Business Management: A Holistic Approach to Understanding Organizations and Society, Guías, Proyectos, Investigaciones de Derecho

¡Descarga Business Management: A Holistic Approach to Understanding Organizations and Society y más Guías, Proyectos, Investigaciones en PDF de Derecho solo en Docsity! EY A Diploma — / Programme 4 Business management guide First assessment 2016 MS [E MCEASEAEl! [AMIA  IB mission statement The International Baccalaureate aims to develop inquiring, knowledgeable and caring young people who help to create a better and more peaceful world through intercultural understanding and respect. To this end the organization works with schools, governments and international organizations to develop challenging programmes of international education and rigorous assessment. These programmes encourage students across the world to become active, compassionate and lifelong learners who understand that other people, with their differences, can also be right. IB learner profile The aim of all IB programmes is to develop internationally minded people who, recognizing their common humanity and shared guardianship of the planet, help to create a better and more peaceful world. As IB learners we strive to be: INQUIRERS We nurture our curiosity, developing skills for inquiry and research. We know how to learn independently and with others. We learn with enthusiasm and sustain our love of learning throughout life. KNOWLEDGEABLE We develop and use conceptual understanding, exploring knowledge across a range of disciplines. We engage with issues and ideas that have local and global significance. THINKERS We use critical and creative thinking skills to analyse and take responsible action on complex problems. We exercise initiative in making reasoned, ethical decisions. COMMUNICATORS We express ourselves confidently and creatively in more than one language and in many ways. We collaborate effectively, listening carefully to the perspectives of other individuals and groups. PRINCIPLED We act with integrity and honesty, with a strong sense of fairness and justice, and with respect for the dignity and rights of people everywhere. We take responsibility for our actions and their consequences. OPEN-MINDED We critically appreciate our own cultures and personal histories, as well as the values and traditions of others. We seek and evaluate a range of points of view, and we are willing to grow from the experience. CARING We show empathy, compassion and respect. We have a commitment to service, and we act to make a positive difference in the lives of others and in the world around us. RISK-TAKERS We approach uncertainty with forethought and determination; we work independently and cooperatively to explore new ideas and innovative strategies. We are resourceful and resilient in the face of challenges and change. BALANCED We understand the importance of balancing different aspects of our lives— intellectual, physical, and emotional—to achieve well-being for ourselves and others. We recognize our interdependence with other people and with the world in which we live. REFLECTIVE We thoughtfully consider the world and our own ideas and experience. We work to understand our strengths and weaknesses in order to support our learning and personal development. The IB learner profile represents 10 attributes valued by 18 World Schools. We believe these attributes, and others like them, can help individuals and groups become responsible members of local, national and global communities. 9 International Baccalaureate Organization 2013 International Baccalaureate” | Baccalauréat International” | Bachillerato Internacional"  Business management guide 1 Introduction Purpose of this document This publication is intended to guide the planning, teaching and assessment of the subject in schools. Subject teachers are the primary audience, although it is expected that teachers will use the guide to inform students and parents about the subject. This guide can be found on the subject page of the online curriculum centre (OCC) at http://occ.ibo.org, a password-protected IB website designed to support IB teachers. It can also be purchased from the IB store at http://store.ibo.org. Additional resources Additional publications such as specimen papers and markschemes, teacher support materials, subject reports and grade descriptors can also be found on the OCC. Past examination papers as well as markschemes can be purchased from the IB store. Teachers are encouraged to check the OCC for additional resources created or used by other teachers. Teachers can provide details of useful resources, for example: websites, books, videos, journals or teaching ideas. Acknowledgment The IB wishes to thank the educators and associated schools for generously contributing time and resources to the production of this guide. First assessment 2016 Business management guide2 Introduction The Diploma Programme The Diploma Programme is a rigorous pre-university course of study designed for students in the 16 to 19 age range. It is a broad-based two-year course that aims to encourage students to be knowledgeable and inquiring, but also caring and compassionate. There is a strong emphasis on encouraging students to develop intercultural understanding, open-mindedness, and the attitudes necessary for them to respect and evaluate a range of points of view. The Diploma Programme model The course is presented as six academic areas enclosing a central core (see figure 1). It encourages the concurrent study of a broad range of academic areas. Students study two modern languages (or a modern language and a classical language), a humanities or social science subject, an experimental science, mathematics and one of the creative arts. It is this comprehensive range of subjects that makes the Diploma Programme a demanding course of study designed to prepare students effectively for university entrance. In each of the academic areas students have flexibility in making their choices, which means they can choose subjects that particularly interest them and that they may wish to study further at university. Figure 1 Diploma Programme model The Diploma Programme Business management guide 5 Acknowledging the ideas or work of another person Coordinators and teachers are reminded that candidates must acknowledge all sources used in work submitted for assessment. The following is intended as a clarification of this requirement. Diploma Programme candidates submit work for assessment in a variety of media that may include audio/ visual material, text, graphs, images and/or data published in print or electronic sources. If a candidate uses the work or ideas of another person the candidate must acknowledge the source using a standard style of referencing in a consistent manner. A candidate’s failure to acknowledge a source will be investigated by the IB as a potential breach of regulations that may result in a penalty imposed by the IB final award committee. The IB does not prescribe which style(s) of referencing or in-text citation should be used by candidates; this is left to the discretion of appropriate faculty/staff in the candidate’s school. The wide range of subjects, three response languages and the diversity of referencing styles make it impractical and restrictive to insist on particular styles. In practice, certain styles may prove most commonly used, but schools are free to choose a style that is appropriate for the subject concerned and the language in which candidates’ work is written. Regardless of the reference style adopted by the school for a given subject, it is expected that the minimum information given includes: name of author, date of publication, title of source, and page numbers as applicable. Candidates are expected to use a standard style and use it consistently so that credit is given to all sources used, including sources that have been paraphrased or summarized. When writing text a candidate must clearly distinguish between their words and those of others by the use of quotation marks (or other method like indentation) followed by an appropriate citation that denotes an entry in the bibliography. If an electronic source is cited, the date of access must be indicated. Candidates are not expected to show faultless expertise in referencing, but are expected to demonstrate that all sources have been acknowledged. Candidates must be advised that audio/visual material, text, graphs, images and/or data published in print or in electronic sources that is not their own must also attribute the source. Again, an appropriate style of referencing/ citation must be used. Learning diversity and learning support requirements Schools must ensure that equal access arrangements and reasonable adjustments are provided to candidates with learning support requirements that are in line with the IB documents Candidates with assessment access requirements and Learning diversity in the International Baccalaureate programmes: Special educational needs within the International Baccalaureate programmes. Business management guide6 Introduction Nature of the subject Business management Business management is a rigorous, challenging and dynamic discipline in the individuals and societies subject group. The role of businesses, as distinct from other organizations and actors in a society, is to produce and sell goods and services that meet human needs and wants by organizing resources. Profit- making, risk-taking and operating in a competitive environment characterize most business organizations. Although business management shares many skills and areas of knowledge with other humanities and social sciences, it is distinct in a number of ways. For example business management is the study of decision- making within an organization, whereas economics is the study of scarcity and resource allocation, both on micro and macro levels. Business management examines the use of information technology in business contexts, whereas information technology in a global society (ITGS) critically examines its impact on other fields, such as health and government. Business management studies business functions, management processes and decision-making in contemporary contexts of strategic uncertainty. It examines how business decisions are influenced by factors internal and external to an organization, and how these decisions impact upon its stakeholders, both internally and externally. Business management also explores how individuals and groups interact within an organization, how they may be successfully managed and how they can ethically optimize the use of resources in a world with increasing scarcity and concern for sustainability. Business management is, therefore, perfectly placed within the individuals and societies subject area: aiming to develop in students an appreciation both for our individuality and our collective purposes. The Diploma Programme business management course is designed to develop students’ knowledge and understanding of business management theories, as well as their ability to apply a range of tools and techniques. Students learn to analyse, discuss and evaluate business activities at local, national and international levels. The course covers a range of organizations from all sectors, as well as the socio-cultural and economic contexts in which those organizations operate. Emphasis is placed on strategic decision-making and the operational business functions of human resource management, finance and accounts, marketing and operations management. Links between the topics are central to the course, as this integration promotes a holistic overview of business management. Through the exploration of six concepts underpinning the subject (change, culture, ethics, globalization, innovation and strategy), the business management course allows students to develop their understanding of interdisciplinary concepts from a business management perspective. The course encourages the appreciation of ethical concerns, as well as issues of corporate social responsibility (CSR), at both a local and global level. Through the study of topics such as human resource management, organizational growth and business strategy, the course aims to develop transferable skills relevant to today’s students. These include the ability to: think critically; make ethically