Key Idea: At HL, Topic 2.1 is not just about knowing HR terms — it is about choosing the most suitable HR decision for the business and explaining its likely impact on costs, motivation, productivity, retention and flexibility. Strong HL answers compare options, apply them tightly to the case, and explain trade-offs clearly. HL students also need to handle appraisal and labour turnover confidently.
Core structure (memorise)
- HRM — managing the workforce effectively
- Workforce planning — forecasting current and future staffing needs
- Recruitment — attracting candidates
- Selection — choosing the best candidate
- Training — improving employee skills and knowledge
- Appraisal — reviewing employee performance
- Dismissal — employment ends because of behaviour or poor performance
- Redundancy — employment ends because the job is no longer needed
🔄 Internal recruitment: **Internal recruitment —** faster and cheaper. **Internal recruitment —** motivates existing staff. **Internal recruitment —** candidate already understands the business. **Best when —** the business wants continuity and low risk.
🌍 External recruitment: **External recruitment —** wider pool of candidates. **External recruitment —** can bring fresh ideas and new skills. **External recruitment —** useful when skills are missing internally. **Best when —** the business needs change, growth or specialist expertise.
High-yield facts examiners expect
- Job description — details of duties, responsibilities and reporting lines
- Person specification — qualities, skills and qualifications needed
- Induction training — helps new employees settle in
- On-the-job training — learning while working
- Off-the-job training — learning away from the workplace
- Appraisal can identify training needs, reward performance and support development
- Dismissal and redundancy are different — one is about employee fault/performance, the other is about the role disappearing
✅ Likely advantages: **Internal recruitment** may improve motivation and reduce cost. **External recruitment** may improve innovation and skills. **On-the-job training** is practical and cheaper. **Off-the-job training** can be higher quality but more expensive.
⚠️ Likely drawbacks: **Internal recruitment** limits the pool of candidates. **External recruitment** is slower, costlier and riskier. **On-the-job training** may disrupt work or spread bad habits. **Off-the-job training** takes staff away from work and may not transfer perfectly.
HL-only additions you must know
- Appraisal methods — self-appraisal, peer appraisal, manager appraisal, 360-degree feedback
- Good appraisal systems — set targets, review progress, identify training needs and support development
- Poor appraisal systems — feel unfair, demotivate staff or become a box-ticking exercise
- Labour turnover = (number of staff leaving ÷ average number employed) × 100
- High labour turnover — may signal poor motivation, weak leadership, low pay or stressful conditions
- Low labour turnover — may suggest stability and loyalty, but context still matters
What HL examiners want to see
- HL answers should compare HR options, not just define them
- Always consider impact on motivation, productivity, labour costs, quality and staff retention
- Recruitment and training choices should be linked to the size, budget, skills gap and growth stage of the business
- A cheap HR option is not always best if it causes poor performance or high labour turnover
- For extended responses, use at least one short-term and one long-term effect
At HL, do not stop at saying a method is cheaper or faster. Explain whether that matters more than quality, experience, retention or long-term performance for this specific business.
A very common HL move is to compare two HR options directly. For example: internal recruitment may be cheaper and faster, but external recruitment may be better if the business needs new expertise for expansion or change.
For HL calculation or analysis questions on labour turnover, do not just calculate the percentage. Explain what it suggests about the business, then link it to likely causes such as weak motivation, poor management, limited progression or pay dissatisfaction.
Example: A strong answer: External recruitment may be more suitable because the business is expanding and may need specialist skills that current employees do not have. Although it is more expensive and takes longer, better recruitment quality could improve productivity and reduce costly mistakes later.
Important: Common triggers: explain one benefit and one drawback of a recruitment method, compare internal and external recruitment, explain training methods, analyse the usefulness of appraisal, calculate or interpret labour turnover, or recommend how a business should manage staffing.
- Identify which HR area the question is really about
- Use the exact HR term correctly
- Explain the method clearly
- Apply it to the business in the case
- Show at least one positive and one negative effect
- For bigger questions, compare alternatives before concluding