Learner Guide
LP1: Analyse Organisational Needs
and Deliver Services
US 14515 - Present a Well-Structured Argument Derived from
Qualitative and/or Quantitative Data to Map New Knowledge and
Generate a Competitive Advantage
NQF Level 6 Credits 12
US 12138 - Conduct an Organisational Needs Analysis
NQF Level 6 Credits 10
Company
Learner name & surname
Learner ID number
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Table of Contents
PROGRAMME OVERVIEW....................................................................................................................... 5
Programme entry level requirements........................................................................................................... 5
Programme Outcomes ................................................................................................................................. 5
Assessment .................................................................................................................................................. 6
Learning map (delivery structure) .......................................................................................................... 8
Learner Support........................................................................................................................................... 8
MODULE 1 UNDERSTAND KEY THEORIES AND PRINCIPLES APPROPRIATE TO
RESEARCH IN A BUSINESS SECTOR.............................................................................................. 9
UNDERSTAND KEY THEORIES AND PRINCIPLES APPROPRIATE TO RESEARCH IN A BUSINESS SECTOR..... 10
1.1 Explain the difference between qualitative and quantitative research ..................................... 10
1.1.1 Indicate when each type of research is appropriate........................................................................... 11
1.2 Explain the concept of sampling .............................................................................................. 12
1.2.1 Indicate how a researcher could select a sample method.................................................................. 13
1.3 Explain the role of a literature survey in researching a topic .................................................. 14
Class Activity 1: Demonstrate knowledge and understanding of key theories and principles appropriate
to research in a business sector ............................................................................................................. 15
MODULE 2 INVESTIGATE A BUSINESS ISSUE........................................................................... 16
INVESTIGATE A BUSINESS ISSUE........................................................................................................... 17
Organisational theory ................................................................................................................................ 17
Organisational performance models ..................................................................................................... 25
The Organisational Needs Analysis........................................................................................................... 28
Methods to assess organisational performance ..................................................................................... 28
Understand the organisation’s current situation.................................................................................... 29
2.1 Analyse the current situation ................................................................................................... 31
2.1.1 Establish the purpose of the analysis and confirm it with stakeholders ............................................ 31
Establishing the purpose of the analysis and communicating it to stakeholders ................................... 32
Consulting with stakeholders................................................................................................................ 33
2.1.2 Plan the method and scope of the analysis........................................................................................ 34
Clarifying the research brief ................................................................................................................. 34
Identifying the information required..................................................................................................... 35
Defining the scope of the analysis ........................................................................................................ 35
Structuring your approach .................................................................................................................... 38
Class Activity 2: Analyse the current situation..................................................................................... 38
2.2 Source appropriate data to support the topic under investigation........................................... 39
2.2.1 Identify the short and long term organisational objectives ............................................................... 40
Gathering information .......................................................................................................................... 41
Methods for gathering information ....................................................................................................... 42
2.2.2 Describe different methods of analysis and data gathering in terms of their strengths, weaknesses,
features and applications ........................................................................................................................... 44
2.2.3 Determine the gap............................................................................................................................. 44
Analysing information .......................................................................................................................... 45
Methods of data analysis ...................................................................................................................... 45
Using a Force-field analysis ................................................................................................................. 48
Using a diagnostic checklist (table) for analysis................................................................................... 52
Using charts and graphs for analysis .................................................................................................... 53
Using the analysed data ........................................................................................................................ 55
2.2.4 Identify methods and scenarios for closing the gaps......................................................................... 56
Developing conclusions........................................................................................................................ 57
Developing recommendations .............................................................................................................. 57
2.2.4.1 Verify recommendations as reasonable, effective and comprehensive ..................................... 58
2.3 Check sources of data for reliability and credibility ................................................................ 58
2.4 Record the analysis actions, processes and procedures........................................................... 59
Developing a research action plan ........................................................................................................ 59
2.5 Formulate an argument and define the objectives for a selected research topic ..................... 61
2.5.1 Record and verify the objectives with stakeholders.......................................................................... 63
Class Activity 3: Investigate a business issue ....................................................................................... 63
MODULE 3 ANALYSE DATA TO INVESTIGATE A BUSINESS ISSUE ..................................... 64
ANALYSE DATA TO INVESTIGATE A BUSINESS ISSUE ............................................................................. 65
3.1 Compare data and make key assumptions about any anomalies in the data ........................... 66
3.2 Identify key insights to aid interpretation by grouping data into logical categories ............... 69
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3.3 Summarise key insights in relation to the objectives of the research ....................................... 71
3.4 Formulate conclusions and recommendations based on the findings of the research ............. 72
Class Activity 4: Analyse data to investigate a business issue.............................................................. 73
MODULE 4 PRESENT A WELL-STRUCTURED ARGUMENT ON A BUSINESS ISSUE........ 74
PRESENT A WELL-STRUCTURED ARGUMENT ON A BUSINESS ISSUE....................................................... 75
Presentation skills...................................................................................................................................... 75
Best practices to report an organisational needs analysis...................................................................... 77
4.1 Highlight trends and implications from data ........................................................................... 77
4.2 Present recommendations in a well-structured report ............................................................. 79
4.2.1 Write a research report ..................................................................................................................... 79
4.3 Generate a competitive advantage by mapping new innovative knowledge from the research 81
4.4 Create a report......................................................................................................................... 82
Using appropriate computer skills ........................................................................................................ 83
Class Activity 5: Present a well-structured argument on a business issue ............................................ 83
Reflection ............................................................................................................................................. 83
Facilitator Observation Checklist ......................................................................................................... 83
SUMMATIVE ASSESSMENT................................................................................................................... 84
Knowledge Questions........................................................................................................................... 84
Practical Activities................................................................................................................................ 84
Witness Testimony ............................................................................................................................... 84
Logbook................................................................................................................................................ 84
APPENDIX A: ...................................................................................................................................... 85
Research Introduction.................................................................................................................... 85
Quantitative research ................................................................................................................................. 86
Doing a survey...................................................................................................................................... 86
Qualitative research ................................................................................................................................... 88
Face-to-face interviews and focus groups............................................................................................. 89
Site visits and observation .................................................................................................................... 91
Case studies .......................................................................................................................................... 92
Participatory research ................................................................................................................................ 93
Planning your research .............................................................................................................................. 94
Step one: What?.................................................................................................................................... 94
Step two: How? Where? Who?............................................................................................................. 96
Step three: When?................................................................................................................................. 98
Step four: Why? (Getting the answer) .................................................................................................. 99
Report writing guidelines............................................................................................................. 101
Present research findings professionally.................................................................................................. 102
Style and format of the report ............................................................................................................. 102
Citing other sources ............................................................................................................................ 103
Using technology................................................................................................................................ 104
Principles of good writing ....................................................................................................................... 105
Make your writing clear and readable ................................................................................................ 105
Spelling and punctuation .................................................................................................................... 106
Edit and revise .................................................................................................................................... 107
Distributing your report ...................................................................................................................... 108
Seeking feedback................................................................................................................................ 108
REFERENCES AND FURTHER READING .............................................................................................. 109
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Programme Overview
Programme Overview
Welcome to this learning programme that will lead you to greater understanding of how
to:
• Present a well-structured argument
• Conduct an organisational needs analysis
As you work your way through the learning programme you will gain competence
against the following Unit Standard:
Programme LP1: Analyse organisational needs and deliver services
Unit Standards SAQA ID 14515: Present a well-structured argument derived from qualitative
and/or quantitative data to map new knowledge and generate a competitive
advantage; NQF Level 6, 12 Credits
SAQA ID 12138: Conduct an organisational needs analysis; NQF Level 6, 10
Credits
This learning programme is intended for all persons who need to:
• Present a well-structured argument derived from qualitative and/or quantitative
data to map new knowledge and generate a competitive advantage. This Unit
Standard is intended to meet the communication requirement for qualifications
in Financial Services at NQF Level 6, but it may be useful for learners in other
sectors. It requires knowledge of current issues in a field or sub-field and ability
to conduct independent research into such issues using qualitative and
quantitative data to substantiate recommendations.
• Conduct an organisational needs analysis. This unit standard is intended for
people who are, or seek to be, specialists in human resources management.
Persons credited with this unit standard are able to analyse the current
situation, determine and describe agreed present and desired organisational
objectives, define the gap, make recommendations for bridging the gap and
produce a written report of the results.
Programme entry level requirements
It is assumed that people learning towards this Unit Standard are already competent
in:
• Communicate verbally and in writing at NQF level 5
• Mathematical and Financial Literacy at NQF Level 4
• Using a variety of techniques for gathering, ordering, recording and reporting
data [AHL1]
• Using best planning practices
• It is strongly recommended that learners should demonstrate competence in
the Unit Standard, at Level 5, "Present an informed argument on a current issue
in a business sector" before attempting this programme
Programme Outcomes
This learning programme is outcomes-based which means we take the responsibility
of learning away from the facilitator and place it in your hands.
Learning will begin in the workshop where you will identify the skills and knowledge
you require in order to meet the specific outcomes and assessment criteria contained
in the unit standard.
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Programme Overview
In this learning programme, we will be covering the following learning outcomes:
Module 1: Module 2:
Investigate a business issue
Understand key theories and principles
appropriate to research in a business
sector
• Ensure the report meets the organisational • Analyse the current situation
format specifications and improve the quality • Source appropriate data to support the topic
and ease of the communication using
under investigation
graphics and tables where appropriate
• Check sources of data for reliability and
• Explain the difference between qualitative
credibility
and quantitative research and indicate when
• Record the analysis actions, processes and
each type of research is appropriate
procedures
• Explain the concept of sampling and indicate
• Formulate an argument and define the
how a researcher could select a sample
objectives for a selected research topic
method
• Explain the role of a literature survey in
researching a topic with reference to
gathering secondary data and understanding
previous research experiences
Module 3: Module 4:
Analyse data to investigate a business Present a well-structured argument on a
issue business issue
• Compare data and make key assumptions • Highlight trends and implications from data
about any anomalies in the data
• Present recommendations in a well-
• Identify key insights to aid interpretation by structured report
grouping data into logical categories
• Generate a competitive advantage by
• Summarise key insights in relation to the mapping new innovative knowledge from the
objectives of the research research
• Formulate conclusions and • Create a report
recommendations based on the findings of
the research
During the workshop you will complete a number of class activities that will form part
of your formative assessment. In this you have the opportunity to practice and explore
your new skills in a safe environment. You should take the opportunity to gather as
much information as you can to use during your workplace learning and self-study.
The workshop will be followed by summative assessment tasks to be completed
through self-study in your workplace. In some cases you may be required to do
research and complete the tasks in your own time.
Assessment
It is important to note that the onus is on you, as the learner, to prove your competence.
You therefore need to plan your time and ensure that your Portfolio of Evidence is kept
up to date and handed in timeously.
