Back to Student Hub
14

Leading and Managing People

Back in Business · Strand 3: Leading in Business

15 Learning
Outcomes

Click any learning outcome to expand it, then tap a card to reveal its content

14.1
Discuss the internal and external factors that impact on workforce planning
Discuss
▼
DISCUSSThe specification defines this as: offer a considered and balanced review including a range of arguments and factors. For workforce planning, a good approach is to name the factor, explain what it involves, and show how it impacts staffing decisions — including both the potential actions the business might take and any consequences.
What workforce planning is
Workforce Planning
Ensuring the business has the right number of people with the right skills in the right roles at the right time. Involves three steps:
  1. Perform a HR audit — assess current staffing levels across departments.
  2. Estimate future needs — plan based on production targets and marketing plans.
  3. Make a plan to increase or decrease the workforce — through recruitment or offering redundancy.
+
Understaffing vs Overstaffing
Understaffed: Quality and supply of product or service suffers. Delays frustrate customers. A business must plan ahead to meet rising demand.

Overstaffed: A business may hoard labour — keeping staff even when not needed — to prevent them joining a competitor or to avoid re-hiring costs when demand rises again.
+
Internal factors
Corporate Objectives
A company's goals directly shape its staffing needs. Plans to expand into new markets or launch new products will require additional recruitment or retraining. Plans to cut costs may require reducing staff numbers.
+
Staff Turnover
How often employees leave and need to be replaced. High turnover creates a constant need for recruitment and training, which is costly and disruptive. Effective corporate wellness and motivation can help reduce turnover.
+
Skills and Capabilities
The current skill level of employees affects future hiring and training decisions. If existing staff lack skills for new projects, the business must decide whether to upskill internally or recruit externally. Skills audits are often carried out to identify gaps.
+
External factors
Labour Market Conditions
The availability of workers with the right skills affects recruitment plans. If there is a shortage of skilled workers, a business may need to offer better pay, invest more in training, or recruit from outside Ireland.
+
Economic Indicators and Trends
High interest rates, high inflation, or a recession may lead a business to downsize its workforce as demand weakens. Positive economic growth typically leads to increased hiring as businesses plan to expand.
+
Technological Advancements
New technology can change the types of skills a business needs. Automation, AI, and digital tools may reduce demand for some roles while creating demand for new technical ones. Businesses must plan for reskilling or external hiring.
+
Government Decisions
Employment laws and regulations around minimum wage, working hours, redundancy, or new apprenticeship schemes all impact how a business plans its workforce. Changes in government policy can affect both the cost and availability of labour.
+
14.2
Outline the key stages in the recruitment process and suggest how organisations might adopt ethical approaches to recruitment
Outline / Suggest
▼
OUTLINEGive the main points; restrict to essential information. For the three stages, name each, explain what happens in it, and briefly mention the ethical dimension. For “suggest” questions, propose a practical solution and explain how it achieves the ethical goal.
Three stages of recruitment
1. Identification
The business recognises a staffing need (due to growth, retirement, or a skills gap) and defines the role clearly. Steps include:
  1. Assess whether to recruit internally or externally.
  2. Draw up a job description (the role, responsibilities, reporting line).
  3. Create a person specification (qualifications, skills, experience needed).
+
2. Application
The vacancy is advertised and candidates submit applications. Businesses advertise through job boards (Indeed, IrishJobs.ie), social media (LinkedIn), or internally. The aim is to attract a diverse and qualified pool of applicants through clear, inclusive job adverts.
+
3. Selection
The business shortlists candidates, conducts interviews, assessments, or tests, and selects the most suitable person. The chosen candidate is offered the position and begins onboarding. Ethical selection avoids bias and uses standardised, objective criteria throughout.
+
Ethical approaches to recruitment
Equality
Ensuring all applicants are assessed using the same criteria and are not discriminated against on grounds of gender, age, race, disability, or religion. Standardised interview questions help compare candidates objectively and demonstrate fair treatment.
+
Diversity
Actively encouraging applications from people with different backgrounds, life experiences, and perspectives. This might involve using a wide range of advertising platforms, using inclusive language and imagery in job ads, or targeting underrepresented groups.
+
Inclusion
Making the recruitment process accessible to everyone, including people with disabilities or other support needs. This can include offering alternative interview formats, ensuring application forms are easy to understand, or providing assistive technology during assessments.
+
14.3
Evaluate how digital technologies influence the process of recruitment and selection
Evaluate
▼
EVALUATEThe specification defines this as: make an appraisal by weighing up the strengths and limitations. A good approach names the technology, explains how it works in each stage of recruitment, states its benefit, and identifies its limitation or drawback. Both sides must be included to fully evaluate.
Identification: Online Platforms
Digital tools help businesses quickly identify staffing needs through HR systems. Platforms like LinkedIn and IrishJobs.ie enable firms to advertise roles instantly and maintain databases of candidates for future openings.

Benefit: Faster, more targeted recruitment supporting strategic workforce planning.
Limitation: Premium features are costly; smaller firms may struggle to stand out for talent.
+
Application: ATS and Automation
Applicant Tracking Systems (ATS) like Greenhouse or Workday automate early-stage screening — scanning CVs for keywords, ranking applicants, and using chatbots to collect basic information.

