5CO02 Assignment Example

AC 1.2 Evaluate one appropriate analysis tool and one appropriate analysis method that might be applied by organisations to recognise and diagnose issues, challenges, and opportunities.

Analysis Tool: SWOT Analysis

The SWOT approach serves organisations by providing a tool for examining both their internal elements and external circumstances. Organisations use strengths and weaknesses to measure internal features, whereas opportunities and threats identify external variables (Haan, 2024).

Pros and cons

SWOT is simple and cost-effective. It allows easy implementation because it does not demand large datasets, so it works for organisations of all sizes (Haan, 2024). In addition, it encourages strategic thinking. Organisations can link their transformative capabilities with external developments by recognising their core resources and eliminating potential obstacles (Haan, 2024).

However, SWOT is linked with a lack of prioritisation. SWOT fails to prioritise factors, resulting in analytical misjudgment unless combined with additional analytical tools (Nordmeyer, 2019). Additionally, it is prone to subjectivity. The assessments depend heavily on the personal viewpoints of analysts conducting these assessments, which can introduce an unpredictable degree of bias into the process.

Application:

Organisations that want to understand competing threats should perform a SWOT analysis to investigate their competitive advantages through strong brand reputation while discovering outdated technology as a weakness. SWOT analysis helps companies discover market possibilities through new product development and warns about threats by identifying direct pricing competition (Nordmeyer, 2019).

Analysis Method: Employee Surveys

Employee surveys systematically capture structured workplace feedback that addresses employee issues, workplace engagement, and organisational performance ratings. When operated anonymously, surveys generate better honest responses from participants (Easy Feedback, 2024).

Pros and cons

Employee surveys can be used for large-scale data collection. Organisations’ surveys enable them to collect data from multiple large groups of people, thus providing broad-reaching organisational understanding (Walden University, 2024). Also, it identifies trends and patterns. Through quantifiable results, both HR management teams and leadership gain the ability to detect recurring problems, such as employee discontent with company policies (Walden University, 2024).

Nevertheless, they are associated with low response rates. Inadequate participation from employees causes surveys to produce incomplete results (). They are also at risk of dishonest responses. Some participants provide passive-aggressive responses that distort accurate feedback, making the results unreliable (Miller, 2020).

Application

User engagement by surveying employees about their career development requirements helps organisations diagnose growth opportunities. Company training programs will help boost employee capabilities when survey results indicate they need increased skills for expansion needs.

Effectiveness of SWOT Analysis and Employee Surveys

The structured evaluation system of an organisation’s market position makes SWOT analysis beneficial for strategic planning efforts. SWOT analysis benefits from quantitative survey methods that minimise individual interpretation elements (CIPD, 2024). 

Employee surveys reveal accurate workforce feedback that leads organisations to discover existing organisational problems while measuring staff involvement levels. Integrating these approaches leads to improved decision quality and better organisational responsiveness, which helps achieve lasting success (Miller, 2020).

AC 1.3 Explain the main principles of critical thinking and describe how these might apply to your own and others’ ideas to assist objective and rational debate.

The skill of critical thinking allows people to examine data while evaluating and interpreting information with objective assessment to form logical conclusions. Critical thinking combines belief challenges, systematic evidence evaluation, and continuous perspective research (CIPD, 2019). Critical thinking requires essential principles: fact-validation, proof verification, and maintaining neutral views.

Principle 1-Fact-Checking and Verification

Before treating information as accurate, one needs to verify information accuracy by applying this principle before treating it as accurate. Critical thinkers examine their information sources and verify news based on unbiased content and documented facts from reliable researchers (Palmer, 2022).

Application to My Idea

During the process of academic writing, I establish all arguments through evidence retrieved from peer-reviewed journals. When arguing that employee recognition leads to higher job satisfaction, I base my argument on research studies instead of subjective inputs. My work becomes more reliable and resists scrutiny when I fact-check my content because this approach ensures credibility and argument integrity.

Application to Others’ Ideas

Someone claimed “global warming is a hoax” at a climate change debate. I queried their evidence through factual backup and evaluated it against expert scientific consensus. I maintained a stronger rational debate by checking facts instead of rejecting the claim, which created evidence-based conclusions instead of relying on anyone’s emotions.

Principle 2-Maintaining objectivity

One must eliminate biases and examine matters using logic and factual research for objective evaluation. When discussions maintain objectivity, they remain based on reason rather than emotions (Palmer, 2022).