A Portfolio of Evidence is a collection of documents of work you have produced to
prove your competence. You will compile your portfolio from activities, tools and
checklists associated with the unit standard and relevant to the unit standard being
assessed.
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Programme Overview
You will be given the following documents to assist you in creating a portfolio of
evidence:
• Learner Guide: The Learner Guide is designed to serve as a guide for the
duration of your learning programme and as the main source document for
transfer of learning. It contains information (knowledge and skills required) and
application aids that will assist you in developing the knowledge and skills
stipulated in the specific outcomes and assessment criteria. The learner guide
also indicates the formative assessment class activities that you need to
complete towards your Portfolio of Evidence.
• Learner Workbook: The learner Workbook contains all the class activities that
you will be completing to show formative learning. These will be assessed as
part of your portfolio of evidence as formative assessment. You will be handing
in the Learner Workbook as part of your Portfolio of Evidence.
• Learner Portfolio of Evidence Guide: The Learner Portfolio of Evidence
Guide provides details about the assessment, such as the assessment
preparation, plan and specific summative assessment activities that you need
to complete in the workplace.
Both formative and summative assessment is used as part of this outcomes-based
learning programme:
• Formative Assessment: In order to gain credits for this Unit Standard you will
need to prove to an assessor that you are competent. The Class Activities
throughout your Learner Workbook are designed not only to help you learn new
skills, but also to prove that you have mastered competence. You will be
required to develop a Portfolio of Evidence to hand in to an assessor so that
you can be assessed against the outcomes of this Unit Standard. Where you
encounter a Class Activity icon, you must complete the formative assessment
activity in the Learner Workbook. Comprehensive guidelines for the
development of your Portfolio of Evidence may be found in the Learner Portfolio
of Evidence Guide for the particular learning programme that you are working
with.
• Summative Assessment: The NQF’s objective is to create independent and
self-sufficient learners. This means that you will also be required to do
independent research and assignments, such as Knowledge Questions,
Practical Activity (completed in the workplace), Witness Testimony and
Logbook.
The assessment process is discussed in detail in the Learner Portfolio of
Evidence Guide. When you are ready, you will advise your mentor that you are
ready for assessment. He or she will then sign off the required sections in the
Learner Portfolio of Evidence Guide and you will be able to submit your Portfolio
of Evidence for assessment. The summative assessment activities placed in
the Learner Portfolio of Evidence Guide for your convenience. If any of your
assessment is conducted using observation, role plays or verbal assessment,
place a signed copy of the checklists, once completed by your mentor or line
manager in your Learner Portfolio of Evidence Guide, as indicated.
The Training Provider will assess your portfolio. If successful, you will receive the credit
value of this learning programme. The entire assessment process is explained in the
Learner Portfolio of Evidence Guide and you are urged to read this guide as soon as
possible as it explains the assessment process in detail and clarifies your rights and
responsibilities to ensure that the assessment is fair, valid and reliable.
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Programme Overview
If you are not successful, you will receive all the guidance needed to resubmit your
Portfolio of Evidence within a specific time period, as per the Training Provider
requirements.
Learning map (delivery structure)
Assessment Formative Assessment 30% Summative Assessment70%
Learning Contact Learning Prescribed Learning and Summative
activities Theory input reading, application at the assessment in PoE:
for 220 hours of support, knowledge questions,
Formative assessment coaching workplace practical workplace
(workbook activities):
activity, Witness
group activities, Testimony, logbook
simulations
notional learning 35 hours 31 hours 138 hours 16 hours
Compilation of Portfolio of Evidence
Complementary workplace practices Coaching and Mentoring; Performance Management
LP1: LP2: LP3:
Analyse organisational Evaluate financial Provide an effective
information of a
needs and deliver business advising
services business service
LP6: LP5: LP4:
Apply HR practices and Implement operational Apply business
management principles performance
legislative business management practices
compliance and techniques
LP7: LP8:
Implement ethics and Deal with marketing
HIVAids policies in a plans and strategies
business
Learner Support
Please remember that as the programme is outcomes based – this implies the
following:
• You are responsible for your own learning – make sure you manage your study,
practical, workplace and portfolio time responsibly.
• Learning activities are learner driven – make sure you use the Learner Guide,
Learner Workbook and Learner Portfolio of Evidence Guide in the manner
intended, and are familiar with the Portfolio requirements.
• The Facilitator is there to reasonably assist you during contact, practical and
workplace time of this programme – make sure that you have his/her contact
details.
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Module 1
Module 1
Understand key theories and principles
appropriate to research in a business sector
After completing this module, the learner will be able to demonstrate knowledge and
understanding of key theories and principles appropriate to research in a business
sector, by successfully completing the following:
• Explain the difference between qualitative and quantitative research and indicate
when each type of research is appropriate
• Explain the concept of sampling and indicate how a researcher could select a
sample method
• Explain the role of a literature survey in researching a topic with reference to
gathering secondary data and understanding previous research experiences
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Module 1
Understand key theories and principles appropriate to
research in a business sector
All companies rely on research, whether it is to
improve existing products, services or technology or
to resolve specific issues impacting on the
organisation’s profitability. The quality and speed
with which we apply our research directly determine
whether the business maintains its competitive edge
in the market or its recovery time from unexpected
operational problems.
Close attention needs to be paid to how and where research is carried out to ensure
that it will resolve the specific issues that were identified. Cost of research is also a
factor and needs to be considered before starting a research project. Questions to ask
are; “Does it improve the productivity and profit of the business? Does the research
give an advantage to the business’ services or product? Would the cost of research be
justified by the return in revenue or increased market share?”
An example of a situation where companies need to adapt to sudden market changes
in requirements is the sudden explosion over the past few years of mobile applications
that caught many companies unprepared to service this new market. These companies
had to decide whether not getting into this new market would affect the sustainability
of their business. However, if their first question is not “How many of my customer
have access to devices that can use these applications?” then they may well be
embarking on a journey that eventually leads to a waste of both time and money and
possibly reducing their customer base. Understanding the environment in which you
operate is key to understanding where your efforts should be best spent in research
and analysis.
1.1 Explain the difference between qualitative and quantitative research1
Qualitative research is used to gain an understanding of underlying reasons,
opinions, and motivations. It is also used to identify trends in thoughts and opinions.
Methods used in qualitative research to gather data vary using unstructured or semi-
structured techniques. Some common methods include discussions with focus groups,
individual interviews, observations and even participation in the activities of groups
being researched. Sample size is normally small and respondents are selected based
on predetermined quotas.
Quantitative research generates numerical data or data that can be transformed into
statistics. It is used to quantify defined variables which could include attitudes,
opinions, behaviours, etc. Measurable data is used to formulate facts and illustrate
patterns in research. Data collection methods are much more structured and include
various forms of surveys, interviews, panel studies, website interceptors, online polls
and systematic observations.
1 From: https://www.snapsurveys.com/blog/what-is-the-difference-between-qualitative-research-and-quantitative-
research/
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Module 1
1.1.1 Indicate when each type of research is appropriate
Qualitative research methodology lends itself to explore market trends, customer
product and brand perception, information on effectiveness of promotional and
advertising language, etc. Qualitative research is also used in other areas such as
medical, political and psychological studies but we will concentrate on how qualitative
research is used in a business context. Qualitative research is used in market research
to:
• determine the feelings, values, and perceptions that underlie and influence
customer behaviour
• identify customer needs
• determine how effective brand, product and other product promotional content
are
• provide data on customer satisfaction with a product or service.
It is also used to provide a basis for further quantitative studies by
• providing information for formulating a hypothesis and
• establishing parameters for a further quantitative study.
Some examples of typical qualitative research projects:
• New product ideas and development
• Determining current product, brand or services positioning and developing
marketing strategies
• Strengths and weaknesses of products or brands
• Customer response to a new product, brand or promotion campaign.
Qualitative research should not be used when the research objective is to:
• Develop tools and methods for numerical measurement and assessment
• Testing of hypotheses
• Control and manipulation of variables in an experimental setting.
Quantitative research results are based on facts, values and figures. If there is a need
to improve or implement a new production method quantitative research would be used
to generate data to develop the best production, marketing, financial or promotion
model. Quantitative research is used when there is a need for objective, empirical
substantiation of research results.
Quantitative research provides numerical data which can be used to:
• describe variables
• examine relationships among variables
• determine cause-and-effect interactions between variables.
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Module 1
Typically, quantitative research results are needed for:
• The generation of models of the data, or theories regarding a general
population
• testing of hypotheses
• development of tools and methods for numerical measurement and
assessment
• control and manipulation of variables in an experimental setting
Quantitative research results can also be applied to substantiate or refute qualitative
research results. The process takes longer and information gathering is based on
larger populations but results will be more objective than that of a qualitative research
result.
1.2 Explain the concept of sampling
As it is not possible to gather data from the entire width or depth of a research topic, a
researcher uses a sampling process to limit the target sources to a manageable size.
However, the researcher needs to select his sampling group in such a manner that the
integrity of the data is not affected. The end result should accurately reflect the situation
across the investigated range in an unbiased or non-specific way. In this section, we
will explain some of the terminology used in the sample selection process and cover
the steps in sample selection.
Let’s explore some sampling related terminology:
• Sampling Population - A target group that you want to make an assumption
about. If your assumption is that the majority of consumers are impulse buyers
then your sampling population will be consumers. The different sampling types
are used to further determine characteristics for your sampling population.
Other examples of sampling populations include sales data, production results,
stock quantities, location attributes etc.
• Sampling Frame - This is the context or criteria from which the sample
population will be sourced. For example, consumers are found in every industry
around the world and it would be impossible to get all of their opinions on
impulse shopping. We should therefore identify a local source to interview
consumers and use these results to define our results. By selecting 3 or 4
shopping malls each in a different income area would give balanced result set
on impulse shopping.
• Sampling method - This defines the approach used in how sample
populations are approached and the methodology of questioning or recording
the results needed. The approach in researching sales records would differ
from interviewing consumers, sales records would be investigated through
analysis of specific company records while consumer opinion would be
obtained through interviews or questionnaires.
• Sample Size - In general, larger samples are better, but they also require more
time and effort to manage. If Brooke ends up having to go through 1,000
surveys, it will take her more time than if she only has to go through 10 surveys.
But the results of her study will be stronger with 1,000 surveys, so she (like all
researchers) has to make choices and find a balance between what will give
her good data and what is practical.
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Module 1
1.2.1 Indicate how a researcher could select a sample method
Sampling works well in understanding or investigating wide sets of information and
should be used to get a holistic understanding of a situation, product or opinion.
The sample method used must take into consideration the following factors
• Time required to generate and report on the results. Deadlines are often
immovable and you will need time to collect, assimilate and report back on your
research.
• Sampling resources, the number of people and equipment needed as well as
the logistics of getting them to the correct locations for the research activities.