Benefit: Speeds up shortlisting; reduces administrative workload.
Limitation: Automated systems can unfairly exclude strong candidates who don't match set keywords, raising concerns about bias, transparency, and GDPR compliance.
+
Selection: Virtual Interviews
Tools like Zoom, Microsoft Teams, or specialist platforms like HireVue allow for virtual interviews and assessments, reducing travel costs and enabling access to candidates across regions.

Benefit: Improves efficiency, flexibility, and geographic reach.
Limitation: Limits rapport-building and makes it harder to assess soft skills and interpersonal qualities. Candidates with limited technology access may be disadvantaged.
+
14.4
Investigate the factors that impact on employee motivation
Investigate
▼
INVESTIGATEThe specification defines this as: observe, study, or make a detailed and systematic examination to establish facts. A good approach names each motivating factor, explains what it involves, and states why it improves employee engagement and performance.
Recognition and Feedback
When employees receive regular praise and constructive feedback, they feel valued for their efforts. This boosts confidence, strengthens performance, and encourages long-term loyalty to the business. Recognition can be financial (bonuses) or non-financial (public praise, awards).
+
Opportunities for Growth
Staff are more motivated when they can access training, take on new responsibilities, or apply for promotion. It shows the business is invested in their development, which increases engagement and reduces staff turnover.
+
Positive Work Environment
A respectful, inclusive culture where communication is open helps employees feel safe and supported. This improves morale and reduces stress, allowing staff to focus and perform at a higher level.
+
Pay and Benefits
Fair and competitive pay is a fundamental motivator — employees who feel they are paid fairly for their contribution are less likely to seek jobs elsewhere. Additional benefits (pension, health insurance, flexible hours) can also significantly impact motivation and loyalty.
+
Autonomy and Trust
Giving employees responsibility and the freedom to make decisions within their role demonstrates trust and makes them feel valued. People who have control over how they do their work tend to be more creative, more engaged, and more productive.
+
Job Security
Employees who feel secure in their role are less anxious and more focused on their work. Uncertainty about redundancy or future employment can significantly reduce motivation and increase absenteeism. A stable working environment supports consistent performance.
+
14.5
Describe what is meant by effective employee appraisal
Describe
▼
DESCRIBEThe specification defines this as: give a detailed account of the main points using words, diagrams, examples, and/or images where appropriate. A good approach defines appraisal clearly, explains what makes it 'effective', and links it to outcomes for the employee and the business.
Employee Appraisal (definition)
A formal or informal process where a manager reviews and evaluates an employee's performance, progress, and development over a set period. It involves discussing goals, identifying strengths and areas for improvement, and planning future development.

Appraisal is a two-way process — both the manager and the employee contribute to the conversation.
+
What Makes an Appraisal Effective
  1. Regular and structured — carried out consistently (e.g. annually or quarterly).
  2. Two-way — both the manager and employee contribute equally to the conversation.
  3. Based on clear, measurable goals agreed in advance so progress can be fairly assessed.
  4. Supportive, not punitive — focused on development rather than blame.
  5. Followed by action — a clear development plan is agreed at the end.
+
How Appraisal Motivates Employees
Appraisal can support employee motivation by:
  1. Giving employees clarity on what is expected of them and how they are performing.
  2. Recognising achievements and contributions, making employees feel valued.
  3. Identifying development opportunities such as training or promotion pathways.
  4. Building trust between employees and management through open, honest dialogue.
+
14.6
Identify a number of approaches to appraisal and analyse how these approaches might contribute to employee motivation
Identify / Analyse
▼
Self-Appraisal
The employee evaluates their own performance against agreed criteria before the formal review. This encourages reflection and ownership of their development.

Motivational impact: Empowers employees to take control of their growth. Makes them feel trusted and respected. Highlights their own sense of achievement.
+
Formative Appraisal
Ongoing, informal reviews that take place regularly throughout the year (e.g. monthly check-ins or project debriefs). Focuses on continuous improvement during the process rather than at the end.

Motivational impact: Provides timely feedback before problems escalate. Keeps employees engaged with clear short-term goals. Reduces anxiety associated with a single high-stakes annual review.
+
Summative Appraisal
A formal, structured review carried out at the end of a defined period (e.g. end of year or project). Evaluates overall performance against agreed targets.

Motivational impact: Provides clear recognition of achievements. Can be linked to pay reviews or promotion decisions. Gives employees a clear understanding of where they stand.
+
360-Degree Appraisal
Feedback is gathered from multiple sources — managers, peers, colleagues, and sometimes clients. Provides a full, rounded view of performance from all angles.

Motivational impact: Builds motivation by recognising teamwork and interpersonal skills that a manager alone may miss. Encourages reflection on how others perceive the employee's contribution. Can feel more fair and balanced.
+
14.7
Explain what is meant by human capital management and outline how the organisational environment is a factor in its development
Explain / Outline
▼
Human Capital
The competencies, knowledge, skills, and experience embedded in and developed by people that help them be more productive and realise their potential. It is the collective skill and ability of a workforce.
+
Human Capital Management (HCM)
The strategic process of planning, recruiting, developing, motivating, and retaining employees to maximise their contribution to the organisation's goals while also supporting their personal and professional growth.