Application to My Ideas:

The objective evidence about mental health effects from social media needs to be examined even when my views show social media has adverse effects because some reports say social media has positive effects through better social connections. I understand both positions to construct an evidence-based perspective beyond my personal bias.

Application to Others’ Ideas:

During a team discussion about distant work, a coworker maintained that remote responsibilities decrease work output. Contrary to my remote work preferences, I conduct an objective review of research covering productivity levels in both directions. This balanced approach fosters constructive dialogue rather than personal disagreement.

AC 1.4 Explain three decision-making processes that can be applied to ensure that effective outcomes are achieved.

Efficient decision-making is vital in people’s practice, where people professionals need to deal with complex workplace challenges. Two significant decision-making initiatives include de-bono six thinking hats and future pacing, which assist people practitioners come with all-inclusive solutions by considering various perspectives and anticipating future results.

De-bono six thinking hats

The structured methodology Six Thinking Hats created by De Bono enables people to solve problems through separate cognitive frameworks. This approach assigns metaphorical caps symbolising distinct evaluation viewpoints (Lark Editor Team, 2021). Objectivity is the main characteristic of the White Hat approach, which builds facts-based decisions from actual evidence (Bitesize Learning, 2024). By wearing Red Hat, the group expresses emotional and intuitive experiences that show how everyone feels about specific situations. Through the Black Hat analysis, individuals discover potential risks and vulnerabilities, enabling them to prevent unfavourable results (Channell, 2021). The Yellow Hat method benefits decisions by revealing optimistic perspectives while identifying beneficial opportunities (Bitesize Learning, 2024). The Green Hat directs users to generate new solutions that solve different kinds of problems creatively. Blue Hat monitors the discussion to achieve balance while maintaining procedural structure (Lark Editor Team, 2021).

HR experts in people practice can apply the method to address employee turnover challenges. Through their application of the White Hat role, they analyse exit interview data to reveal performance trends. Through Red Hat, employees find ways to understand workers’ emotional motives for departure, such as feeling neglected.  According to Black Hat analysis, staff turnover risks continue to pose problems regarding elevated recruitment expenses, whereas Yellow Hat reveals improved employee retention will provide a more committed workforce. A solution generated from the Green Hat introduces career development initiatives and a mentorship program to promote retention. From the Blue Hat perspective, all angles are considered to create an effective decision that handles the problems appropriately.

Future pacing

The decision-making technique of future pacing allows professionals to see ahead to the extended consequences that decisions will produce before putting them into practice (Seun, 2024). When applied by HR professionals, this technique allows them to forecast outcome possibilities while adjusting their approaches (Seun, 2024). Designing new employee benefits packages, for example, could include HR projecting how flexible work policies will influence retention numbers alongside worker equilibrium and production metrics within the next five-year period. Their forethought of various situations helps HR professionals identify upcoming barriers, such as workforce relationship problems and operational expenditure risks, so that they can prepare their strategies in advance.

Hence, De Bono’s Six Thinking Hats and Future Pacing serve HR professionals in making strategic decisions through thorough analysis, which integrates multiple viewpoints with future effects. People management excellence and improved organisational performance represent the final result of these methods.

AC 1.5 Assess three different ethical perspectives and explain how understanding of these can be used to inform and influence moral decision-making.

Utilitarianism

According to consequentialist ethical theory, utilitarianism decision-making focuses on maximising happiness for the largest possible community members. Organisations assure decision quality by measuring results to determine the best option that delivers maximum happiness and benefit for the organisation (Wooldridge, 2019). Businesses and HR typically utilise this system since their policies need to support most employees.

Utilitarian principles can direct staff reductions made during financial crises to maintain benefits for maximum numbers of employees during such periods. The company’s sustainability requires HR professionals to decide that minor layoffs will preserve employment opportunities for most team members. A utilitarian framework allows firms to make this difficult choice by evaluating the broader positive outcomes that result from such decisions.

Advantages and disadvantages

Utilitarianism generates a reliable outcome-focused operational method that leads to decision-making, which avoids emotional interference, thus becoming more straightforward. The process delivers maximum efficiency since administrators rely on quantifiable advantages to judge organisation productivity and workforce demands (Doll, 2022). 

However, utilitarianism’s failure to respect individual rights becomes visible when basic judgments sacrifice smaller groups of people for the more significant benefit of the crowd. Identifying lasting impacts poses a significant obstacle because it becomes challenging to confirm whether an elected action results in optimal results (Wooldridge, 2019).