• Sampling population, where, when and how would be the best way of gathering
the information needed? Is your data collection reliant on personal interaction,
observation or analysis and what would be the correct method to process the
information gathered?
Below are a few sampling methods used in quantitative and qualitative research. In
many cases a combination could be applied depending on the results or objectives
required.
The following are sampling methods2 used in qualitative research:
• Convenience sampling, used for fast results where a specific area is being
targeted for a short period of time. Best used in the observation of interactions.
• Maximum variation sampling. This method would be used in a wide subject
selection where samples can have high variations such as night/day,
male/female, rich/poor or young and old.
• Snowball sampling. Where the research is more specific in its target group. The
approach would be to identify one or two individuals and then allow them to
identify the next individual for data gathering. This method is effective in
introducing new individuals and research objectives. The approach does often
mean that the research is limited to the social or economic group of the initial
sample subject.
• Contrast sampling. Highly effective in selecting opposing views on situations or
opinions and can be best used to define control or anomalous groups or
behaviour. When used across social or economic groups this method gives a
good comparison based on situational behaviour or opinion.
The following are sampling methods3 used in quantitative research
• Simple random sampling. This includes the selection of random samples using
a “lottery” approach. A number of samples are taken from a set group or
location and are used as a representative of the total. This is the fastest method
of sampling but can result in a biased result based on the specific samples
taken.
• Systematic sampling. The sample group is listed and a predefined gap or
interval is determined on the total. The first sample would be randomly drawn
and there after samples are taken at the defined gap or interval. Gives a fair
indication of the group but again can be biased based on the quantity checked.
2 From: http://www.fao.org/docrep/W3241E/w3241e08.htm#TopOfPage
3 From: http://apps.who.int/medicinedocs/en/d/Js6169e/7.6.html#Js6169e.7.6
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Module 1
• Stratified sampling. Used when data is sourced from multiple or varied sources
that are not alike in characteristics. Random or systematic samples are taken
from the individual groups and used for research. This is normally a longer
approach but results are less biased when normalised or averaged out.
• Cluster sampling. Where a research area is too large or contains to many
variables a representative group can be taken from multiple sources. The group
is analysed for data as opposed to individuals or fixed subjects. This is often
used where large geographic locations are the source of data.
• Multistage sampling. More a combination of the above sampling methods used
in a protracted investigation. The various sampling methods are used based on
the research stage or subject and define results over a large area or time
period.
1.3 Explain the role of a literature survey in researching a topic
A literature survey is a review of material that has already been published, either in
hard copy or electronic, that is relevant to your research subject. A literature survey is
undertaken to support the rationale for your research and to describe how it fits within
the wider research context in your research subject.
By investigating historical and industry best practices on any given situation, research
methodology or subject, we can quickly determine the best approach to investigation
and correction of issues we are currently facing.
Often the time spent in research or investigation can be vastly reduced by leveraging
off of previous experience or methodology. Never before in history has mankind had
more access to information than now; with the advent of the Internet the availability
and volume of information now available to any person is staggering. By using this
source, we can in a short time cover and absorb a number of different information types
that would be invaluable in approaching any research situation:
• Industry or subject articles, manuals or brochures
• News articles relating to a situations or concepts
• Journals covering required subjects or activities
• Opinion polls relating to groups, products or services
• Case studies
• Research results
• Research methodology pertaining to specific subjects or industries
• Product or service reviews
• Allied services or products
The list is endless and could in some cases be daunting, understanding and learning
to ask the correct questions is an important part of locating meaningful and clear data
from the Internet. Keep search criteria short and detailed to prevent dilution of facts
and to reduce frustration levels.
Keep in mind that most information on the Internet is not verified and could often be
based on individual experience. This should not have a major impact if opinion or
methodology is being discussed, but must be taken into account where the data is
specific or related to a product, person or any other physical entity or law. Identify
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Module 1
industry players or institutions that are recognised and would only publish data that is
verified by external parties.
Build a reliable network of industry peers that could be used for communicating and
assisting with subject specific knowledge, share your findings and results (unless
proprietary) with others and build a strong knowledge currency to assist with future
endeavours.
Besides the Internet there are many other sources of information that could assist in
determining methodology or approach when starting a research task, including:
• Internal company documentation or procedures
• Supplier, competitor or industry product or service documentation
• Advertising
• Manuals or books relating to industries, product or services
• Trade and industry seminars and exhibitions
• Supplier input
Class Activity 1: Demonstrate knowledge and understanding of key
theories and principles appropriate to research in a business sector
Please follow the instructions from the facilitator to complete the
formative activity in your Learner Workbook
15
Module 2
Module 2
Investigate a business issue
After completing this module, the learner will be able to investigate a business issue,
by successfully completing the following:
• Analyse the current situation
• Source appropriate data to support the topic under investigation
• Check sources of data for reliability and credibility
• Record the analysis actions, processes and procedures
• Formulate an argument and define the objectives for a selected research topic
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Module 2
Investigate a business issue
Businesses often run into issues, either through internal changes
or occurrences or through external industry influences. Any
business relies on external inputs either in providing services or
products to them or in turn offering services or products to a
customer. These activities are subject to changes and fluctuations
in labour, politics, resource availability, local infrastructure and, in
many cases, climate or location.
Because we cannot accurately predict these changes, our
business will from time to time run into issues that impact our
profitability or productivity. Often these issues are self-evident and
the solution quickly available; however, often only the impact is
seen and the core issue is often not immediately visible. In this situation, we will need
to investigate and research the core issue, and, once identified, resolve it through
corrective action.
The other aspect of running a successful business is building a strong understanding
of core deliveries and competencies and in doing so pre-emptively avoid future issues
and situations that could impact profitability or productivity.
We need to clearly understand the nature of business before we can effectively
investigate issues that may arise. Here follows a brief introduction to business theory:
Definitions of an organisation:
"...organisation is a particular pattern of structure, people, tasks and techniques."
Source: Leavitt, H.J. 1962. Applied organization and readings. Changes in industry: structural, technical
and human approach. in: Cooper, W.W., et al. New Perspectives in Organization Research.
New York, NY: Wiley.
"... a system which is composed of a set of subsystems..."
Source: Katz, D., and Kahn, R.L. 1978. The Social Psychology of Organizations.
New York, NY: Wiley
The features of an organisation include:
• Composed of individuals and groups of individuals
• Oriented towards achievement of common goals
• Differential functions
• Intended rational coordination
• Continuity through time
Organisational theory
Organisation theory focuses its attention on that special category of social or human
grouping that is designed as an organisation.
The study of organisations draws on a number of disciplines:
• Economics - Classical economics viewed the firm as a single decision-unit
engaged in maximising profits. It ignored the possibility of conflict between
owners, managers and employees. The obsession with competition failed to
take into account the other goals which may take precedence in organisations.
Organisation theory partly owes its existence to a reaction against such
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simplistic ideas. It became necessary to understand behaviour which seemed
- in classical terms - to be irrational.
• Psychology - Psychology is a wide-ranging subject. Early psychologists
provided an insight into individual behaviour within organisations particularly on
aspects of motivation and leadership. The Hawthorne studies led to a
realisation of the importance of social phenomena, such as the informal groups,
group norms and conformity. Valuable as these micro-level studies were, they
suffered from the problem of reductionism, making it difficult understand the
link between the behaviour of individuals and the structure of the organisation
in which they worked.
• Sociology - Organisational sociologists took a wider perspective, setting the
organisation within its environmental framework - specifically in relation to
society and its institutions. Some sociologists have examined formal
organisational structures, particularly in relation to technology (for example,
Burns and Stalker, 1961). Morgan (1986) provides a (by now) classical
interpretation of organisations as a series of metaphors. Dating from Weber's
early work on bureaucracy, sociologists have taken a particular interest in non-
profit making organisations.
• Systems theory - Organisations are not merely physical, they are also social
and technological systems: they are multi-dimensional, with aspects which are
unmeasurable. Drawn from physical and engineering models, systems theory
considers organisations as systems with boundaries which make exchanges
with the environment and must adapt to environmental changes in order to
survive. Organisations are open systems which interact directly with the
environment. They have:
o Inputs. For example, taking in raw materials, finance and recruits from
the outside world.
o Outputs. They provide products and services, and pay wages and
dividends. Technology and human resources transform inputs into
outputs.
The systems approach has become popular with the advance of information
technology. Computers and telecommunications are increasingly important,
integrating organisations in the same way that the nervous system controls and
coordinates the human body. Organisations are changing in line with new
technical possibilities, yet organisations cannot be viewed simply as
communications networks - the human dimension cannot be forgotten.
Like Russian dolls, most organisations are part of larger entities. They are the complex
products of a world subject to the international division of labour, geographic
rationalisation and product differentiation.
Organisations can be regarded as people management systems. They range from
simple hierarchies along traditional lines to complex networks dependent on computer
systems and telecommunications.
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An organogram, or organisational chart, shows the structure of a company by showing the
different levels of management. It shows the different positions in a company or organisation
and then shows their direct subordinates. An organogram has a structure similar to that of a
family tree. The highest authority of the company (for example, the CEO) is placed at the top of
the tree, and all subordinates branch below that box based on rank. The exception is assistants
such as secretaries. Their box is connected to the branch below the person whom they assist.
A box may be used for each individual. Alternatively, a box may represent a position; for
example, if there are multiple managers, there could be a box labelled "Managers", with the
option to list each individual's name below.
Human resource managers can encourage organisations to adopt strategies (for their
structures) which foster both cost-effectiveness and employee commitment.
Organisational structures can be classified into a number of types, including functional,
divisional, matrix, federations and networks.
Structure is an integral component of the organisation and can be defined as. the
arrangement and interrelationship of component parts and positions in an organisation.
It provides guidelines on:
• division of work into activities;
• linkage between different functions;
• hierarchy;
• authority structure;
• authority relationships; and
• coordination with the environment.
Organisational structure may differ within the same organisation according to the
particular requirements.
Different structures affect the way in which people are managed. HRM is intimately
bound up with the way firms are organised. Businesses throughout the world require
the same basic human resource activities: they recruit new employees; they develop
and train their staff; they have reward systems; etc. But these issues are handled in
different ways, reflecting the expectations and acceptable behaviour patterns within
the organisation.
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In order for HRM to be effective in the organisation, it is important to understand the
organisational strategy and then to link the employees’ performance to organisational
goals – these goals are expressions of a company's purpose and long-term objectives.
Some applications4 of organisation theory would include:
Strategy/Finance Those who want to improve the value of a company need to know
Marketing how to organise to achieve organisational goals; those who want to
Information monitor and control performance will need to understand how to
technology achieve results by structuring activities and designing organisational
Operations processes.
Human resources Marketers know that to create a successful corporate brand they
need to get the organisation behind the delivery of its promise; a
Communication thorough understanding of what an organisation is and how it
operates will make their endeavours to align the organisation and its
brand strategy more feasible and productive.
