Introduction to Human Resource Management (DP IB Business Management: SL): Exam Questions

FreshEats Delivery Service is a rapidly growing start-up that connects customers with locally sourced food and groceries. Over the past three years, the company has expanded operations to 20 cities and hired over 500 employees. To manage its rapid growth, FreshEats has developed a flexible organisational structure, with decentralised teams managing regional operations.

Despite its success, FreshEats faces challenges. High labour turnover in delivery staff has increased recruitment and training costs. Additionally, the company struggles to maintain consistent customer service across different regions. Management has identified that its human resource (HR) planning processes need improvement, especially in addressing absenteeism and developing effective retention strategies.

FreshEats is also exploring the possibility of introducing advanced scheduling technology to improve efficiency. However, some employees worry this might lead to job insecurity or increased workloads. The HR team is now tasked with addressing these issues while supporting FreshEats’ continued expansion.

FreshEats Delivery Service is a rapidly growing start-up that connects customers with locally sourced food and groceries. Over the past three years, the company has expanded operations to 20 cities and hired over 500 employees. To manage its rapid growth, FreshEats has developed a flexible organisational structure, with decentralised teams managing regional operations.

Despite its success, FreshEats faces challenges. High labour turnover in delivery staff has increased recruitment and training costs. Additionally, the company struggles to maintain consistent customer service across different regions. Management has identified that its human resource (HR) planning processes need improvement, especially in addressing absenteeism and developing effective retention strategies.

FreshEats is also exploring the possibility of introducing advanced scheduling technology to improve efficiency. However, some employees worry this might lead to job insecurity or increased workloads. The HR team is now tasked with addressing these issues while supporting FreshEats’ continued expansion.

HealthPlus Clinics is a medium-sized healthcare provider in the UK, operating 15 clinics across the country. It specialises in general practice, diagnostics, and physiotherapy services. Recently, the company has struggled to meet the growing demand for healthcare services due to staff shortages and high levels of absenteeism among its employees. These issues have increased patient wait times and reduced customer satisfaction.

The management team at HealthPlus is exploring ways to improve employee retention and productivity. One proposal is to introduce a flexitime policy, allowing employees to adjust their working hours to better fit their personal lives. Another option is to offer professional development programmes, such as leadership training or advanced medical certifications. While both strategies could improve staff morale, they also require financial investment at a time when HealthPlus is operating on tight budgets.

Additionally, external factors such as Brexit have impacted the availability of qualified healthcare professionals, as fewer international workers are seeking jobs in the UK. This has made it harder for HealthPlus to recruit the right talent, putting additional pressure on its HR planning processes.

HealthPlus Clinics is a medium-sized healthcare provider in the UK, operating 15 clinics across the country. It specialises in general practice, diagnostics, and physiotherapy services. Recently, the company has struggled to meet the growing demand for healthcare services due to staff shortages and high levels of absenteeism among its employees. These issues have increased patient wait times and reduced customer satisfaction.

The management team at HealthPlus is exploring ways to improve employee retention and productivity. One proposal is to introduce a flexitime policy, allowing employees to adjust their working hours to better fit their personal lives. Another option is to offer professional development programmes, such as leadership training or advanced medical certifications. While both strategies could improve staff morale, they also require financial investment at a time when HealthPlus is operating on tight budgets.

Additionally, external factors such as Brexit have impacted the availability of qualified healthcare professionals, as fewer international workers are seeking jobs in the UK. This has made it harder for HealthPlus to recruit the right talent, putting additional pressure on its HR planning processes.

HomeStyle Furnishings is a mid-sized retailer specialising in eco-friendly furniture and home decor. The company operates 25 stores across the UK and has a growing online presence. Recently, HomeStyle has been implementing changes to adapt to the increasing demand for sustainable products and the shift toward e-commerce.

