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2.3 Leadership and management

Practice exam-style IB Business and Management questions for Leadership and management, aligned with the syllabus and grouped by topic.

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Paper
Difficulty
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Level
Question 1
SL • Paper 1
Easy
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SL • Paper 1
Easy
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Oak & Thread (OT) is a small clothing retailer. Its owner, Malia, has recently appointed store supervisors for each branch. The supervisors prepare weekly staff rotas, check that sales displays follow OT's brand guidelines and report sales performance to Malia.

A

Define the term management.

[2]
B

Outline one management function carried out by OT's store supervisors.

[2]
Question 2
SL • Paper 1
Easy
Calculator Permitted
SL • Paper 1
Easy
Calculator Permitted

Rivertown Bikes (RB) repairs bicycles and sells accessories. The workshop is busy, and its employees often ask the owner, Leo, for permission before making even small decisions. Leo gives clear instructions and expects them to be followed without discussion.

A

With reference to RB, describe one advantage and one disadvantage of Leo using an autocratic leadership style.

[4]
Question 3
SL • Paper 1
Medium
Calculator Permitted
SL • Paper 1
Medium
Calculator Permitted

FreshBite Meals (FBM) produces healthy lunches for schools. The production manager, Arjun, sets daily output targets and checks food safety procedures. The founder, Nia, gives speeches about improving children's health and has persuaded employees to support a new programme to reduce food waste.

A

With reference to FBM, explain one difference between management and leadership.

[4]
Question 4
SL • Paper 1
Medium
Calculator Permitted
SL • Paper 1
Medium
Calculator Permitted

NaturaSpa (NS) operates three beauty salons. Its experienced therapists want to design their own treatment packages for customers, but newly recruited trainees need detailed guidance on hygiene, pricing and customer records. NS is introducing a new online booking system next month.

A

With reference to NS, explain why a situational leadership style may be appropriate.

[6]

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Question 5
HL • Paper 1
Medium
Calculator Permitted
HL • Paper 1
Medium
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Harbour House (HH) is a family-owned hotel. The managing director, Sofia, knows most employees personally. She decides staff working hours herself but provides free meals, emergency loans and help with childcare because she says, "I know what is best for my team." Some younger employees want more involvement in decisions.

A

With reference to HH, explain one advantage and one disadvantage of paternalistic leadership.

[4]
Question 6
SL • Paper 2
Medium
Calculator Permitted
SL • Paper 2
Medium
Calculator Permitted

BellaBean Cafes (BB) operates a small chain of coffee shops. In April, BB used an autocratic leadership style in one branch. In May, the branch manager changed to a more democratic leadership style by consulting baristas about shift routines and customer service.

The table shows data for the branch.

Month

Leadership style

Labour hours

Customer orders

Customer complaints

April

Autocratic

420

1890

63

May

Democratic

450

2160

45

A

Calculate the labour productivity, measured as customer orders per labour hour, for April and May. Show all your working.

[2]
B

Comment on whether the change to a democratic leadership style appears to have improved performance at BB.

[2]
Question 7
SL • Paper 2
Medium
Calculator Permitted
SL • Paper 2
Medium
Calculator Permitted

CleanPack Foods (CPF) produces packaged salads. Following a hygiene warning from a regulator, CPF’s factory manager temporarily used an autocratic leadership style, giving direct instructions and allowing no changes to cleaning procedures without approval.

The table shows production data.

Period

Leadership approach

Total batches produced (batches)

Rejected batches (batches)

Labour hours (hours)

Before warning

Participative

800

32

3600

During warning

Autocratic

760

19

3800

A

Calculate the rejected batch rate for each period. Show all your working.

[2]
B

Comment on one benefit or one cost to CPF of using an autocratic leadership style during the hygiene warning.

[2]
Question 8
SL • Paper 1
Medium
Calculator Permitted
SL • Paper 1
Medium
Calculator Permitted

BlueWave Kayaks (BWK) manufactures kayaks for outdoor activity centres. The operations director, Mina, wants to introduce democratic leadership in the design team. Employees would be invited to suggest improvements to kayak designs before Mina makes the final decision. However, BWK is under pressure to deliver a large order within six weeks.

A

With reference to BWK, analyse the impact of introducing democratic leadership in the design team.

[6]

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Question 9
HL • Paper 1
Medium
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HL • Paper 1
Medium
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CodeCove (CC) develops educational apps. The senior programmers are highly skilled and work from different countries. CC's founder, Theo, rarely checks their daily work and allows them to choose how to meet project goals. In contrast, the customer support team follows scripts and has a supervisor who approves all responses to complaints.

