principles of critical thinking cipd

AC 1.3. Discuss critical thinking principles and provide instances of how you apply them to your own and others’ ideas in order to facilitate objective and rational discourse.

The ability to think critically is a skill that helps people make good decisions and think about ideas, opinions, and arguments in a clear way (Howlett and Coburn, 2019). To make a decision, you have to look at people’s practise issues objectively and make a decision. Many critical thinking principles are based on rational, objective analysis of factual information and sceptical analysis, which is what the definition says. Being logically correct is what objective, rational thinking is all about. This principle lets you separate things that are true from things that aren’t. Walters says that rational, objective thinking is based on logic and other cognitive acts like imagination, creativity, and ideas.

In real life, people can use different critical thinking principles in different situations. When HR professionals use critical thinking to make decisions, they need to make sure they understand the issue and can tell the difference between facts and opinions(Howlett and Coburn, 2019). When making decisions based on evidence, you use the critical thinking principle of valid evidence to remove any bias.

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5CO02 Evidence Based Practice

Introduction

5CO02 Evidence Based Practice constitutes a module designed to provide learners with a comprehensive understanding of gathering both qualitative and quantitative evidence, fostering the development of critical thinking skills. This module assesses the ethical dimension of organizational decision-making through the analysis of information and evidence, thereby determining their inherent value.

Learning outcomes

Upon completion of this unit, learners will have comprehensively grasped the following concepts, which will be evaluated as part of the unit’s culmination:

• Attain a profound comprehension of strategies that bolster critical thinking and the utilization of evidence to enhance decision-making.
• Develop an appreciation for the significance of making ethically sound decisions and crafting approaches to address challenges in human-centric practices within a workplace setting.
• Acquire valuable insights into gauging the organizational impact of human-centric practices.

1. The effectiveness of critical thinking/strategies in decision-making

Applying evidence-based practice to decision-making and people practice.

Learners are tasked with comprehending the utilization of evidence to make well-founded decisions that can be logically substantiated both personally and in the eyes of others. This substantiation arises from a hands-on interpretation and analysis of the evidence at hand. Learners gain an understanding of pertinent decision-making models such as the rational model, bounded rationality, and groupthink, which aid in shaping their choices. The evidence they employ should stem from diverse sources, prompting learners to remain vigilant about the perils of bias when rendering judgments and drawing conclusions related to various business matters.

Effective organizational decisions come to fruition when managers and employers adeptly diagnose challenges while simultaneously recognizing the opportunities that warrant contemplation before arriving at definitive choices. Various tools and methodologies have been pinpointed to facilitate employers’ comprehension of the business operating landscape. Among these tools are exemplars such as Porter’s Five Forces model, Ansoff matrix, strategic review, cause and effect analysis, critical incident analysis, balanced scorecard, and the McKinsey 7S model. Each of these holds significance in sourcing information from the surrounding environment. Employing various methodologies like interviews and observations enhances the efficacy of these tools. The gleaned information can subsequently be employed to assess organizational metrics, offering a foundation upon which data-driven support for both the organization and its personnel can be built.

The principles of critical thinking

Critical thinking stands as a pivotal skill highly regarded by HR professionals, pivotal for contemplating organizational objectives and for refining ideas and arguments that contribute to enhanced decision-making. Learners must delve into fundamental principles of critical thinking, including objective and rational thought processes, fostering a heightened awareness conducive to making informed organizational choices. In addition, learners gain an understanding of the importance of presenting cogent arguments before finalizing decisions. Vigilance regarding potential biases when making decisions is paramount, underscoring the imperative for learners to grasp the essence of critical thinking in its most fitting and nuanced form.

Decision-making from an ethical perspective

Embracing ethical conduct involves adhering to a set of standards, behaviours, and directives that effectively ensure the adept handling of dilemmas and the conscientious rendering of morally sound decisions. Learners who grasp this concept delve into ethical theories encompassing utilitarianism, deontology, communitarianism, and altruism. Additionally, learners gain an appreciation for ethical values such as fairness, honesty, equality, democracy, and ethical dilemma resolution. These principles and values collectively illuminate the profound impact of ethics on learners’ workplace decisions. Nonetheless, learners must also acquaint themselves with diverse rationales and elucidations associated with ethical theories and arguments. This mandates that, as professionals, learners should adeptly understand both capability-based and performance-driven approaches to issue management within their work sphere.

2. Effectiveness of decision-making strategies in solving people practice problems

Analyzing data and interpreting it.

Engaging in this unit, learners will come to appreciate the significance of scrutinizing raw data, thereby ensuring a comprehensive grasp of trends, issues, thematic patterns, and the causal relationships underpinning organizational value attainment. This data serves as substantiating evidence about processes and outcomes, essential for professionals in formulating fitting workplace decisions.

A review of decision-making processes and potential solutions to people practice problems.

Workplace decisions hold significance as they contribute to the formulation of solutions that yield favourable results. A pivotal aspect learners should grasp within this learning objective is the ‘Six Thinking Hats’ methodology. Furthermore, learners need to recognize the importance of assessing decisions to mitigate risks and oversee organizational finances. Sound decisions yield advantages such as heightened productivity, stakeholder involvement, favourable workplace dynamics, a positive culture, and heightened business awareness. A profound comprehension of the financial repercussions for organizations after certain decisions is a facet that aids in gauging professionals’ adeptness at cost and budget management.

3. Assessing the value and impact of people practices in organizations

Performance measurement both financially and non-financially.

Business performance, both financial and non-financial, serves as a cohesive framework that amalgamates diverse approaches to enhancing organizational efficiency. Financial performance metrics encompass revenue generation, gross and net profitability, return on investment, and cash flow. Non-financial performance indicators encompass service level agreements, stakeholder benefits, levels of customer satisfaction, adherence to legal obligations by employers and employees, and compliance with environmental standards.

Professionals utilize data to inform people-centric practices, a key facet in aiding learners to gauge organizational performance levels. For instance, dissecting quantitative and qualitative data through graphical representations, tables, reports, and presentations equips learners with the adeptness to effectively quantify workplace performance. Moreover, professionals need to grasp HR and L&D activities that involve obtaining evidence and crafting fitting decisions. This encompasses the utilization and analysis of data concerning rewards, compliance, recruitment, retention, and finance.

Provide stakeholders with a collection of findings

“Envisioning their distinctive roles and responsibilities, learners delve into the orchestration of obtained data, skillfully transforming it into findings for dissemination among stakeholders. This data encapsulates the intricacies of stakeholders’ concerns, intertwining with activities buttressing people-centric practices, in turn fostering the foundation for informed decisions. Within this realm, initiatives gestate, fortifying both individuals and organizations alike.