The way information flows through the organisation affects work
processes and outcomes, so knowing organisation theory can help IT
specialists identify, understand and serve the organisation’s
informational needs as they design and promote the use of their
information systems.
Value chain management has created a need for operations
managers to interconnect their organising processes with those of
suppliers, distributors and customers; organisation theory not only
supports the technical aspects of operations and systems integration,
but explains their socio-cultural aspects as well.
Nearly everything HR specialists do from recruiting to compensation
has organisational ramifications and hence benefits from knowledge
provided by organisation theory; organisational development and
change are particularly important elements of HR that demand deep
knowledge of organisations and organising, and organisation theory
can provide content for executive training programs.
Corporate communication specialists must understand the
interpretive processes of organisational stakeholders and need to
address the many ways in which different parts of the organisation
interact with each other and the environment, in order to design
communication systems that are effective or to diagnose ways
existing systems are misaligned with the organisation’s needs.
Organisation theory has attracted critical attention. Many have argued that there is a
tendency for a narrow 'management plus psychology' perspective which has little to do
with real-life enterprises. In an attempt to produce a science of organisations, the main
focus has been on identifying generalisations about behaviour in work situations and
applying them to all organisations, regardless of their nature. In particular, theorists
have paid scant attention to the differences between organisations which are subject
to market forces and those which are not. Thompson and McHugh contend that it is
not meaningful to treat organisations as diverse as scout troops and transnational
companies within the same analytical framework. This has resulted in a massive - but
vague and over-theoretical - body of literature with little practical value.
4 Source: http://www.oup.com/uk/orc/bin/9780199260218/hatch_ch01.pdf
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Classical organisation theory - Weber's Bureaucratic Approach
Max Weber Bureaucracy, power and control
(1864-1920)
Bureaucratic administration means fundamentally the
exercise of control on the basis of knowledge (Weber,
1947). For the sociologist, power is principally exemplified
within organisations by the process of control. Max Weber
distinguished between authority and power by defining the
latter as any relationship within which one person could
impose his will, regardless of any resistance from the
other, whereas authority existed when there was a belief in
the legitimacy of that power. Weber classified
organisations according to the nature of that legitimacy:
* Charismatic authority, based on the sacred or outstanding characteristic of
the individual;
* Traditional authority: essentially a respect for custom;
* Rational legal authority, which was based on a code or set of rules.
The latter is the predominant form of authority today, replacing the crude use
of naked power and historical practices. According to Weber rational legal
authority is attained through the most efficient form of organisation:
bureaucracy. He argued that managers should not rule through arbitrary
personal whim but by a formal system of rules. He listed the beliefs which
underlie rational legal authority:
1. a legal code can be established which can claim obedience from members of
the organisation;
2. the law is a system of abstract rules which are applied to particular cases;
and administration looks after the interests of the organisation within the limits
of that law;
3. the person exercising authority also obeys this impersonal order;
4. only through being a member does the member obey the law;
5. obedience is due not to the person who holds the authority but to the
impersonal order which has granted him this position.
Weber is usually described as having believed that bureaucracy is the most
efficient form of organisation. In fact, Weber believed bureaucracy to be the
most formally rational form of organisation. As such, Weber conceived of
bureaucracy as being more effective than alternative forms. In his day
administration was based on written documents. This tended to make the office
(bureau) the focus of organisation. He did not share the modern conception of
a bureaucratic organisation as being slow, rigid and inefficient. His primary
concern was to establish ways of behaving which avoided the corruption,
unfairness and nepotism characterising most 19th century organisations. Based
on his ideas concerning the legitimacy of power, Weber outlined the
characteristics of bureaucracy in its purest form. Such an organisation is
characterised by:
1. '...a continuous organisation of official functions bound by rules';
2. Specialisation: each office has a defined sphere of competence, involving
division of labour. The tasks of the organisation are divided into distinct
functions given to separate offices. These functions are clearly specified so that
the staff know exactly what is expected of them. Job-holders are given the
authority necessary to carry out their roles;
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3. A clearly defined hierarchy of offices: a firm system of supervision based on
clear levels of authority. Each official knows whom to report to with specified
rights of control and complaint procedures;
4. Rules: a stable, comprehensive system of conduct which can be learned and
may require technical qualifications to understand and administer;
5. Impersonality: no hatred or passion with equality of treatment for all clients
of the organisation. Staff members are free of any external responsibilities and
constraints. They are able to attend to their duties in a fair and objective way;
6. Free selection of appointed officials: selected that is on the basis of
professional qualifications, with proof shown by a diploma gained through
examinations. They are appointed rather than elected so that there is no
question of bias or favour;
7. Full-time paid officials: usually paid on the basis of hierarchical rank, the
office being their sole or major concern. Officials are appointed on the basis of
a contract. They have a monetary salary, and usually pension rights. The salary
is graded according to the position in the hierarchy. The officers can leave their
posts, and under certain circumstances employment can be terminated;
8. Career officials: there is a career structure and a system of promotion based
on seniority or merit based on the judgment of superiors;
9. Private/public split: separates business and private life. The official works in
a detached fashion from the ownership of the organisation. The finances and
interests of the two should be kept firmly apart: the resources of the
organisation are quite distinct from those of the members as private
individuals. Officials may appropriate neither posts nor the resources which go
with them. A radical notion at a time when bribery was the norm and officials
regularly took a cut of any fee or payment due to their office;
10. There is a strict, systematic discipline and control of the official's work.
Despite being based on the idea of formal rationality, Weber's concepts were
idealistic. He believed that bureaucratic control would lead to a number of
social consequences (Weber, 1947):
a) a tendency to a levelling of the social classes by allowing a wide range of
recruits with technical competence to be taken by any organisation;
b) plutocracy, because of the time required to achieve the necessary technical
training;
c) greater degree of social equality due to the dominance of the spirit of
impersonality or objectivity.
From: Weber, Max (1947) The Theory of Social and Economic Organization.
Translated by A. M. Henderson and Talcott Parsons, The Free Press
Fayol's Principles of Management: Administrative Theory
A greater sense of practical realism can be seen in the work of Henri Fayol5 (1949)
who outlined a series of 'principles of management' by which an organisation might
be effectively controlled.
1. Division of work. Fayol saw specialisation as a natural human process, seen
in every society. Repetition of the same function brings speed and accuracy,
thus increasing output. If work is divided according to skill and technical
expertise, each item of work can be given to the employee most able to deal
with it.
5 Source: Fayol, H. (1949) General and industrial management, translated from the French edition (Dunod) by
Constance Storrs, Pitman
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2. Authority and responsibility. Fayol defined authority as 'the right to give
orders and the power to exact obedience.' He emphasised the importance of
linking authority to responsibility, which together required increasing judgement
and morality at senior levels. He justified higher pay for commercial managers
in comparison with senior civil servants since, in his view, the latter exercised
authority without responsibility. In general, he concluded that 'responsibility is
feared as much as authority is sought after, and fear of responsibility paralyses
much initiative and destroys many good qualities.'
3. Discipline. Defined as obedience, application, energy, behaviour and outward
marks of respect. Fayol regarded discipline as essential for the smooth running
of business without which an enterprise is unable to prosper. He attributed
discipline to good leadership
4. Unity of command. 'For any action whatsoever, an employee should receive
orders from one superior only. Such is the rule of unity of command (...) Should
it be violated, authority is undermined, discipline is in jeopardy, order disturbed
and stability threatened.' We will find in our later discussion that many modern
concepts of organisation are totally contradictory to Fayol's principle. Fayol
regarded 'dual command' as one of the greatest sins of management, leading
to uncertainty and hesitation on the part of subordinates and conflict between
managers.
5. Unity of direction. 'One head and one plan for a group having the same
objective.'
6. Subordination of individual interests to the general interest. There should
be no conflict of interest between individual ambition and the well-being of the
organisation as a whole. This principle requires a firm but fair hand from
superiors who should set a good example. It requires constant supervision.
7. Remuneration of personnel. Fayol looked for some basic principles in the
method of payment:
* it shall assure fair remuneration;
* it shall encourage keenness by rewarding well-directed effort;
* it shall not lead to over-payment going beyond reasonable limits.
8. Centralisation. Part of the 'natural order', Fayol considered that an element of
centralisation must always be present. He regarded the debate between
centralisation and decentralisation to be one which had no precise solution.
9. Scalar chain (line of authority). The unity of command can lead to excessively
chains of authority which hinder communication. Hierarchic organisations
regularly insisted that departments communicated with each other only through
their heads. This meant that the volume of work handled by a department
mushroomed as items went up and down the chain in a game of 'pass the
parcel'. Fayol rightly condemned this as inefficient and advocated a 'gang plank'
arrangement whereby juniors involved in regular interactions with other
departments dealt directly with each other, cutting out the hierarchy.
Unwittingly, Fayol provided a key to modern organisations which he could not
have conceived. As will be seen later, electronic gang planks have become so
efficient that networked organisations are possible which no longer have any
requirement whatsoever for layers of management.
10. Order. 'A place for everyone and everyone in his place.' For Fayol, this
presupposed the resolution of 'the two most difficult managerial activities: good
organisation and good selection.' He saw the basic problem as the balancing
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of an organisation's requirements with its resources. The larger the business,
the more difficult this became:
'when ambition, nepotism, favouritism or merely ignorance, has multiplied
positions without good reason or filled them with incompetent employees, much
talent and strength of will and more persistence ... are required in order to
sweep away abuses and restore order.'
11. Equity. In order to obtain commitment from employees, they must be treated
equally and fairly.
12. Stability of tenure of personnel. A matter of proportion, but employees need
a period of stability in a job to deliver of their best.
13. Initiative. Being allowed to think through a problem and implement a solution
is a rewarding experience which increases motivation. Fayol cautions
managers against the personal vanity which prevents them from allowing this
opportunity to their subordinates.
14. Esprit de corps. 'Dividing enemy forces to weaken them is clever, but dividing
one's own team is a grave sin against the business.'
McClelland (1961), identified Power as one of three needs related to management
behaviour, the other two being Achievement and Affiliation. The need for Power is an
urge to control others: to be able to influence them and make them do things which
perhaps they would not have done if left to themselves. Along with this they accumulate
the symbols and status of power and the prestige they consider to go along with it.
McClelland identified four stages within the power orientation:
1. Drawing inner strength from others - being a loyal follower and serving the
power of other people;
2. Strengthening oneself - beginning to play the power game, collecting symbols of
status, one-upmanship, trying to dominate situations;
3. Self-assertiveness - becoming more aggressive and trying to manipulate
situations so as to use other people to achieve one's own targets;
4. Acting as an instrument of higher authority - identifying with some organisation
or authority system and employing the methods learnt in stages 2 and 3 but now
being able to claim formal legitimacy.