A

With reference to CC, compare laissez-faire and autocratic leadership styles.

[6]
Question 10
SL • Paper 2
Medium
Calculator Permitted
SL • Paper 2
Medium
Calculator Permitted

HarbourTech Installations (HT) installs security systems for small businesses. A new operations manager has introduced tighter planning and control procedures. At the same time, an experienced technician has informally become a team leader, encouraging colleagues and helping them solve customer problems.

The table shows monthly data for one installation team before and after these changes.

Month

Technicians / number

Installations completed / number

Average invoice per installation / $

Customer rating / 5

June

6

96

180

3.8

July

6

114

175

4.4

A

Calculate the change in monthly revenue per technician from June to July. Show all your working.

[3]
B

Comment on the difference between management and leadership at HT, using the data.

[2]
Question 11
SL • Paper 2
Medium
Calculator Permitted
SL • Paper 2
Medium
Calculator Permitted

PixelHaus (PH) is a small graphic design studio. Its creative director changed from close supervision to a laissez-faire leadership style, allowing designers to choose project methods and deadlines within broad client requirements.

The table shows quarterly data.

Quarter

Leadership style

Designers

Projects completed

Avg revenue/project ($)

Late projects

Q1

Closely supervised

8

40

1250

4

Q2

Laissez-faire

8

44

1300

11

A

Calculate the percentage change in total revenue from Q1 to Q2. Show all your working.

[3]
B

Comment on the suitability of a laissez-faire leadership style for PH.

[2]
Question 12
HL • Paper 2
Medium
Calculator Permitted
HL • Paper 2
Medium
Calculator Permitted

NorthLine Connect (NC) operates a customer call centre. The call centre manager used scientific thinking by analysing call volumes and labour costs before introducing a data-based staff scheduling system. Some supervisors are concerned that the new system measures speed more than customer relationships.

The table shows monthly data.

Scheduling system

Resolved calls

Total labour cost ($)

Customer satisfaction score (/100)

Old supervisor judgement

12000

156000

82

New data-based system

13500

168750

74

A

Calculate the labour cost per resolved call for each scheduling system. Show all your working.

[2]
B

Calculate the total labour cost saving from using the new system rather than the old cost per resolved call for 13500 resolved calls. Show all your working.

[2]
C

Comment on one limitation of using scientific thinking in management at NC.

[2]

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Question 13
HL • Paper 1
Medium
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HL • Paper 1
Medium
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MedLink Clinics (MLC) operates urgent-care clinics. A new regional manager, Daniel, has reduced appointment waiting times by tightly controlling staff schedules and monitoring each clinic's daily performance. However, nurses complain that Daniel does not listen to their concerns about patient care. Several experienced nurses have suggested safer ways to organize appointments, but Daniel says the data already shows his approach is working.

A

With reference to MLC, examine the importance of balancing management and leadership.

[6]
Question 14
SL • Paper 2
Medium
Calculator Permitted
SL • Paper 2
Medium
Calculator Permitted

MoveAid Logistics (ML) manages delivery routes for charities. The operations director currently uses the same democratic leadership style with all teams. She is considering situational leadership because the two teams have different levels of experience and urgency.

The table shows weekly data for two teams.

Team

Main role

Target on-time deliveries / %

Actual on-time deliveries / %

Training hours received / hours

Delivery errors per 100 deliveries

A

Experienced route planners

95%

94%

6

3

B

New emergency drivers

95%

82%

24

14

A

Calculate the signed variance, in percentage points, as actual on-time deliveries minus the target, for each team. Show all your working.

[2]
B

Calculate the ratio of Team B’s delivery error rate to Team A’s. Show all your working.

[2]
C

Comment on why situational leadership may be appropriate for ML.

[2]
Question 15
HL • Paper 2
Medium
Calculator Permitted
HL • Paper 2
Medium
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SolaWear (SW) is a fashion retailer. An experienced store manager intuitively believes that a new store layout will encourage customers to browse for longer. Senior managers compare data from a control store and a redesigned store before deciding whether to introduce the layout across all stores.

The table shows one month of data.

Store type

Visitors

Sales revenue ($)

Returned items

Control store, no layout change

5400

135000

270

Redesigned store

5600

134400

392

A

Calculate the percentage change in sales revenue per visitor from the control store to the redesigned store. Show all your working.

