(Solution) CIPD 5C002 analysis tools and methods including how they can be applied to diagnose organisational issues, challenges and opportunities. (AC1.2)


PESTLE analysis tool
PESTLE analysis tool is used to scan external factors such as political, economic, sociological, technology and legislations (Battista, 2021). Organisation would want to understand the risk associated with political environment. For example, political instability scare aware investors and many contribute to economic decline, but political stability bring new investment opportunities. Furthermore, employer would want to understand how new legislations like equal pay and minimum wage will affect employment.
The advantage of PESTLE tool is facilitating an understanding of wider environment and support strategic thinking (Christodoulou and Cullinane, 2019). Organisation can make decisions based on how they expect PESTLE factors to change in the future.
However, its main disadvantage is that the changing business environment makes future unpredictable. For this reason, PESTLE analysis should be done regularly which can consume time and resources. It can also result to ‘paralysis by analysis’ as a result of too much data available to rely upon making decisions (Battista, 2021).  
Exit interviews
Exit interviews are conversations between an employer and employee choosing to leave the workplace (Maranan, 2022). They are used to diagnose workplace issues such as reasons why people are leaving, effectiveness of rewards and benefits, skill and knowledge gap, leadership effectiveness and people perceptions about work (Maranan, 2022).
The advantage of an exit interview is that it helps people professionals to find the root cause of employee’s departure and rely on this feedback for improvement. Exit interviews can also help organisation to leverage opportunities by gaining insights into where the organisation can improve.
Exit interviews have disadvantages too. These include poor quality of data and lack of consensus of the best practices (Maranan, 2022). Some employees may be unmotivated or feel pressed for time to explore their feelings and may choose to remain silent or give false data rather than saying anything negative. Some employers may also use exit interview as an excuse not to have meaningful conversations with existing workforce (Mokibelo, 2020).  
Observation method Observing employees can be a great way for an employer to pinpoint issues related to knowledge transfer, skills gaps and performance. By observing how people are doing work, employer can avoid subjective assessments from customers and colleagues (Aschenbrenner, 2022).
Its advantage is that it provides primary data or information needed to make informed decisions on areas for improvement. It also facilitates clarifications, insights, quick answers and opinions.
Some disadvantage of observation include; employees may not be as efficient and productive due to interferences and workflow interruptions. This may not provide exact information needed. Additionally, observes may get nervous when they realise they are observed and may tend to perform work differently than they typically do. This can give misleading data (Aschenbrenner, 2022).  
Explain the principles of critical thinking including how you apply these to your own and others’ ideas. (AC1.3) Short references should be added into your narrative below. Please remember to only list your long references in the reference box provided at the end of this section. Wordcount: Approximately 400 words. 390

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