Altruism 

As an ethical approach to decision-making, altruism prioritises actions that benefit others while excluding expectations of personal advantage. Decisions under altruistic influence concentrate on providing equity while offering care and backing for everyone, regardless of whether it harms broad efficiency or mainstream benefits (Perry, 2021).

When viewed from an altruistic lens, HR professionals will make decisions supporting employee mental health instead of pursuing cost-saving measures because employees need necessary resources regardless of the financial burden. An altruistic HR leader understands that staff reorganisation or executive compensation reduction can protect jobs instead of implementing redundancies.

Merits and demerits

The principles of altruism create two principal advantages for organisations by developing a positive work culture because employees understand they receive support and a perception of value. Employees who trust their organisation will provide greater engagement and higher loyalty rates, promoting retention (Perry, 2021). 

Nevertheless, when altruism prevails over financial costs, businesses may struggle to maintain stability because choosing person-centred initiatives above cost considerations detrimentally affects business viability (HiPeople, 2024). When employees must make sacrifices, organisational decision-makers face challenges in balancing fairness between staff assets.

Hence, both utilitarianism and altruism play crucial roles in ethical decision-making. The utilitarian decision framework works for majority betterment, but altruism instead prioritises fairness principles and personal well-being attention. HR professionals must make ethical choices in people management, which require successfully integrating workplace priorities and employee welfare perspectives.

AC 3.1 Appraise two different ways organisations measure financial and non-financial performance, providing one example of each.

Measuring Financial Performance: Return on Investment (ROI)

Return on Investment (ROI) represents a fundamental financial performance indicator that measures investment profitability by comparing profit to investment expenses (Manfaat, Kelebihan & Kekurangan, 2024). It is determined using the formula:

𝑅𝑂𝐼= Net Profit/ Cost of Investment × 100

Organisations use this measurement to determine if their investments yield beneficial returns in training programs, marketing campaigns, and new technologies. For instance, when a company pays £50,000 for training, which leads to £100,000 more revenue from productivity improvements, it achieves a 100% ROI. This data point demonstrated that the training approach produced a doubling monetary value.

Benefits and drawbacks

Businesses benefit from ROI because it delivers precise financial data that helps them create spending decisions through data-driven methods. Through ROI analysis, companies can quickly determine which investments offer better value so they can dedicate resources more effectively (Manfaat, Kelebihan & Kekurangan, 2024).

However, the method overlooks sustained advantages that emerge later, including improved workplace morale and employee creativity, because these impacts frequently take time to produce financial returns (FasterCapital, 2024). The ROI calculation becomes susceptible to external market conditions because these influences can create unrealistic assessments of investment success (FasterCapital, 2024). 

Non-Financial Performance: Customer Satisfaction Score (CSAT)

A subjective approach, CSAT, examines service quality and customer experience apart from regular financial metrics. Customer satisfaction ratings usually occur within research surveys that use rating scales ranging from one to five or ten points (Nice, 2023).

For instance, post-purchase surveys generated by retail companies include the question, “How satisfied were you with your shopping experience?” Out of 100 responses with 80 or more delighted customers, an 80% CSAT score is achieved, which reflects excellent customer satisfaction.

Pros and cons

Organisational identification of service strengths and areas for enhancement becomes possible through direct customer feedback provided by CSAT. The measurement tool enables businesses to forecast customer loyalty because pleased customers will maintain their patronage and promote the brand to others (Fox, 2024). However, CSAT generates inconsistent measurements because what customers find satisfying will differ according to their expectations. The approach fails to comprehensively explain customer attitudes, necessitating additional qualitative research for practical outcome interpretation (Fox, 2024).

Effectiveness 

ROI produces excellent financial performance assessment yet does not account for prolonged organisational benefits because of its ad-hoc duration measurements. The measurement of CSAT provides meaningful insights into customer perspectives but ultimately fails to deliver whole business performance metrics. Competing financial success with customer-centric strategies becomes possible by aligning ROI and CSAT metrics.

AC 3.2 Explain how people practices add value in an organisation and identify two methods that might be used to measure the impact of people practices.

People practice involves HR strategies combined with policies and initiatives to determine the control and engagement of both workforce and organisational achievement (Kokemuller, 2019). Effective implementation of people practices generates organisational value through increased productivity, better employee retention rates, and enhanced well-being, as well as superior business outcomes. Measuring the effects of HR initiatives remains important for guaranteeing that HR investments in people management strategies yield desired organisational results.