At this echelon of learning, comprehension extends to the impact and significance inherent in the domain of people practices, a concept with profound implications for organizational value creation. These impacts can reverberate in diverse directions – positive or negative, either directly or indirectly influencing both individuals and the organizational framework. Learners become adept at quantifying the ramifications of the evidence, a strategic measure to ensure the alignment of organizational goals and objectives. This process of gauging effectiveness guides learners in their quest to refine people’s practices and thereby engender judicious choices.

Methods to ascertain the value of individuals to organizational performance and prosperity encompass return on investment, return on equity, cost-benefit analysis, evaluation, and validation. The insights gleaned from these methodologies serve to enhance individual well-being and strategically address hindrances that may obstruct the organization’s path to success.

What is the importance of evidence-based practice in HR and L&D?

Evidence-based practice in HR and L&D involves utilizing data, research, and insights to inform decision-making. It enhances the effectiveness of practices by ensuring they are grounded in sound evidence. This approach contributes to better organizational outcomes and supports the alignment of HR and L&D strategies with business goals.

How does evidence-based practice contribute to organizational performance?

Evidence-based practice enhances organizational performance by promoting informed decision-making. When HR and L&D decisions are based on empirical data and research, they are more likely to lead to positive outcomes such as improved employee engagement, higher productivity, better talent management, and overall organizational success.

What are some key methods for collecting and analyzing evidence in HR and L&D?

Collecting evidence involves various methods such as surveys, interviews, focus groups, and data analysis. Quantitative data can be collected through surveys and assessments, while qualitative data can be gathered through interviews and observations. Analyzing evidence may involve using statistical tools, creating visualizations, and drawing insights from the collected data.

How does evidence-based practice support ethical decision-making in HR and L&D?

Evidence-based practice provides a structured approach to decision-making that considers ethical implications. By relying on research and data, HR and L&D professionals can make decisions that align with ethical principles and avoid potential biases. This approach ensures fairness, transparency, and accountability in decision-making processes.

What role does critical thinking play in evidence-based practice for HR and L&D?

Critical thinking is central to evidence-based practice in HR and L&D. It involves analyzing information, questioning assumptions, and evaluating the relevance and reliability of evidence. Critical thinking enables professionals to make well-informed judgments, assess the validity of research findings, and adapt evidence to specific organizational contexts.

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Critical Thinking Essential Insights

£49.50 exc. VAT

Learn and use critical thinking strategies when analysing information and data sources to improve decision-making, judgement and to find the best solution.

60-90 minutes

Online self-directed

Essential Insights

Overview Free for CIPD members and Core Learning Subscribers. 

In the age of ‘information overload’, it’s easy to find yourself misled, confused or overwhelmed when trying to analyse data objectively. With multiple outlets of news, opinion, and stories vying for attention on TV, social media, at work and at home, the ability to think critically is essential. The process of thinking deeply, effectively and objectively about a problem to come up with the best solution may therefore be the defining skill for future success.

In this online course, you’ll explore how to sort fact from fiction, using critical thinking as a tool to problem-solve, research and excel in your role. Shedding light on ethical approaches and evidence-based practice, the content brings into focus known and unknown biases and how they can influence thinking.

As a result of attending this course, learners will be able to make reasoned decisions, unbiased judgement and communicate thinking to others clearly, when evaluating large amounts of information from various sources.

All CIPD Learning courses will automatically provide you with access to the CIPD Learning Hub , our online learning platform, for 24 months.

The hub will house your course content, as well as useful resources, tools, and a community of professionals that you can tap into to support your learning and continual development. Members, this course is included as part of your membership. Please access your free learning here.

Objectives:

The purpose of this course is to:

• explain what critical thinking is and how it can help our working practice, research and problem-solving
• check for problems and barriers to effective critical thinking and be able to overcome these
• use strategies for critical thinking.

Is this course right for me?

This course will help people practitioners, as well as those outside the profession, who need to hone their decision-making competence when faced with work scenarios, daily life challenges or achieving KPIs. Relevant for all levels of experience, the bitesize content will provide professionals with critical thinking tools to make sense of data and information and communicate their thoughts.

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More From Forbes

The seven key steps of critical thinking.

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As leaders, it is our job to get the very best out of our workforce. We focus on how best to motivate, inspire and create an environment in which employees are satisfied, engaged and productive. This leads us to deliver an excellent customer/client experience.

But all in all, the effort we put into growing our workforce, we often forget the one person who is in constant need of development: ourselves. In particular, we neglect the soft skills that are vital to becoming the best professional possible — one of them being critical thinking.

When you're able to critically think, it opens the door for employee engagement, as you become the go-to person for assistance with issues, challenges and problems. In turn, you teach your workforce how to critically think and problem solve.

Let’s take a look at the key steps in developing critical thinking skills.

What Is Critical Thinking?

One of my favorite definitions of critical thinking comes from Edward Glaser. He said , “The ability to think critically, as conceived in this volume, involves three things:

1. An attitude of being disposed to consider in a thoughtful way the problems and subjects that come within the range of one’s experiences

2. Knowledge of the methods of logical inquiry and reasoning

3. Some skill in applying those methods."

In short, the ability to think critically is the art of analyzing and evaluating data for a practical approach to understanding the data, then determining what to believe and how to act.

The three characteristics of critical thinking include:

•  Being quick and decisive:  One of the most admirable leadership qualities the ability to be quick and decisive with decisions. There are times where an answer just needs to be given and given right now. But that doesn't mean you should make a decision just to make one. Sometimes, quick decisions can fall flat. I know some of mine have.

• Being resourceful and creative:  Over the years, members of my workforce have come to me with challenges and have needed some creativity and resourcefulness. As they spell out the situation, you listen to the issue, analyze their dilemma and guide them the best way possible. Thinking outside the box and sharing how to get there is a hallmark of a great leader.

• Being systematic and organized:  Martin Gabel is quoted as saying , “Don’t just do something, stand there.” Sometimes, taking a minute to be systematic and follow an organized approach makes all the difference. This is where critical thinking meets problem solving. Define the problem, come up with a list of solutions, then select the best answer, implement it, create an evaluation tool and fine-tune as needed.

Components Of Critical Thinking

Now that you know the what and why of becoming a critical thinker, let’s focus on the how best to develop this skill.

1. Identify the problem or situation, then define what influenced this to occur in the first place.

2. Investigate the opinions and arguments of the individuals involved in this process. Any time you have differences of opinions, it is vital that you research independently, so as not to be influenced by a specific bias.

3. Evaluate information factually. Recognizing predispositions of those involved is a challenging task at times. It is your responsibility to weigh the information from all sources and come to your own conclusions.

