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Introduction
An evidence-based approach helps to make effective decisions for an organisation. This paper aims to identify different evidence-based approaches to identify their implication on the decision-making process. Through several parts, this paper will discuss such approaches and their importance. Using the concept of evidence-based practises, this paper will analyse the purpose of this study. Using analysis of PESTLE, this paper will identify key success factors of this organisation.
Evidence-based practice is a necessary approach that helps to improve the quality of performance of an organisation (Albarqouniet al. 2018). It requires knowledge, critical reasoning, and judgement through professional as well as training experience. Evidence-based practice has several benefits such as increasing accountability, reduces errors in judgement, helps to make systematic decisions, and many others. These elements are stated below:
Management errors:
Evidence-based practises help to reduce errors in management such as biases, irrational thinking, and exhaustion that can have negative impacts on the decisions made by management (Ckju.net, 2021). In this regard, evidence-based managers review several academic literatures to find an effective strategy. After that, they appraise evidence quality in a critical way and then, select an effective strategy based on evidence. However, it is identified that management of human resources cannot implement evidence-based practises due to lack of awareness (Gill, 2018). Therefore, it is stated that evidence-based practises is important in an organisation to reduce errors in management.
Accountability
Different evidence-based tools are applied to increase accountability that helps to make decisions in an efficient way (Liu et al. 2019). Making an effective decision is the most important and regular task of a manager. In this situation, both right and wrong decisions have direct implications on the performance of an organisation. Therefore, it can be stated that there is a need to increase accountability by using available evidence like data of organisation, values, and concerns of stakeholders, and professional expertise.
Two primary approaches are critical thinking and group decision-making, which have both benefits and drawbacks. Critical thinking improves the process of decision-making; however, it can lead to new territory. Group decision-making helps to make effective decisions; however, this method does not allow the experts for using free text (Morente-Molineraet al. 2019).
Table 1: Strengths and Drawbacks of Evidence-based approaches
In addition to this, Table 1 represents that critical thinking helps to solve problems, increase creativity in production, as well as helps to enhance teamwork within an organisation. It is the most effective technique that helps to solve different problems in an organisation, which is also a part of decision-making. Therefore, it can be stated that this approach helps to make an effective decision through solving problems.On the other hand, other approaches provide support to make effective decisions through the help of managers and professionals.
In this regard, three organisational issues are selected to identify effectiveness of evidence-based practises such as high levels of absence, shortage in staff skills, and out-of-date L&D process.
High levels of absence
Group-decision making approach helps to identify issues through synergy and with the help of critical thinking, makes decisions to solve problems.
Shortage in staff skills
With the help of a critical thinking approach, managers become able to make effective decisions and provide training to increase the skills of employees (Sahoo and Mohammed, 2018).
Out-of-date L&D process
Group decision-making approach helps to make effective decisions in organisation by which managers become able to identify issues in the L&D process (Zhang et al. 2019). Then, with the help of critical thinking, managers become able to solve problems and provide updated processes.
Conclusion
Through this discussion, it can be stated that an evidence-based approach is important for an organisation to increase the skills of employees, solving problems, making effective decisions, and many others.
Several analysis tools and methods can help to identify and reduce issues and challenges in an organisation such as a balanced scorecard, Fishbone, Five Forces of Porter, and PESTLE analysis.
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Figure 1: PESTLE Analysis
(Source: Christodoulou and Cullinane, 2019)
Selecting one appropriate analysis tool and one method
This paper selects PESTLE analysis as it has several advantages that help to identify different issues and challenges. Analysis of PESTLE helps to analyse external factors that can make an impact on the company. According to Mihailova (2020), analysis of PESTLE provides only a simple list without including critical presentation. Making an effective decision is the most important and regular task of a manager. In this situation, both right and wrong decisions have direct implications on the performance of an organisation. Therefore, it can be stated that there is a need to increase accountability by using available evidence like data of organisation, values, and concerns of stakeholders, and professional expertise.
This paper uses interviews as an appropriate method to identify the ways of analysing challenges, issues, and opportunities through analysis of PESTLE. With help of interview, there is possibility to extract information directly from sources.
Table 2: Issues, challenges, and opportunities faced by an organisation
Critical thinking refers to a skill that helps to increase the probability of desired outcomes (Sadeghi et al. 2020). Different principles of critical thinking include gathering complete information, understanding all of them, identifying assumptions, identifying sources of facts, and many others.