Organisations need value measurement approaches for their HR policies since this establishes data-driven proof of policy effectiveness to support strategic decision-making. Data-based approaches replace assumptions as fundamental components of HR strategies, while measurement techniques improve efficiency (Komm, 2021). Two standard tools for measuring people’s practice effects include Cost-Benefit Analysis (CBA) and Evaluation Metrics.

Cost-Benefit Analysis (CBA)

As a financial tool, CBA enables organisations to analyse fundamental expenses against the benefits of implementing new people practices. Organisations can confirm successful HR initiatives with the help of economic return analysis (FasterCapital, 2024).

For instance, if an entity introduces a wellness program that costs £50,000 yearly but succeeds in decreasing absenteeism costs by £100,000, this demonstrates an overall £50,000 savings via CBA.

Pros and cons 

CBA helps organisations display financial rationality to seek approval from leadership to fund HR initiatives. Through its distribution mechanism, CBA helps organisations decide where to invest their funds most effectively by directing capital towards essential people-focused practices (Hayes, 2024). Nonetheless, its sole emphasis on numerical values causes evaluation methods to miss essential unquantifiable organisational outcomes like enhancing worker job satisfaction. Accurate forecasting proves challenging because predicting HR benefits extending over extended periods remains difficult (IMD, 2024).

Evaluation Metrics

Measuring the success of an HR initiative requires qualitative and quantitative data collection methodologies. Employee engagement surveys, turnover rates, and performance reviews represent ways to measure the workforce impacts of people practices (Baalam, 2023).

Organisations conducting assessments of leadership training programs should use changes in leadership competency scores and tracking promotion routes to measure success levels among participants. Organisational success will be confirmed through high scores combined with elevated internal promotional pathways (Baalam, 2023).

Advantages and disadvantages

Evaluations succeed at capturing both measurable outcomes and non-measurable results, including better workplace culture and stronger executive performance (Johnson, 2019). The HR team can adjust their strategies through continuous feedback systems while implementing them. 

However, the ongoing procedure of collecting data along with analytical processes makes evaluation processes time-consuming. When measuring results through employee surveys, these data points can become subjective due to worker biases stemming from their personal views (Johnson, 2019).

1008 Words

Task 2

AC 2.1 With reference to a people practice issue, interpret analytical data using appropriate analysis tools and methods.

Calculations for both Quarters

First Quarter

. 

Second Quarter

Quarter 1 and Quarter 2 Interpretation

Administration department

The Administration Department showed a decrease in outstanding performance from 18.18% to 9.09% alongside better KPI achievement from 18.18% to 36.36%. The performance improvement initiatives generated varied outcomes because the “Not quite there yet” employee rating increased from 27.27% to 36.36% during the evaluation period.

Sales Department

The Sales Department demonstrated stability because one hundred per cent of staff achieved KPI goals throughout both quarters. The team operates with consistent results because employees work in a managed environment that establishes concrete performance standards.

Logistics

The Logistics Department achieved solid gains because outstanding performance increased from 20% to 25% and employee KPI achievement rose from 40% to 45%. Measured interventions proved successful because underperformance completely disappeared and the program culminated in a 0% rate. The slight rise in absenteeism from 0% to 10% requires ongoing monitoring because it could develop into an ongoing issue.

Research and Development

Outstanding achievements in the Research and Development (R&D) Department grew significantly compared to other departments. The proportion of staff achieving outstanding results increased from 30% to 50% while the number of underperforming staff decreased from 30% to zero. The initial absence rate of zero per cent climbed to 10 per cent and needs additional research to address the situation.

Additional focus on reducing absenteeism levels in the Logistics and R&D departments is needed to maintain the accomplished productivity improvements.

Bonuses

First Quarter

Second Quarter

Total Bonus

£9,170+£11,600= £20,770

First quarter bonuses totalled to £9,170 and the second quarter totalled to £11,600 and these totalled to an overall of £20,770. Data for absenteeism was missing. Nevertheless, this was insignificant and never affected the findings’ credibility.

AC 2.2 Present key findings for stakeholders from people practice activities and initiatives.

Table 2 Data

Line Managers’ Feedback

Employees’ Feedback

The evaluation responses from line managers and employees demonstrate several dominant patterns that demonstrate leadership inefficiencies, communication breakdowns, and performance evaluation problems.

Lack of Confidence and Training Among Line Managers

The data line manager reveals a significant trend related to insufficient training and low confidence when performing performance reviews. The lack of training programs for managers reaches 88%, while their reluctance to conduct performance reviews matches 46%, and their inability to address underperforming issues amounts to 74%. The lack of manager confidence affects their ability to effectively direct staff, feedback delivery, and performance evaluation tools.