4. Establish significance. Figure out what information is most important for you to consider in the current situation. Sometimes, you just have to remove data points that have no relevance.

5. Be open-minded and consider all points of view. This is a good time to pull the team into finding the best solution. This point will allow you to develop the critical-thinking skills of those you lead.

6. Take time to reflect once you have gathered all the information. In order to be decisive and make decisions quickly, you need to take time to unwrap all the information and set a plan of attack. If you are taking time to think about the best solution, keep your workforce and leaders apprised of your process and timeline.

7. Communicate your findings and results. This is a crucial yet often overlooked component. Failing to do so can cause much confusion in the organization.

Developing your critical-thinking skills is fundamental to your leadership success. As you set off to develop these abilities, it will require a clear, sometimes difficult evaluation of your current level of critical thinking. From there you can determine the best way to polish and strengthen your current skill set and establish a plan for your future growth.

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5CO02: Evidence-based Practice

Task one-Report

AC 1.1 Provide evaluation of the concept of evidence-based practice and assess how evidence-based practice approaches can be used to provide insight in supporting sound decision-making and judgments for people practitioners across a range of people practice and organizational issues.

• Define the concept of Evidence-based practice
• Discuss two evidence-based approaches and  provides their drawback and strength
• Discuss how Evidence-based practices support sound decision-making
• Briefly define critical thinking and  group decision making
• Provide a model such as critical thinking and rationale model that support sound decision making
• Define a real-life example of sound decision-making and discuss how often they are the right ones
• Highlights how judgments are formed based on an effective conclusion across a range of organizational issues and people practice
• Discuss the impact of bias in decision-making, and provide a reliable and valid result.
• Highlights three real-life examples of people practice or organizational issues. 
• The examples might be included Out-of-date L&D processes, staff skills shortages, and high absence rates.
•  Discuss a conclusion about the effectiveness of evidence-based practice through personal judgment.

AC 1.2 Provide evaluation of one appropriate analysis tool and one method that might be applied by the organization to recognize and diagnose current and future issues, challenges, and opportunities.

• Define one tool and one method which can be applied in an organization
• analyze appropriate tools and methods and provide a real-life example based on advantages and disadvantages
• Illustrate the method and tool to diagnose  challenges, opportunities, current, and future issues of an organization
• Analyze a tool such as Balanced Scorecard, Porter’s Five Forces, and PESTLE 
• Briefly define the advantages and disadvantages of the tool and provides personal judgment in a real-life example
•  Discuss a method that must be included in surveys, interviews, or observations 
• Discuss the advantages and disadvantages of this method and provide judgments through real-life examples
• Discuss current and future issues based on legislation impact
• Define challenges based on competitors
• Discuss growth opportunities

AC 1.3 Explain the principles of critical thinking and describe how these might apply to individual and work colleagues’ ideas  to assist objectives and rationale debates

• Define the principles of critical thinking
• Describe objectives rationale thinking, considering  unconscious bias as a principle of critical thinking
• Highlights context and referenced external insights based on critical thinking principles
• Highlights real-life examples to assist objectives and rationale debates
• Provide evidence based approaches on a real-life example
•  Highlights the principles of critical thinking principles based on other’s ideas  to assist objectives and rationale debates
• The debates must be positive and constructive  with consideration of bias

AC 1.4 Explain a range of decision-making processes  that can be applied  to ensure that effective  outcomes are achieved

• Illustrated the  approaches to decision-making
• Highlights the ranges of decision-making  approaches
• Briefly explain how decision-making approaches are used
• Explain why the decision-making approach is used
• Highlights the effective outcomes of decision -making  process
• Discuss how decision-making approaches help people practice issues
• Draw examples of decision-making approaches such as action learning, future pacing,  problem outcome frame, and group link.

AC 1.5 Acess a range of different ethical theories and perspectives and explain  how an understanding of these can be used to inform and influence moral decision-making

• Provides two ethical  theories that influence ethics in decision-making
• Draw the range of ethical theories
• Ethical theories must be included in utilitarianism, stakeholder analysis, and Deontological theory.
• Highlights the perspective of the decision-making approach by evaluating the theories
• Briefly define how ethical theories can influence decision making
• Highlights the theory based on the best evidence
• Analyze the theories to inform moral decision-making

AC 3.1 Appraise different ways and approaches organizations can take to measure financial and non-financial  performance

• Discuss an overview of one financial and one non-financial performance
• Briefly discusses an example of one financial and one non-financial  performance
• Highlights the gross income  of financial income
• Provide a brief definition of profit and top-line measure of financial performance
• Discuss the measurements of non-financial performance eg. KPIs
• Define real-life examples of financial and non-financial performance in the organization

AC 3.2 Explain  how people practices add value in an organization and identify a range  of methods that might  be used to measure the impact of a range of people practices

• Discuss how two ways people practice can add value
•  Provide real-life examples that emphasize people's practice can add value
• Discuss how effective recruitment, which helps to hit the operational targets
• Discuss how effective recruitment provides reputation and customer services. 
• Highlights the capability  of  L&D management  to measure the value
• Focus on a range  of methods that  would measure the range of people's practice
• Highlights a recruitment  drive and describes return on investment (ROI)
•  Provides a brief description of Cost Benefits Analysis (CBA)
•  Highlights how CBA implements a program to improve the capability

Task Two- Quantitive and qualitative analysis review

AC 2.1 concerning people practice issue, interpret analytical data using appropriate  analysis tools and methods

•  Focus on  analytical methods and tools  to review a data
• Analyze the absence of data in table 1
• Provide a brief analysis  to show trends across departments
• Discuss absence by type
• Discuss Absence by gender
• Highlights total day lost through absence
•  Define Annual  costs by  absence based such as a 37-hour working week
•  Present the important findings  by using appropriate  diagrammatical forms

AC 2.2 Present the findings to stakeholders from people practice activities and initiatives

• Scrutinizing the applied  scores in table 1
• Provide a presentation of  written commentary on the patterns and themes
•  Focus on findings for stakeholders
• Analyze table 1 presented  with  reason, numbers, and cost of absence days across all organizations and departments
•  Analyze table 1 and present feedback from employees and managers
• Represent the findings taken out from Table 1 and Table 2 using graphical diagrammatic forms

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

• Use a decision-making approach to address the recommendations based on your analysis of Table 1 and Table 2
• Provide recommendations based on the findings of Table 1 and Table 2
• Provide at least 4 recommendations for analyzing the data in Table 1 and Table 2
• Include rationale, benefits, risks, and financial implications for each recommendation

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Newsletter , 5os07 wellbeing at work, 5os06 leadership & management development, 5os04 people management in an international context, 5os02 advances in digital learning & development, 5os01 specialist employment law, 5hr03 reward for performance & contribution, 5hr02 talent management & workforce planning, 5hr01 employment relationship management, 5co03 professional behaviours & valuing people, 5co02 evidence-based practice, 5co01 organisational performance & culture in practice, 3co04 essentials of people practice, 3co03 core behaviors for people professionals, 3co02 principles of analytics, 3co01 business culture & change in context.