Objectives of rational thinking, consideration of unconscious biases, checking validity of source helps to assist objective and rational in terms of debate.
Critical thinking helps to make an effective decision for increasing the performance ability of a company. The research study of Battersby and Bailin (2018) shows that critical thinking can be applied in the rational process of decision making however, in a form, which generally focuses on collective rationality. The principles of critical thinking include rational thinking and validity of source, which are the primary elements that help to make an effective decision for an organisation.
Different authors use critical thinking in different areas such as in education, organisation, and technical and scientific objectives. The research study of Battersby and Bailin (2018) focuses on the use of critical thinking in improving performance through making effective decisions. On the other hand, according to Erdogan (2019), critical thinking can be applied during course method mathematics. Therefore, it can be stated that critical thinking is an effective factor and it includes important principles that help to make decisions as well as helps to solve problems.
There are a few ethical theories and among them, Utilitarianism and Altruism are the most important theories that make an impact on the process of making effective decisions. The research study of Savulescu et al. (2020) represents that utilitarianism can be referred to as a theory of influential morality which states that right action is the type of action in which a good outcome can be expected. Moreover, this research pimple that it is important in considering global threats in terms of health and well-being.
Altruism is another effective theory of ethics that represents selflessness and, in this theory, people put others first. The research study of MacAskill (2019) represents that effective altruism helps to contribute to significant achievement regarding reduction of risks and global health.
Both the ethical approaches are helpful to make an effective decision for an organisation. It is identified that Utilitarianism is the most common approach to make ethical decisions. Additionally, it helps in decisions with consequences by concerning people of a large group. On the other hand, it is identified that altruistic tension with egoistic tendency makes a major implication of decision-making.
Impact of Utilitarianism in decision making with examples
Utilitarianism is an effective and most reason-based approach regarding ethics helps to determine right or wrong in an effective way. It is the most common approach used in an organisation due to the way in which such organisation can account for benefits and costs. In this approach, managers only focus on the needs and requirements of them and collect interest from other employees. However, they do not approach everyone to provide interest.
Impact of Altruism In decision making with examples
Altruism is another effective approach regarding ethics, which include selflessness. This approach helps to build social connection by which an organisation becomes able to identify needs and requirements of the society (Broad, 2018). After that, based on such identification, organisations attempt to provide an effective decision by which they will be able to provide services as per their requirements in an effective way. It is identified that altruism helps to provide morality because of which employees and managers become able to make an effective decision where opinions of all members are considered. Moreover, this approach primarily focuses on making other people happy rather than focusing on achieving goals.
There is a wide range of approaches regarding decision making such as Fishbone Diagram, Action Learning sets, and Six Hats Thinking Techniques, which are helpful to identify and support issues of people practice.
Fishbone diagram is considered as the graphical technique for showing several causes of a specific event (Coccia, 2018). Fishbone diagrams help in identification of causes that can be possible for a specific problem. Therefore, it can be stated that with the help of this approach, people can identify causes of problems and make decisions to mitigate them.
Six Hats Thinking Techniques refers to a reflective practice that helps to increase innovation, problem-solving, decision-making, and critical thinking (Chien, 2021). Therefore, it can be stated that with the help of this method, an individual can make effective decisions.
Action learning sets is a simple, however, powerful way for an individual purpose of learning from each other (Maddison and Strang, 2018). In this method, people work as a group that helps to reduce the issue of engagement of employees at a low range.
Ways of reducing issues of people practise through decision-making approach
The ways of reducing issues in people practice through applying different approaches of decision-making such as Fishbone diagram, six hat thinking technique, and Action learning sets.
Fishbone diagram
The research study of Hanrahan and Henning (2019) represented that it is a process, which helps to reset the structure of the team. Therefore, it can be stated that with the help of a fishbone diagram, an organisation will be able to change the team structure that will help to increase skills and performance of team members. In addition to this, it is identified that a fishbone diagram helps to identify both cause and effect. Through this way, an organisation can identify the reason for issues in people practice or an organisation and can make effective decisions to reduce it.