It sees employees as a valuable asset to be invested in — not a cost to be minimised.
+
Eight Functions of HCM
  1. Workforce planning
  2. Recruitment and selection
  3. Employee engagement and motivation
  4. Employee appraisal
  5. Training and development
  6. Teamwork and collaboration
  7. Adapting technology
  8. Corporate/employee wellness
+
Organisational Environment as a Factor
  1. Positive workplace culture — openness and trust make staff more likely to engage with HCM activities like training and appraisal.
  2. Leadership support — leaders who visibly support employee development make HCM initiatives more effective.
  3. Structure and communication — open communication ensures staff understand HCM goals and their own role.
  4. Pro-innovation culture — a flexible environment embraces new digital tools and wellness programmes more quickly.
+
14.8
Investigate the different types of training and professional development that may be offered to employees and outline why ongoing training is an important aspect of HCM
Investigate / Outline
▼
Induction / Onboarding
Provided to new employees when they start. Introduces them to workplace culture, policies, systems, and people. Helps new starters settle in quickly, reduces early anxiety, and allows them to become productive sooner.
+
On-the-Job Training
Learning by doing tasks under the guidance of supervisors or more experienced colleagues. Includes job rotation and shadowing. Cost-effective way to build role-specific skills and confidence within the actual work environment.
+
Off-the-Job Training
Takes place away from the normal workplace — such as external courses, workshops, or conferences. Helps staff gain new ideas, specialist knowledge, or qualifications they wouldn't encounter in their daily role. Can be costly and may temporarily disrupt operations.
+
Professional Development
Continuous long-term learning that builds leadership, communication, and strategic thinking skills for future career growth. Can include mentoring programmes, CPD courses, or online learning platforms. Signals to employees that the business is genuinely invested in their future.
+
Why ongoing training matters for HCM
Employees Learn from Experience
On-the-job training combines practical tasks with guidance from experienced colleagues. This hands-on learning means employees constantly develop skills through real experiences, building problem-solving ability and confidence in a supportive environment.
+
Builds a Skilled, Adaptable Workforce
Through off-the-job training, employees learn new techniques and industry knowledge they might not encounter in their routine role. This prepares the business to adapt to changing market trends and remain competitive. Research shows training increases staff retention by up to 34%.
+
Boosts Morale and Reduces Turnover
Employees who see that the business is investing in their development feel more valued and are more likely to stay long-term. Professional development helps staff build career skills and stay motivated, reducing the costly cycle of recruitment and training new replacements.
+
14.9
Appreciate the opportunities and challenges associated with working in teams for both employees and employers
Appreciate
▼
Tuckman's four stages of team formation
Forming
Members meet for the first time. Polite but cautious. Unwilling to fully contribute yet.
Storming
Conflicts arise as personalities clash and individuals compete to establish their role.
Norming
Ground rules are set. Focus shifts to team goals. Trust grows between members.
Performing
Unity and cooperation. The team works efficiently using each member's strengths.
For employees
✓ Opportunities
Increases job satisfaction and morale through a sense of belonging and recognition.
Develops interpersonal skills — communication, conflict resolution, leadership.
Reduces individual pressure on difficult decisions by sharing responsibility.
✗ Challenges
Conflicts can arise from different personalities, working styles, or opinions.
Free-riders — some members don't contribute equally, frustrating others.
Individual appraisal can be unfairly affected by another team member's poor performance.
For employers
✓ Opportunities
Improves creativity and problem-solving by combining different skills and perspectives.
Divides tasks efficiently, increasing productivity and output.
Increases employee engagement and sense of purpose.
✗ Challenges
Conflicts need to be managed, which can disrupt productivity and require supervision.
Without clear roles, progress can slow and accountability becomes difficult.
Groupthink — teams can suppress individual thinking and overlook better solutions.
14.10
Outline how employers and employees can work together to create a more sustainable workplace
Outline
▼
Environmental Sustainability
Employers: Lead on green policies — reducing waste, cutting energy use, encouraging green commuting or remote working to reduce carbon footprint.
Employees: Go paperless, conserve energy, review daily processes, suggest eco-friendly ideas, and participate in green team initiatives.
+
Health, Safety, and Wellbeing
Employers: Create strong health and safety policies, provide regular training, and promote wellbeing programmes that support both physical and mental health.
Employees: Follow all health and safety guidelines, report risks promptly, and participate in wellbeing initiatives — helping build a culture of care and responsibility.
+
Ethical and Inclusive Culture
Employers: Set clear ethical standards, offer compliance training, and respond fairly to breaches. Support inclusion through fair hiring, flexible options, and valuing diversity in decision-making.
Employees: Act with integrity, respect others, handle information responsibly, and support collaboration across diverse teams.
+
Continuous Learning
Employers: Invest in training, upskilling programmes, and personalised learning platforms to keep employee skills relevant. This future-proofs the organisation.
Employees: Actively engage in training and development opportunities, keeping skills current and helping the business stay competitive and innovative.
+
14.11
Investigate how digital technology impacts on the workplace
Investigate
▼
Communication and Collaboration
Tools like email, instant messaging, video conferencing (Zoom, Microsoft Teams), and project management platforms (Monday.com, Asana) support faster, more flexible teamwork — including remote and cross-border collaboration.

Benefit: Faster decisions, better remote teamwork. Limitation: Digital fatigue and the risk of miscommunication without face-to-face interaction.
+
AI and Automation
Artificial intelligence handles repetitive tasks (data entry, scheduling, customer service chatbots), improves efficiency, and frees employees for higher-value work.

Benefit: Faster processing, reduced human error. Limitation: Risk of job displacement; staff may need significant reskilling.
+
Online Upskilling Platforms
Platforms like LinkedIn Learning, Coursera, and Skillshare offer flexible, lower-cost training for employees at all levels, accessible from anywhere.