Blake and Mouton (1964) would feature the kind of person who maximises this kind of
approach as having the 'Authority - Obedience' style of management: concentrating on
maximising production through the exercise of personal authority and power.
This style of management is described by Chell6 (1987):
" such a leader combines a high concern for production with a low concern for people.
He or she concentrates on maximising production by exercising power and authority,
and achieving control over people by dictating what they should do and how they
should do it. Typically, he or she will 'drive him - or herself and others', investigate
situations to ensure control and that others are not making mistakes; defend own ideas
and opinions even though it may mean rejecting those of others; deal with conflict by
either trying to cut it off or winning own position; make own decisions; is rarely
influenced by others; and is not afraid to pinpoint other people's weaknesses and
failures."
6 Source: www.hrmguide.co.uk/history/need_for_power.htm
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A modern approach to organisations: Systems Approach
The systems approach views organisation as a system composed of interconnected -
and thus mutually dependent - sub-systems. These sub-systems can have their own
sub-sub-systems. A system can be perceived as composed of some components,
functions and processes7. Thus, the organisation consists of the following three basic
elements8:
1. Components - There are five basic, interdependent
parts of the organising system, namely:
• the individual,
• the formal and informal organisation,
• patterns of behaviour emerging from role demands
of the organisation,
• role comprehension of the individual, and
• the physical environment in which individuals work.
2. Linking processes - The different components of an organisation are required to
operate in an organised and correlated manner. The interaction between them is
contingent upon the linking processes, which consist of communication, balance
and decision making.
• Communication is a means for eliciting action, exerting control and effecting
coordination to link decision centres in the system in a composite form.
• Balance is the equilibrium between different parts of the system so that they
keep a harmoniously structured relationship with one another.
• Decision analysis is also considered to be a linking process in the systems
approach. Decisions may be to produce or participate in the system. Decision
to produce depends upon the attitude of the individual and the demands of the
organisation. Decision to participate refers to the individual's decisions to
engross themselves in the organisation process. That depends on what they
get and what they are expected to do in participative decision making.
3. Goals of organisation - The goals of an organisation may be growth, stability and
interaction. Interaction implies how best the members of an organisation can
interact with one another to their mutual advantage.
Organisations are taking increasingly divergent forms. The key aspects of size and
structure constrain the people function. HRM is conducted in a variety of ways due to
these constraints and also because of strategic decisions taken to meet organisational
goals. These are opportunities for human resource specialists dealing with complex
issues arising from new organisational structures and flexible working patterns.
Organisational performance models
Any or all of the approaches listed below will improve organisational performance
depending on if they are implemented comprehensively and remain focused on
organisational results. Each includes regular recurring activities to establish
organisational goals, monitor progress toward the goals, and make adjustments to
7 Albrecht, K. 1983. New systems view of the organization. pp. 44-59, in: Organization Development. Englewood
Cliffs, NJ: Prentice-Hall
8 Bakke, W.E. 1959. Concept of social organization. pp. 16-75, in: Haire, M. (ed), Modern Organization Theory, New
York, NY: John Wiley
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achieve those goals more effectively and efficiently. Typically, these become integrated
into the overall recurring management systems in the organisation.
Prominent Organisational Performance Improvement Models (Systems)
The following descriptions are general and brief9. There certainly are other approaches
than those listed below for a planned, comprehensive approach to increasing
organisational performance. It may very well be that the vast majority of approaches
used in organisations are highly customised to the nature of the organisations, and
therefore not publicised or formalised in management literature.
• Balanced Scorecard: Focuses on four indicators, including customer
perspective, internal-business processes, learning and growth and financials,
to monitor progress toward organisation's strategic goals.
• Benchmarking: Using standard measurements in a service or industry for
comparison to other organisations in order to gain perspective on
organisational performance. For example, there are emerging standard
benchmarks for universities, hospitals, etc. In and of itself, this is not an overall
comprehensive process assured to improve performance, rather the results
from benchmark comparisons can be used in more overall processes.
Benchmarking is often perceived as a quality initiative.
• Business Process Reengineering: Aims to increase performance by radically
re-designing the organisation's structures and processes, including by starting
over from the ground up.
• Continuous Improvement: Focuses on improving customer satisfaction
through continuous and incremental improvements to processes, including by
removing unnecessary activities and variations. Continuous improvement is
often perceived as a quality initiative.
• Cultural Change: Cultural change is a form of organisational transformation,
that is, radical and fundamental form of change. Cultural change involves
changing the basic values, norms, beliefs, etc., among members of the
organisation.
• ISO9000: Is an internationally recognised standard of quality,
and includes guidelines to accomplish the ISO9000 standard.
Organisations can be optionally audited to earn ISO9000
certification. Another major quality standard is the Baldridge
Award. ISO9000 is a quality initiative.
• Knowledge Management: Focuses on collection and management of critical
knowledge in an organisation to increase its capacity for achieving results.
Knowledge management often includes extensive use of computer technology.
In and of itself, this is not an overall comprehensive process assured to improve
performance. Its effectiveness toward reaching overall results for the
organisation depends on how well the enhanced, critical knowledge is applied
in the organisation.
• Learning Organisation: Focuses on enhancing organisations systems
(including people) to increase an organisation's capacity for performance.
Includes extensive use of principles of systems theory. In and of itself, this is
not an overall comprehensive process assured to improve performance. Its
9 Adapted from: http://managementhelp.org/organizationalperformance/#anchor113411
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effectiveness toward reaching overall results for the organisation depends on
how well the enhanced ability to learn is applied in the organisation.
• Management by Objectives (MBO): Aims to align goals and subordinate
objectives throughout the organisation. Ideally, employees get strong input to
identifying their objectives, time lines for completion, etc. Includes ongoing
tracking and feedback in process to reach objectives. MBO's are often
perceived as a form of planning.
• Outcome-Based Evaluation (particularly for non-profits): Outcomes-based
evaluation is increasingly used, particularly by non-profit organisations, to
assess the impact of their services and products on their target communities.
The process includes identifying preferred outcomes to accomplish with a
certain target market, associate indicators as measures for each of those
outcomes and then carry out the measures to assess the extent of outcomes
reached.
• Program Evaluation: Program evaluation is used for a wide variety of
applications, e.g., to increase efficiencies of program processes and thereby
cut costs, to assess if program goals were reached or not, to quality programs
for accreditation, etc.
• Strategic Planning: Organisation-wide process to identify strategic direction,
including vision, mission, values and overall goals. Direction is pursued by
implementing associated action plans, including multi-level goals, objectives,
time lines and responsibilities. Strategic planning is, of course, a form of
planning.
• Total Quality Management (TQM): Set of management practices throughout
the organisation to ensure the organisation consistently meets or exceeds
customer requirements. Strong focus on process measurement and controls
as means of continuous improvement. TQM is a quality initiative.
Interpreting Results of Assessments - Using Organisational Diagnostic Models
Once you've conducted assessments of your organisation, whether explicitly or
implicitly, it helps to have some basis by which to analyse the results. Diagnostic
models can provide that basis. There are differing opinions about diagnostic models.
Some people suggest that these models should come without bias or suggested
solutions, and should be used to accomplish an objective, unfolding understanding of
organisations. Others believe that models should suggest:
• What types of practices should be occurring in the organisation
• The order in which those practices should be occurring.
• Standards of performance for various domains, such as individual positions,
teams, projects, processes, functions, programs and the organisation.
A diagnostic model can be useful in an organisational change effort to:
• Analyse results of data collection.
• Identify issues that should be addressed by the organisational change effort.
• Suggest what actions should be taken to address the issues.
• Evaluate the success of the organisational change effort.
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The Organisational Needs Analysis
When business issues confront an organisation, whether concerning performance,
managing change, skills or leadership, a route to providing solutions is through
undertaking an Organisational Needs Analysis, (ONA).
A skilled assessment of what factors influence the business issues will deliver areas to
be further diagnosed and assessed, or gaps in workforce skills and development, or
both.
These can then determine the type of business solution needed. Expert business
advisers and brokers operate by undertaking (usually with the senior management or
HR specialists of an organisation) an ONA in order to then develop the tailor-made
solution to your business needs.
The ONA will explore with your organisation the some or all of the following areas:
• The background, history, current targets and challenges it faces.
• The key markets, products and services, routes to market and promotional
support.
• How costs, efficiency, quality, customer satisfaction etc. are managed
• The organisation structure.
• Any major changes faced or looming.
• Staff development/skills, leadership issues.
Without taking into account the many aspects of an organisation’s business and issues,
a solution through consultancy or training may miss a key factor or influence on
delivering a solution for success.
Sometimes, probing for an ONA will reveal, even to senior management, a factor which
they had not previously considered as impacting on their performance.
The more comprehensive the ONA undertaken, then the more likelihood the service
provider will deliver a successful solution to the business issues.
Methods to assess organisational performance
There are 3 types of organisational needs assessments10 that can be used as methods
to assess organisational performance:
1. Strategic Needs Assessment:
• Focus on needs of those external to the organisational (e.g., clients,
communities, countries)
• Alignment of societal goals with organisational objectives
2. Tactical Needs Assessments:
• Focus on organisational performance and contributions
• Alignment of organisational objectives with programs and projects
3. Operational Needs Assessments:
• Focus on individual or team performance
10 Source: Ryan Watkins, Ph.D., George Washington University - Presentation to the Knowledge and Learning Board,
Dec. 11, 2007
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• Alignment of program and projects with individual or team performance
objectives
• Guide the development of pragmatic learning plans
By doing the organisational assessments, the following is achieved:
From the above we can also see that systematic and consistent needs assessments
would:
• Systematically align desired results with plans and activities
• Use performance expectations to guide decisions
• Examine training and non-training alternatives
• Provide consistent processes from manager to manager
Now that we have a wider understanding of organisational theory, performance models
and organisational needs analysis, we can explore analysing the current situation of
the organisation in which we will be facilitating HR processes.
Understand the organisation’s current situation
To understand the organisation’s current situation, you need to perform a needs
analysis, which:
• Provides a systematic process to guide decisions.
• Provides justification for decisions before they are
made.
• It is scalable for any size project, time frame, or budget.
• Offers a replicable model that can be applied by novices or
experts.
• Provides a systemic perspective for decision makers.
• Allows for interdisciplinary solutions for complex problems.
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To conduct the organisational needs analysis, we will focus on the following 4 steps:
The first step in conducting the organisational needs analysis is to analyse the current
situation.
You need to:
• Establish the purpose (and objectives) of the analysis and confirm it with
stakeholders
• Plan the method and scope of the analysis thoroughly to ensure effective and
efficient analysis. You need to ensure that:
o sourced information is current, relevant and accurate. The information
covers the entire planned scope of analysis
o the method of analysis used is sufficient and relevant to accurately
describe the present situation and meet the purpose of the analysis
o different methods of data gathering and data analysis are identified
• Record actions, processes and procedures to facilitate further interpretation
and validation of the analysis
An organisational analysis looks at the effectiveness of the organisation and
determines where training is needed and under what conditions it will be conducted.