Podcast 154: Critical Thinking

Critical thinking is a key skill for HR and all people professionals - it is the ability think well and to critically reflect on the ideas, opinions and arguments of others. It can help us solve complex problems and make better decisions, bringing clarity to confusion. and increasing our potential to succeed when others look to us and our teams for answers that work. Join Warren Howlett and Tim Coburn discussing why critical thinking is important, and how you can learn to reason well.

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• Frequency Updated fortnightly
• Published 5 November 2019 at 04:00 UTC
• Length 22 min
• Rating Clean

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Defining Critical Thinking

5CO02 Evidence based Practice

Introduction to 5co02.

Learners pursuing this unit get insight into the use of qualitative and quantitative data to provide evidence. The evidence is significant in enhancing good decision-making and appropriateness in promoting organisational success and development. Effective decision-making at work improves people practices and creates organisational value.

Learning outcomes

This unit will help learners understand;

• Application of the evidence-based concept and learning of the tools used to diagnose problems, challenges, and opportunities.
• The principles of ethical thinking and assess how moral views will influence decision-making.
• Key insights and analysis tools and ways will be coated, and you may measure the benefits, risks, and monetary implications of solutions aimed at rising folks applying problems.
• The measure of people practice contributions to analysing findings and scrutinising the data systems that effectively improve organisational decision-making.

This unit aims at helping the learners understand;-

Strategies essential for effective decision-making and critical thinking

Students learn to evaluate the ideas used in evidence-based practice. Learners will be able to understand how these ideas can be applied in people practice decision making.  The concept of evidence-based practice can be achieved by making decisions based on effectual thinking, reasonable evidence, and justifiable decisions. There are various decision-making models, including rational models, individual vs team decision making, bounded rationality, group polarisation, and groupthink.  Learners will understand what the application of evidence-based practice is. This involves professionals’ roles in carrying out effective selection and interpretation of evidence and how to carry out practical analysis of organisational solutions and issues. Learners study the critical review of theories and opinions, analyse evidence from various sources, come up with a conclusion and fare judgements, ways of development and testing of own arguments and conclusions.

Learners gain an understanding of how to analyse organisations using different tools and methods. Learners will understand how they can be used to identify organisational problems, challenges and opportunities. There are various analytical tools used in different areas of people practice. They include environmental analysis tools such as Porter’s five forces analysis, mainly used in analysing an organisation’s competitive environment. The force field analysis is mainly used to take action after the root cause is identified. Learners gain insight on strategic review mainly for identifying new value-creating opportunities in an organisation and future state analysis for identifying the organisation vision. The Ansoff matrix analysis, fishbone analysis, root cause and effect analysis, critical situation analysis, balanced scorecard, target operation analysis and McKinsey 7S are also tools students will learn. They will understand various methods used like holding interviews, job analysis, filling in questionnaires, observations,  sampling of work done, examining organisational metrics, and comparing with other organisations.

The unit describes the principles applied in critical thinking. Learners will understand how this can be used to self and other’s ideas. The principle of critical thinking may include reasonable argument or objective, rational thinking, questioning and analysing the validity of evidence sources and awareness of conscious or unconscious bias. Learners will understand how they can apply their own and other people ideas and incorporate them when making decisions. They acknowledge various methodologies and approaches and learn how to apply the clarity of expressions and differentiate between reality and suggestions. They learn how to create awareness of personal issues and rumours, not presume information, take control of incomplete and twisted information, and test conclusions.

Learners gain insight on analysing ways in which various ethical perspectives can influence decision making.  Learners will understand ethical perspectives and theories such as communitarianism and utilitarianism. They will learn ethical values like fairness, democracy, honesty and equality; ethics and business; ethical dilemmas, and results. They will learn of the influences of decision making, samples of ethical dilemmas and expected results. They learn how different opinions can influence certain decisions, various ways of dealing with capability and performance-based issues, ethical values,  compassionate and punitive responses concerning work, the impact of ethics on leadership style, management and organisational culture.

Impact of effective decision-making on solving people practice problems

Learners get an understanding of how to use the appropriate tools to interpret analytical data. Learners will understand how to interpret raw data gathered from analysis such as the patterns, the root cause, effects, the trends, any further questions and themes used.

Students become knowledgeable in analysing all relevant evidence essential for recognising key insights into people practice issues. Learners will understand all the evidence obtained from statistical data, evidence from processes like records of error, complaints and documentation processes. They also learn of evidence from the outcomes, evidence from unmet requirements like consultation outcomes, change and need analysis, critical path analysis outcome, affected parties views and contributions.

Students understand the various decision-making processes that can be used to identify a potential solution to specified people practice issues. These decision-making processes include; future stride, formulation of problem outcome, action learning approaches, and the ideal situation.

The unit gives grounds for decisions depending on evaluating the benefits, risks and financial significances of possible solutions. Learners will understand benefits such as improved productivity, enhanced customer engagement, goals and objectives achievements, improved metrics and organisational awareness, improved organisational culture, and improved financial data and learning and development data.

Impact and value of people practice in an organisation.

The learning objective helps learners identify the various ways that organisations use to measure financial and non-financial performance. The methods include gross and net profit, organisational cash flow; business revenue; business investments return; organisation productivity; organisation scorecard, major performance indicators, legal compliances; shareholders benefits and feedback; customer satisfaction; legal service agreement.

The unit examines the significant systems and data generally used to advise people practice regarding people’s performance calculators and work measures. The systems used in presenting and analysing data include performance charts and tables, and graphs. Students learn how to use qualitative data and quantitative data and present information in business reports. They also understand the essentiality of organisation briefings, performance calculations presentation, use of organisation data, HR systems and use of specified datasets such as recruitment data, compliance data, reward data, learning and development data and financial data.

Learners gain insight into collecting significant discoveries for shareholders from people practice initiatives and activities.  Learners will be able to understand how key findings are collected. They will learn the formats used in presenting findings evaluation and presenting data. Such formats include graphs, diagrams, tables, charts and stakeholder’s interests’ reports. They will also learn people practice activities such as recruitment exercises, change initiatives at work, recruitment exercises, learning and development initiatives.