Benefit: Affordable and flexible access to learning. Limitation: Quality may vary; reduced engagement of online-only training can lower morale.
+
Data Analytics and HCM Technology
HR systems now use analytics to monitor attendance, engagement, and performance, supporting fairer, more data-driven appraisals.

Benefit: Clearer, more objective performance data. Limitation: Excessive monitoring risks invading employee privacy or overlooking human factors like creativity and teamwork.
+
Cybersecurity and Data Protection
As more work is done online, businesses must protect sensitive data through firewalls, encryption, and cybersecurity training. GDPR compliance is essential.

Benefit: Increases trust and legal compliance. Limitation: Constant vigilance adds cost and stress; human error remains a significant risk.
+
14.12
Identify the opportunities and challenges associated with remote and blended working arrangements for both employees and employers
Identify
▼
For employees
✓ Opportunities
Greater flexibility over working hours and location, improving work-life balance.
Greater autonomy and independence in managing their own time and tasks.
Access to a wider range of job opportunities not limited by geography.
✗ Challenges
Isolation and reduced connection with colleagues and company culture.
Blurred work-life boundaries — risk of burnout from an 'always-on' culture.
Need for strong self-discipline and digital skills to work effectively from home.
For employers
✓ Opportunities
Reduce costs on office space, utilities, and physical infrastructure.
Attract talent from a wider geographic pool without relocation requirements.
Improve employee satisfaction and retention through flexible working as a benefit.
✗ Challenges
Managing remote teams is more difficult — communication and performance monitoring are harder.
Maintaining team cohesion, collaboration, and organisational culture is more difficult.
Ensuring data security and GDPR compliance across home working environments.
14.13
Analyse the ethical and sustainability issues associated with remote and blended working
Analyse
▼
Ethical: Data Privacy
Remote working increases the risk of data breaches as employees access company systems from personal devices and home networks. Businesses have a responsibility under GDPR to ensure sensitive data is protected regardless of where employees work. Monitoring software used to track remote employees raises serious concerns about privacy and trust.
+
Ethical: Fairness in Home Set-Ups
Not all employees have access to a quiet workspace, high-speed broadband, or appropriate equipment at home. Employers who introduce remote working without supporting staff with adequate equipment create an unequal environment, disadvantaging employees with less suitable home circumstances.
+
Ethical: Blurred Work-Life Boundaries
The traditional 9-to-5 boundary between work and personal life is eroded by digital technology. The ability to be contacted 24/7 creates pressure on employees to always be available. Employers have an ethical responsibility to set and respect clear working hour boundaries and to discourage an 'always-on' culture.
+
Sustainability: Positive Environmental Impact
Remote working can reduce emissions by cutting daily commuting and reducing energy consumption in large offices. Fewer employees travelling to work each day lowers the overall carbon footprint of the workforce, contributing positively to environmental sustainability goals.
+
Sustainability: Reduced Long-Term Engagement
Remote workers may feel less connected to company culture and their teams without regular in-person social interaction. Over time, this can reduce employee attachment, loyalty, and morale — making it harder to sustain a committed, long-term workforce, which undermines the business's long-term sustainability.
+
14.14
Outline the importance of corporate wellness and investigate the impact of corporate wellness on employee motivation and organisational culture
Outline / Investigate
▼
Corporate Wellness (definition)
A set of employer-led initiatives designed to support employees' physical, mental, and emotional health in the workplace. A sustainable workplace supports employees to thrive and the business to act responsibly towards society and the environment.

