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IB Business Management IA Sample E
IB Business Management IA Sample E
Baccalaureat International
Bachillerato lnternacional
3/CS
Internal assessment: Group 3 individual candidate cover sheet
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Business and Management HL Internal Assessment
Internal Assessment
Business and Management
Hiqher Level
Word count fpyr.h 1rlinn titl~= P?ge, conrent page, e:x~cutive summary, bibliography and appendix):
?nnn wnfds
1
Business and Management HL Internal Assessment
Content page:
Title page p. 1
Contents page p. 2
Research Proposal p. 6
Introduction p. 7
Research Question p. 7
Methodology p. 7
Findings and Analysis p. 9
Conclusion & Recommendation p.23
Unresolved Issues p.23
Bibliography p. 24
Appendix t: Questionnaire to employees p. 25 .
Appendix 2: Interview with business executive p. 35
Appendix 3: Qualitative data p. 37
2
Business and Management HL Internal Assessment
Research Proposal:
Research Question:
To what extent and how should the employee motivation, at Mark Aurel , be
increased?
Rationale:
Marc Au rei is a fashion company based in Germany producing cloths for women. As
sales decreased in recent years and therefore profit decreased the company was
forced to cut workforce recently. Furthermore some bonus payments were rejected in
order to save money. Recently the working climate has changed in the main part of
the company based in Gotersloh. It was noticed that the motivatiOn of workers
decreased by a lot but still managers are unsure why. In my r~search I therefore
want to find out about the reasons of lack of motivation and. now it could be increased
again.
Theoretical Framework:
Methodology:
Secondary Research:
Business and Management book to get to know about motivation theories and
leadership styles
Find out niore about the theoretical contacts through different books
Newspaper articles connected to motivation to see how theories helped other
companies
Primary Research:
3
Business and Management HL Internal Assessment
Interview with the entrepreneur and some department managers to find out
about what changes are possible and how their behaviour might affect
motivation
Anticipated Difficulties:
Action plan:
research
uestions
See
supervisor to
discuss the
questions
and decide
on one
Read through
the relevant
chapters in
the book
Write
research
osal
Design
Question nair
4
Business and Management HL Internal Assessment
Submit
Question nair
e to
su ervisor
Gather some
secondary
data
Hand in the
Question nair
es
Interviews
with
man ers
Analyse
Question nair
es
Evaluate
Questionnair
es
Write first
draft
Submit first
draft
Talk to
(Words: 491)
5
Business and Management HL Internal Assessment
Executive Summary:
Marc Aurel is a fashion company, aiming to underline the beauty of each woman
with feminine and modern clothing. 1
The management. noticed difficulties regarding increased abs~nteeism as well as .
increased staff turnover. These indicate lack of motivation within the company, whid
is why the question asked is: To what extent and now should the employee
motivation, at MA GmbH, be increas~d?
The findings and analysis concluded that Marc Au rei's employees' demotivation is
caused by not being able to satisfy their "safety needs", as job security can't be
guaranteed. Furthermore the management adopted the Theory X approach, whereas
the employees actually suit the Theory Y approach. RecommerrJations to Improve
were made:
• Training would motivate employees, as their work enlarges making them feel
working to their ability.
• Empowerment would increase employees' self-esteem, which might lead to a
slight increase in motivation. Furthermore employees improve their skills
making them valuable to the company, which secures their job in future .
• Praise is most motivating to employees and least costlv. which makes it an
appropriate motivator.
Introduction:
Marc Aurel (AM) is a fashion company, aiming to underline the beauty of each
woman with feminine and modern clothing .2
The management noticed difficulties regarding increased absenteeism from 3% in
2010 to 10% in 2012 as well as increased staff turnover form 15% in 2010 to 24% in
2012. 3 These indicate lack of motivation within the company. Therefore this
investigation will look at what causes the lack of motivation and how motivation
should be improved. MA is a company operating in different countries. To undertake
this investigation I will only take their headquarters into consideration. There the
clothes are designed, fitted and sold to the retail, meaning no production is
happening. Around 120 employees work forMA there in 2013. 4
Research question:
To what extent and how should the employee motivation, at MA GmbH, be
increased?
Methodology:
Secondary Research:
Primary Research:
Limitations of research:
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Business and Management HL Internal Assessment
Self-
actualization:
achieving one's
full potential,
including creative
activities
Esteem needs:
prestige and feeling of accomplishment
Safety needs:
security, safety
Physiological needs:
fooa, water, warmth, rest
5
9
Business and Management HL Internal Assessment
Physiological needs:
0 20 40 60 80 100
Percentage of employees that are satisfied
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Business and Management HL Internal Assessment
-7 This indicates employees me..e.J their p.sycholoaical needs while working but also in
their private life, as their earnings should be sufficient to afford basic living. According
to Maslow once a need is satisfied they are no longer motivating, however since
these are basic needs employees would be demotivated if they wouldn't be
satisfied. 14 1'herefore the satisfaction of the physiological needs is positive regarding
their motivation.