Learners gain knowledge on how to assess the value and importance of people practice through different methods. Learners will be able to: define and explain the concept, impact and value of people practice; explain how people practice adds value. People practice impact can be short or long term, negative or positive, and direct or indirect. Learners will be able to understand the various reasons for measuring value and impact. These include: ensuring that there is a good people practice contribution; to assess and ensure that all organisational goals and objectives are met; for justification of people practice spend; to identify other future needs; to allow informed organisation decisions; to identify any gaps; to continually improve on people practice activities. Various methods can be used to achieve this, such as evaluation using evaluation models and evaluation methods such as analysing scope and criteria in evaluation, evaluation tools such as data and survey, type of information and evidence provided for evaluation, cost-benefit analysis and doing validation.

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CIPD Level 5 Module: Evidence-Based Practice (5CO02)

This unit addresses the significance of capturing robust quantitative and qualitative evidence to inform meaningful insight to influence critical thinking. It focuses on analysing evidence through an ethical lens to improve decision-making and how measuring the impact of people practice is essential in creating value.

Unit details

• Specialist unit

What will you learn

You will develop understanding of the concepts of evidence-based practice and the tools and methods that are applied to diagnose issues, challenges and opportunities. You will explain the principles of critical thinking and assess how different ethical perspectives can influence decision-making. Key insights and analysis tools and methods will be covered, and you will evaluate the benefits, risks and financial implications of solutions aimed at improving people practice issues. Finally, you will measure the impact and value people practice contributions make to organisations, through collation of key findings and scrutiny of key systems and data.

This unit is suitable for persons who:

are aspiring to, or embarking on, a career in people management

are working in a people practice role and wish to contribute their knowledge and skills to help shape organisational value

are working towards or working in a people manager role

Learning outcomes

On completion of this unit, learners will:

Understand strategies for effective critical thinking and decision-making.

Understand the importance of decision-making strategies to solve people practice issues.

Be able to measure the impact and value of people practice to the organisation.

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Other units.

Professional Behaviours and Valuing People

Organisational performance and culture in practice.

Facilitate Personalised and Performance Focused Learning

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Helen Lee Bouygues

Reboot Foundation

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Improving the workplace through critical thinking

A lot of the problems in business — and in human resources — can be traced back to a single root: bad thinking. Over the course of my career as a consultant, I’ve seen business leaders make abysmal decisions based on faulty reasoning, and I’ve seen HR managers fail to recognise their own innate biases when addressing employee complaints and hiring decisions.

Let me give you an example. I was once asked to help turn around a large, but faltering, lingerie company in Europe. It didn’t take too long for me to see what the problem was: the company’s strategy assumed that all their customers everywhere pretty much wanted the same products.

Company leaders hadn’t done their research and didn’t really understand how their customers’ preferences varied from country to country.

In the UK, for example, lacy bras in bright colours sold the best; Italians seemed to prefer beige bras without lace; and Americans opted for sports bras in much, much larger numbers.

Transformations and turnarounds:

What to do when leadership fails

How HR can prioritise procedure using automation and digital processes

How to transform dysfunctional teams

Without realising it, they were making business decisions on faulty assumptions and bad information. However, a new strategy based on market-dependent research quickly helped turn things around.

Using feedback to get outside of your own head

One huge advantage consultants have over internal employees is simply that they are outsiders. Consultants obviously won’t know the ins and outs of the business as well as internal managers, but because of that, they also haven’t developed the biases and assumptions that can constrain employee thinking. In short, employees are sometimes too close to the problem.

Now, there are a lot of exercises and routines you can employ to make sure you don’t have blinders on when you’re confronting new problems or challenges.

Perhaps the easiest way to do this is through feedback. Of course, feedback can be tricky. No one likes to be evaluated harshly, and without the proper mechanisms in place the value of feedback may be lost amid negative interpersonal dynamics.

One of the best things an organisation can do is to implement clear and explicit practices and guidelines for feedback between managers and employees.

Feedback should be cooperative rather than antagonistic. It should give both parties the opportunity to reflect on, explain, and refine their reasoning. And it should be explicit, preferably using both written and oral communication to find flaws in reasoning and tease out new solutions.

Making conflict productive

Conflict is inevitable in a workplace. It’s how conflict is managed that can determine whether an organisation thrives. The key to good decision-making in group settings is productive, rather than destructive, conflict.

The best decisions emerge from a process in which ideas have to do battle with one another and prove their worth in group discussions. Without some conflict, organisations fall prey to group-think , where everyone goes along with the consensus.

Again, process is crucial here. The best organisations have clear guidelines and structures in place to ensure decision-making proceeds productively.

Decision-making practices should also include mechanisms for avoiding groupthink, by, for example, soliciting opinions in writing before a discussion and by composing groups with a diverse range of backgrounds and opinions.

Finally, leaders must truly value dissenting opinions. Special consideration should be given to ideas that go against the grain. Even if they lose out in the end, dissenting opinions make the final decision stronger.

Dissenters will also be more likely to buy into a decision that goes against their views if they feel their voice has been genuinely heard.

Thinking through individual goals critically and creatively

A key component of workplace happiness is employees’ sense that they are working toward something , both in terms of overall organisational goals and in terms of personal and professional growth.

Regular reflection on individual goals is vital to sustaining a healthy workplace culture. It also encourages more thoughtful work and allows employees to see day-to-day tasks in a broader context, helping them avoid burnout and monotony .

HR professionals can implement regular systems that allow employees to intentionally formulate these types of goals and understand how their work can be integrated more fully into achieving those goals.

Organisations can also grant employees time to pursue passion projects, like Google has, to give workers the freedom to develop ideas and products beneficial to both themselves and the company.

Creative and critical thinking is integral to organisational success, but it is too often assumed that employees and organisations either have it or they don’t.

The truth is that good thinking can be fostered with intentional, structured systems in place for feedback, argument, and reflection.

Helen Lee Bouygues is founder of the Reboot Foundation

Further reading

LinkedIn’s dyslexic thinking skill: de-stigmatisation or discrimination?

Six top tips for navigating challenging conversations in the workplace

What’s in a name: supporting workplace inclusivity through #MyNameIs

The power of design thinking

Why microclimates have the power to change workplace culture

Why we need to ditch the job description

Managing the upside-down: lessons from Stranger Things

The 'power partnership': why CPOs and CMOs have a common cause

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5CO02 Assignment Example

• December 19, 2021
• Posted by: Harry King
• Category: CIPD Level 5

Task One: Briefing Paper

You have been asked to prepare a briefing paper that is to be given to people practitioners at a regional event, to share insights and good practice. The paper needs to provide understanding of approaches that can be taken to support effective critical thinking and decision-making within the HR remit.

