AC 2.1 Explain how people professionals create value for people, organisations and wider stakeholders.
Guidelines:
Learners must discuss the following:
- Discuss the importance of value creation.
- Discuss Core ethics and principles guiding organisational goals.
- Analyse employee engagement and organisational values.
- Evaluate value creation for customers and stakeholders.
- Discuss sustainability and growth.
- Give examples.
- Provide a source of evidence.
1. Understanding the Importance of Value:
Learners must begin by introducing the importance of creating value in an organisational context. They should explain value creation as the process of delivering results that meet the needs and expectations of individuals, organisations, and stakeholders.
2. Ethics and principles that guide the organisation’s goals:
Learners should share the role of ethics and principles in guiding organisational goals. These include:
a. Ethics:
Learners should discuss how values such as fairness, transparency, and social responsibility influence an organisation’s decisions and actions. For example, learners can explain how an ethical approach to sustainable development can benefit many stakeholders by reducing environmental impacts.
b. Principles:
Learners should describe the principles that support an organisation’s best practices, such as innovation, customer focus, and engagement. They should explain how the implementation of these standards can improve competition and create value for all stakeholders.
3. Employee Engagement and Corporate Values:
Learners should give examples of how organisational values help employee engagement. These include:
a. Alignment with Values:
Learners should show how organisational values support employees’ sense of purpose, commitment, and engagement while being in alignment with their personal values. For example, learners can explain how companies that value work-life balance are able to increase employee engagement.
b. Employee Engagement:
Learners should discuss how people professionals can engage employees in creating and living a meaningful organisation, hence increasing their motivation and morale. Employees who actively contribute to an organisation’s results seek greater engagement in the workplace.
4. Create value for customers and stakeholders:
There are many ways that people professionals and an organisation can create value for customers and stakeholders.
a. Customer Value:
Learners should explain how providing value to customers means providing products and services that meet their needs,
Delivery of quality products, and exceeding expectations. They should give examples of how an organisation can achieve this.
b. Increasing Customer Loyalty:
Learners should discuss the importance of increasing customer loyalty. They should explain why people professionals must put more focus on customer loyalty programs, personalised customer experiences and strategic initiatives that support long-term relationships.
c. Education, Design, and Rewards:
Learners should describe how people professionals educate customers on the benefits of an organisation’s product or service, build a positive reputation, and offer rewards such as fair content to encourage stakeholder engagement.
d. Encourage investment in the future:
Learners should explain ways to create value for stakeholders such as investors and thus attract future investment. For example, learners can illustrate how financial performance and business responsibility can increase business people’s confidence.
5. Sustainability and Growth:
Learners must highlight the importance of supporting future finance to promote sustainability and growth. They should also show how an organisation that creates value for all stakeholders are better positioned for long-term success.
6. Real World Examples:
Learners should incorporate real-world examples to show how a successful organisation creates value for its customers and stakeholders. For example, they can discuss how the company’s commitment to sustainability not only benefits the environment but also attracts customers and investors.
7. Evidence:
Learners must ensure that they use credible evidence when discussing how expertise creates value for an organisation and stakeholders. Among the sources that learners can use are:
CIPD, (2019) Ethics at work: An employer’s guide. Available from https://www.cipd.org/en/knowledge/guides/ethics-work-guide/
Young, J. (2023) Employee engagement and motivation. Available from https://www.cipd.org/en/knowledge/factsheets/engagement-factsheet/
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