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Business and Management HL Internal Assessment
Safety needs:
Yes No
~ Employees don't perceive their iob as secure . which indicates the second level
of Maslow's hierarchy isn't met. Maslow argued a level of hierarchy is
motivating until it is met, however this being one of the lower level needs it is
the opposite, as insecure future prospects are perceived demotivating for MA
employees, since many stated that poor job security demotivates them most. 15
Yes No
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Business and Management HL Internal Assessment
-7 Employees are in the 'Esteem needs' stag_f nf mQful.ation. 21 Maslow says the
approach itself is motivating, as once a tevel is satisfied it is no longer
motivating. 22 Hence employees should be motivated to satisfy esteem-needs, yet
this is not the case.
Maslow claims employee~ can't skiJ: a level of needs, as none of t~e others will
be motivating, since the only con,eern of the employee is to satisfy the lowest
Level. This explains why motivatton is low, although many of the Maslow's needs
are met. Not being able to achieve the second and basic need prevents MA's
employees becoming motivated.
(http://answers.mheducation .com/business/management/supervision/motivating-employees)
[Accessed:06.1 0.2013]
14
Business and Management HL Internal Assessment
Self-actualisation need:
Summary of Maslow:
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Business and Management HL Internal Assessment
many of them are able to feel motivated by being in the "esteem-needs" level, which
they clearly communicated .26
Hence employees motivation has great potential to increase significantly once the
second level is met as they are already in the "esteem-needs" level, however making
the employees believe their job is secure will be a difficult task, as the textile market
became ever growing and unpredictable the last couple -of years. 27 Employees might
perceive their job as more secure if MA would provide their employees with long-term
contracts. Increased motivation is beneficial for the company's performance.
However providing a significant number of employees with long-term contracts is
impossible to the company currently because of their financial situation. 28
Furthermore it would make the company less flexible, which is an important to both
stakeholders. 29
16
Business and Management HL Internal Assessment
Douglas McGregot invented the 'Theory X(TX) Theory Y(TY)' concept "to explain
negative management attifudes regarding workforce". 30
Managers, viewing their employees as lazy, avoiding work and merely interested in
money; believe their workforce needs instructions and supervision, adopt the 'TX'
approach .31 These managers are likely to be autocratic focusing on output and
productivity. 'TY' is an approach often adopted by democratic leaders, believing the1r
employees are "able to achieve organisational objectives out of their own accord and
initiative". 32 The management style is decentralised, whereas 'TX' management style
is centralised. Employees can feel motivated in both cases, as long as their
behaviour corresponds with the management's perception. Managers perceivinQ the
employees wrong can cause demotivation. This theory will help me identify
leadership problems, possibly leading to demotivated employees at MA.
Theory X - authoritarian,
repressive style. Tight control, Ti1eory Y • liberating and developmental.
no development. Produces Control, achievement and continuous
limited, depressed culture. Improvement achieved by enabling,
empowering and giving responsibiilty.
staff
management
33
L-------------------------------------------------------------~
30 Hoang, P., 2007. 2nd edition, Business and Management. Australia: IBID Press p. 239
31 Hoang, P., 2007. 2nd edition, Business and Management. Australia: IBID Press p. 239
2
3 Hoang, P., 2007. 2nd edition, Business and Management. Australia: IBID Press p. 240
3 3 Dudosvskly, J., 2013. Theory X and Theory Y[website] (http://research-
methodology.net/theory-x-and-theory-y/) [Accessed:08 .11.20 13]
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Business and Management HL Internal Assessment
518,71
12
50
I am trusted by the management
f
121~
lzis 2
0 10 20 30 40 so 60 70
Percentage in %
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Business and Management HL Internal Assessment
~ Employees feel controlled during work and not involved in decision making,
however many expressed their desire of less observation and more
involvement. 34 The business executive contrariwise perceives his employees
not wanting to take initiative, yet he would like to involve them. 35
q~ 7<;
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19
Business and Management HL Internal Assessment
Summary McGregor:
Managers approach their employees wron.g1. as the management does not notice
employees' potential. By considering_a democratic leadership style employees might
be enabled to reach their potential, causing the management to adapt to TX, as trust
builds up. As motivation would increase productivity might too, making it significant.
However building up trust takes time managers possibly don't want to invest. Also
employees might overestimate their affiliation to become involved, which would prove
the managers perception right in the long-run.· However both are short-term
problems, as both stakeholders will get used to the circumstances over time.
