welcome to ib business management
unit 2

Unit 2: Human Resource Management – Navigating the Changing World of Work

Welcome to Unit 2: Human Resource Management (HRM)—the beating heart of any business. This unit is all about understanding the strategies and practices that guide companies in managing their most valuable asset: their people. From recruitment to motivation, training, and organizational culture, HRM is at the core of how businesses grow, thrive, or struggle. But today, HRM is more dynamic than ever, adapting to a rapidly changing workforce and workplace trends.

The New World of HRM: What’s Changing?

In this unit, we’ll explore how businesses manage their human resources in today’s world—where the traditional 9-to-5workday is increasingly becoming a thing of the past. From remote working to digital nomads, and even temporary work, the workplace is evolving. Geographical mobility is up, with employees willing to work from anywhere in the world, as long as they have a reliable internet connection. And companies, like Shopify, are leading the way by embracing remote work as their new normal. These changes represent a massive shift in Human Resource trends that are reshaping the entire business landscape.

But with these changes come challenges—motivation, employee well-being, and even corporate culture are being tested in new ways. What happens when employees are no longer tied to a physical office? Can a company still maintain a strong culture if its workforce is spread out across the globe? That’s where HRM strategies come in. This unit helps you navigate these new questions, preparing you to assess and respond to these evolving trends.

What’s Covered in Unit 2?

Unit 2: Human Resource Management explores several key sub-units that provide the foundation for understanding how businesses manage their workforce. Let’s break it down:

2.1 Introduction to Human Resource Management

This sub-unit introduces you to the core functions of HRM: recruitment, training, development, and retention. You’ll learn how HRM supports the business’s overall strategy and helps companies maintain a competitive edge. Real-world case study questions here could explore companies like Google, where recruitment strategies are designed to find the best and brightest, but also ensure a company culture that attracts and retains top talent.

2.2 Organizational Structure

How do businesses organize their teams? This section looks at various types of organizational structures and how they impact HRM. Case studies of companies like Amazon—famous for its massive workforce and controversial labor practices—will highlight how different structures (e.g., hierarchical vs. decentralized) affect employee motivation and performance.

2.3 Leadership and Management

Leadership plays a crucial role in how people are motivated, and in this sub-unit, you’ll explore different leadership styles, from autocratic to democratic and laissez-faire. You’ll also dive into how leadership directly impacts employee motivation and overall productivity. Look no further than Amazon’s struggles with employee motivation. With reports of grueling working conditions and unrealistic targets, Amazon’s leadership has often been in the spotlight for poor HRM practices.

2.4 Motivation and Demotivation

This sub-unit delves into the psychological theories that drive employee behavior. You’ll learn about Maslow’s Hierarchy of Needs, Herzberg’s Two-Factor Theory, and more. How can businesses inspire workers to go beyond the bare minimum? Consider Zara, where the fast-paced work environment fosters both motivation and stress. Or think about companies like Uber, which faced serious challenges with employee satisfaction after facing criticism for poor workplace practices.

2.5 Organizational (Corporate) Culture

Culture eats strategy for breakfast—and in this section, you’ll see why. You’ll learn how to cultivate an organizational culture that aligns with a company’s goals. But culture isn’t just about free lunches and ping-pong tables. With remote working and digital nomads becoming more common, maintaining a company culture is an ongoing challenge. The growing gig economy and temporary work also complicate things, with employees less likely to identify with the company’s culture if they’re not permanent. This shift has serious implications for HRM strategies.

2.6 Communication

Effective communication is essential for any organization. In this sub-unit, you’ll explore the different types of communication—formal, informal, and digital—and how they impact the workplace. Remote work requires a new kind of communication strategy that relies heavily on digital tools and platforms. Companies like Slack and Zoom are paving the way in helping teams stay connected, even when they’re spread across different continents.

Real-World Trends and Events: The HRM Lens

In this unit, you’ll analyze some of the biggest HRM trends shaping businesses today. Home working, temporary work, and the rise of the gig economy all present new HR challenges. As a student of IB Business Management, you’ll see how these trends tie into real-world examples and news stories.

For instance, companies like X and Facebook are expanding their remote work policies, offering employees the freedom to work from anywhere. But this comes with a corporate culture challenge—how do you build a sense of belonging when your workforce is scattered around the world? Recent articles about remote work burnout and employee well-being will provide perfect material for your IA.

Get Ready for Success: Use Your IB BM Course Resources

Whether you’re writing your Internal Assessment (IA) or preparing for exams, the IB BM course resources will guide you through the unit. With case study questions that challenge you to apply real HRM theories to companies like Amazon, Zara, and Google, you’ll be well-equipped to demonstrate a deep understanding of the material. Remember, mastering HRM and its evolving trends is key to getting a level 7!