Communication and Guidance Gaps

Data from both surveys demonstrates problems related to managerial communication methods. A significant number of workers (51.49%) reported they received unclear direction from their managers, while 79.57% indicated they must raise concerns about their ideas not being heard in performance evaluation sessions. According to line manager feedback, 38% of respondents stated their weakness lies in target setting and feedback delivery. The current trends indicate that ineffective communication methods, alongside a lack of listening techniques, are responsible for the employee perception of being ignored and unsupported.

Positive Feedback vs. Constructive Feedback

A significant percentage of 37.87% of the surveyed workforce expresses doubt regarding their managers’ capabilities to handle employee relations, while 60% indicate their managers deliver helpful feedback. The delivery of constructive feedback shows inconsistency because 43% of employees agree they receive it, yet another 42.9% disagree. According to the manager’s self-assessment results, only 24% feel capable of delivering feedback while setting targets.

Learning and Development Opportunities

Employee perceptions indicate a positive development since 65.96% agree that their managers furnish them with learning opportunities, although line managers express confidence in rating performance at 45%. The current data shows development support shortcomings since 29.79% of employees disagree with receiving it.

AC 2.3 Make justified recommendations based on evaluation of the benefits, risks and financial implications of potential solutions.

Recommendations for Performance Review Data (Table 1)

Recommendation 1 Provide targeted training sessions coupled with individual coaching to underperforming employees 

Benefits

Organisations will gain from enhanced workforce abilities and performance, lowering the number of underperforming workers (Jay, 2021). Employee training and coaching strengthen morale since it shows that the company supports professional advancement (Jay, 2021).

Risks

Training effectiveness might differ from employee to employee since some individuals fail to improve regardless of workplace coaching (Jay, 2021). The improper structure of this initiative could result in workforce reluctance or inattention among staff members.

Financial implication

The financial arrangement includes paying for outside trainers and software and coaching systems, reducing turnover and employee hiring expenses over time (Gupta, 2023).

Recommendation

Employer Well-Being Programs should be used to tackle absenteeism among staff.

Benefits

Decreased employee absences lead organisations to higher productivity and operational efficiency improvements. Employing well-being programs helps achieve better employee satisfaction and retains staff members in their positions (CIPD, 2024).

Risks

The well-being initiative might encounter limited worker participation, and the performance benefits can take several months to show in evaluation metrics (Rise, 2019).

Financial Implications

Employing mental health support and flexible work options as wellness programs needs initial funding expenditures that produce long-term savings by decreasing absenteeism-related expenses (CIPD, 2024).

Recommendations for Manager and Employee Feedback Data (Table 2)

Organisations should establish mandatory training programs on performance appraisal for all line managers within their systems.

Benefits

The system builds up managers’ appraisal skills while enabling them to deliver equitable appraisal processes. The implementation enhances communication and leads to standardised ratings and consistent feedback processes (Burgess, 2024).

Risks

Implementing additional training faces challenges from managers who may resist its application and need ongoing evaluation to prove its usefulness.

Financial implications

The expenses for training have financial consequences, yet the organisational return includes enhanced work engagement and superior performance administration systems (BasuMallick, 2020).

Recommendation 2

A structured employee feedback system needs implementation to collect feedback from workers.

Benefits

The mechanism creates an open dialogue between employees and managers, which results in improved employee-manager relationships (Aurora Training, 2024). This implementation gives Employees both support and a sense of being heard.

Risks

Unresolved feedback collection may result in worker frustration. However, the implementation has potential adverse effects because managers might become too busy with too many additional tasks (Aurora Training, 2024).

Financial Implications

The financial impact will be minimal if organisations utilise their current HR software, yet they might spend money on new tools or external consultants to support employee dialogue (Trisca, 2024).

References

Athuraliya, A. (2024a). The Rational Decision Making Model: A Guide to Clear and Logical Choices. [online] Creately. Available at: https://creately.com/guides/rational-decision-making-model/ [Accessed 30 Jan. 2025].

Athuraliya, A. (2024b). The Rational Decision Making Model: A Guide to Clear and Logical Choices. [online] Creately. Available at: https://creately.com/guides/rational-decision-making-model/ [Accessed 30 Jan. 2025].

Aurora Training (2024). The Importance of Employee Feedback. [online] Aurora Training Advantage. Available at: https://auroratrainingadvantage.com/articles/the-importance-of-employee-feedback/ [Accessed 30 Jan. 2025].