Examples: flexible hours, mental health support, fitness classes, healthy eating initiatives, financial wellbeing workshops, diversity and inclusion programmes, wellness challenges, health screenings.
+
Importance of Corporate Wellness
  1. Improves employee wellbeing — reducing absenteeism and stress-related issues.
  2. Boosts motivation and productivity — staff who feel valued perform better.
  3. Improves talent attraction and retention — strong wellness initiatives attract skilled staff and reduce turnover.
  4. Promotes a positive, inclusive culture — creates a fair, supportive environment where everyone can thrive.
+
Impact on Employee Motivation
Wellness initiatives help staff feel valued, reduce stress, support mental health, and create a sense of belonging. Employees who feel their employer genuinely cares about their wellbeing become more engaged, more productive, and more committed to staying with the business long term.
+
Impact on Organisational Culture
  1. Builds a culture of loyalty and care — staff see genuine investment in their wellbeing, building mutual respect and commitment.
  2. Supports positive daily experiences — initiatives like flexible hours and wellness classes make work feel more balanced and enjoyable.
  3. Strengthens teamwork and collaboration — group wellness activities (team challenges, charity events) build bonds between staff.
+
14.15
Identify the role of leadership in promoting corporate wellness
Identify
▼
IDENTIFYThe specification defines this as: recognise patterns, facts, or details; provide an answer from a number of possibilities; recognise and state briefly a distinguishing fact or feature. A good approach names what leaders do, explains how it promotes wellness, and gives an example where possible.
Setting the Tone Through Behaviour
Leaders who model healthy behaviours — taking breaks, respecting boundaries, using flexible working arrangements themselves — signal to employees that wellness is genuinely valued by the organisation, not just stated in policy.
+
Providing Resources and Support
Leaders ensure that wellness initiatives are properly funded, communicated, and accessible to all staff. This includes securing budget for wellness programmes, mental health supports, and flexible working infrastructure.
+
Creating a Safe and Inclusive Culture
Leaders foster an environment where employees feel psychologically safe to speak up about their wellbeing concerns without fear of judgment or career consequences. This is essential for a genuine wellness culture rather than a performative one.
+
Communicating the Value of Wellness
Leaders who clearly and regularly communicate the importance of wellness — through meetings, internal communications, or policy statements — help embed it as a core organisational value rather than an add-on or afterthought.
+
Click an LO to see its mind map. One at a time.
📌 14.1 Workforce Planning — Discuss
Workforce
Planning
Definition
Right people, right skills, right roles, right time
Steps: HR audit → estimate needs → plan increase/decrease
Internal Factors
Corporate objectives (expand = hire; cut costs = reduce)
Staff turnover (high = constant recruitment need)
Skills & capabilities (gaps = upskill or recruit)
External Factors
Labour market conditions (shortage = offer better pay)
Economic indicators (recession = downsize)
Technological advancements (AI = new roles needed)
Government decisions (minimum wage, employment law)
Implications
Understaffed: poor quality, delays, customer frustration
Overstaffed: labour hoarding, unnecessary costs
📌 14.2 Recruitment Process — Outline / Suggest
Recruitment
& Ethics
1. Identification
Recognise staffing need (growth, retirement, skills gap)
Job description (role, responsibilities, reporting line)
Person specification (qualifications, skills, experience)
2. Application
Advertise vacancy (job boards, LinkedIn, internally)
Attract diverse, qualified pool of applicants
3. Selection
Shortlist, interview, assess, test candidates
Select most suitable → offer → onboarding
Ethical Approaches
Equality: same criteria for all; standardised questions
Diversity: inclusive language; wide advertising platforms
Inclusion: accessible formats; alternative interview options
📌 14.3 Digital Tech in Recruitment — Evaluate
Digital
Recruitment
Identification
LinkedIn / IrishJobs.ie: advertise instantly, wider talent pool
Limitation: costly premium features; hard for small firms to compete
Application
ATS (Greenhouse/Workday): automates CV screening and ranking
Limitation: bias risk; GDPR concerns; may exclude strong candidates
Selection
Zoom / Teams / HireVue: virtual interviews; reduces travel costs
Limitation: harder to assess soft skills; candidates with poor tech access disadvantaged
Overall Evaluation
Benefits: faster, cheaper, wider reach, data-driven decisions
Risks: bias, privacy, tech barriers, reduced human connection
📌 14.4 Employee Motivation — Investigate
Employee
Motivation
Recognition & Feedback
Regular praise boosts confidence and loyalty
Financial (bonus) or non-financial (awards, praise)
Growth Opportunities
Training, promotion pathways, new responsibilities
Shows business is invested in the employee's future
Positive Work Environment
Respectful, inclusive, open-communication culture
Reduces stress; helps employees focus and perform
Pay, Autonomy, Job Security
Fair competitive pay + benefits reduce turnover
Autonomy and trust = creativity and engagement
Job security reduces anxiety and improves focus
📌 14.5 Effective Employee Appraisal — Describe
Employee
Appraisal
Definition
Formal/informal review of performance, progress, and development
Two-way process: manager AND employee both contribute
What Makes It Effective
Regular and structured (quarterly / annually)
Based on clear, measurable, pre-agreed goals
Supportive and developmental — not punitive
Followed by a clear, agreed development plan
Motivational Impact
Clarity on performance expectations and standing
Recognition of achievements makes staff feel valued
Identifies training and promotion pathways
Builds trust through open, honest dialogue
📌 14.6 Appraisal Approaches — Identify / Analyse
Appraisal
Approaches
Self-Appraisal
Employee evaluates own performance vs agreed criteria
Builds ownership and sense of empowerment
Formative Appraisal
Ongoing informal reviews (monthly check-ins, project debriefs)
Timely feedback; reduces end-of-year anxiety
Summative Appraisal
Formal end-of-period review vs agreed targets
Can link to pay review or promotion decisions
360-Degree Appraisal
Feedback from managers, peers, colleagues, and clients
Recognises teamwork and interpersonal skills
Feels fairer; broader recognition than manager-only review
📌 14.7 Human Capital Management — Explain / Outline
HCM
Definition
Strategic process: plan, recruit, develop, motivate, retain staff