Non-financial motivators:
Not important
20
Business and Management HL Internal Assessment
Working in a team
0 20 40 60 80
Percentage of non-financial motivators importance to emolov~es
42Hoang, P., 2007. 2nd edition, Business and Management. Australia: IBID Press p. 250
43Duke 0. and Russell T., 2013 Employee Empowerment (http://asq.org/learn-about-
quality/employee-involvementloverview/overview.html) [Accessed: 13.12.201 3]
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Business and Management HL Internal Assessment
:;;.. Employees rated praise as most motivating, wherefore MA should make their
employees feel more valued. This appears to have great impact on their
motivation and it is less costly. 44 However it is difficult to in-cooperate praise
into the daily routine as the managers can't praise always. Furthermore it
could lead to jealousy between colleges. Still the little financial cost and great
impact are more significant for MA. 45
44 Hoang, P., 2007. 2nd edition, Business and Management. Australia: IBID Press p. 252
45 Qualitative data, question 48 (Appendix 3)
22
Business and Management HL Internal Assessment
Unresolved issues:
)> So far the investigation didn't find a solution for financing long term contracts,
which however would satisfy the second level of needs that currently prevents
employees felling completely motivated. The issue wasn't addressed in the
report, as the conducted data wasn't suitable.
Bibliography:
Books:
Hall, D. Jones, R. Andetion, A., 1993. 4th edition. Business Studies. United Kingdom:
Pearson Education
Hoang, P., 2007. 2nd edition, Business and Management. Australia: IBID Press
Online Resources:
24
Business and Management HL Internal Assessment
Questionnaire:
General Information:
o senior management
o middle management
o supervisory I junior management
Leadership:
25
Business and Management HL Internal Assessment
by the management
I am given responsibility by the
management
I am trusted by the management
Group work is appreciated by
managemetn
I am well informed of any kind of
decisions
.
taken affecting. me
!
Told about any
1
Management persuades
l
Management consults Management
1
decisions taken by me the decision that's me in order to make a encourages me to
the management going to be taken is the decision take decisions on my
right one own
9. Where would you place the management style of your management? (Make a
cross)
Attention is only on
Attention is on the
people rather than on product and people
the product
equally
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Business and Management HL Internal Assessment
o No
o Yes
o No
18. Would you consider your work as dangerous?
oYes
o No
19. Do you have a daily routine in your work or is the work you are doing
unpredictable?
oYes
o No
oYes
o No
o Yes
o No
23. Is there time for communication between each other during the day?
o Yes
o No
24. Would you like to bond more with other people within the company?
29
Business and Management HL Internal Assessment
32. How comfortable to you feel with yourself on a scale from 1 (not at all) to 5 (very
comfortable)
o Yes
o No
36. Do you feel you have achieved everything in your working life and are fulfilled?
o Yes
o No
37. Could the company be able in any way to make you feel fulfilled or is isn't it
possible?
38. How satisfied are you with your work on a scale from 1 (poor) to 7 (excellent)?
31
Business and Management HL Internal Assessment
47. Make a cross in the box suiting your opinion on the statement
48. Any other non- financial aspects that could motivate you during work?
49. Do you feel the company meets right now any of the aspects stated in question
47?
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Business and Management HL Internal Assessment
Well I would say it depends. There are some employees who do come very
motivated to work, however the greater proportion does seem to lack
motivation compared to one or two years ago. I am not sure what might be the
reason for the lack as relationships between emplovees do seem verv friendly,
which is very important to me as a manager. We . .
. are aware how important it is for the employees to feel comfortable in
their working environment in order to be motivated. I do believe the lack of
motivation has something to do with future expectations. We were forced to
cut down labour recently, which obviously made our remaining employees feel
insecure about their job. Currently I am not able to take this fear of their
shoulders as the fashion industry became even harder and we need to
perform excellent from season to season to make sure our company isn't in
danger of insolvency.
No, as already mentioned to me it seems that all employees get along very
well. Everyone appreciates the work of each other and tries to encourage one
another.
Well I do believe our employees are mainly motivated by money as I can't see
any other factors, which might de motivate them. Generally a lot of them need
supervision in order to make sure the work is done correctly. Very few
employees only show initiative, which is sad to see, as this wasn't always the
case.
35
Business and Management HL Internal Assessment
(Employees wrote all answers listed below in response to the open questions. Most
of the them gave similar answers, which I then only noted once.
6. How do you judge the current leadership style and it's effectiveness?
12. Do you have any general suggestions how the management could be improved?
To portion tasks; listen to emplovees ideas; better time allocation for the design team
as in particular the winter season is very short for preparation; give emplovees aims
and show the companv is working market orientated; less observation; more
involvement
19. Do you have a daily routine in your work or is the work you are doing
unpredictable?
26. If no why do you feel you haven't got enough time for them and what would need
to change in order to change that?
Technical lack of knowledge; finishing the work of others; combining work with family
is stressful; low job security
46. Do you have any other benefits by working for Marc Au rei?
37
Students should consider the following checklist when completing the research report.
Research proposal