Six hat thinking technique
The research study of Al Jarrah (2019) shows that six hat thinking technique is a technique of parallel thinking used in discussion to identify the most appropriate solution to a problem. Through this discussion, it can be stated that with the help of this approach, an organisation will be able to identify appropriate solutions to mitigate organisational issues. In addition to this, Morsy and Darweesh (2021) implies that this approach helps to develop critical thinking by which an organisation becomes able to make an effective decision to reduce people's practice issues.
Action learning sets
The research study of Hodgson and McConnell (2019) shows that action learning sets help to engage employees in a team. Therefore, it helps to reduce issues in employee engagement and helps to make an effective decision for an organisation. The research study of Marquardt and Yeo (2020) shows that action learning sets help to identify issues and provide strategies to solve problems by focusing on actions. Therefore, it can be stated that with the help of action learning sets, an organisation will be able to solve organisational issues.
Table 3: Financial and non-financial approaches of performance measurement
Financial approach of measuring performance is the revenue and the non-financial approach is the Key Performance indicator that helps to measure the performance of an employee as well as an organisation. Revenue shows the gross income and profit before tax in a financial year with other financial years. It helps to compare between two or more years to identify performance. KPIs is the most effective tool to measure performance of employees for confirming whether they meet the goal of an organisation or not (Mukhtar et al. 2021).
Revenue is considered as the most effective financial approach to measure performance of an organisation. Revenue shows gross income of a company by which an organisation becomes able to identify the financial position and attempts to increase the ability of employees to increase organisational performance. This table represents that with the help of revenue, an organisation will be able to identify effectiveness of marketing strategies. In case, organisations identify any issue that reduces the percentage of annual sales, then they can implement new strategies to improve sales marketing with the help of revenue recognition. Therefore, it can be stated that revenue helps to measure organisational performance.
KPI is a non-financial approach that also helps to measure performance of employees. With the help of KPI, an organisation becomes able to analyse the performance of their employees and based on such analysis, they become able to identify the performance of their organisation. Therefore, in this situation, companies can make strategies and provide training to increase the skills of employees.
Recruitment and improvement of capability through L&D can be helpful to meet goals of an organisation, provide an effective service to the customer, increase profitability, and many others.
In this regard, return on investment and analysis of cost-benefit can be helpful methods for increasing recruitment and capability as well.
Different people practise like recruitment and improving capability through L&D process are described below:
Recruitment
Recruitment is included in people practises that help to increase operational efficiency of a company. The research study of Santos et al. (2020) represents that recruitment is a process that makes an impact on the performance of an organisation. Therefore, it can be stated that with the help of the recruitment process, an organisation can increase or enhance the performance of their employees as well as organisation. In addition to previous action, Hamza et al. (2021) showed that there is a relationship between recruitment and selection with organisational performance. It helps to increase organisational performance as well as helps to meet organisational goals.
Improving capability through L&D
The research study of Hirsh (2021) represents that an effective learning and development process provides support to organisational development. In addition to this, it is identified that through the process of L&D, an organisation becomes able to improve capability of performance of employees. Through this approach, an organisation provides training and feedback to their employees for increasing skills and knowledge. Therefore, it can be stated that the process of L&D, which helps to improve organisational performance, can improve capability.
Introduction
Analysis of data helps to identify the profitability of an organisation. This paper aims to analyse data to identify performance of an organisation. Analysis of data regarding labour turnover, identification of factors included in people practice issues, scrutinising key systems and data are presented in this paper. Different graphic forms will be included as well. A few recommendations are going to be presented in this paper.
Budgeted costing is used as an effective method in the calculation of labour turnover data, which helps to identify the cost required this company to recruit employees into their organisation.
Calculation of cost of recruitment
Table 1: Calculation of cost of recruitment
Calculation of turnover
Calculation of turnover is presented in below with the help of turnover method that helps to identify the percentage of people work in different departments and their turnover.
Table 2: Calculation of turnover in percentage
Table 1 represents the number of employees of the production department exited from this organisation due to several issues in people practises. It is identified from Table 1 that around 24 employees leave this organisation for limited opportunity, 3 employees leave because of unachievable targets, 52 employees refuse to work with this organisation because of aggressiveness of managers. Similarly, several employees left this organisation for several reasons. Around 12 employees and 68 employees left this organisation because of limited opportunity for development and they have no opportunity for flexible working respectively. In addition to this, around 15 employees exeunt from this organisation for bad environment of work, which makes implication on well-being. 82 employees left as they had found different careers and 34 employees left because of conflicts between employees. For going into further education and because of leaving an area, 19 employees and 5 employees left this organisation respectively. Other employees left this business because of boring or monotonous workings, unsocial working hours, unforeseen changes in life, health issues, early retirement, difficulties in travel, less payment, limited incentives and rewards, emigration in another country, and because of care responsibilities.