[3]
B

Comment on whether SW’s senior managers should rely mainly on the store manager’s intuitive thinking when deciding whether to introduce the new layout.

[3]
Question 16
SL • Paper 1
Hard
Calculator Permitted
SL • Paper 1
Hard
Calculator Permitted

GreenGrid Repair (GGR) is a social enterprise that repairs donated laptops and sells them at low prices to students. The founder, Lena, is widely respected by employees because she communicates a clear purpose: reducing electronic waste and improving access to education. Employees often work extra hours voluntarily when Lena explains the social impact of urgent orders.

However, GGR has grown from 8 to 42 employees in two years. Repair technicians complain that spare parts are not always available, customer orders are sometimes accepted without checking capacity, and records of repaired laptops are incomplete. Lena spends most of her time meeting schools, charities and donors. She is considering appointing an operations manager with formal authority to plan workloads, allocate resources, coordinate technicians and monitor performance targets. Some employees worry that GGR may lose its informal, mission-driven culture.

A

Discuss the importance of both management and leadership to GGR as it grows.

[10]

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Question 17
SL • Paper 1
Hard
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SL • Paper 1
Hard
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Coastal Crust (CC) is a family-owned bakery with one shop and a small delivery service. Its owner, Mara, has always used a paternalistic leadership style. She decides opening hours, pay arrangements and work routines herself, but she also provides free meals, flexible leave for family emergencies and personal support for employees.

CC is preparing to open a second shop near a train station. The new shop will use unfamiliar digital ordering screens and will employ several part-time workers with little bakery experience. At the same time, CC’s experienced bakers want more freedom to design new products for the station shop. Mara’s son argues that she should become more democratic to improve ideas and motivation. Mara believes that, during the launch period, employees will need clear instructions and close control.

A

Recommend an appropriate leadership style for Mara at CC.

[10]
Question 18
HL • Paper 2
Hard
Calculator Permitted
HL • Paper 2
Hard
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NovaMed Apps (NA) develops software for hospitals. The founder intuitively prefers a laissez-faire approach for software developers. The human resources director has used scientific thinking to compare this with a more structured situational leadership approach. Each option is scored out of 10 against weighted criteria.

The table shows the decision data.

Criterion

Weight

Option A score /10

Option B score /10

Meeting deadlines

0.40

6

8

Innovation quality

0.35

9

7

Employee morale

0.25

8

6

A

Calculate the weighted score for each option and identify the option with the higher score. Show all your working.

[4]
B

Comment on one limitation of relying only on scientific thinking when choosing the leadership approach at NA.

[2]
Question 19
SL • Paper 2
Hard
Calculator Permitted
SL • Paper 2
Hard
Calculator Permitted

QuickServe Robotics (QR) assembles small food-delivery robots for restaurants. QR has grown quickly, but it recently missed several delivery deadlines for customers. The operations manager, Leena, currently uses a democratic leadership style with assembly employees, who are experienced and have suggested several improvements to production methods.

A new contract from a national restaurant chain would increase monthly output targets significantly. To meet the contract, Leena is considering changing to a more autocratic leadership style for six months. Employees would have to follow standardized work procedures and would no longer be consulted about shift patterns or assembly methods. Some employees support clearer instructions, but others believe that their ideas have helped QR reduce faults and improve motivation.

The table shows selected monthly performance data for QR before and after a short trial of more autocratic leadership in one assembly team.

Performance measure

Democratic leadership

Autocratic trial

Output target (robots/month)

120

150

Actual output (robots/month)

112

154

Defect rate (%)

4.2

6.1

Average labour productivity (robots/worker/month)

9.3

12.8

Employee absenteeism (%)

3.6

5.0

Staff suggestions (per month)

13

4

A

Evaluate whether QR should change from a democratic leadership style to an autocratic leadership style for six months.

[10]
Question 20
SL • Paper 2
Hard
Calculator Permitted
SL • Paper 2
Hard
Calculator Permitted

CarePath Home Support (CHS) provides home-care visits for elderly clients. CHS employs care coordinators who allocate visits, monitor safeguarding procedures and deal with complaints. The founder, Amira, is admired by many employees because she often speaks about treating clients with dignity and building a caring culture. However, CHS has expanded into two new towns and now has more employees than Amira can personally supervise.

The regional managers focus on planning rotas, controlling costs and ensuring that legal care standards are met. Some care workers say that management has become efficient but impersonal. Others say that Amira's inspirational speeches are not enough because late rotas and unclear instructions make their work stressful. CHS is deciding whether to invest in more management training for regional managers or in a leadership development programme focused on communication, trust and vision.

