AC 1.2 Explain the importance of using data in organisations and why it is necessary to ensure that data is accurate when determining problems and issues.
Description:
When handling this question, learners must cover the following areas:
- Discuss the importance of accurate information.
- Discuss the role of organisational culture and performance.
- Evaluate the influence of data on internal and external context.
- Analyse the impact of data accuracy.
- Discuss the knowledge management approaches.
- Give examples and case studies.
- Provide evidence.
1. Understanding the importance of accurate information in organisations:
Starting by clearly explaining why data is important, learners must address the importance of using information in an organisation. They must also discuss the need to ensure the information is accurate when analysing a problem. To be able to answer this question well, learners must ensure they cover the following points:
a. Informed decision-making:
Learners must explain how organisations rely on information to be able to assess and evaluate current conditions, analyse trends, and make strategic decisions.
b. Monitoring performance:
Learners must discuss how metrics and key performance indicators (KPIs) help organisations in tracking their progress and performance.
c. Evidence-based decisions:
Learners must emphasize how data provides the required evidence in justifying decisions and demonstrating the logic behind them.
2. The role of information in organisational culture and performance:
Learners must explain ways in which information affects organisational culture and performances. They should discuss:
a. Data-driven culture:
Learners must explain how a data-driven culture can be used to enhance problem-solving in an organisation, and decision-making and encourage employees to rely on facts and information when making decisions.
b. Performance Improvement:
Learners must provide examples of how organisations can use data to evaluate employee performance and identify areas that require improvement to be able to enhance performance.
c. Accountability:
Learners must explain how data holds individuals and departments accountable for their performance, thus fostering a culture of responsibility and continuous improvement.
3. The impact of information on internal and external context:
Learners must ensure to discuss:
a. Internal view:
Learners must explain the impact of accurate data in boosting employee morale, confidence and performance.
b. External Perception:
Learners must describe how an organisation’s stakeholders who include customers, investors and regulators see the organisation to have an accurate and transparent reputation.
4. The need for accurate information:
Learners must explain various reasons as to why accurate data is critical when determining organisational issues. These reasons include:
a. Informed problem solving:
Learners must explain that accurate data is essential in identifying the root cause of problems and creating effective solutions in an organisation.
b. Potential Insights:
Learners must discuss how inaccurate data can result in coming up with wrong decisions that can harm an organisation.
c. Reliability:
Learners should explain how accuracy in interpreting data can result in increased trust among stakeholders, inaccuracies undermine trust. They should give examples of how an organisation can suffer losses as a result of inaccurate data.
5. Knowledge management approaches:
Learners must explain the concept of information management to improve business efficiency. This includes:
a. Knowledge Sharing:
Learners must explain that effective knowledge management involves sharing data, insights and best practices within an organisation.
b. Learning from data:
Learners must demonstrate how organisations use historical data to learn past successes and mistakes to create more effective policies and procedure.
6. Examples and Case Studies:
Learners must include real-life examples and case studies that show how data can play a critical role in organisational success or failure.
7. Evidence:
Learners must include evidence from reliable sources such as:
CIPD, (2022) People analytics. Available from https://www.cipd.org/en/knowledge/factsheets/analytics-factsheet/
Findlay, P., Lindsay, C., McIntyre, S., Roy, G., Stewart, R., & Dutton, E. (2021). CIPD Good Work Index 2021: UK working lives survey.Must Read:
