Solution

Assessment 4 (40572/07) 7LMP

Question 1

Increasing the spending on People Management Initiatives

Starting form CIPD (2020) report focusing on rationale of investment in skills, the report has highlighted on the relevance of increasing the overall spend of investment on people management. The study highlighted that the most successful organisations have made 70% of their investment on people management. In an earlier publication in CIPD (2012), the people management initiatives had been identified as approaches for improving the performance and achieving the overall set business objectives. This is by producing both productive and profitable organisations and positive working environment for all the employees existence. A different publication that can be considered is the Holmemo et al. (2020) that have evaluated on the financial implication on investing in people management. In the source, it identified that a high-level investment with people contributes to an organisation understanding the payoff accrued from improving employee wellbeing, understanding of best practice in resourcing of employees, turnover and retention issues and absenteeism and improving the employees training and development. Further, while quoting in the increased demand of the digital economy in the modern business environment, Abdurakhmanova et al. (2020) highlighted on the benefits incurred by an organisation from their investment in human capital strategies. Apart from this, the study had actually recommended on 70% of the organisation expenses. This is nevertheless not invested by majority of the organisations with 40% of organisations noting failure in adoption of such people management initiatives. A study by Naim and Lenka (2018) had highlighted that organisations investing in people management initiatives of more than 50% gain from an increase in employee satisfaction, improved retention rates, developing employee engagement, developing customer engagement, improving the ROI, and improved organisational communication. Hence, for the organisation, it is appropriate to increase their spend on the people management initiatives by 50% for the coming year.

Question 2

Potential advantages accrued for an organisation senior team being comprised of people from diverse backgrounds and with diverse characteristics

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