sound and well-informed decisions; appreciate the pace, nature and significance of change; think strategically; and undertake long term planning, analysis and evaluation. The course also develops subject-specific skills, such as financial analysis. Nature of the subject Business management guide 7 Distinction between SL & HL The HL course in business management differs from the SL course in business management in terms of the: • recommended hours devoted to teaching (240 hours for HL compared to 150 hours for SL) • extra depth and breadth required (extension units for HL) • nature of the internal assessment task • nature of the examination questions. Business management and the core From the perspective of the Diploma Programme core, the value of individuals and societies subjects is that they allow students to reach beyond the classroom and their immediate school community to build intellectual and practical connections to the wider society. In business management, the particular category of actors students learn about, interact with and reflect on is businesses. The all-pervasive and dynamic nature of business organizations means that there are many opportunities for teachers and students to link the course with TOK, CAS and the extended essay. Theory of knowledge Students in this subject group explore the interactions between humans and their environment in time and place. As a result, these subjects are often known collectively as the humanities or social sciences. As with other subject areas, knowledge in individuals and societies subjects can be gained in a variety of ways. For example, archival evidence, data collection, experimentation, observation, and inductive and deductive reasoning can all be used to help explain patterns of behaviour that lead to knowledge claims. Students in individuals and societies subjects are required to evaluate these knowledge claims by exploring concepts such as validity, reliability, credibility, certainty and individual as well as cultural perspectives through knowledge questions. The relationship between individuals and societies subjects and TOK is of crucial importance and fundamental to the Diploma Programme. Having followed a course of study in individuals and societies, students should be able to reflect critically on the various ways of knowing and methods used in human sciences, and in doing so, become “inquiring, knowledgeable and caring young people” (IB mission statement). During the business management course, a number of issues will arise that highlight the relationships between TOK and business management. Some of the questions that could be considered during the course are identified below in relation to the six concepts that underpin the course as well as within the syllabus. Teachers and their students are encouraged to explore further questions of their own. Knowledge questions in business management A knowledge question in business management challenges a statement, assertion or assumption about the subject that students believe to be true or take for granted. From a TOK perspective, students need to question these claims and how they are justified. Knowledge questions are not about business management per se but about how knowledge in business management—and more widely, in social sciences—is constructed and viewed. Some knowledge questions that could be considered during the course are identified below. These are presented in relation to the concepts of change, culture, ethics, globalization, innovation and strategy that underpin the course and so reflect more overarching questions. Suggested links to TOK are also identified at the end of each unit. Nature of the subject Business management guide10 The course encourages the use of contemporary examples and case studies at a variety of levels, from the local to the global, as well as from smaller-scale businesses to multinational ones. Throughout the course, teachers have the opportunity to choose case studies that reflect the cultural context in which they are teaching as well as case studies that allow for comparisons across cultural contexts. The six concepts underpinning the course create a framework for these discussions. The course is designed to give students an international perspective and to encourage their appreciation of cultural diversity among different types of business organizations, and individuals and groups within them. The course promotes the ideals of international cooperation and responsible citizenship. Students are encouraged to make sense of the forces and circumstances that drive and restrain change in an interdependent and multicultural world. Thus, the Diploma Programme business management course contributes to students’ developments as critical and effective participants in local, national and world affairs—business and otherwise. Business management guide 11 Introduction Approaches to teaching and learning of business management Like all IB courses, the Diploma Programme business management course is influenced by a number of underlying pedagogical principles. Especially important strategies for business management are conceptually focused teaching and contextualized teaching through the use of case studies and examples. The ability to research is a key skill for students studying the course. The relationship between concepts, the contexts and content of the discipline of business management can be illustrated with a triangular diagram. Concepts are anchored in the tools, techniques and theories of the subject and come alive through case studies and examples. Together, these help students to acquire a holistic and integrated understanding of business management. Concepts (change, culture, ethics, globalization, innovation, strategy) Contexts (case studies and examples) Content (business management tools, techniques and theories in the syllabus) Figure 2 The integrated relationships of concepts, content and contexts in business management The following section, as well as the teacher support material available on the OCC, contains more specific guidance and suggestions on approaching the teaching and learning of the Diploma Programme business management course. This guidance is not exhaustive, and through their own planning, teachers should explore a range of teaching and learning experiences. Conceptually focused teaching in business management The following six concepts underpin the Diploma Programme business management course: • Change • Culture • Ethics Approaches to teaching and learning of business management Business management guide12 • Globalization • Innovation • Strategy. Some teachers may choose to teach the business management course in a linear way, topic-by-topic. Other teachers may prefer to organize the syllabus content around the six key concepts. Regardless, all teachers should explicitly integrate a conceptual approach to their current practice. A conceptually focused teaching approach has several advantages. Concepts: • facilitate disciplinary and interdisciplinary learning and allow for connections with other subjects. • deepen students’ understanding of today’s complex and dynamic business environments. • allow teachers to frame the most important ideas that have relevance for the subject but also transcend it. Consequently, students learn to analyse and evaluate individual and collective behaviours and topical phenomena not only in business contexts but in the society at large. • allow students to integrate new content into already existing understandings. Working with a conceptual approach prepares students for a part of their assessment. The six concepts are a part of the formal assessment of the course at both SL and HL. In one of their examination papers, students are asked to use two of the six concepts to discuss the situation and issues faced by real-world organizations they have studied during the course, making use of business management tools, techniques and theories. The following table provides brief understandings of the six concepts and offers some suggestions as to how they may be explored through specific subject content. The examples are in no way prescriptive, and in their planning, teachers should identify and map areas of the syllabus, and suitable case studies and examples that will allow them to explore these concepts with their students. Concept Understanding in relation to the course Examples of content that allows for the exploration of concepts (this list is not prescriptive) Change Competition, new technologies and markets, and trends in consumer behaviour lead business organizations to adapt their objectives, strategies and operations. Success emerges from the ability to research and respond to signals in both the internal and external environment. 1.3 Organizational objectives 2.1 Functions and evolution of human resource management 2.2 Organizational structure 3.1 Sources of finance 3.7 Cash flow 4.2 Marketing planning 4.3 Sales forecasting (HL only) 4.4 Market research 5.6 Research and development (HL only) 5.7 Crisis management and contingency planning (HL only) Approaches to teaching and learning of business management Business management guide 15 The resources may cover a wide range of contemporary business issues, such as globalization, new business models centred on social and environmental issues, CSR, the role of product quality or the changing nature of marketing. Please note that these are suggestions and the choice of issues should be of interest to students and reflect current debates in the business world. The following approach is helpful when teaching through case studies and examples. • Identify the context and issues raised by the case study or example. • Explain how these issues relate to different areas of the syllabus and the six concepts. • Apply the business tools, techniques and theories that might be appropriate for understanding the issues raised in the case study or example. • Discuss and, if appropriate, recommend alternatives to the issues raised. Students are able to use their work with case studies and examples in their assessment. Familiarity with the case study approach is important for a successful treatment of the pre-seen case study and of stimulus materials given in the examination papers. Moreover, in the conceptual examination questions, students are asked to use two of the six concepts to discuss the context, situation and issues faced by real-world organizations they have studied during the course. Finally, for their internal assessment at both SL and HL, students have to focus on a problem, issue or decision faced by a real-world organization. The Business management teacher support material provides further guidance on teaching through case studies and examples. Research skills Potential extended essay work in business management, the internal assessment at both SL and HL, and their preparation for the conceptual examination questions provide opportunities for students to explore and develop their research skills. These include the identification of relevant materials, the design of data collection techniques, the collection and analysis of data, and the ability to evaluate and draw conclusions from data. Teachers are encouraged to discuss appropriate research methods with students. The Business management teacher support material provides further guidance on research skills. While conceptually focused teaching, contextual teaching and research skills are highlighted as particularly relevant approaches to teaching and learning in business management, the course offers opportunities for teachers and students to explore a range of teaching and learning experiences. Teachers are encouraged to discuss their strategies on the OCC. Prior learning No particular background in terms of specific subjects for national or international qualifications is expected or required, and no prior knowledge of business management is necessary for students to undertake a course of study based on this specification. However, a familiarity with business concepts would be an advantage, as would completing the individuals and societies course in the Middle Years Programme (MYP). Links to the Middle Years Programme The MYP individuals and societies subject group involves inquiry into historical, contemporary, political, social, economic, cultural, technological