Sees people as a valuable asset to invest in, not a cost to cut
8 HCM Functions
Workforce planning | Recruitment | Motivation | Appraisal
Training | Teamwork | Technology | Corporate wellness
Organisational Environment Factors
Positive culture — openness and trust drives engagement
Leadership support — visible investment in staff development
Open communication — staff understand and contribute to HCM goals
Pro-innovation culture — embraces digital tools and wellness quickly
📌 14.8 Training & Professional Development — Investigate / Outline
Training &
Development
Types
Induction/Onboarding: settle new staff into culture, systems, policies
On-the-job: learn by doing; job rotation; shadowing; cost-effective
Off-the-job: external courses, workshops; new skills, qualifications
Professional development: CPD, mentoring, leadership skills
Why Ongoing Training Matters for HCM
Employees learn from real experiences → builds confidence and problem-solving
Builds skilled, adaptable workforce → ready for market changes
Boosts morale and reduces turnover → staff feel valued (retention +34%)
📌 14.9 Teamwork — Appreciate
Teamwork
Tuckman's Stages
Forming → Storming → Norming → Performing
Employee Opportunities
Increases job satisfaction and morale
Develops interpersonal and communication skills
Reduces individual pressure on decisions
Employee Challenges
Personality conflicts; free-riders not contributing equally
Individual appraisal affected by poor team member performance
Employer Opportunities / Challenges
Opp: creativity, productivity, engagement, efficiency
Chal: conflicts to manage; groupthink; unclear accountability
📌 14.10 Sustainable Workplace — Outline
Sustainable
Workplace
Environmental Sustainability
Employers: green policies, reduce waste/energy, green commuting
Employees: go paperless, conserve energy, suggest eco ideas
Health, Safety & Wellbeing
Employers: strong H&S policies, wellbeing programmes
Employees: follow guidelines, report risks, join initiatives
Ethical & Inclusive Culture
Employers: set ethical standards; fair hiring; inclusive policies
Employees: act with integrity; respect diversity; collaborate
Continuous Learning
Employers: invest in upskilling, personalised learning platforms
Employees: engage with training; keep skills current
📌 14.11 Digital Technology in the Workplace — Investigate
Digital Tech
& Work
Communication
Zoom, Teams, Slack, Monday.com → faster, flexible teamwork
Risk: digital fatigue; miscommunication without face-to-face
AI & Automation
Handles repetitive tasks; frees staff for higher-value work
Risk: job displacement; need for reskilling programmes
Upskilling & Data Analytics
LinkedIn Learning, Coursera: affordable, flexible upskilling
HR analytics: objective performance data for appraisals
Risk: privacy concerns from excessive monitoring
Remote Work & Cybersecurity
Tech enables hybrid/remote work → better work-life balance
GDPR compliance: firewalls, encryption, staff training
Risk: human error; constant vigilance adds stress and cost
📌 14.12 Remote & Blended Working — Identify
Remote &
Blended Work
Employee Opportunities
Greater flexibility, autonomy, work-life balance
Access to jobs regardless of geography
Employee Challenges
Isolation; reduced connection to culture and colleagues
Blurred work-life boundaries; burnout risk
Employer Opportunities
Reduced office costs; attract wider geographic talent pool
Improve employee satisfaction and retention
Employer Challenges
Harder to manage remotely; communication and monitoring issues
Maintaining team cohesion and company culture
Data security and GDPR compliance across home setups
📌 14.13 Ethical & Sustainability Issues of Remote Work — Analyse
Ethics &
Sustainability
Ethical Issues
Data privacy: home networks less secure; GDPR obligations
Fairness: not all staff have suitable home workspace/equipment
Work-life boundaries: pressure to be available 24/7; burnout risk
Sustainability Issues
Positive: fewer commutes = reduced emissions and carbon footprint
Negative: remote workers feel less connected over time
Risk: reduced loyalty and morale → undermines long-term workforce sustainability
📌 14.14 Corporate Wellness — Outline / Investigate
Corporate
Wellness
Examples of Initiatives
Flexible hours | Mental health support | Fitness classes
Healthy eating | Financial wellbeing | D&I programmes
Importance
Improves wellbeing, reduces absenteeism
Boosts motivation and productivity
Improves talent attraction and retention
Promotes positive, inclusive culture
Impact on Motivation
Staff feel valued → more engaged and productive
Reduces stress and mental health issues at work
Creates sense of belonging and commitment
Impact on Organisational Culture
Builds culture of loyalty, care, and mutual respect
Positive daily experiences (flexible hours, wellness classes)
Strengthens teamwork via group wellness activities
📌 14.15 Leadership and Corporate Wellness — Identify
Leadership &
Wellness
Setting the Tone
Leaders model healthy behaviours (taking breaks, respecting boundaries)
Signals to staff that wellness is genuinely valued, not just policy
Providing Resources
Secure funding for wellness programmes and mental health supports
Ensure initiatives are communicated and accessible to all
Creating Safe, Inclusive Culture
Staff feel psychologically safe to discuss wellbeing concerns
No fear of judgment or career consequences for speaking up
Communicating the Value
Regularly communicate importance of wellness across the business
Embed wellness as a core organisational value, not an afterthought
Tap the card to flip it. ✓ if you know it, ✗ to see it again.
Choose an LO or quiz all 15 at once.
Chapter 14 appeared across all four sample papers. 14.3 (digital recruitment — HL Paper 1, Dexcom). 14.4 (motivation factors — OL Paper 1). 14.5 (appraisal — OL Paper 2 and HL Paper 2). 14.8 (training types — OL Paper 2). 14.9 (teamwork benefits — OL Paper 2). 14.11 (digital workplace — HL Paper 2). 14.12 (remote/blended working — HL Paper 1 and OL Paper 1). 14.14 (corporate wellness — HL Paper 1 and OL Paper 2). 14.15 (leadership and wellness — OL Paper 1).
14.3Evaluate how digital technologies can influence the recruitment and selection processHL Paper 1 · Q4(c)▼
Question
Evaluate how digital technologies can influence the recruitment and selection process for businesses.
Context: Dexcom expected to create ~1,500 jobs across construction and high-tech roles.
Suggested solution
The following is a suggested approach based on the specification verb and scenario. Offered as a study aid, not a definitive answer.
Identification: Platforms like LinkedIn and IrishJobs.ie enable firms to advertise roles instantly and maintain candidate databases. This makes recruitment faster and more targeted. Evaluation: However, premium features can be costly, and competition for talent on major platforms can make it difficult for smaller firms to attract attention.