By creating a "snapshot" of the organisation, a needs analysis / assessment offers
invaluable information to aid in the development of realistic and effective business
solutions.
A Needs Assessment is a systematic exploration of the way things are and the way
they should be. These "things" are usually associated with organisational and/or
individual performance.
WHY design and conduct a Needs Assessment?
Example:
We need to consider the benefits of any Human Resource Development (HRD)
intervention before we just go and do it:
• What learning will be accomplished?
• What changes in behaviour and performance are expected?
• Will we get them?
• What are the expected economic costs and benefits of any projected solutions?
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We are often in too much of a hurry. We implement a solution, sometimes but not
always the correct intervention. But we plan, very carefully and cautiously, before
making most other investments in process changes and in capital and operating
expenditures.
2.1 Analyse the current situation
A current situation analysis is a clear, concise look at the present state of a business
within its market. Such an analysis tends to examine several factors that play into the
current standing of the business, including trends, customer data, and information
about competitors.
The analysis of this data may be done in several different ways, including the popular
SWOT (strengths, weaknesses, opportunities, threats) method.
Using this information, a situation analysis provides a summary of the business as it
stands, as well as a forecast of performance and progression in the near future.
2.1.1 Establish the purpose of the analysis and confirm it with stakeholders
It is important to establish the purpose of the analysis and confirm it with stakeholders.
This will ensure that the stakeholders are in agreement with what you, want to achieve
with the organisational analysis.
The first thing you should do when undertaking research is to clearly establish the
objectives of the research. Clarifying the objectives will guide you in determining the
information you will need to collect for the research project.
The research objectives should be specific and should consider:
• the purpose of the research, for example, to research the history of training and
development of ABC Co for a presentation at the Annual General Meeting
• the research outcomes, for example, to present the information in a PowerPoint
presentation.
Consider workplace requirements
In any work you do, you will be required to provide information in response to a range
of workplace requirements.
These might include:
• ordering procedures
• occupational health and safety and IOD policies and procedures
• operational and security guidelines
• strategic and policy plans
• quality assurance
These sorts of workplace requirements will determine what information you will need
to provide.
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Consider legislation
Any workplace will be subject to legislative requirements that impact on the sorts of
information collected.
Legislative requirements include:
• laws
• regulations
• policies
• guidelines
These requirements might cover matters such as:
• employment
• skills development
• discrimination
• copyright
• occupational health and safety
• privacy and security
• confidentiality
• retirement, etc.
Establishing the purpose of the analysis and communicating it to stakeholders
You may want to consider the following when establishing the purpose of the analysis
and communicating it to stakeholders:
• Establish communication with top management to insure they understand
the goals and strategies of the needs assessment. Top management should be
briefed on:
o The purpose of the assessment.
o The persons in the organisation that can provide the critical support.
o Expectations regarding the role of the assessor and participation of
members.
o The type of results desired and actions to implement as a result of the
assessment.
• Similar communications should be established with other levels of
management within the organisation.
• Clarify the expectations. This is primarily done to insure that unrealistic
expectations are not present. In addition, this will give the assessor an
opportunity to state expectations regarding support, time, costs, and outcomes.
• Obtain the involvement of all key employees. The assessor should involve,
advise and inform all key persons (those affected by the needs assessment)
about the procedure and obtain their commitment to the process.
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Consulting with stakeholders
As you design or change policies, tools, processes, forms and databases, consult with
others. Be pro-active in seeking out their input and always seek out advice before you
embark on an organisational analysis or put new developments into place:
• Management buy-in - If policies and practices are to succeed in your
organisation, they must receive the support of other managers and employees.
Your processes should also clearly reflect the culture of the organisation. So,
which managers should you consult with when developing HR processes?
• Other stakeholders - When formulating policy and determining procedures,
HR managers need to take into account the interests of any individual or group
who claim to have a ‘stake’ in the end of an employment contract. This might
include anyone that affects, or is affected by, the process.
The correct and fair management of HR is not only of interest to managers, staff and
the HR department. Many others might also claim a strong interest in the way
employment contracts are, for example, started and ended. So it’s advisable to classify
stakeholders in the process and identify strategies for consultation where relevant.
Groups to consult may include:
• unions and other labour organisations
• employer groups
• economists
• government departments
Many areas HR require processes that must be right the first
time if the organisation is to avoid unnecessary conflict. This means setting the
groundwork now and putting in place practices that will prevent problems later.
Wherever possible, you should encourage stakeholder participation and feedback as
you develop your policies and procedures. Having a well-established contingency
process to deal with problems will strengthen employee/employer relationships and
help avoid the potential legal consequences of handling them incorrectly.
You will need to understand the demands that can be brought to bear on the
performance of employment contracts. In fact, your people and negotiation skills might
be significantly tested when the time comes to finish an employment contract, forcing
you to step carefully through alternative dispute resolution pathways. Ensure you have
grievance procedures in place in awards/agreements or organisational procedures.
From an expert:
One Human Resource Management consultant has this to offer:
Developing a plan for ongoing consultation may sound like a simple task and it
can be, if all the conditions are right. Unfortunately, in many organisations they’re
not.
Even the word ‘consultation’ is unheard of in many organisations - let alone
consultation about such a sensitive issue as wages, bonuses or commissions.
These kinds of consultations are better run by a neutral person. If that’s to be
you, the HR manager – it’s important that you step back and take a frank look
at yourself from the employee’s point of view, before starting. If you’ve not had
a good track record in this area before, or may be perceived to be too much on
the side of management, or even if the HR department is not well respected or
trusted, then you’d better get someone else.
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Getting a group together can be a hassle at the best of times, let alone staff
whose job it is to be on the road making sales. So it’s important, that at the very
first meeting you gain agreement on some rules. Things like when and where is
the most suitable time to meet, for how long, how minutes will be taken and
circulated – and, of course confidentiality. Where appropriate, you’ll also need
agreement that members carry out tasks allocated to them, report and attend
regularly. If you can get all this together, then there’s a good chance you’ll get
respect and results from such a group. Your job will be to keep the ball rolling,
ensure that the group continues to move towards making decisions and
recommendations, and most important gain agreement about what needs to
change.
Terry McBride, Trainup Pty Ltd, interviewed May 2003
2.1.2 Plan the method and scope of the analysis
To plan the method and scope of the analysis, you need to ensure that:
• an appropriate or relevant topic and scope is identified and defined
• the method and scope of the analysis is planned thoroughly to ensure effective
and efficient analysis
• the research steps are planned and sequences appropriately
• sourced information is current, relevant and accurate; the information should
cover the entire planned scope of analysis
• the method of analysis used is sufficient and relevant to accurately describe
the present situation and meet the purpose of the analysis
When planning, identify specific issues or choices that the planning process should
address. This includes but is not limited to:
• what is the research brief?
• the plan timeframe, i.e., is it a three year plan or a five year plan?
• creating a schedule of meetings during which the board will compose the plan.
• clarifying the roles of who will do what in the planning process; this includes
determining who will implement the plan once it is completed
Clarifying the research brief
When you are conducting research or collecting information, it is important for you to
be clear about the brief (reasons for and aims of the research), as well as the method
you will use to conduct the research.
The sorts of questions you might ask are:
• What information is needed?
• What sort of presentation is needed?
• Why is the information needed?
• What is the information designed to achieve?
• Who is to be involved?
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• When is the information needed?
• Who is the information for?
Identifying the information required
Identify any information that must be collected to help make sound decisions. This
includes information about the makeup of the organisation, its staff structure,
resources, assets, etc. This also includes information about the past, i.e., why have
past plans been insufficient?
Also, be sure to include in the planning process people who will be responsible for
implementing the plan to ensure that it will be realistic and collaborative.
The plan that you need to create when planning the method and scope of the
organisational needs analysis needs to cover the organisational:
• sources,
• stakeholders,
• time frames,
• policies and procedures,
• systems
that you would use during your organisational needs analysis.
You need to ensure that:
• sourced information is current, relevant and accurate. The information covers
the entire planned scope of analysis
• the method of analysis used is sufficient and relevant to accurately describe
the present situation and meet the purpose of the analysis
Defining the scope of the analysis
As we have seen before, the scope of the analysis could cover the three levels of
needs assessment:
1. Organisational analysis,
The organisational analysis focuses on the system wide components of factors
relevant to training such as goals and objectives, internal and external constraints,
and organisational climate. At this point, an organisation should determine whether
or not training is an appropriate strategy for resolving its human resource issues.
The organisational analysis that is done in support of a strategic planning exercise
is comprehensive, while the analysis to support an identified performance
discrepancy can be limited to the issues related to the particular function under
review.
The factors that should be identified include:
• Organisational goals. Areas where goals are being met, might serve as
models. Areas were goals are not being met should be targeted for training
and development or appropriate management actions.
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• Organisational resources. Knowledge of resources such as funds
available for training, facilities, training materials, and levels of expertise will
influence how training and development will be conducted.
• Organisational climate. If the climate in the organisation is not conducive
to training, such as conflict between levels of management, the
effectiveness of training may be compromised.
• Constraints in the environment. These could be legal, economic, social
or political issues.
• Numbers needing training. The number of people that need to be trained
immediately and in the future should be estimated.
2. Task analysis, and
The task analysis, which is also referred to as an operational analysis, is a
systematic process of collecting data about a particular job or set of jobs. It
examines the tasks required to do a particular job effectively. Blanchard and
Thacker11 identify five sets of information that need to be collected in the task
analysis:
1. The set of tasks required to do the job. (performance)
2. The level to which the tasks must be performed. (standards or criteria)
3. The environment in which the tasks must be performed. (conditions)
4. The requisite KSAs to perform the tasks.
5. Obstacles encounter in performing the tasks.
The task analysis process could cover the following steps / tasks:
• Develop an accurate job description. In some organisations job
descriptions are accurate and up-to-date, in others they inadequately
describe the job or are non-existent. In cases where the job description
needs major revision or needs to be written, a job analysis needs to be
conducted. A job analysis is a systematic way to gather and analyse
information about its major components. It identifies the tasks, duties and
responsibilities of a job, to include the KSAs, working conditions and
expected outcomes. A considerable amount of information is available on
the details of conducting a job analysis at the above references.
• Identify the required tasks. From the job description or other assessment
techniques obtain and describe the following information:
o The major tasks within the job.
o The performance standards for each task. (What should be done)
o The variability of the performance. (What is actually done)
Several different methods can be used to identifying tasks, such as
interviewing and observing as well as:
o Stimulus-response-feedback
o Time sampling
o Critical incident technique
11 Blanchard, P. Naick and James W. Thacker, Effective Training: Systems, Strategies and Practices, Prentice Hall,
Englewoods Cliffs, NU 07458 (1999)
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o Job inventories
o Future-oriented job analysis
• Identify what it takes to do the job. Write clear Knowledge, Skills and
Abilities (KSA) statements for each task. These should then be evaluated
as to their importance to job performance, learning difficulty and the
opportunity to obtain them on the job.