Your Briefing Paper needs to:

• provide an evaluation of the concept of evidence-based practice and assess how evidence- based practice approaches can be used to support sound decision-making and judgments for people practitioners across a range of people practices and organisational issues. (1.1)
• evaluate two micro and two macro analysis tools or methods that can be used in people practice to explore an organisation’s micro and macro environment, and how those identified might be applied to diagnose future issues, challenges and opportunities. (1.2)
• explain the principles of critical thinking and give examples of how you apply these yourself when relating to your own and others’ ideas, to assist objective and rationale debate. (1.3)
• assess at least two different ethical theories and perspectives and explain how an understanding of these can be used to inform and influence effective decision-making. (1.4)
• explain a range of decision-making approaches that could be used to identify possible solutions to a specific issue relating to people practice. (2.3)
• as a worked example to illustrate the points made in 2.3, take this same people practice issue, explain the relevant evidence that you have reviewed, and use one or more decision- making tools to determine a recommended course of action, explaining the rationale for that decision and identifying the benefits, risks and financial implications of the suggested solution. (2.2 & 4)
• compare and contrast a range of different ways and approaches that are used to measure financial and non-financial performance within organisations. (3.1)

It is essential that you refer to academic concepts, theories and professional practice for the tasks to ensure that your work is supported by analysis. Please ensure that any references and sources drawn upon are acknowledged correctly and supported by a bibliography.

Task two: Data analysis and review

In preparing for the forthcoming department heads meeting your manager has asked you to prepare a range of information and interpretations for use at the meeting. Below are two sets of data that have been collected by a 360-degree review for Department ‘A’. Table 1, is the feedback that has been elicited from employees on their line-managers and table 2 is from the customers that use the services and goods from Department A.

Use one analytical tool to review the two data sets to reveal any themes, patterns and trends (2.1).

• From this analysis, graphically present your findings using three or more different methods (3.3).
• Identify the key systems and data used within effective people practices, to give insights by measuring work and people performance (3.2)
• Explain how people practices add value in an organisation and identify methods that might be used to measure the impact of people practices (3.4)

The annual performance reviews for Department ‘A’ last year were scored using a ratings scale from 6 = high performer to 1= low performer.

Any employee scoring 4 and above received a £400.00 bonus in their monthly pay. The budget allocation per department for bonuses last year was £75,000.

Figures from Department ‘A’ for last year were:

• 112 employees received a score of 6
• 98 employees received a score of 5
• 35 employees received a score of 4
• 43 employees received a score of 3 or below  
• Using a variety of measurement tools and techniques and the data provided in tables 1, 2 & 3, explain the likely impact and value of these aspects of people practice currently in place in Department ‘A’. What other people practice measures might usefully be employed in Department ‘A’? (3.4)

AC 1.1 provide an evaluation of the concept of evidence-based practice.

Evidence-based HR practice involves making a better decision and informing actions that have the desired outcome (Young, 2020). The concept of evidence-based practice entails finding solutions and approaches to dealing with people management practice based on a strong empirical basis. It is the process through which a decision is evaluated against data in an organisation. The evidence-based approach utilises critical thinking skills and the available evidence to decide on specific HR issues. According to Young (2020), a good decision-making process is based on critical thinking and drawing from the available evidence. Evidence-based decisions are more likely to result in the desired outcomes that will have a long-term impact on organisations practices.

Evidence-based practice also utilises different models of the decision-making process, such as the rational model. This model involves the use of factual information and step by step procedures to arrive at a decision (Uzonwanne, 2016). The figure below summarises the rational decision-making model.

How evidence-based approaches can be used to support sound decision-making and judgments

Evidence-based approaches are essential for supporting sound decision making because they reduce errors caused by judgements. Biased and unreliable management decisions are common in the absence of evidence. Managers are susceptible to bias and errors in their decision making when they base the decisions on previous experiences or popular management decisions. In an article published at the Center for Evidence-Based Management (CEBM), all individuals at all employment levels need to use the best available evidence when making decisions. Using evidence-based decisions is considered to be morally right (Rousseau et al., 2004).

An evidence-based approach can also be used to support sound decision making and judgement at an organisational level by increasing the accountability levels. Most of the decision made by managers have a positive or negative impact on the general organisational performance. Assessing the reliability and validity of evidence not only benefits individuals but also the organisation. This approach ensures that a manager takes the best available decision and can support the decisions with organisational data, professional expertise or insights from scientific research when called to justify the decision.

AC 1.2 Evaluate micro and macro analysis tools that can be used in people practice to explore an organisation’s micro and macro environment and how those identified might be applied to diagnose future issues, challenges and opportunities.

All organisations are affected by either internal or external factors. These factors are part of the general organisational environment, and they should be analysed to establish their impacts on the business. There is a range of tools used in people practice, and they include strategic reviews, future states analysis, SWOT analysis, Ansoff matrix, Fishbone analysis, among others. Analysis methods that can be used to assess an organisation’s micro and macro environments include observations, interviews, job analysis, work sampling and use of questionnaires.

An organisation’s micro-environment refers to the immediate factors or environment that comprises suppliers, customers, competitors and stakeholders (Summer, 2019). They are internal factors that are likely to impact an organisation. Micro-environments can be assessed using the microanalysis tools such as porter’s five forces analytical tool. Macro-environment, on the other side, refers to the more general factors influencing businesses (Summer, 2019). Macro- environments are external factors that impact an organisation’s activities and productivity, but that organisation has no control over it. The macro-environment factors include economic issues, political forces, technological advancements, natural and physical occurrences, and legal factors. An example of a tool used for the analysis of macro-environment factor is the PESTLE analysis tool.

The SWOT analysis tool evaluates both internal and external factors that can influence an organisation. SWOT stands for strength, weaknesses, opportunities and threats. While strengths and weaknesses focus on internal organisational aspects, threats and opportunities focus on external issues that can impact an organisation. The SWOT tool is simple to use and can be used in organisations making an entrance into new markets.

Porter’s five analysis tool was developed by Michael Porter to assess and evaluate the competitive strength of a business (Bruijl, 2018). The model is built on five principles that can be used to assess microenvironments within an organisation. Michael Porter described the five forces: Buyers bargaining power, the threat of entry, suppliers bargaining power, competition from rivalries, and threats by substitutes. Figure 1 below gives a summary of the five forces.

As the acronym suggests, the PESTLE analysis analyses the political, economic, social, technological, legal and environmental factors (Downey, 2007). Trade regulations and policies, and diplomatic tensions are some of the political factors likely to impact an organisation’s performance. It is essential to understand that organisations in the UK are governed by policies and regulations formulated by trade unions and other regulatory bodies. Therefore, the HR department must ensure that an organisation is compliant with all the regulations. HR should also be constantly updated on changes in regulations that are likely to impact an organisation.