One major change involved introducing an in-store digital design service that allows customers to visualise furniture in their homes. However, employees have resisted using the new technology, citing insufficient training and a fear that it might reduce the need for their roles. Additionally, HomeStyle is considering adopting flexible working arrangements for its store managers to improve work-life balance and employee retention. External factors, such as rising inflation and supply chain disruptions, have added to the challenges, forcing the company to find cost-effective HR solutions.

HomeStyle Furnishings is a mid-sized retailer specialising in eco-friendly furniture and home decor. The company operates 25 stores across the UK and has a growing online presence. Recently, HomeStyle has been implementing changes to adapt to the increasing demand for sustainable products and the shift toward e-commerce.

One major change involved introducing an in-store digital design service that allows customers to visualise furniture in their homes. However, employees have resisted using the new technology, citing insufficient training and a fear that it might reduce the need for their roles. Additionally, HomeStyle is considering adopting flexible working arrangements for its store managers to improve work-life balance and employee retention. External factors, such as rising inflation and supply chain disruptions, have added to the challenges, forcing the company to find cost-effective HR solutions.

SwiftSnacks runs a network of vending machines that sells healthy snacks and drinks in office buildings and schools. The company started five years ago and has grown quickly. It now operates over 500 vending machines in city areas. SwiftSnacks’ goal is “to make healthy choices easy and affordable”. Customers like the company’s focus on nutritious options, but the business faces several challenges as it grows

One of the main problems is inconsistent stock management. Some vending machines run out of popular products (stockouts), while others have too much stock, leading to waste. These issues upset customers and reduce profits. SwiftSnacks is thinking about installing automated stock control systems. These systems would track sales in real time and send alerts when a machine needs restocking. This could reduce waste and improve customer satisfaction, but the system would cost $300,000 upfront

SwiftSnacks is also considering outsourcing the job of restocking machines to a logistics company. This could save time and allow SwiftSnacks to focus on choosing and marketing products. However, outsourcing might mean less control over quality and reliability, which could harm the company’s reputation

Recent changes in how people work and study are also affecting the business. Many office workers now work remotely or part-time in the office, which has reduced demand for vending machines in office buildings. At the same time, demand in schools has increased due to new rules encouraging healthier snacks for students. To adjust to these trends, SwiftSnacks is testing a subscription service for remote workers. This allows customers to receive snack boxes delivered to their homes

SwiftSnacks is reviewing how to fund its ideas. The automated stock system would cost a lot upfront but could save money over time by reducing waste and restocking trips. Outsourcing would cost less initially but involves ongoing fees. Management is using investment appraisal methods such as the payback period to decide which option makes the most sense for the business

Table 1: Financial data (2023)

Table 2: Demand trends (2023)

Table 3: Production metrics (2023)

HomeStyle Furnishings is a mid-sized retailer specialising in eco-friendly furniture and home décor. The company operates 25 stores across the UK and has a growing online presence, contributing 30% of its annual $40m revenue. To address increasing demand for sustainable products and the shift towards e-commerce, HomeStyle has undertaken significant changes, adopting principles of lean production and continuous improvement to enhance efficiency

One major innovation is the introduction of an in-store digital design service. This technology allows customers to visualise furniture in their homes, improving satisfaction and sales conversion rates. However, resistance has arisen among employees, with 40% reporting insufficient training and 25% expressing concerns about job security

In addition, the company has embraced just-in-time inventory management to minimise waste and improve cash flow. While this strategy has reduced storage costs, it has made HomeStyle more reliant on suppliers. Recent supply chain disruptions have led to delivery delays, impacting customer satisfaction and sales

To address these challenges, HomeStyle’s leadership is exploring total quality management initiatives to embed a culture of quality and employee engagement. Flexible working arrangements for store managers are also under consideration to improve morale and reduce the company’s annual 18% staff turnover rate. However, external pressures such as rising inflation (5%) and increasing costs have added complexity, necessitating careful balancing of financial and operational priorities

Table 1: HomeStyle financial overview (2023 vs 2024)

Table 2: Key metrics on HR and operations (2023 vs 2024)