• Identify the areas that can benefit from training or development. The
outcome of this step is to determine which tasks or sub-tasks will be
included in the training or development program. Some possible criteria to
uses is time spent performing the task, difficulty in learning the task and
opportunity to learn the task on the job.
• Prioritise the training needs. This should be clear at this stage. As time
and fiscal constraints may limit the training program, some prioritisation is
necessary to give guidance to the person developing the training program.
The steps / tasks listed above can be viewed as the standard process for
conducting job or task analysis. However, it may be necessary to supplement these
steps with other methods to gather the required data sets. In some instances there
may not be a job incumbent, or it may be a future job, or a job that will be impacted
by technology. In these instances a deviation from the steps may be in order.
Task analysis focuses on the job and not on the persons doing the job. The
information gathered from the organisation and task analysis is the foundation for
planning and HR development. The question of who needs the training and the
type of training required is answered in the person analysis.
3. Individual analysis
The person or individual analysis focuses on determining the training needs of
individual employees. The person analysis should be performed by an individual
who observes the employee’s performance on a regular basis. Usually this would
be the supervisor or the individual employee. Areas such as cognitive ability and
the need for self-efficacy are explored as it relates to the individual being successful
in the job. Thus, personal characteristics, as well as input, outputs, consequences
and feedback data are necessary to determine whether training is, or is not, the
best solution.
(Or, as in our case, the scope of the analysis would cover only the organisational
analysis)
Remember:
There are two approaches to needs analysis / assessment12:
• The pro-active approach focuses on future human resource requirements and
supports the strategic planning process. Based on the organisational strategy
and resulting objectives, HR must develop strategies and tactics to be sure the
organisation has the required KSAs in each of the critical jobs based on future
KSA requirements. This can be done by preparing employees for promotions
or transfers to different jobs or by preparing employees for changes to their
present jobs.
12 Adapted from: Noe, Raymond, Employee Training and Development
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• The reactive approach begins with an existing discrepancy in job
performance. In the reactive approach you need to determine whether the
problem is worth fixing and an assessment of both training and non-training
needs.
Both approaches require a summary of the needs assessment highlighting the non-
training needs and the training needs:
• Non-training needs. Some of the non-training needs will relate to the initial
performance discrepancy model. Topics include management actions such as
reward-punishment incongruence, feedback, and obstacles in the system.
Some of the KSA deficiency easy fixes would also be included in this section
such as the use of job aids, practice, changing the job and if necessary, transfer
or termination.
• Training needs. For the training needs a list of tasks and KSAs requiring
training should be summarised. The comprehensive list of task and KSAs will
be covered in the training objectives section
Structuring your approach
After you have understood the brief, you need to work out what your investigation will
cover. This means identifying the main components, themes, issues or problems to be
included. It also means eliminating those things that are unnecessary or that you don't
have the time, funds or skills to do properly. This involves:
• thinking about the brief and what you need to do to address it fully
• being creative about your approach
• being realistic about the constraints
• deciding what will and won't be covered
• writing down the outcome
This information provides a framework for your report. This framework will then help
you to work out the tasks to be done.
As you carry out your investigation, you are likely to add to and maybe delete parts of
the framework.
Class Activity 2: Analyse the current situation
Please follow the instructions from the facilitator to complete the
formative activity in your Learner Workbook
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2.2 Source appropriate data to support the topic under investigation
Prior to embarking on any research take time to understand the questions being asked.
Only by asking the correct question do we receive the correct answer. If you have been
given a broad open-ended request for research, then push back for more details.
You may receive a request to investigate an issue or a situation that the business is
experiencing or an initiative the business would like to invest in. The request itself will
often not point to a specific topic and could well be very broad and undefined. You will
first need to understand all the aspects of the issue or situation being highlighted before
you can accurately identify the underlying topic. Even then there may be other factors
contributing to the main topic. Your research should follow a wide angle of approach
but must filter down to specific issues as the research progresses. Your management
team or CEO could for example request a research project be initiated in order to
leverage off of social media and the internet to improve sales and market share. This
request asks a number of questions. Let’s look at them individually and how these
questions could be translated into more meaningful focused topics:
• Social Media - when you start investigating you will find that this covers a range
of available options all pertaining to specific user needs. Some are best used
in a personal interactive way, others focus on pictures as a form of expression,
and some focus on professional competencies. Others social media types are
even more specific in their goals and include niche groups such as hobbyists,
gamers and fashion followers, the list is endless and there is a social outlet for
most groups, fads or fancies. Your research should fast start to ignore most
social media formats and become very focused on those that best relate to your
customer or business model. The research topic will now be defined within one,
two or perhaps three social media types, greatly reducing the amount of
research needed.
• Sales - here you will need to request more information, does the CEO want an
internet based payment and ordering system or does he only want to use social
media to inform potential customers of your product. Perhaps there is a
misconception as to the difference between internet marketing and social
media activities. If there is a need identified to set up and mange an online
catalogue and payment system then the research will have to include sourcing
a web developer a web hosting provider as well as all the logistics around
delivering products ordered on line by the customer.
• Market share - again does this include improving the visibility of the business
to customers or does it include increasing actual turnover based on additional
sales methods. Do the marketing team want the web site or social media to
expose the business to international markets? What if going this route creates
a huge demand that the company is not yet prepared for in terms of its
production capacity?
So, having gone through these points we can determine that questions posed to us
can often contain far more detail and requirements or, as with the issue of social media
types, reduce the number of topics that need investigating. Defining the topic or
subjects that need to be investigated up front will enable the researcher to start a
focused search for data. Another benefit of having simplified the request into basic
topics will mean that associated or related data will also be easily understood and
identified. Just as the need of specific best fit social media types reduced the topic
scope, the web page created many more affiliated topics for research.
Do a simple exercise when defining your topics. Start by writing down the topic and
then list all the inputs or associated topics that could relate to the core research. In the
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example below, we have identified that the topic is a Web page with catalogue,
ordering, payment and delivery capability. Now we need to identify the related topics
that will need to be researched.
Security Customer Catalogue Inventory
administration administration management
Orders and password
Delivery
Marketing accounts Details
methods
Web
Page
Links from
other sites
Credit Payment
management methods
As you can see the topic has grown as we have identified related requirements and
activities that will all need to be understood before the correct research results can be
delivered. Bear in mind that as your research topics become more detailed so will your
eventual solution. Keep your peers and managers informed of the growth as they will
need to be aware of the cost involved with the results. Often this is a good way of
identifying early in a project that the company may not be ready for the project or may
scale the delivery down to fit the resources available.
2.2.1 Identify the short and long term organisational objectives
The second step in conducting the organisational needs analysis is to determine and
describe agreed short and long term organisational objectives.
You need to:
• Identify the short and long term organisational objectives
o Understand the role and importance of objectives within the context of
the analysis, taking cognisance of their function and value to the
organisation
• Record and verify the objectives with stakeholders as valid, current and
complete. Include key decision-makers and strategists in the verification
process.
• Record the objectives clearly to facilitate further interpretation
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You could develop an organisational profile, by discussing a series of questions
regarding the organisation’s environment such as:
• What is the organisation’s relationship with its clients/partners/suppliers?
• In what kind of environment does the organisation operate?
• What are the key challenges that the organisation faces?
• What do clients need the organisation to provide?
• What is the current status of the organisation and what is it lacking?
• Is all or part of the organisation’s environment going to change in the next 5-10
years? What would the implications be?
Gathering information
You may feel comfortable with some methods of collecting information, such as
browsing the Internet, but you may need more practice in interviewing and developing
questionnaires.
Whichever methods or tools you use to collect information, keep a record as you go.
Do not gather any information not relevant to the brief provided by the organisation.
Information must relate to research objectives or you'll overload the record system.
Consider the legal issues
Whenever you collect and use information, you should be careful about what you use
and how you use it. There are a number of professional and legal considerations to be
aware of:
• copyright - Copyright protects an owner's work in material form, including
books, articles, tables, diagrams, videos and Internet-based information. This
means that generally, you cannot use material in your report unless you have
obtained permission from the copyright owner (usually the publisher or the
author). Sometimes this involves paying a small fee. So how do you know if a
work is protected by copyright? If in doubt, assume that it is and ask for
permission
• defamation - Defamation is a published statement that is likely to result in the
hatred, ridicule or contempt of someone
• confidentiality - Confidentiality protects someone's privacy, especially
information gained through interviews and surveys
• security - Security involves taking steps to ensure that information is securely
protected, including computer-based and hard copy material
• freedom of information - Freedom of Information legislation allows people
access to information held by public and government organisations
Consider the relevance of information/data
How do you know if the information or data you have collected is valid and reliable?
Depending on the research method or tools you are using, you need to be aware of
such things as:
• the currency of the data - Data can quickly become out of date
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• the source of the data - Does the data come from a reliable and valid source,
such as a reputable organisation?
• the status of the data - It is important to know if the data or information you are
using is based on fact or opinion. This may affect the way you use it, or whether
you use it at all.
• the relevance of the data - Information may not be relevant to the objectives of
your research or it may have been collected for a different purpose
• correct sampling methodology - Sampling must be done correctly. Poor
sampling can skew or distort the results; for example, collecting views on a new
project only from those involved in the staff union would not give a balanced
impression of the views of staff
• appropriate interviewing techniques - Leading questions or ambiguous
questions can also lead to skewed responses
Methods for gathering information
There are various methods of gathering information that you can use in the needs
analysis.
In gathering your information, there will be three main issues to consider:
1. internal and external circumstances unique to your organisation or industry
2. the organisation’s plans and strategic goals (both long- and short-term)
3. human resource operations.
You will also have to consider:
• the way the organisation functions and management responsibilities –
especially in relation to departmental authority to hire, dismiss or change
employment contracts
• stakeholders' interests.
There are a variety of methods that can be used to gather / collect information. The
assessor / HR practitioner may need to use a combination of techniques. Each method
has advantages and disadvantages that must be weighed by the assessor.
Method Techniques Advantage Disadvantage
Observation
Time - motion studies Minimum interruption Requires skilled
Questionnaire of work flow observer
Behavioural
observations Generates situational Limits data to a
data particular situation
Identifying effective and
ineffective processes Large numbers in a Limits level of
short time response
Surveys or polls of a
random sample, Inexpensive Requires substantial
stratified sample or time and skill to
entire population Expression without develop an effective
fear of repercussion survey
Different question
formats can be used -
open ended,
prioritisation, forced
choice.