and environmental contexts that impact on, and are influenced by, individuals and societies. This is a very useful foundation for students who go on to study the Diploma Programme business management course. Approaches to teaching and learning of business management Business management guide16 Students coming from the MYP are familiar with a conceptual approach to learning. Among their key and related concepts in the individuals and societies subject group, they will have studied the concepts of change, culture, ethics, globalization, innovation and strategy, which will be further developed in the Diploma Programme business management course. Conceptual analysis in the business management course is expected to have an increasing degree of sophistication and disciplinary specificity. The development of certain skills in the MYP individuals and societies subject group is also excellent preparation for a Diploma Programme course in business management, which requires the student to undertake research, demonstrate understanding and knowledge of content and concepts, and exhibit the capacity to think critically. For example, the following specific skills, which are identified and developed in the MYP individuals and societies subject group, are encouraged in the Diploma Programme business management course: • the ability to use sources such as graphs and tables in a critical manner • the ability to analyse and interpret information from a wide range of sources • the ability to communicate information and ideas using an appropriate style for the intended audience and purpose • the ability to analyse concepts, events, issues and arguments • the ability to make well-substantiated decisions and to relate them to real-world contexts. Business management guide 17 Introduction Aims The aims of all subjects in the individuals and societies are to: 1. encourage the systematic and critical study of: human experience and behaviour; physical, economic and social environments; the history and development of social and cultural institutions 2. develop in the student the capacity to identify, analyse critically and evaluate theories, concepts and arguments about the nature and activities of the individual and society 3. enable the student to collect, describe and analyse data used in studies of society, and to test hypotheses and interpret complex data and source material 4. promote the appreciation of the way in which learning is relevant to both the culture in which the student lives and the cultures of other societies 5. develop an awareness in the student that human attitudes and opinions are widely diverse and that a study of society requires an appreciation of such diversity 6. enable the student to recognize that the content and methodologies of the individuals and societies subjects are contestable and that their study requires the tolerance of uncertainty. The aims of the business management course at HL and SL are to: 1. encourage a holistic view of the world of business 2. empower students to think critically and strategically about individual and organizational behaviour 3. promote the importance of exploring business issues from different cultural perspectives 4. enable the student to appreciate the nature and significance of change in a local, regional and global context 5. promote awareness of the importance of environmental, social and ethical factors in the actions of individuals and organizations 6. develop an understanding of the importance of innovation in a business environment. Assessment objectives in practice Business management guide20 Assessment objective Which component addresses this assessment objective? How is the assessment objective addressed? 4. Demonstrate a variety of appropriate skills • External assessment • Internal assessment External assessment • Paper 1 (SL and HL): all sections • Paper 2 (SL and HL): all sections, emphasized in section A Internal assessment • SL: emphasized in criteria A, B, C, F and G • HL: emphasized in criteria A, B, C, G and H Command terms Command terms are used both in the syllabus content and in examination questions to indicate depth of treatment. They are classified below according to the assessment objective (AO) levels. AO1—Demonstrate knowledge and understanding AO2—Demonstrate application and analysis AO3—Demonstrate synthesis and evaluation AO4—Demonstrate a variety of appropriate skills Cognitive demands progress from AO1 to AO3, while AO4 terms are specific to particular skills. Teachers and students must be familiar with the assessment objective levels and the command terms in order to understand the depth of treatment required in teaching and in examination questions. In the syllabus content, the assessment objective levels are specified instead of particular command terms. This gives teachers flexibility to work with the most relevant command terms at the given assessment objective level. For use of command terms in examination questions, please refer to the assessment section of this guide. The command terms within each assessment objective level are listed in alphabetical order in the following table. Definitions of the terms are listed in the “Glossary of command terms” in the appendix to this guide. Assessment objective Key command term Depth 1. Demonstrate knowledge and understanding Define Describe Outline State These terms require students to learn and comprehend the meaning of information. Assessment objectives in practice Business management guide 21 Assessment objective Key command term Depth 2. Demonstrate application and analysis of knowledge and understanding Analyse Apply Comment Demonstrate Distinguish Explain Suggest These terms require students to use their knowledge and skills to break down ideas into simpler parts and to see how the parts relate. 3. Demonstrate synthesis and evaluation Compare Compare and contrast Contrast Discuss Evaluate Examine Justify Recommend To what extent These terms require students to rearrange component ideas into a new whole and make judgments based on evidence or a set of criteria. 4. Demonstrate a variety of appropriate skills Annotate Calculate Complete Construct Determine Draw Identify Label Plot Prepare These terms require students to demonstrate the selection and use of subject-specific skills and techniques. Business management guide22 Syllabus Syllabus outline Syllabus component Teaching hours SL HL Unit 1: Business organization and environment 1.1 Introduction to business management 1.2 Types of organizations 1.3 Organizational objectives 1.4 Stakeholders 1.5 External environment 1.6 Growth and evolution 1.7 Organizational planning tools (HL only) 40 50 Unit 2: Human resource management 2.1 Functions and evolution of human resource management 2.2 Organizational structure 2.3 Leadership and management 2.4 Motivation 2.5 Organizational (corporate) culture (HL only) 2.6 Industrial/employee relations (HL only) 15 30 Unit 3: Finance and accounts 3.1 Sources of finance 3.2 Costs and revenues 3.3 Break-even analysis 3.4 Final accounts (some HL only) 3.5 Profitability and liquidity ratio analysis 3.6 Efficiency ratio analysis (HL only) 3.7 Cash flow 3.8 Investment appraisal (some HL only) 3.9 Budgets (HL only) 35 50 Syllabus content Business management guide 25 SL/HL content Depth of teaching HL only Depth of teaching The nature of business activity in each sector and the impact of sectoral change on business activity AO2 The role of entrepreneurship (and entrepreneur) and intrapreneurship (and intrapreneur) in overall business activity AO3 Reasons for starting up a business or an enterprise AO2 Common steps in the process of starting up a business or an enterprise AO2 Problems that a new business or enterprise may face AO2 The elements of a business plan AO2 1.2 Types of organizations Distinction between the private and the public sectors AO2 The main features of the following types of for-profit (commercial) organizations: • sole traders • partnerships • companies/corporations AO3 The main features of the following types of for-profit social enterprises: • cooperatives • microfinance providers • public-private partnerships (PPP) AO3 The main features of the following types of non-profit social enterprises: • non-governmental organizations (NGOs) • charities AO3 Syllabus content Business management guide26 SL/HL content Depth of teaching HL only Depth of teaching 1.3 Organizational objectives Vision statement and mission statement AO2 Aims, objectives, strategies and tactics, and their relationships AO3 The need for organizations to change objectives and innovate in response to changes in internal and external environments AO3 Ethical objectives and corporate social responsibility (CSR) AO1 The reasons why organizations set ethical objectives and the impact of implementing them AO3 The evolving role and nature of CSR AO3 SWOT analysis of a given organization AO3, AO4 Ansoff matrix for different growth strategies of a given organization AO3, AO4 1.4 Stakeholders The interests of internal stakeholders AO2 The interests of external stakeholders AO2 Possible areas of mutual benefit and conflict between stakeholders’ interests AO3 1.5 External environment STEEPLE analysis of a given organization AO2, AO4 Consequences of a change in any of the STEEPLE factors for a business’s objectives and strategy AO3 1.6 Growth and evolution Economies and diseconomies of scale AO2 The merits of small versus large organizations AO3 Syllabus content Business management guide 27 SL/HL content Depth of teaching HL only Depth of teaching The difference between internal and external growth AO2 The following external growth methods: • mergers and acquisitions (M&As) and takeovers • joint ventures • strategic alliances • franchising AO3 The role and impact of globalization on the growth and evolution of businesses AO3 Reasons for the growth of multinational companies (MNCs) AO3 The impact of MNCs on the host countries AO3 1.7 Organizational planning tools (HL only) The following planning tools in a given situation: • fishbone diagram • decision tree • force field analysis • Gantt chart AO2, AO4 The value to an organization of these planning tools AO3 Syllabus content Business management guide30 SL/HL content Depth of teaching HL only Depth of teaching The following types of appraisal: • formative • summative • 360-degree feedback • self-appraisal AO2 Common steps in the processes of dismissal and redundancy AO1 How work patterns, practices and preferences change and how they affect the employer and employees (such as teleworking, flexitime, migration for work) AO2 Outsourcing, offshoring and re- shoring as human resource strategies AO3 How innovation, ethical considerations and cultural differences may influence human resource practices and strategies in an organization AO3 2.2 Organizational structure The following terminology to facilitate understanding of different types of organizational structures: • delegation • span of control • levels of hierarchy • chain of command • bureaucracy • centralization • decentralization • de-layering AO1 The following types of organization charts: • flat/horizontal • tall/vertical • hierarchical • by product • by function • by region AO2, AO4 Syllabus content Business management guide 31 SL/HL content Depth of teaching HL only Depth of teaching Changes in organizational structures (such as project-based organization, Handy’s “Shamrock Organization”) AO2 How cultural differences and innovation in communication technologies may impact on communication in an organization AO3 2.3 Leadership and management The key functions of management AO2 Management versus leadership AO2 The following leadership styles: • autocratic • paternalistic • democratic • laissez-faire • situational AO3 How ethical considerations and cultural differences may influence leadership and management styles in an organization AO3 2.4 Motivation The following motivation theories: • Taylor • Maslow • Herzberg (motivation–hygiene theory) • Adams (equity theory) • Pink AO3 The following types of financial rewards: • salary • wages (time and piece rates) • commission • profit-related pay • performance-related pay (PRP) • employee share ownership schemes • fringe payments (perks) AO2 Syllabus content Business management guide32 SL/HL content Depth of teaching HL only Depth of teaching