In addition to this, table 2 represents the number of employees of the payroll department who left an organisation because of several reasons. It is identified from a table that 86 employees give responses, and 27 employees refuse to give any response. From the recruitment department, around 4 employees and 17 employees left this department for limited opportunity to enhance their career and due to unachievable goals provided by the managers respectively. Moreover, because of the aggressiveness of the manager and limited opportunity regarding development around 7 employees and 2 employees respectively. Another 57 employees left this department due to less opportunity for flexible working, unsocial working hours, health issues, and many others. In this regard, it can be stated that both Fishbone Diagram and SWOT analysis will be helpful to identify issues as well as helps to solve problems. This is because with the help of SWOT analysis, this company can identify their strengths, weaknesses, opportunities, as well as threats by which they can make strategies to reduce weaknesses by using their strengths and opportunities.
A few systems help to inform the practises of people for measuring work and people's performance. Such systems are management of performance and management of absence that helps to analyse organisational performance. Therefore, this paper used both the methods-performance management system and absence management system are discussed below:
Performance management system
Performance measurement system is considered as an effective method to measure organisational performance. The research study of Kambleet al. (2020) helps to identify that the performance measurement system plays an important role in systematic management. Moreover, this paper analyses that continuous review of performance measures is required for a successful business, therefore, implementation of a performance measurement system would be helpful to measure performance continuously. For instance, increasing revenue in the sales department represents an increased ability of employees and sales managers to provide or sell products, services while, on the other hand, decreasing revenue in the research, and development department represents less efficiency in performance of employees as well as managers.
Absence management system
Absence management system is another way to measure performance of an organisation, which include both advantages and disadvantages. Advantages of absence management systems include easily usable, simple policies regarding absence, authorisation requirement for leave, maintenance of accuracy, transparency, accurate information, and many others. Therefore, it can be stated that with the help of a clear policy management regarding absence, an organisation can reduce the intensity of workers to take unnecessary leaves. However, it is an expensive process, which requires a huge amount to implement. In this regard, there is a need for money at a high range during implementation.
Findings from table 1 and table 2 are presented in three different graphical forms such as Bar chart, Pie chart, and Table.
Bar chart
Figure 1.1: Number of employees left in Production department
This figure represents the number of employees left due to several reasons through the bar chart. Bar chart in Figure 1.1 shows the number of employees in the production department.
Figure 1.2: Number of employees left in Payroll department
Figure 1.2 shows the number of employee turnover in payroll department. The reasons are indicated at the left sides of the bars in both images.
Pie Chart
Figure 1.3: Number of employees left from Production department
The percentage of number of employees left from production department are presented in the pie chart through different colours that presented in the right side of the chart which shows the reasons of this.
Figure 1.4: Number of employees left from Payroll department
This pie chart represents the number of employees who left from Payroll department are presented through different colours and presented at the right side of this chart that shows the reasons.
Table 3: Number of employees left organisation
Applying decision -making tool
SWOT analysis is considered as an effective decision-making tool as it helps to identify strengths, weaknesses, opportunities, and threats of an organisation. With the help of this analysis tool, it can be identified that this organisation has several weaknesses such as poor work environment, providing less incentives, unethical behaviours with employees, limited opportunities to employees for their further developments, less effective management. Therefore, it can be stated that there is a need to make different strategies to reduce such issues into organisation.
Analysis of data helps to measure the performance of an organisation by which a company can use strategies to enhance their performance. This paper aims to measure performance of this organisation through identification of turnover. It is identified that this company has several issues because of which maximum employees left this organisation. In this regard, this paper provides a few recommendations regarding improving employees’ performance.
Recommendations
This paper recommends several opportunities to the employees by which they will be able to enhance their performance level. Moreover, there is a need to provide workload to employees based on their skills and knowledge. Excess workload can be harmful to the employees and business as well. Managers should be able to instruct in a manner, aggressiveness can make an implication on the mental health of employees. Furthermore, there is a need to provide an effective salary to all the employees, however, that has to be paid based on their skills, performance, and contribution towards the organisation.
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