Application: ATS (e.g. Greenhouse, Workday) automate CV screening, rank applicants, and use chatbots before any human involvement. This speeds up shortlisting significantly for large-scale hiring like Dexcom's. Evaluation: However, automated systems can unfairly exclude strong candidates who don't match set keywords, raising concerns about bias, transparency, and GDPR compliance.
Selection: Zoom, Microsoft Teams, or HireVue allow virtual interviews and assessments, reducing travel costs and enabling access to candidates across regions. Evaluation: While this improves efficiency, it limits rapport-building and makes it harder to assess interpersonal skills. Candidates with limited technology access may also be disadvantaged.
14.4Outline two factors, apart from pay, that can improve employee motivationOL Paper 1 · Q3(e)▼
Question
Outline two factors, apart from pay, that can improve employee motivation in the workplace.
Suggested solution
The following is a suggested approach based on the specification verb and scenario. Offered as a study aid, not a definitive answer.
Recognition and Feedback: When employees receive regular praise and constructive feedback, they feel valued for their efforts. This boosts confidence, strengthens performance, and encourages loyalty to the business.
Opportunities for Growth: Staff are more motivated when they can access training, take on new responsibilities, or apply for promotion. It shows the business is genuinely invested in their development, which increases engagement and commitment.
14.5Employee appraisal — definition and how it leads to a more motivated workforceOL Paper 2 · Q5(e)▼
Question
(i) Explain the term employee appraisal.
(ii) Describe how an effective employee appraisal process could lead to a more motivated and productive workforce.
Suggested solution
The following is a suggested approach based on the specification verb and scenario. Offered as a study aid, not a definitive answer.
(i) Employee appraisal is a formal or informal process where a manager reviews and evaluates an employee's performance, progress, and development over a set period. It involves discussing goals, identifying strengths and areas for improvement, and planning future development. It is a two-way process — both the manager and the employee contribute.
(ii) An effective appraisal gives employees clarity on what is expected and how they are performing, which reduces uncertainty and builds confidence. Recognising achievements during appraisal makes employees feel valued, directly boosting motivation. Identifying training and promotion pathways shows employees there is a future for them in the business, encouraging greater commitment and productivity.
14.5Explain two ways to ensure an effective appraisal processHL Paper 2 · Q2(b)▼
Question
Explain two ways to ensure an effective appraisal process.
Suggested solution
The following is a suggested approach based on the specification verb and scenario. Offered as a study aid, not a definitive answer.
1. Make it a two-way process: An effective appraisal is not simply a manager delivering a verdict — the employee should have an equal voice. Both parties should contribute to the conversation, discuss goals, and agree on a development plan together. This builds trust, increases buy-in, and makes the employee feel respected and heard.
2. Base it on clear, pre-agreed, measurable goals: Appraisals should assess performance against specific targets that were set at the start of the review period and understood by both parties. This ensures the evaluation is fair, objective, and free from bias — reducing the risk of the employee feeling the process is unfair or arbitrary.
14.8Name and explain two types of training; outline one reason why ongoing training is important for HCMOL Paper 2 · Q1(d)▼
Question
(i) Name and explain two different types of training that may be offered to employees.
(ii) Outline one reason why ongoing training and professional development of employees is an important aspect of human capital management.
Suggested solution
The following is a suggested approach based on the specification verb and scenario. Offered as a study aid, not a definitive answer.
On-the-job training: Existing staff learn by doing their tasks with guidance from supervisors or experienced colleagues. It is a cost-effective way to build role-specific skills and confidence, often through job rotation or shadowing within the actual work environment.
Off-the-job training: This takes place outside the normal workplace, such as in external courses or workshops. It helps staff gain new skills or specialist knowledge they wouldn't encounter in their routine role, though it may be more costly and temporarily disrupt operations.
(ii) Ongoing training builds a more skilled and adaptable workforce, improving employee competence and long-term business performance. It also boosts motivation and retention by showing staff that the business genuinely values and invests in their development, reducing costly staff turnover.
14.9Outline two benefits that teamwork brings to an organisationOL Paper 2 · Q4(d)▼
Question
Outline two benefits that teamwork brings to an organisation.
Suggested solution
The following is a suggested approach based on the specification verb and scenario. Offered as a study aid, not a definitive answer.
Improves creativity and problem-solving: Teams combine workers with different skills, experiences, and perspectives. This diversity of thought leads to better, more innovative solutions to business problems than any individual working alone could generate.
Increases productivity and efficiency: Dividing tasks among team members allows work to be completed more quickly and to a higher standard. Employees can focus on areas where they have the most expertise, while others cover different aspects of the project.
14.11Evaluate how digital technologies have impacted the modern workplaceHL Paper 2 · Q2(e)▼
Question
Evaluate how digital technologies have impacted the modern workplace.
Suggested solution
The following is a suggested approach based on the specification verb and scenario. Offered as a study aid, not a definitive answer. “Evaluate” requires both benefits and limitations for each point.
Communication and collaboration: Tools like Zoom, Teams, and Slack have made remote collaboration faster and more flexible. However, the risk of digital fatigue and miscommunication without face-to-face interaction is a genuine concern for team cohesion.
AI and automation: AI handles repetitive tasks, freeing employees for higher-value work and improving efficiency. However, job displacement risk is significant, and many employees require reskilling programmes to adapt — creating costs and uncertainty.