The following types of non-financial rewards: • job enrichment • job rotation • job enlargement • empowerment • purpose/the opportunity to make a difference • teamwork AO2 How financial and non-financial rewards may affect job satisfaction, motivation and productivity in different cultures AO2 2.5 Organizational (corporate) culture (HL only) Organizational culture AO1 Elements of organizational culture AO2 Types of organizational culture AO2 The reasons for, and consequences of, cultural clashes within organizations when they grow, merge and when leadership styles change AO3 How individuals influence organizational culture and how organizational culture influences individuals AO3 2.6 Industrial/employee relations (HL only) The role and responsibility of employee and employer representatives AO2 The following industrial/employee relations methods used by: • employees: collective bargaining, slowdowns/go- slows, work-to-rule, overtime bans and strike action • employers: collective bargaining, threats of redundancies, changes of contract, closure and lock-outs AO3 Syllabus content Business management guide 35 SL/HL content Depth of teaching HL only Depth of teaching Short, medium and long-term finance AO1 The appropriateness, advantages and disadvantages of sources of finance for a given situation AO3 3.2 Costs and revenues The following types of cost, using examples: • fixed • variable • semi-variable • direct • indirect/overhead AO2 Total revenue and revenue streams, using examples AO2 3.3 Break-even analysis Total contribution versus contribution per unit AO2 A break-even chart and the following aspects of break-even analysis: • break-even quantity/point • profit or loss • margin of safety • target profit output • target profit • target price AO2, AO4 The effects of changes in price or cost on the break-even quantity, profit and margin of safety, using graphical and quantitative methods AO2, AO4 The benefits and limitations of break- even analysis AO3 Syllabus content Business management guide36 SL/HL content Depth of teaching HL only Depth of teaching 3.4 Final accounts (some HL only) The purpose of accounts to different stakeholders AO3 The principles and ethics of accounting practice AO3 Final accounts: • profit and loss account • balance sheet AO2, AO4 Different types of intangible assets AO1 Depreciation using the following methds: • straight line method • reducing/declining balance method AO2, AO4 The strengths and weaknesses of each method AO2 3.5 Profitability and liquidity ratio analysis The following profitability and efficiency ratios: • gross profit margin • net profit margin • ROCE AO2, AO4 Possible strategies to improve these ratios AO3 The following liquidity ratios: • current • acid-test/quick AO2, AO4 Possible strategies to improve these ratios AO3 Syllabus content Business management guide 37 SL/HL content Depth of teaching HL only Depth of teaching 3.6 Efficiency ratio analysis (HL only) The following further efficiency ratios: • inventory/stock turnover • debtor days • creditor days • gearing ratio AO2, AO4 Possible strategies to improve these ratios AO3 3.7 Cash flow The difference between profit and cash flow AO2 The working capital cycle AO2 Cash flow forecasts AO2, AO4 The relationship between investment, profit and cash flow AO2 The following strategies for dealing with cash flow problems: • reducing cash outflow • improving cash inflows • looking for additional finance AO3 3.8 Investment appraisal (some HL only) Investment opportunities using payback period and average rate of return (ARR) AO3, AO4 Investment opportunities using net present value (NPV) AO3, AO4 Syllabus content Business management guide40 SL/HL content Depth of teaching HL only Depth of teaching How marketing strategies evolve as a response to changes in customer preferences AO3 How innovation, ethical considerations and cultural differences may influence marketing practices and strategies in an organization AO3 4.2 Marketing planning (including introduction to the four Ps) The elements of a marketing plan AO1 The role of marketing planning AO2 The four Ps of the marketing mix AO2 An appropriate marketing mix for a particular product or business AO2, AO4 The effectiveness of a marketing mix in achieving marketing objectives AO3 The difference between target markets and market segments AO2 Possible target markets and market segments in a given situation AO4 The difference between niche market and mass market AO2 How organizations target and segment their market and create consumer profiles AO2 A product position map/perception map AO2, AO4 The importance of having a unique selling point/proposition (USP) AO2 How organizations can differentiate themselves and their products from competitors AO3 Syllabus content Business management guide 41 SL/HL content Depth of teaching HL only Depth of teaching 4.3 Sales forecasting (HL only) Up to four-part moving average, sales trends and forecast (including seasonal, cyclical and random variation) using given data AO4 The benefits and limitations of sales forecasting AO3 4.4 Market research Why and how organizations carry out market research AO2 The following methods/techniques of primary market research: • surveys • interviews • focus groups • observations AO2 The following methods/techniques of secondary market research: • market analyses • academic journals • government publications • media articles AO2 Ethical considerations of market research AO3 The difference between qualitative and quantitative research AO2 The following methods of sampling: • quota • random • stratified • cluster • snowballing • convenience AO2 Results from data collection AO2 Syllabus content Business management guide42 SL/HL content Depth of teaching HL only Depth of teaching 4.5 The four Ps (product, price, promotion, place) Product The product life cycle AO4 The relationship between the product life cycle and the marketing mix AO2 Extension strategies AO3 The relationship between the product life cycle, investment, profit and cash flow AO2 Boston Consulting Group (BCG) matrix on an organization’s products AO3, AO4 The following aspects of branding: • awareness • development • loyalty • value AO2 The importance of branding AO3 The importance of packaging AO3 Price The appropriateness of the following pricing strategies: • cost-plus (mark-up) • penetration • skimming • psychological • loss leader • price discrimination • price leadership • predatory AO3 Syllabus content Business management guide 45 Theory of knowledge—suggested links • The four Ps and seven Ps frameworks suggest that marketing has four or seven aspects, all of which can be described with a word that starts with a P. How helpful are such analytical frameworks to you as a knowledge-seeker? • Many ads use scientific language. What does this tell us about the hierarchy of different areas of knowledge? • The observer effect is a common problem in the social sciences whereby knowledge of being researched influences how people answer questions and behave. What problems does the observer effect create for market research? • In market research, how might the language used in polls and questionnaires influence consumers and businesses’ conclusions? • Is it possible to measure brand loyalty? • To what extent is consumer behaviour rational? • Is the decision to develop CSR objectives solely a marketing strategy? • To what extent are marketing practices a reflection of the values of a given time and culture? Syllabus content Business management guide46 Unit 5: Operations management In this unit, students return to the fundamental rationale of business management: to make goods and services that meet consumers’ needs and wants. Without efficient operations leading to products and experiences customers are satisfied with, success in the other business functions is unsustainable. In unit 5, students learn how organizations manage their operations, whether in terms of achieving an optimal cost– quality ratio or the shortest supply chain; using the most ethical means or the latest innovative techniques; or applying the highest levels of quality assurance. Unit 5 is the part of the business management course where the relative weight of the HL material is greatest. Both SL and HL students look at different production methods and their implications as well as different ways of organizing production. At HL, students explore additional areas such as lean production, quality management, and research and development. Operations management is the “how to” of business management. Still, it ties intimately to the “what” question of an organization’s objectives (unit 1): a new strategic direction means adjustments in operations. Good human resource management at all levels in an organization, in turn, is a pre-requisite of successful operations (unit 2). Cooperation between marketing, with the closest relation to customers, and operations, which put new ideas into practice, is also significant (unit 4). Unit 5 can be taught through case studies in a variety of settings; visits to factories or service businesses are a good way to make the topic come alive. This unit has a very concrete dimension that invites students to explore and understand the importance of manufacturing and other types of operations, bringing the other units of the course together in a dynamic way. The nature of operations is varied and rapidly evolving across industries and locations, and thus there are plenty of opportunities to explore the concepts of change, culture, ethics, globalization and innovation. SL/HL content Depth of teaching HL only Depth of teaching 5.1 The role of operations management Operations management and its relationship with other business functions AO1 Operations management in organizations producing goods and/or services AO2 Operations management strategies and practices for ecological, social (human resource) and economic sustainability AO3 Syllabus content Business management guide 47 SL/HL content Depth of teaching HL only Depth of teaching 5.2 Production methods The following production methods: • job/customized production • batch production • mass/flow/process production • cellular manufacturing AO2 The most appropriate method of production for a given situation AO3 5.3 Lean production and quality management (HL only) The following features of lean production: • less waste • greater efficiency AO1 The following methods of lean production: • continuous improvement (kaizen) • just-in-time (JIT) • kanban • andon AO2 Features of cradle to cradle design and manufacturing AO2 Features of quality control and quality assurance AO1 The following methods of managing quality: • quality circle • benchmarking • total quality management (TQM) AO2 The impact of lean production and TQM on an organization AO3 The importance of national and international quality standards AO2 Syllabus content Business management guide50 Theory of knowledge—suggested links • Is there a difference between a product that consumers perceive to be of good quality and one that businesses know is? What ethical dilemmas does the information advantage businesses have over consumers pose? • Is a quality product always more expensive to manufacture or buy than a mediocre product? How does time perspective affect our assessment of such statements? • Is there such a thing as an optimal production method? What evidence and whose experiences could business leaders look at to decide on this? • Environmental costs of production are often referred to as “externalities” as they harm third parties. How does our formulation of problems affect our sense of responsibility for solving them? • What ways of knowing do you think business leaders use in deciding where to locate their production? • What is the role of creativity, imagination and emotion in a business context? • Can one make an argument that the more people’s needs and wants are met, the more difficult innovation is? • Can a business plan for a crisis? Business management guide 51 Assessment Assessment in the Diploma Programme General Assessment is an integral part of teaching and learning. The most important aims of assessment in the Diploma Programme are that it should support curricular goals and encourage appropriate student learning. Both external and internal assessments are used in the Diploma Programme. IB