One of the biggest external influences for any business is the state of the economy. HR should monitor the shifts in economic trends resulting from changes in global financial status. Economic factors such as inflation, demand and supply, interest rates and exchange rates have direct impacts on organisations. HR should notify the management of the existing economic trends to prepare them for any economic changes. Socially, an organisations performance can be affected by the availability of the workforce. It is HR’s responsibility to come up with a recruiting strategy that will attract the best talent to perform organisational duties. Technological factors include impacts of acquiring new technology, which may result in downsizing or recruiting a skilled workforce. HR is responsible for advising the management on the necessary changes that would make the technological changes beneficial to the organisation and retain a workforce that has adequate knowledge of the technological changes.

Legal factors comprise rules and regulations impacting people practice. HR practitioners should ensure that the organisation is compliant and the existing policies and procedures are compliant with the country’s regulatory standards (Friedman, 2013). The last ‘E’ of the PESTLE tool represents environmental factors, which refer to an all-natural occurring element that may influence people practice. The global market is stimulated to align with the sustainable development goals. It is the HR’s duty to ensure that the organisation is compliant and has environmental sustainability policies incorporated in its daily operations.

AC 1.3. Explain the principles of critical thinking and give examples of how you apply these yourself when relating to your own and others’ ideas to assist objective and rational debate.

Critical thinking is a skill that enables people to think well and reflect on ideas, opinions and arguments objectively (Howlett and Coburn, 2019). It involves objectively analysing and evaluating people practice issues to form a judgement. Based on the definition, various critical thinking principles are based on rational, unbiased analysis evaluation of factual information and sceptical analysis. Objective, rational thinking relates to being logically correct. This principle allows for the differentiation between issues and statements that are logically true or false. Walters adds that rational, objective thinking utilises logic and other cognitive acts such as imagination, creativity, and insights.

In people practice, various principles of critical thinking can be applied to different situations. When applying critical thinking to the decision-making process, HR practitioners must ensure that they understand the issue and differentiate between facts and opinions. Evidence-based decisions are based on the critical thinking principle of validity of evidence to eliminate bias.

AC 1.4 Assess at least two different ethical theories and perspectives.

Utilitarianism ethical theory is used to determine right from wrong by focusing on the outcome (Driver, 2009). It is one of the most commonly used persuasive methods to normative ethics. This theory is based on the consequence, and it suggests that the most ethical choice is the one that will produce the greatest good. This theory can be used to inform and influence effective decision making when the decision made will result in a positive outcome for most employees or organisation at large. To illustrate this, Covid 19 pandemic has impacted many organisations and thus necessitated cheap labour. HR practitioners are faced with the dilemma of laying off employees and employees new employees at a cheaper cost. While this may not be ethically right, it will benefit organisational sustainability, especially for businesses affected by the pandemic.  This theory does not account for justice or any individual rights.

Kantianism or Kant’s moral theory, on the other hand, believes that certain actions are prohibited even if the consequence is happiness. It is an example of a deontological moral theory whose principle is not on the consequence of the action but on individual moral duty (Anscombe, 2005). The theory is based on an individual’s ability to act according to the categorical moral imperatives, which are universal. This theory suggests that decisions should be made based on the moral obligation to individuals and society. Thus the decision will be ethically correct (Chonko, 2012).

Use of Theories to inform and influence effective decision-making.

The decision making theories have a significant influence on the decision-making process. Sound ethical decisions need to be sensitive to good ethical practices. While the theories are divided into three frameworks, HR should be responsible for most ethical obligations in an organisation. The ethical frameworks built around ethical theories include the consequentialist framework, the duty framework and the virtue framework. Using the three frameworks to analyse a situation before making a decision allows the decision-maker to have a clearer perspective of the issue and thus come up with a sound decision sensitive to ethical implications and parties involved (Bonde and Firenze, 2011). The figure below gives a summary of different ethical theories, including their advantages and disadvantages.

AC 2.3 Explain a range of decision-making approaches that could be used to identify possible solutions to a specific issue relating to people practice

HR practitioners play a critical role in the decision-making process of an organisation. Based on HR practitioners’ different functions, different decision-making approaches could be used to find possible solutions for various problems. Some of the decision making processes used by HR include the best fit, future pacing, problem-outcome frame, action learning approaches and de Bono (Six Thinking hats). While one process can be used to solve various HR problems, different issues may require different decision-making approaches.

De Bono (six thinking hats) is a decision-making approach that Edward De Bono developed in 1985. It is a good decision-making approach for group discussions and personal thinking because it involves a combined parallel process. Each of the six hats is metaphors for six different ways of thinking. Mentally wearing different thinking hats results in people looking at problems differently and coming up with different solutions—the six different mind frames as elaborated by Edwards different shapes of the hat and different colours. The white colour represents decisions based on facts. The red colour represents decisions based on emotions. Black represents judgmental decisions, yellow positive view or decisions based on a positive perspective, green decisions based on creativity and blue are thinking decisions (Mulder, 2019). Managers and HR practitioners can switch from one hat to another during a decision making process. The thinking hats are essential for helping people think more deeply concerning specific issues and come up with informed decisions.

Framing problems and outcome is another decision-making approach that can be used to identify the various solution to people specific problems. Framing comprises a schema of interpretations that different individuals depend on to understand and respond to situations. Different diagnosis and framing of problems may result in difficulties when solving the problems. It is essential for HR practitioners to frame their organisational problems to achieve the desired outcome accurately. For example, turnover in an organisation may be framed as an individual problem, an HR problem or a management problem, depending on how it is evaluated.

AC 2.4 As a worked example to illustrate the points made in 2.3, take the same people to practice issues, explain the relevant evidence that you have reviewed and use one or more decision-making tools

Decision making in people practice is continuous throughout the employees’ lifecycle in an organisation. One issue in people practice that requires effective decision making is compensation. Increasing employee compensation is a decision that should be thought through because there are various factors that influence the decision. While performance analysis is essential for determining compensation, other factors such as minimum wage, external markets and industrial payment rates are other factors that should be considered.

Attracting and retaining talent is a people specific area that may face various challenges. Competition for the most talented and qualified employees is evident in both public and private industries. Recruiting a sustainable workforce is essential for effective organisational performance and sustainability. However, competitive wages and rewards may influence turnover and the loss of the best talent pool. The HR is tasked with tough decisions on the best approaches to enhance retention and attract the best talent pool during recruitment. The framing-outcome approach of decision making can be utilised to solve retention and recruitment challenges. The HR can identify specific issues causing turnover, ranging from salaries and wages, organisational culture to the need for career growth. Framing the cause of the problem will enable HR to develop a solution that will result in the desired outcome.