The table shows selected monthly data for CHS in the two new towns.

Town

Care workers (number)

Visits completed (visits/month)

On-time visits (%)

Complaint rate (complaints/100 visits)

Turnover rate (%/month)

Engagement score (/100)

Town A

30

1,550

95

1.8

4

61

Town B

28

1,420

82

4.5

6

76

A

Discuss the relative importance of management and leadership to CHS as it expands.

[10]

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Question 21
HL • Paper 1
Hard
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HL • Paper 1
Hard
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Ardent Games (AG) develops online games for mobile phones. AG has 110 employees working in three departments: game design, software engineering and customer support. The chief executive officer, Riku, founded AG and still makes most major decisions himself. He uses an autocratic leadership style with customer support employees, who must follow strict scripts when responding to complaints about in-game purchases.

AG’s creative employees have become frustrated. Game designers say Riku rejects ideas too quickly, while software engineers say they can solve technical problems faster when trusted to choose their own methods. Two senior designers have recently left to join competitors. However, AG is also facing a regulatory investigation after customers complained about misleading advertisements. Riku argues that this crisis requires centralized decision-making and clear instructions. The human resources manager has suggested that Riku adopt situational leadership across AG.

A

Evaluate the suggestion that Riku should adopt situational leadership at AG.

[10]
Question 22
HL • Paper 2
Hard
Calculator Permitted
HL • Paper 2
Hard
Calculator Permitted

AeroFit Components (AFC) manufactures lightweight parts for sports equipment. The production director, Jae, uses scientific thinking in management. He analyses defect rates, labour productivity and machine downtime before changing work schedules. This has helped AFC reduce unit costs.

AFC is now considering entering a new market for customized components used by elite athletes. The market is uncertain, and customers often request unusual designs at short notice. The design manager, Priya, argues that AFC should rely more on intuitive thinking because experienced designers can judge what athletes will value before clear sales data exists. Jae is concerned that intuition may increase costs and lead to inconsistent decisions.

The table shows selected data from a three-month pilot project comparing two management approaches for customized components.

Management approach

Avg development time (days)

Prototype success rate (%)

Avg cost per prototype (USD)

Customer approval score (/10)

Repeat orders (orders/3 months)

Employee overtime (h/employee/week)

Mainly scientific

17

84

4100

7.4

21

6.0

Mainly intuitive

13

69

5300

8.6

34

9.0

A

Evaluate whether AFC should rely mainly on scientific thinking or intuitive thinking when managing its new customized components market.

[10]
Question 23
HL • Paper 3
Hard
Calculator Permitted
HL • Paper 3
Hard
Calculator Permitted

GreenLoop Lunches (GLL) - a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background

GLL prepares low-cost plant-based lunches for schools using surplus food from supermarkets. It also employs and trains refugees who have recently arrived in the city. GLL's founder, Mara, previously made most operational decisions using her experience as a chef and her personal knowledge of employees. As GLL prepares to open a second kitchen, the board wants a more systematic approach to decision-making, including performance data and staff scheduling software.

Resource 2 — Selected operational data from GLL's first kitchen

Resource 3 — Employee quotation

A kitchen supervisor said: "The new system helps us plan quantities, but some staff feel the managers now look only at the numbers. Refugee employees sometimes need flexibility for appointments and language classes."

Resource 4 — Social-media statistic

GLL has 78 000 followers. In a recent online survey, 64% of respondents said they would donate to help open the second kitchen, but 31% of negative comments mentioned late school deliveries.

Resource 5 — Decision facing GLL

The board must decide how Mara and the management team should combine scientific thinking and intuitive judgement when managing the second kitchen, while maintaining GLL's social mission and improving reliability.

Indicator

Before scheduling software

After three-month trial of scheduling software

Average lunches prepared per day (lunches/day)

1 850

2 150

Food waste as a percentage of ingredients (%)

11.0%

7.5%

Staff absence rate (%)

6.2%

8.4%

Employee satisfaction score (out of 10)

8.1

6.7

1

Using Resource 1 and Resource 2, describe one difference between scientific thinking and intuitive thinking in management.

[2]
2

Using Resource 2 and Resource 3, analyse one benefit and one limitation for GLL of relying mainly on scientific thinking when scheduling staff.

[6]
3

Using all the resources provided and your knowledge of business management tools and theories, recommend a plan of action for GLL's management team as it opens the second kitchen.