examiners mark work produced for external assessment, while work produced for internal assessment is marked by teachers and externally moderated by the IB. There are two types of assessment identified by the IB. • Formative assessment informs both teaching and learning. It is concerned with providing accurate and helpful feedback to students and teachers on the kind of learning taking place and the nature of students’ strengths and weaknesses in order to help develop students’ understanding and capabilities. Formative assessment can also help to improve teaching quality, as it can provide information to monitor progress towards meeting the course aims and objectives. • Summative assessment gives an overview of previous learning and is concerned with measuring student achievement. The Diploma Programme primarily focuses on summative assessment designed to record student achievement at, or towards the end of, the course of study. However, many of the assessment instruments can also be used formatively during the course of teaching and learning, and teachers are encouraged to do this. A comprehensive assessment plan is viewed as being integral with teaching, learning and course organization. For further information, see the IB Programme standards and practices document. The approach to assessment used by the IB is criterion-related, not norm-referenced. This approach to assessment judges students’ work by their performance in relation to identified levels of attainment, and not in relation to the work of other students. For further information on assessment within the Diploma Programme please refer to the publication Diploma Programme assessment: Principles and practice. To support teachers in the planning, delivery and assessment of the Diploma Programme courses, a variety of resources can be found on the OCC or purchased from the IB store (http://store.ibo.org). Additional publications such as specimen papers and markschemes, teacher support materials, subject reports and grade descriptors can be found on the OCC. Past examination papers as well as markschemes can be purchased from the IB store. Methods of assessment The IB uses several methods to assess work produced by students. Assessment criteria Assessment criteria are used when the assessment task is open-ended. Each criterion concentrates on a particular skill that students are expected to demonstrate. An assessment objective describes what students should be able to do, and assessment criteria describe how well they should be able to do it. Using assessment criteria allows discrimination between different answers and encourages a variety of responses. Assessment in the Diploma Programme Business management guide52 Each criterion comprises a set of hierarchically ordered level descriptors. Each level descriptor is worth one or more marks. Each criterion is applied independently using a best-fit model. The maximum marks for each criterion may differ according to the criterion’s importance. The marks awarded for each criterion are added together to give the total mark for the piece of work. Markbands Markbands are a comprehensive statement of expected performance against which responses are judged. They represent a single holistic criterion divided into level descriptors. Each level descriptor corresponds to a range of marks to differentiate student performance. A best-fit approach is used to ascertain which particular mark to use from the possible range for each level descriptor. Analytic markschemes Analytic markschemes are prepared for those examination questions that expect a particular kind of response and/or a given final answer from students. They give detailed instructions to examiners on how to break down the total mark for each question for different parts of the response. Marking notes For some assessment components marked using assessment criteria, marking notes are provided. Marking notes give guidance on how to apply assessment criteria to the particular requirements of a question. Inclusive assessment arrangements Inclusive assessment arrangements are available for candidates with assessment access requirements. These arrangements enable candidates with diverse needs to access the examinations and demonstrate their knowledge and understanding of the constructs being assessed. The IB document Candidates with assessment access requirements provides details on all the inclusive assessment arrangements available to candidates with learning support requirements. The IB document Learning diversity in the International Baccalaureate programmes: Special educational needs within the International Baccalaureate programmes outlines the position of the IB with regard to candidates with diverse learning needs in the IB programmes. For candidates affected by adverse circumstances, the IB documents General regulations: Diploma Programme and the Handbook of procedures for the Diploma Programme provide details on access consideration. Responsibilities of the school The school is required to ensure that equal access arrangements and reasonable adjustments are provided to candidates with learning support requirements that are in line with the IB documents Candidates with special assessment needs and Learning diversity in the International Baccalaureate programmes: Special educational needs within the International Baccalaureate programmes Assessment outline—HL Business management guide 55 Assessment component Weighting Internal assessment (30 teaching hours) This component is internally assessed by the teacher and externally moderated by the IB at the end of the course. Research project Students research and repor t on an issue facing an organiz ation or a decision to be made by an organization (or several organizations). Maximum 2000 words. (25 marks) 25% Business management guide56 Assessment External assessment Three different methods are used to assess students. • Analytic markschemes • Markbands • Assessment criteria (for paper 1 and paper 2 extended response questions) For both examination papers, there are analytic markschemes, markbands and assessment criteria. The markbands and assessment criteria are related to the assessment objectives established for the business management course and the individuals and societies grade descriptors, and are published in this guide. The analytic markschemes are specific to each examination and are published separately in a markscheme document. Written papers The external assessment of the Diploma Programme business management course consists of two examination papers at SL and at HL that are externally set and externally marked. They are designed to allow students to demonstrate their competencies in relation to the business management assessment objectives. All questions on the examination papers are based on specifications in this guide. The external components contribute 75% to the final assessment at both SL and HL. In common with all Diploma Programme examination papers, students at SL and HL are given five minutes of reading time before they begin answering the papers. Pre-seen case study (paper 1) • The pre-seen case study is provided by the IB three months before the examination session. The pre- seen case study describes a fictitious case study organization and its business situation. Teachers are advised to spend no more than three weeks on the pre-seen case study. The teacher support material gives further guidance on appropriate preparatory work with the pre-seen case study. Section A questions of paper 1 are based on the pre-seen case study. • The pre-seen case study is the same for SL and HL students, although different questions could be set for each level. • Additional stimulus material is provided on the day of the examination, giving students more information on the situation of the case study organization and decisions it is facing. Section B and section C (HL only) questions of paper 1 are primarily based on the additional stimulus material, although students are expected to draw on the pre-seen material where relevant. The additional stimulus material may be the same as, similar to, or different for SL and HL students, and some additional stimulus material is given for HL students only. • The purpose of the pre-seen case study is to assess, in depth and across a number of topics, the students’ ability to apply business management knowledge to a given situation. External assessment Business management guide 57 Command terms Teachers and students must be familiar with the command terms used at each assessment objective level to understand the depth of treatment required in examination questions. Cognitive demands progress from AO1 to AO3, while AO4 terms are specific to particular skills. Examination questions may use any command term from the assessment objective level specified in the “Syllabus content” section or a less demanding command term from a lower level. For example, if the assessment objective level for a topic is AO2, an examination question could contain any of the command terms for AO2, such as “explain”, “distinguish” and so forth. Alternatively, the examination question could contain a command term from AO1, such as “describe”. However, a more demanding command term, such as “evaluate”, from a higher level (AO3 in this case), cannot be used. The command terms used in each question or part thereof indicate the depth required. The command terms are organized by assessment objective level in the “Assessment objectives” section earlier in the guide and defined in the “Glossary of command terms” in the appendix. Use of examples and case studies In order to be awarded marks in the higher markbands and levels of assessment criteria, students are expected, where appropriate, to refer to the stimulus material provided in examinations, use case studies and illustrate their answers with examples. This way, they highlight their understanding of how business management tools, techniques and theories operate in practice. Where the stimulus material, case studies and examples are referred to, students should not simply state the information, but rather offer some explanation of how it relates to the question asked. Use of business management terms Students are expected to demonstrate the ability to appropriately define, use and apply the business management terms included in the “Syllabus content” section. Use of calculators While all questions requiring a calculator can be answered fully using a four-function (plus, minus, multiply, divide) calculator, graphic display calculators (GDCs) are allowed during the examination. Teachers and schools must adhere to the regulations regarding the use of electronic calculators in examinations, and students must be made aware of these. This information can be found in the relevant section of the Handbook of procedures for the Diploma Programme. External assessment Business management guide60 • The question is subdivided into parts. • The command terms used in each part indicate the depth required. • The questions may require: knowledge and understanding; application and analysis; synthesis and evaluation; and a variety of appropriate skills. • The marks available for each part are indicated on the examination paper. • Each question is worth 20 marks. • Section B is worth a total of 20 marks. For sections A and B, marks are allocated using a combination of an analytic markscheme and markbands. Section C • The principal focus of questions in this section is on the concepts of change, culture, ethics, globalization, innovation and strategy that underpin the business management course. • While the principal focus for each question is on two of the concepts, students need to draw on their knowledge of other relevant topics in the syllabus. • There is no stimulus material provided for the questions. • Students are required to address the question in relation to at least one real-world organization but may use information from a range of sources, which may include real-world case studies examined in class and IA research. The real-world organization that students use in their responses must not be the case study organization featured in paper 1. • The response should consider the perspectives of individuals and societies on which the real-world organization impacts. • Students answer one extended response question