AC 3.1 Appraise different ways organisations measure financial and non-financial performance.

Good performance management is critical for an organisation’s success (Gifford, 2020). Performance management aims at monitoring, maintaining and improving employee performance and aligning them to organisational objectives. However, there are different ways through which organisations can measure their performance. Monitoring performance is essential for the decision-making process as it forms part of the evidence-based practice in people management.

Performance in an organisation can be measured by the use of financial and non-financial indicators. Financial indicators include revenues, gross and net profits, cash flows, return on investments, and productivity. Gross and net profit margins are profitability ratios used to identify a company’s profitability. The working capital is the measure of the available operating liquidity used to fund the daily operations. Cash flow is a financial indicator that indicates the amount of money a business has as a result of its operations. Operating cash flow is often found in the cash flow statements.

Non-financial performance indicators include customer feedback, legal compliance, sector ratings, employee feedback, among others. Customer feedback and customer retention are essential non-financial performance indicators because they directly impact customer retention. Customer retention is as necessary as customer attraction. Retention is essential for establishing the number of customers that are satisfied with a particular product or service, while feedback enables an organisation to identify areas for improvement. Human capital can also be used to measure organisational performance. Based on the employee survey, an organisation can establish its performance based on the skilled employees’ ratio against unskilled labour.

The primary advantage of using non-financial measures is that they result in better compliance with long-term corporate strategy. Non-financial measures take into account different intangible assets and provide adequate information on various operations’ effectiveness (Ahrens and Chapman, 2007). The disadvantages of no-financial measures are that they are expensive to conduct and can consume a lot of time. The advantages of using financial measures are that they are accurate and can be easily monitored. The disadvantage is that they are short –term in nature and are not effective for long term strategic planning.

TASK TWO: DATA ANALYSIS AND REVIEW

AC 2.1 Use one analytical tool to review the two data sets to reveal any themes, patterns and trends.

There are various HR analytical tools that can be used to assess and evaluate data. This section utilised Microsoft excel to conduct a data analysis of the provided information. Graph 1 below is a summary of feedback obtained from employees on their line managers. Of the 256 respondents 250 disagreed that line managers delegated authority, 245 were of the opinion that line managers do not communicate reasons for change and decisions. Two hundred nineteen respondents said that the line managers were not approachable. The three categories mentioned above had the highest numbers of respondents giving a negative review concerning their line managers. As indicated in graph 1 below, the highest number of respondents disagreed with the most positive attributes that were accorded to their line managers.

A pie chart representation of data is a circular graph, as shown above. The slices of the pie represent variables that, when combined, should produce the total number. For example, the total number of employees who responded to questions was 256. On the issue of support by line managers, 156 employees disagreed, and 100 agreed. The graph above provides a visual representation of this information in percentile. Pie charts are easy to read and understand. They also visually represent data as part a fractional part of the whole.

Analysis of Employee Feedback

Of the 145 responses from customers, 143 respondents agreed that the products’ packaging was good and acceptable in protecting the goods. One hundred forty-two customers had issues with how their initial enquiries were handled; 114 felt that the range of goods and products was insufficient to meet their needs

The general trend implied by the data collected indicates a performance gap between employees and their line managers. The gap impacts performance, as evidenced by customer feedback. Based on the findings, line managers need to incorporate employees in their decision-making process. Line managers should also promote a positive organisational culture where employees feel valued and appreciated.

AC 3.2 Identify the critical systems and data used within effective people practices to give insights by measuring work and people performance.

According to CIPD (2020), people data and analytics can help HR and other managers in an organisation to solve business problems and make decisions. There are different types of data that are effective for measuring and giving insight into people practice. Qualitative data contains information on the human observation of behaviours, habits, skills and other employee factors that may influence performance. This data offers an in-depth understanding of issues and descriptive information using words to express various issues. Qualitative data can be used to measure work and people performance by utilising tools such as brainstorming, surveys and interviews. Qualitative data on employee turnover can be obtained in brainstorming sessions or through exit interviews.

Quantitative data, on the other hand, uses numbers and figures to illustrate performance. While quantitative data may be more specific and dependable, it is short term in nature. Quantitative data can be used to establish and keep records of weekly work hours, retention rates, number of employees and their age.  This data can be collected by various HR analytical software’s that analyse the information.

AC 3.4 Explain how people practices add value in an organisation and identify methods that might be used to measure the impact of people practices.

The creation of value in an organisation may be influenced by the need to grow and expand, return on investment, or satisfy customer’s needs (Payal Sondhi, 2018). Creating value can be achieved by effectively utilising human potential. The primary objective of good people management practices is to create value for the organisation and its employees as well as the surrounding community. Value creation can be based on income earned or the development of a sense of purpose for the employees. The value created for the society could be attained as sustainability and high-quality life. Organisations capture the value they would like to attain in the organisations mission and strategy.  Real business value is captured in drivers that impact an organisation’s business objectives (Brugman and Dijk, 2020).

Other than 360 feedback, some other methods and tools can be used to measure the impact and value of people practice. Measuring value and impact is essential for ensuring that business objectives are being achieved. It can also ensure that there are people who practice contribution in an organisation, justify spending on various functions of HR, continuously improve people practice and identify organisational needs and gaps left to enable informed business decisions.

The cost-benefit analysis tool is essential for analysing the decision that should be implemented and should be foregone. It is the process that sums up potential rewards expected from an action then subtracts the total cost associated with that action (Hayes And Anderson, 2021). For example, all employees whose performance was considered high received a bonus of £400.00. According to the statistical data provided, a total of 245 employees are entitled to bonus payments. Therefore, the total amount of money that the company would spend on bonus is £ 98,000.00. However, the allocated budget was £75,000.00. If all employees received the bonus, the organisation would have spent £23,000.00 more than the intended amount.

Based on the cost-benefit analysis of the situation, the bonus amount should be reduced to fit the set budget. Alternatively, other reward packages, both intrinsic and extrinsic, can be used to reward high performing employees. The company can also enhance its performance by rewarding employees with a high five and six score. By doing so, employees with a score of five might enhance their performance, which influences organisational performance.

Return on investment is a measuring tool that can be used to measure the probability of gaining a return from a particular investment. ROI is a ratio that compares gains and losses in relation to cost. ROI is used for the evaluation of potential returns from an investment. In the case above, the return would be a loss because the allocated budget was exceeded. ROI is expressed as a percentage because it becomes easier to understand.

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