on employees to meet tight deadlines. Workers in the packaging department, for instance, have reported being asked to work overtime at short notice to compensate for missed supplier deliveries

This increased pressure has led to conflicts between management and employees, as well as within teams. For example, production staff have criticised managers for not providing sufficient warning about potential delays, while warehouse employees feel unfairly blamed when materials are unavailable. A recent attempt to mediate a dispute about overtime requirements failed because employees felt that their concerns about workload were not taken seriously

Despite these challenges, BrightClean’s management remains committed to JIT due to its financial benefits. The company is now considering whether a just-in-case (JIC) stock management system, which involves holding buffer stock, could reduce disruptions. However, switching to JIC would increase storage costs and tie up more working capital in inventory

In response to employee concerns, the HR department has introduced feedback sessions, but participation has been low, with employees doubting that their input will lead to meaningful changes. Management is also exploring enhanced training programmes and improved communication with suppliers to reduce delays and rebuild trust with the workforce

Table 1: BrightClean – Key metrics (2023 vs 2024)

Table 2: BrightClean – HR metrics