from a choice of three. • Assessment objective level 3 (AO3) command terms are used in the questions. • The questions require: knowledge and understanding; application and analysis; synthesis and evaluation; and a variety of appropriate skills. • Each question is worth 20 marks. • Section C is worth a total of 20 marks. For section C, marks are allocated using assessment criteria. Marking notes included in the markscheme give additional guidance on how to apply the assessment criteria. Overall, the maximum for paper 2 is 50 marks. External assessment details—HL Paper 1 Duration: 2 hours 15 minutes Weighting: 35% This paper is divided into three sections. Section A questions are based on the IB prescribed pre-seen case study issued to students three months before the examination. Section B and C questions are based mainly on the additional stimulus material given on the day of the examination, although students are expected to draw on the pre-seen material where relevant. Section A and section B questions may be the same, similar or different for SL and HL students. External assessment Business management guide 61 Students are expected to demonstrate the following assessment objectives. Assessment objective Section A Section B Section C 1. Demonstrate knowledge and understanding X X X 2. Demonstrate application and analysis X X X 3. Demonstrate synthesis and evaluation X X 4. Demonstrate a variety of appropriate skills X X X Section A • Questions in this section are drawn from units 1 to 5, which could include the HL extension of the syllabus, and refer to the prescribed pre-seen case study. • Students answer two structured questions in total from a choice of three. • Each question is subdivided into parts. • The command terms used in each question indicate the depth required. • The questions may require: knowledge and understanding; application and analysis; and a variety of appropriate skills. • The marks available for each part are indicated on the examination paper. • Each question is worth 10 marks. • Section A is worth a total of 20 marks. Section B • The questions in this section are drawn from units 1 to 5 and HL extension of the syllabus and are primarily based on the additional stimulus material given on the day of the examination. • Students answer one compulsory structured question. • The question is subdivided into parts. • The command terms used in each part indicate the depth required. • The questions may require: knowledge and understanding; application and analysis; synthesis and evaluation; and a variety of appropriate skills. • The marks available for each part are indicated on the examination paper. • Section B question is worth a total of 20 marks. For sections A and B, marks are allocated using a combination of an analytic markscheme and markbands. External assessment Business management guide62 Section C • The question in this section is drawn from units 1 to 5 and HL extension of the syllabus and is primarily based on the additional stimulus material given on the day of the examination. • The response should consider the perspectives of individuals and societies that the organization in the prescribed case study impacts upon. • Students answer one compulsory extended response question. • Assessment objective level three (AO3) command terms are used in the questions. • The questions require: knowledge and understanding; application and analysis; synthesis and evaluation; and a variety of appropriate skills. • Each question is worth 20 marks. • Section C is worth a total of 20 marks. For section C, marks are allocated using assessment criteria. Marking notes included in the markscheme give additional guidance on how to apply the assessment criteria. Overall, the maximum for paper 1 is 60 marks. Paper 2 Duration: 2 hours 15 minutes Weighting: 40% This paper is divided into three sections. The structure of this paper is the same as SL paper 2. However, questions may be the same as, similar to, or different from, those used for the SL paper. HL students answer more questions. Students are expected to demonstrate the following assessment objectives. Assessment objective Section A Section B Section C 1. Demonstrate knowledge and understanding X X X 2. Demonstrate application and analysis X X X 3. Demonstrate synthesis and evaluation X X 4. Demonstrate a variety of appropriate skills X X X Section A • The questions in this section are drawn from units 1 to 5 and HL extension of the syllabus. • The questions have a quantitative focus. • Students answer one structured question based on unseen stimulus material from a choice of two. • The question is subdivided into parts. External assessment Business management guide 65 Marks Level descriptor 5–6 • Understanding of most of the demands of the question. • Relevant business management tools (where applicable), techniques and theories are explained and applied, and appropriate terminology is used most of the time. • Some reference to the stimulus material that goes beyond the name of a person(s) and/or the name of the organization. • Some evidence of a balanced response. • Some judgments are relevant but not substantiated. 7–8 • Good understanding of the demands of the question. • Relevant business management tools (where applicable), techniques and theories are explained and applied well, and appropriate terminology is used. • Good reference to the stimulus material. • Good evidence of a balanced response. • The judgments are relevant but not always well substantiated. 9–10 • Good understanding of the demands of the question, including implications, where relevant. • Relevant business management tools (where applicable), techniques and theories are explained clearly and applied purposefully, and appropriate terminology is used throughout the response. • Effective use of the stimulus material in a way that significantly strengthens the response. • Evidence of balance is consistent throughout the response. • The judgments are relevant and well substantiated. External assessment criteria—SL and HL Assessment criteria are used to allocate marks for extended response questions in: • HL paper 1, section C • SL paper 2, section C • HL paper 2, section C. HL paper 1, section C There are five assessment criteria for this question type. • Criterion A: Knowledge and understanding of tools, techniques and theories • Criterion B: Application • Criterion C: Reasoned arguments • Criterion D: Structure • Criterion E: Individual and societies. External assessment Business management guide66 Criterion A: Knowledge and understanding of tools, techniques and theories This criterion addresses the extent to which the student demonstrates knowledge and understanding of relevant business management tools, techniques and theories as stated and/or implied by the question. This includes using appropriate business management terminology. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 Superficial knowledge of relevant tools, techniques and theory is demonstrated. 2 Satisfactory knowledge and understanding of relevant tools, techniques and theories is demonstrated. 3 Good knowledge and understanding of relevant tools, techniques and theories is generally demonstrated, though the explanation may lack some depth or breadth. 4 Good knowledge and understanding of relevant tools, techniques and theories is demonstrated. Criterion B: Application This criterion addresses the extent to which the student is able to apply the relevant business management tools, techniques and theories to the case study organization. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 The relevant business management tools, techniques and theories are connected to the case study organization, but this connection is inappropriate or superficial. 2 The relevant business management tools, techniques and theories are appropriately connected to the case study organization, but this connection is not developed. 3 The relevant business management tools, techniques and theories are generally well applied to explain the situation and issues of the case study organization, though the explanation may lack some depth or breadth. Examples are provided. 4 The relevant business management tools, techniques and theories are well applied to explain the situation and issues of the case study organization. Examples are appropriate and illustrative. External assessment Business management guide 67 Criterion C: Reasoned arguments This criterion assesses the extent to which the student makes reasoned arguments. This includes making relevant and balanced arguments by, for example, exploring different practices, weighing up their strengths and weaknesses, comparing and contrasting them or considering their implications, depending on the requirements of the question. It also includes justifying the arguments by presenting evidence for the claims made. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 Statements are made but these are superficial. 2 Relevant arguments are made but these are mostly unjustified. 3 Relevant arguments are made and these are mostly justified. 4 Relevant, balanced arguments are made and these are well justified. Criterion D: Structure This criterion assesses the extent to which the student organizes his or her ideas with clarity, and presents a structured piece of writing comprised of: • an introduction • a body • a conclusion • fit-for-purpose paragraphs. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 Two or fewer of the structural elements are present, and few ideas are clearly organized. 2 Three of the structural elements are present, or most ideas are clearly organized. 3 Three or four of the structural elements are present, and most ideas are clearly organized. 4 All of the structural elements are present, and ideas are clearly organized. External assessment Business management guide70 Criterion D: Structure This criterion assesses the extent to which the student organizes his or her ideas with clarity, and presents a structured piece of writing comprised of: • an introduction • a body • a conclusion • fit-for-purpose paragraphs. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 Two or fewer of the structural elements are present, and few ideas are clearly organized. 2 Three of the structural elements are present, or most ideas are clearly organized. 3 Three or four of the structural elements are present, and most ideas are clearly organized. 4 All of the structural elements are present, and ideas are clearly organized. Criterion E: Individuals and societies This criterion assesses the extent to which the student is able to give balanced consideration to the perspectives of a range of relevant stakeholders, including individuals and groups internal and external to the organization. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 One individual or group perspective is considered superficially or inappropriately. 2 One relevant individual or group perspective is considered appropriately, or two relevant individual or group perspectives are considered superficially or inappropriately. 3 At least two relevant individual or group perspectives are considered appropriately. 