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Method Techniques Advantage Disadvantage
Key
Consultation Obtain information from Inexpensive and easy Has a bias
those "in the know" to conduct May only result in a
Group Interviews, group partial identification of
Discussions discussion, Provides interactions training needs
questionnaires
Tests Establishes and Is time consuming
Focus on job analysis, strengthens and expensive
group problem analysis, communication May produce data
goal setting, etc. that is difficult to
Uses group facilitation Permits immediate quantify
techniques synthesis of
viewpoints Few tests are
Can be functionally validated for specific
oriented to test Builds support for situations
proficiency actions Do not know if
Can be used to sample measured KSAs are
learned ideas and facts Helpful in determining actually being used
if cause of deficiency on the job
is knowledge, skill or
attitude
Results easily
quantified and
compared
Records or Organisational audits, Provides objective Causes or solutions
Reports policy manuals, planning evidence may not be evident
documents
Work Samples Employee records, Collected with May reflect past
turnover, accident, minimum of effort situation versus
grievance, appraisals current
Products generated in Objective evidence Analysts assessment
the work process collected with may be too subjective
Written responses to a minimum interruption Need specialised
hypothetical situation content analysts
The organisation's
Job Literature Review of professional own output May be difficult to put
journals, industry data in a usable form
research, government Provides current and
documents future information
Can clarify normative
needs
Readily available
This table is adapted from the information contained in Chapter 5.2 ”Needs Assessment”
by Goldstein, et. al. in “Developing Human Resources” Kenneth N. Wexley, Ed.
The Bureau of National Affairs, Wash. D.C. (1991)
The assessment method used should include detailed documentation as the
information will come from a variety of sources and over different time periods. For
practical and legal reasons, information should be documented in a highly-organised
fashion.
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2.2.2 Describe different methods of analysis and data gathering in terms of their
strengths, weaknesses, features and applications
The third step in conducting the organisational needs analysis is to define the gap and
make recommendations for bridging the gap. The gap refers to the difference between
the current situation and the short and long term objectives.
You need to:
• Determine the gap using an acceptable analysis technique appropriate to the
context
o Ensure that the definition of the gap is consistent with the analysis of
the current situation and objectives. Highlight all objectives found to be
un-addressed and describe them in terms of a need
o Ensure that the definition of the gap addresses the scope and purpose
of the analysis, and facilitates further planning and decision-making
• Verify recommendations of methods and scenarios for closing the gap as
reasonable, effective and comprehensive
2.2.3 Determine the gap
When identifying the gap, you need to ensure that:
• the research findings are analysed
• the gap is determined using an acceptable analysis technique appropriate to
the context
• the definition of the gap is consistent with the analysis of the current situation
and objectives. Highlight all objectives found to be un-addressed and describe
them in terms of a need
• the definition of the gap addresses the scope and purpose of the analysis, and
facilitates further planning and decision-making
• the information is sifted and categorised for relevance
To identify the gap (the difference between the current situation and the short and long
term objectives), you need to review the actual performance of the organisation and
the people against existing standards, or to set new standards as per the
organisational objectives. There are two parts to this:
• Current situation: We must determine the current state of skills, knowledge, and
abilities of our current and/or future employees. This analysis also should
examine our organisational goals, climate, and internal and external
constraints.
• Desired or necessary situation: We must identify the desired or necessary
conditions for organisational and personal success. This analysis focuses on
the necessary job tasks/standards, as well as the skills, knowledge, and
abilities needed to accomplish these successfully. It is important that we identify
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the critical tasks necessary, and not just observe our current practices. We also
must distinguish our actual needs from our perceived needs, our wants.
The difference (the "gap") between the current and the necessary situations will identify
our needs, purposes, and objectives.
Analysing information
You can spend a lot of time collecting information, but it’s not much use unless it can
be analysed.
Consider the following example:
The General Manager of ABC Co is concerned that during the period of
change at ABC Co, staff morale has dropped to an all-time low. He and the
Human Resources Manager have decided to look at the sick leave data for
the past month.
Records in the HR Department show the following absence figures.
Month Number of staff Non- Certificated Total sick
March 32 certificated sick leave leave
sick leave days
days
days 66
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Without analysing this data, the information is relatively meaningless. It
doesn’t tell us that one of ABC Co’s staff members had a heart attack, which
accounts for 31 of the certificated sick leave days.
The HR Manager was able to compare the figures with the records for the
previous year and make some assumptions about whether the sick leave
rates were unusual.
Methods of data analysis
Range: Methods include SWOT (strengths, weaknesses, opportunities, threats) analysis, force fields,
tables and charts
There are various methods of analysing data that you can use in the needs analysis,
such as:
• SWOT analysis (strengths, weaknesses, opportunities, threats)
• Force field analysis
• Tables (checklists) and
• Charts
Using a SWOT analysis
A SWOT analysis is a good starting point when assessing current practices within the
organisation. If you aren’t familiar with the expression, SWOT is a planning tool used
to clarify the organisation’s:
• Strengths - Those things that you do well, the high value or performance points
(internal to the organisation)
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• Weaknesses - Those things that prevent you from doing what you really need
to do (internal to the organisation)
• Opportunities - Potential areas for growth and higher performance (external
to the organisation)
• Threats - Challenges confronting the organisation (external to the organisation)
The strengths and weaknesses usually refer to issues and conditions within the
organisation, while opportunities and threats usually refer to pressures and demands
from outside the organisation.
Outdated processes are a common weakness in business activities. It may be some
time since your organisation published its policies, or revised and updated their
procedure manual. As a result, staff have started to do things their own way, with new
employees bringing with them new ideas and differing practices that don’t really fit.
Alternatively, technology and finances may have changed the world outside your
organisation. Are these changes to be seen as threats or opportunities for the
organisation?
To conduct a SWOT analysis, carefully consider the following basic steps that can be
applied to an organisational / departmental or individual situation:
Strengths Weaknesses
You start by identifying Identify your weaknesses, which represent your internal liabilities. In
your strengths, which many cases, the lack of a strength or resource can be considered a
represent your internal weakness. Consider the following:
capabilities and resources.
Here are some questions What are you main liabilities?
you can use to help you
get started: List all the relevant skills, abilities, and talents that you would find
helpful. Which ones are you the least proficient at?
What are your core
competencies? List the specialised knowledge or expertise that you would find helpful
in this result area. Any knowledge or expertise that you lack could be
What relevant skills, considered a weakness.
talents, or abilities are at
your disposal? Are there any resources (money, time, help) that you currently don't
have access to?
What resources do you
have? What is not working in this area right now? What related weakness
does that reveal?
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Module 2
What specialised Threats
knowledge or expertise do
you have access to? Now identify your threats, which represent external events,
environmental factors, or changes that could affect you negatively.
Who can you ask for Here are some ideas to help you identify some threats:
advice, support, or help?
Make a list of serious risks you are facing in this area if you continue
What special/proprietary along your current path.
tools can you use or
develop? What obstacles or roadblocks are impeding your progress?
What is already working What environmental factors are affecting you negatively?
well in this area? What
related strengths does that Think about how current changes to your environment or
reveal? circumstances could affect you negatively.
Opportunities
Your strengths and
weaknesses give you an
idea of your internal
capabilities, resources and
liabilities. The next step in
SWOT analysis is to
identify your external
opportunities for growth
and improvement. Here
are some ideas to help you
identify them:
List the opportunities you
have been considering.
What things could you
improve on?
Think of one thing you
could do that would
significantly improve your
situation.
What important goals could
you pursue?
How can you take
advantage of your
strengths?
Can you take advantage of
any changes in your
environment or
circumstances?
What opportunities would
become available to you if
you eliminate some of your
weaknesses?
Review your SWOT matrix with a view to creating an action plan that will address each
of the four quadrants. In summary,
• Strengths need to be maintained, built upon, or leveraged.
• Weaknesses need to be remedied or stopped.
• Opportunities need to be prioritised and optimised.
• Threats need to be countered or minimised.
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Module 2
Using a Force-field analysis
Force field analysis is a management technique developed by Kurt Lewin, a
pioneer in the field of social sciences, for diagnosing situations. It will be useful
when looking at the variables involved in planning and implementing a change
program and will undoubtedly be of use in team building projects, when attempting
to overcome resistance to change.
Lewin assumes that in any situation there are both driving and restraining forces
that influence any change that may occur:
• Driving forces are those forces affecting a situation that are pushing in a
particular direction; they tend to initiate a change and keep it going. In terms of
improving productivity in a work group, pressure from a supervisor, incentive
earnings, and competition may be examples of driving forces.
• Restraining forces are forces acting to restrain or decrease the driving forces.
Apathy, hostility, and poor maintenance of equipment may be examples of
restraining forces against increased production.
• Equilibrium is reached when the sum of the driving forces equals the sum of
the restraining forces.
Example:
Equilibrium represents the present level of productivity13:
This equilibrium, or present level of productivity, can be raised or lowered
by changes in the relationship between the driving and the restraining
forces.
For illustration, consider the dilemma of the new manager who takes over a
work group in which productivity is high but whose predecessor drained the
human resources.
13 Source: http://www.accel-team.com/techniques/force_field_analysis.html
48
Module 2
The former manager had upset the equilibrium by increasing the driving
forces (that is, being autocratic and keeping continual pressure on
subordinates) and thus achieving increases in output in the short run.
By doing this, however, new restraining forces developed, such as increased
hostility and antagonism, and at the time of the former manager's departure
the restraining forces were beginning to increase and the results manifested
themselves in turnover, absenteeism, and other restraining forces, which
lowered productivity shortly after the new manager arrived. Now a new
equilibrium at a significantly lower productivity is faced by the new manager.
Now just assume that our new manager decides not to increase the driving
forces but to reduce the restraining forces. The manager may do this by
taking time away from the usual production operation and engaging in
problem solving and training and development.
In the short run, output will tend to be lowered still further. However, if
commitment to objectives and technical know-how of the group are
increased in the long run, they may become new driving forces, and that,
along with the elimination of the hostility and the apathy that were
restraining forces, will now tend to move the balance to a higher level of
output.
Managers are often in a position in which they must consider not only output
but also intervening variables and not only short-term but also long-term
goals. It can be seen that force field analysis provides framework that is
useful in diagnosing these interrelationships.
A force-field analysis is a tool to aid in prioritisation takes a look at the various
forces that are in play around the issue:
• What forces are keeping the situation the same?
• What forces are causing it to change?
By carrying out the analysis you can plan to strengthen the forces supporting a
decision, and reduce the impact of opposition to it.
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Module 2
To carry out a force field analysis, Mindtools14 suggest you use the steps below on the
following worksheet:
1. Describe your plan or proposal for change in the middle.
2. List all forces for change in one column, and all forces against change in
another column.
3. Assign a score to each force, from 1 (weak) to 5 (strong).
14 Source: http://www.mindtools.com/pages/article/newTED_06.htm
50
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