Remote and hybrid work patterns: Technology enables flexible working arrangements that improve work-life balance and widen the talent pool for employers. However, maintaining company culture, collaboration, and clear boundaries between personal and professional life becomes significantly harder in a remote-first environment.
14.12Identify three challenges for ProjectOne with their blended working arrangementsHL Paper 1 · Q1(b)▼
Question
Identify three challenges for ProjectOne with their current working arrangements (blended working).
Context: ProjectOne operates a four-day working week with blended on-site and remote work for its 64-person team delivering design and engineering projects for multinational clients.
Suggested solution
The following is a suggested approach based on the specification verb and scenario. Offered as a study aid, not a definitive answer.
1. Maintaining team cohesion and culture: With staff alternating between on-site and remote days, it is harder to build the strong team relationships and shared culture that are central to ProjectOne's collaborative design work and client-facing reputation.
2. Performance monitoring and accountability: Managing a team that is partially remote makes it more difficult to monitor progress, ensure deadlines are met, and address performance issues quickly — particularly on complex, multi-team design projects for international clients.
3. Data security: With employees accessing sensitive client data and project files from home networks, ProjectOne faces a higher risk of data breaches or GDPR compliance issues than businesses that operate entirely on-site.
14.14Corporate wellness — importance and impact on motivation and cultureHL Paper 1 · Q4(d)▼
Question
Outline the importance of corporate wellness and investigate the impact of corporate wellness on employee motivation and organisational culture.
Suggested solution
The following is a suggested approach based on the specification verb and scenario. Offered as a study aid, not a definitive answer.
Importance: Corporate wellness programmes support employees' physical, mental, and emotional wellbeing, reducing absenteeism and stress. They boost motivation and productivity, improve talent attraction and retention, and promote a positive, inclusive culture that benefits the entire organisation.
Impact on motivation: Wellness initiatives help staff feel genuinely valued and supported by their employer. Reducing stress, providing mental health supports, and creating a sense of belonging all lead to stronger employee engagement, greater productivity, and a more committed workforce.
Impact on organisational culture: When businesses invest visibly in wellness, it builds a culture of loyalty and care. Staff who experience positive daily working conditions — through flexible hours, wellness classes, or mental health supports — find work more enjoyable and balanced. Group wellness activities also strengthen teamwork and collaboration across the organisation.
14.15Identify one way a leader can promote corporate wellnessOL Paper 1 · Q3(c)▼
Question
Identify one way a leader or manager can promote corporate wellness in the workplace.
Suggested solution
The following is a suggested approach based on the specification verb and scenario. Offered as a study aid, not a definitive answer.
Setting the tone through behaviour: A leader who models healthy behaviours — taking breaks, using flexible working arrangements themselves, and respecting boundaries — signals to employees that wellness is genuinely valued by the organisation and not just a policy statement. When leaders visibly prioritise their own wellbeing, staff feel more comfortable doing the same without fear of judgment or career consequences.
📌 Workforce planning: always name internal AND external factors separately
The verb is “discuss,” which requires a balanced review. A good approach names the factor, explains what it involves, and shows how it impacts staffing decisions — including what action the business would take. The most common mistake is only writing about internal factors (staff turnover, corporate objectives) while neglecting external ones (labour market, technology, government decisions).
📌 Digital recruitment (14.3) requires evaluating both benefits AND limitations
The verb is “evaluate” — the most demanding verb in the specification. For each stage of recruitment (identification, application, selection), a good answer explains what the technology does, states the benefit, and then identifies the limitation. An answer that only describes benefits without limitations will not fully meet the evaluate requirement.
📌 Appraisal questions: know the four types AND their motivational impact
Self-appraisal, formative, summative, and 360-degree have each appeared or are likely to appear. A good answer names the type, describes how it works, and then explains specifically how it contributes to employee motivation — not just “it makes employees feel good” but why (e.g. formative appraisal reduces anxiety by providing timely feedback rather than a single high-stakes annual review).
📌 Tuckman's four stages — know them in correct order
Forming → Storming → Norming → Performing. This sequence is directly examinable. A common error is reversing storming and norming. The key distinction: Storming is when conflict arises (personalities clash); Norming is when the team settles into ground rules and trust builds. Know what happens at each stage and be able to describe it briefly.
📌 Corporate wellness questions often link motivation, culture, AND leadership
LOs 14.14 and 14.15 are closely linked. A corporate wellness question may ask about importance, motivational impact, cultural impact, and the leader's role all in one multi-part question (as seen in HL Paper 1). Having clear, separate points ready for each dimension avoids repeating the same content across parts. The motivational impact (staff feel valued, engagement rises) is distinct from the cultural impact (builds loyalty, positive daily experience, strengthens teamwork).
📌 Remote working ethics: data privacy + fairness + boundaries
Three key ethical issues: (1) data privacy — home networks are less secure than office networks, and GDPR obligations still apply; (2) fairness — not all employees have equally suitable home environments or equipment, which creates inequality; (3) blurred work-life boundaries — employers have an ethical responsibility to set and respect clear working hour limits. The sustainability angle is separate: reduced commuting is positive for the environment, but reduced long-term employee connection and loyalty is a sustainability risk for the organisation.

Related Content

Student Hub Feedback

eBook

Activity Book

S1 CH1 Key stakeholders in business

S1 CH2 Forms of business, business regulation and governance

S1 CH3 Business and the economy

Scroll to Top