4 Balanced consideration is given to relevant individual and group perspectives. Please see marking notes in markschemes for further support in assessing these questions. Business management guide 71 Assessment Internal assessment Purpose of internal assessment Internal assessment is an integral part of the course and is compulsory for both SL and HL students. It enables students to demonstrate the application of their skills and knowledge, and to pursue their personal interests, without the time limitations and other constraints that are associated with written examinations. The internal assessment should, as far as possible, be woven into normal classroom teaching and not be a separate activity conducted after a course has been taught. The internal assessment requirements at SL and at HL are different for the business management course. The SL internal assessment is a written commentary and the HL internal assessment is a research project. Guidance and authenticity The written commentary (SL) and research project (HL) submitted for internal assessment must be the students’ own work. However, it is not the intention that students should decide upon a title or topic and be left to work on the internal assessment component without any further support from the teacher. The teacher should play an important role during both the planning stage and the period when the student is working on the internally assessed work. It is the responsibility of the teacher to ensure that students are familiar with: • the requirements of the type of work to be internally assessed • the assessment criteria; students must understand that the work submitted for assessment must address these criteria effectively. Teachers and students must discuss the internally assessed work. Students should be encouraged to initiate discussions with the teacher to obtain advice and information, and students must not be penalized for seeking guidance. As part of the learning process, teachers should read and give advice to students on one draft of the work. The teacher should provide oral or written advice on how the work could be improved, but must not edit the draft. The next version handed to the teacher must be the final version for submission. It is the responsibility of teachers to ensure that all students understand the basic meaning and significance of concepts that relate to academic honesty, especially authenticity and intellectual property. Teachers must ensure that all student work for assessment is prepared according to the requirements and must explain clearly to students that the internally assessed work must be entirely their own. Where collaboration between students is permitted, it must be clear to all students what the difference is between collaboration and collusion. All work submitted to the IB for moderation or assessment must be authenticated by a teacher, and must not include any known instances of suspected or confirmed malpractice. Each student must confirm that the work is his or her authentic work and constitutes the final version of that work. Once a student has officially submitted the final version of the work it cannot be retracted. The requirement to confirm the authenticity of work applies to the work of all students, not just the sample work that will be submitted to the IB for the purpose of moderation. For further details refer to the IB publication Academic honesty, The Diploma Programme: From principles into practice and the relevant articles in the General regulations: Diploma Programme. Internal assessment Business management guide72 Authenticity may be checked by discussion with the student on the content of the work, and scrutiny of one or more of the following: • the student’s initial proposal • the first draft of the written work • the references cited • the style of writing compared with work known to be that of the student • the analysis of the work by a web-based plagiarism detection service such as turnitin.com. The same piece of work cannot be submitted to meet the requirements of both the internal assessment and the extended essay. Time allocation Internal assessment is an integral part of the business management course, contributing 25% to the final assessment in the SL and the HL courses. This weighting should be reflected in the time that is allocated to teaching the knowledge, skills and understanding required to undertake the work, as well as the total time allocated to carry out the work. It is recommended that a total of approximately 15 hours (SL) and 30 hours (HL) of teaching time should be allocated to the work. This should include: • time for the teacher to explain to students the requirements of the internal assessment • class time for students to work on the internal assessment component and ask questions • time for consultation between the teacher and each student • time to review and monitor progress, and to check authenticity. Requirements and recommendations It is important for the integrity of the moderation process that the internal assessment by the teacher is based on the same evidence as that available to the moderator. When there is more than one teacher teaching students in this component, internal standardization must take place. Using assessment criteria for internal assessment For internal assessment, a number of assessment criteria have been identified. Each assessment criterion has level descriptors describing specific achievement levels, together with an appropriate range of marks. The level descriptors concentrate on positive achievement, although for the lower levels failure to achieve may be included in the description. Teachers must judge the internally assessed work at SL and at HL against the criteria using the level descriptors. • Different assessment criteria are provided for SL and HL. • The aim is to find, for each criterion, the descriptor that conveys most accurately the level attained by the student, using the best-fit model. A best-fit approach means that compensation should be made when a piece of work matches different aspects of a criterion at different levels. The mark awarded should be one that most fairly reflects the balance of achievement against the criterion. It is not necessary for every single aspect of a level descriptor to be met for that mark to be awarded. Internal assessment Business management guide 75 • extracts from company websites • transcripts of a relevant audio-visual file • financial reports • government and other statistics • journal publications • market research surveys • mission statements • web-based surveys. Examples of primary sources include: • responses to questionnaires (students should include a blank copy of the questionnaire and a tally/ summary of results) • results of surveys • transcripts of interviews and discussions with focus groups. Students must select their own supporting documents, which must not be provided to the student by the teacher. Students must highlight the parts of each supporting document that relate directly to their commentary. Any highlighted parts of supporting documents that are not in the language for which the student is registered must be translated. Students should label each supporting document clearly, such as “Supporting document 1”, “Supporting document 2” and so on. This will help with referencing in the commentary. It is expected that students will include in-text citations/references of the supporting documents and a bibliography, which should be formatted in an appropriate way. Any additional sources such as textbooks and class notes must be referenced but will not be accepted as supporting documents. Written commentary Although there is no required format for the written commentary, it should nonetheless be a structured piece of well-presented writing. An introduction that sets the scene, presentation, analysis and discussion of findings, and a conclusion that answers the commentary question provides an effective structure for the commentary. Good presentation additionally requires a title page, an accurate table of contents page, appropriate headings and sub-headings, consistent referencing, a complete bibliography and numbered pages. The introduction should briefly demonstrate some background information about the business organization, to give a clear outline of the issue or problem under investigation and to explain the methodology used to investigate this issue or problem. In the body of the commentary, findings from the supporting documents should be presented and analysed with the help of relevant business tools, techniques and theories. The findings should also be interpreted: what main themes emerge from the analysis of the supporting documents, and why and how are they helpful (or not) to answering the commentary question? An evaluative approach to this discussion of findings should be pursued: for example, what are the strengths and weaknesses of the various positions on the issue or problem and what are their implications? Internal assessment Business management guide76 In the conclusion, the commentary question should be explicitly answered. The conclusion should not introduce facts or arguments that have not been discussed in previous sections of the commentary. Rather, it is good practice to include those aspects of the commentary question that have not been fully answered in the commentary or that might need further investigation in order to be judged more effectively. For presentation of references and bibliography, please see the information on acknowledging the ideas and work of another person in the “The Diploma Programme” section of this subject guide. Word count The written commentary must not exceed 1,500 words. A word count must be included as part of the commentary. If the word limit is exceeded, the teacher’s assessment must be based on the first 1,500 words. Note: Moderators will not read beyond 1,500 words for the commentary. The following are not included in the word count: • acknowledgments • contents page • tables of statistical data • diagrams or figures • equations, formulae and calculations • citations (which, if used, must be in the body of the commentary) • references (which, if used, must be in the footnotes/endnotes) • bibliography. Please note that footnotes/endnotes may be used for references only. Definitions of business management terms and quotations, if used, must be in the body of the work and are included in the word count. Please note that citation is a shorthand method of making a reference in the body of the commentary, which is then linked to the full reference in the bibliography. Internal assessment criteria—SL The SL business management written commentary is assessed against seven criteria that are related to the assessment objectives for the business management course. When the work to be assessed has been read, the descriptors for each criterion should be studied until a descriptor is reached that most appropriately describes the achievement level. If a piece of work seems to fall between two descriptors, both descriptors should be read again and the one that more appropriately describes the student’s work chosen. There are seven assessment criteria for the written commentary. • Criterion A: Supporting documents • Criterion B: Choice and application of business tools, techniques and theories • Criterion C: Choice and analysis of data and integration of ideas • Criterion D: Conclusions Internal assessment Business management guide 77 • Criterion E: Evaluation • Criterion F: Structure • Criterion G: Presentation Criterion A: Supporting documents This criterion assesses the extent to which the student selects three to five relevant supporting documents that address the issue or problem selected for commentary in appropriate depth and breadth. The criterion also assesses whether the student’s choice and presentation of the supporting documents meets formal requirements. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 There are only one or two, or more than five, supporting documents, or they are of marginal relevance. 2 The supporting documents are generally relevant but some lack depth, or they were published more than three years prior to the submission of the IA to the IB, or they are not all translated in the language of submission. 3 The supporting documents are relevant and sufficiently in-depth. 4 The supporting documents are relevant, sufficiently in-depth and provide a range of ideas and views. Criterion B: Choice and application of tools, techniques and theories This criterion assesses the extent to which the student chooses business management tools, techniques and theories that are relevant to the issue or problem and applies these so that a greater insight into the situation of the organization ensues. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 There is a limited selection of business management tools, techniques and theories, and these are not applied. 2 There is a limited selection of business management tools, techniques and theories, and these are superficially applied. 3 There is an appropriate selection of business management tools, techniques and theories, but these are superficially applied. 4 There is an appropriate selection of business management tools, techniques and theories, and these are suitably applied. 