[17]
Question 24
HL • Paper 3
Hard
Calculator Permitted
HL • Paper 3
Hard
Calculator Permitted

RideForward (RF) - a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background

RF repairs donated bicycles and provides them at very low prices to low-income workers who cannot afford public transport. It also trains young unemployed people as bicycle mechanics. RF's founder, Tomas, is widely admired for his speeches about transport justice and has built strong relationships with local charities. However, RF has grown from one workshop to five community hubs, and employees complain that everyday management systems have not kept up with the growth.

Resource 2 — Selected information for RF

Resource 3 — Employee quotation

A hub coordinator said: "Tomas inspires everyone, but nobody knows who has authority to approve tools, change opening hours or allocate trainees between hubs. We have a powerful mission but weak systems."

Resource 4 — Social-media statistic

RF has 42 500 followers. A post about its training programme was shared 9 800 times, but the most common complaint in online reviews is the long waiting time for repaired bicycles.

Resource 5 — Decision facing RF

The city council has offered RF a three-year service contract if RF can prove that it has reliable management controls while keeping its community-led culture.

Indicator

Last year

This year

Bicycles repaired and distributed (number)

1 200

1 950

Young people enrolled in mechanic training (number)

38

64

Average repair waiting time (days)

6

13

Purchase orders approved late (%)

12

29

Annual labour turnover (%)

18

27

1

Using Resource 1 and Resource 3, outline one management function that RF needs to improve.

[2]
2

Using Resources 1 to 4, analyse the importance to RF of both leadership and management.

[6]
3

Using all the resources provided and your knowledge of business management tools and theories, recommend a plan of action for RF to secure the city council contract while maintaining its community-led culture.

[17]

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Question 25
HL • Paper 3
Hard
Calculator Permitted
HL • Paper 3
Hard
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SafeSteps Solar (SSS) - a social enterprise

Read the resources and answer the questions that follow.

Resource 1 — Background

SSS installs low-cost solar lamps in rural communities where students often study without safe lighting. SSS also trains local young people as installation assistants. The founder, Anika, prefers a democratic leadership style and holds weekly meetings before major decisions. However, SSS's field operations manager, Ravi, argues that during installations in remote villages, leaders must be autocratic because safety and deadlines are critical. SSS also has a small design team of experienced engineers who expect autonomy.

Resource 2 — Selected information about SSS teams

TeamMain workWorkforce characteristicsCurrent issue
Field installation teamsFit solar lamps in villagesMany new trainees; safety risks; strict travel schedulesInstallation errors have increased
Design teamImprove lamp durabilityExperienced engineers; creative work; low supervision neededTwo prototypes are behind schedule
Community outreach teamWork with village leaders and schoolsSkilled communicators; local cultural knowledgeSome villages feel insufficiently consulted

Resource 3 — Performance data from the last six months

IndicatorTargetActual
Villages served8072
Installation rework rate4%9%
Trainee completion rate85%76%
Community satisfaction score out of 108.57.4

Resource 4 — Employee quotation

A trainee said: "When we are on a roof, I want clear instructions. But when we discuss how to explain the lamps to families, managers should listen to us because we know the local community."

Resource 5 — Social-media statistic

SSS has 116 000 followers. A video about students using solar lamps received 1.6 million views, but a recent post about delayed installations attracted 1 200 critical comments.

Section

Item

Main work / target

Workforce characteristics / actual

Current issue

Team

Field installation teams

Fit solar lamps in villages

Many new trainees; safety risks; strict travel schedules

Installation errors have increased

Team

Design team

Improve lamp durability

Experienced engineers; creative work; low supervision needed

Two prototypes are behind schedule

Team

Community outreach team

Work with village leaders and schools

Skilled communicators; local cultural knowledge

Some villages feel insufficiently consulted

Performance

Villages served

80 target

72 actual

—

Performance

Installation rework rate

4% target

9% actual

—

Performance

Trainee completion rate

85% target

76% actual

—

Performance

Community satisfaction score (out of 10)

8.5 target

7.4 actual

—

1

Using Resource 1 and Resource 2, describe one feature of situational leadership.

[2]
2

Using Resource 2, Resource 3 and Resource 4, analyse the suitability of different leadership styles for SSS.

[6]
3

Using all the resources provided and your knowledge of business management tools and theories, recommend a leadership plan for SSS for the next 12 months.

[17]

2.2 Organizational structure

2.4 Motivation and demotivation