5 There is an appropriate selection of business management tools, techniques and theories, and these are skillfully applied. Internal assessment Business management guide80 • produce a written report that does not exceed 2,000 words • write the report in a style and format of a useful working document for management. Choice of research topic and organization Students should, with the teacher’s guidance, choose their own topic and organization that they find interesting and motivating. The teacher should approve each topic before work is started, and ensure that it complies with the requirements for internal assessment. The research question should be forward-looking, targeted at an issue or a decision still relevant for the business organization(s) rather than descriptive of something already finished, and should require the student to make recommendations for further action. Guidance from the teacher in formulating an appropriate research question is important. For a variety of reasons not apparent at the start of the project, such as confidentiality, some organizations fail to provide data, which will undermine the quality of the final report. Students must therefore confirm before starting their investigations that they will be able to obtain the necessary data from the chosen organization. Students must be aware of ethical considerations when undertaking any research. There is a need for tact, sensitivity to other people and respect for confidentiality. If more than one student chooses the same organization for their research, it is the responsibility of the teacher to ensure that the written commentaries reflect the students’ own individual research, interpretation and analysis. If a student also writes an extended essay in business management, it is the responsibility of the teachers to ensure that students do not build their internal assessment and extended essay in business management on the same syllabus content. Also, given different requirements and assessment criteria, students should choose different organizations for these different tasks. Research proposal The internal assessment must start with a research proposal. This will become the primary planning document, giving direction to the research project. The maximum length of the research proposal is 500 words. The word count must be stated on the submitted work. If the word limit is exceeded, the teacher’s assessment must be based on the first 500 words of the proposal. Note: Moderators will not read beyond 500 words for the research proposal. The research proposal has a required format consisting of the following components. • Research question • The rationale for study • Proposed methodology, including: – areas of the syllabus to be covered – possible sources of information – organizations and individuals to be approached – methods to be used to collect and analyse data, and the reason for choosing them • Anticipated difficulties, such as limited or biased sources • Action plan Internal assessment Business management guide 81 – the order of activities and timescale of the project Students should use the research proposal as their primary planning document, reviewing it regularly with the teacher and modifying or rewriting it as necessary, should circumstances change. The maximum achievement level for criterion A, research proposal, is 3 marks (see “Internal assessment criteria—HL”). Students who fail to produce a research proposal will be awarded 0 marks for this criterion. Written report The written report, which follows the research proposal, is the second part of the research project. This will document the main findings of the research. The report must follow acceptable practice in report presentation, reflected in the required format for the written report shown below. The written report must consist of the following sections. • Title page: The title page should give a clear indication of the content of the research project, including the name of the student, the title of the project, the intended audience and the word count. • Acknowledgements: The acknowledgements should recognize any individual and/or organization that made the production of the report possible. • Contents page: The contents page should include the major headings in the report, beginning with the executive summary. Page numbers should be clearly indicated. • Executive summary (abstract): The executive summary should be a concise, clear and explicit summary of the document, including the recommendations and conclusions. The research question and executive summary should guide the reader to the substance of the report. The maximum length of the executive summary is 200 words, and this is not included in the word count. • Introduction: The introduction should demonstrate some background knowledge about the organization(s) and give a clear outline of the issue or decision under investigation. • Research question • Methodology employed: The methodology section should be a summary of the primary (and, where relevant, secondary) research undertaken and the business tools, techniques and theories applied. It should also include an assessment of the validity and reliability of the data collected (for example, partiality and scope) and the methods employed. Any changes made as the work progressed should be explained. • Main results and findings: The main results and findings section should clarify what the raw data has revealed. This should include a summary of the data collected and of the findings made, and should, where appropriate, be supported by tables, graphs and statistics. • Analysis and discussion: In the analysis and discussion section, the results and findings should be analysed with the help of relevant business tools, techniques and theories. They should also be interpreted: what main issues emerge from the research, and why and how are they helpful (or not) to answering the research question? An evaluative approach to the discussion of findings should be pursued: for example, what are the strengths and weaknesses of the various positions on the issue or decision under investigation and what are their implications? • Conclusion(s) and recommendation(s): The conclusions should follow on from the analysis and discussion; new facts or arguments should not be presented. Recommendations should be precise, answer the research question and be practical proposals for action that stem from the conclusions. If the results of the research are inconclusive, further research should be recommended. To be of practical value to management, the report should be forward-looking and support the organization’s decision-making process. Internal assessment Business management guide82 • References and bibliography: For presentation of references and bibliography, please see the section on acknowledging the ideas and work of another person in the “The Diploma Programme” section of this subject guide. • Appendices: The appendices should contain only information or data that is required to support of the text and should be clearly referred to where relevant. The appendices will typically include examples of photographs, documents, questionnaires, numerical raw data in tables and statistical calculations. The teacher should comment on students’ first drafts of the written report as part of the learning process. Word count The written report must not exceed 2,000 words. A word count must be included as part of the written report. If the word limit is exceeded, the teacher’s assessment must be based on the first 2,000 words of the report. Note: Moderators will not read beyond 2,000 words for the written report. The following are not included in the 2,000-word count: • title page • acknowledgments • contents page • executive summary (abstract) • tables of statistical data • diagrams or figures • equations, formulae and calculations • citations (which, if used, must be in the body of the commentary) • references (which, if used, must be in the footnotes/endnotes) • bibliography • appendices. Please note that footnotes/endnotes may be used for references only. Definitions of business management terms and quotations, if used, must be in the body of the work and are included in the word count. Please note that citation is a shorthand method of making a reference in the body of the commentary, which is then linked to the full reference in the bibliography. Internal assessment criteria—HL The HL business management research project is assessed against nine criteria that are related to the assessment objectives for the business management course. Criterion A refers to the research proposal, while criteria B–I are used to assess the written report. When the work to be assessed has been read, the descriptors for each criterion should be studied until a descriptor is reached that most appropriately describes the achievement level. If a piece of work seems to fall between two descriptors, both descriptors should be read again and the one that more appropriately describes the student’s work chosen. Internal assessment Business management guide 85 Criterion E: Conclusions (written report) This criterion assesses the extent to which the student is able to draw relevant conclusions based on the analysis of the report. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 There are some conclusions, but they are unsubstantiated and/or inconsistent with the evidence presented in the main body of the report. 2 Conclusions are substantiated and consistent with the evidence presented in the main body of the report. Criterion F: Recommendations (written report) This criterion assesses the extent to which the student is able to make substantiated recommendations that are consistent with the conclusions made and answer the research question. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 There are recommendations, but they are unsubstantiated and/or inconsistent with the conclusions, or they do not answer the research question. 2 The recommendations are substantiated and consistent with the conclusions, and they answer the research question. Areas for further study have been identified.. Criterion G: Structure (written report) This criterion assesses the extent to which the student organizes his or her ideas into a structured report with an argument that is easy to follow. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 Limited structure. 2 Appropriate structure. Internal assessment Business management guide86 Criterion H: Presentation (written report) This criterion assesses the extent to which the student presents all the required components of the written report in the correct order and format. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 The report is missing one or more of the required components, or the components are not in the correct order or format. 2 The report includes all of the required components in the correct order and format. Criterion I: Reflective thinking (written report) This criterion assesses the extent to which the student is able to reflect critically on the approach taken in this piece of research and its limitations. Marks Level descriptor 0 The work does not reach a standard described by the descriptors below. 1 The report includes limited or superficial reflective thinking on the approach taken in this piece of research and its limitations. 2 The report includes appropriate evidence of reflective thinking on the approach taken in this piece of research and its limitations. Business management guide 87 Appendices Formulae The following formulae will be used in business management external assessment. A copy of the formulae will be provided to students for the examination. Formulae for ratio analysis (SL/HL) Profitability ratios (SL/HL) = × gross profit Gross profit margin 100 sales revenue = × net profit before interest and tax Net profit margin 100 sales revenue Liquidity ratios (SL/HL) = current assets Current ratio current liabilities − = current assets stock Acid test (quick) ratio current liabilities Efficiency ratios (SL/HL) = × net profit before interest and tax Return on capital employed (ROCE) 100 capital employed where = loan capital (or long-term liabilcapital employed ities) + share capital + accumulated retained prot Efficiency ratios (HL only) = cost of goods sold Stock turnover (number of times) average stock or = × average stock Stock turnover (number of days) 365 cost of goods sold where cost of goods sold is an approximation of total credit purchases opening stock closing stock and 2 average stock + =