Analytical Thinking * Evaluate how far processes/systems are appropriate * Weigh up opinions, arguments or solutions against appropriate criteria. * Evaluate if evidence and examples support points being made. * Check if arguments support conclusions * Useful when decisions must be based on evidence or when ensuring choices are likely to solve a particular problem. For example linking HR reward strategy with wider business goals – needs analytical thinking.

Critical Thinking * Critical thinking is a set of skills or abilities that you can develop over time. * It doesn't have to be negative, but is about developing your own conclusions based on evidence. * It's the process of gathering information about something, and then thinking about it and coming up with your own views. * Critical thinking is reasonable, reflective thinking that is focused on deciding what to do or believe (Ennis 1990).

What does it involve? * Being able to question and evaluate information * Solving problems * Thinking beyond the immediate situation * Looking at the big picture and the context of a topic * Asking questions about different aspects of the topic – what? How? When? Who? Why? What if? * Looking at theory and asking how it relates to practice * Reading different viewpoints about issues and forming your own conclusions * Reflecting on your work and deciding how to improve it in the future

Overview * The ability to think analytically and critically is fundamental in HR. * Does not always occur naturally but develops over time. * HR professionals must arrive at an informed opinion based on technical knowledge, specific training or personal and professional experience. * HR professionals cannot exercise critical thinking without first having requisite professional knowledge, skills and experience.

Situational Analysis * Situational analysis refers to a collection of methods that managers use to analyse an organization's internal and external environment to understand the organisation's capabilities, customers, and business environment. * Situational analysis consists of several methods of analysis including SWOT analysis.

SWOT * SWOT is an acronym for Strengths, Weaknesses, Opportunities, Threats. * A SWOT analysis is a planning tool used to understand the Strengths, Weaknesses, Opportunities and Threats involved in a project or in a business.
It involves stating the objective of the business or project and identifying the internal and external factors that are either supportive or unfavourable to achieving that objective. SWOT is often used as part of a strategic or business planning process, but can be useful in understanding an organisation or situation and decision-making for all sorts of situations

CIPD Viewpoint
Using a SWOT analysis gives a structured approach to deliberations of the strengths, weaknesses, opps and threats, and can be very effective in getting contributions from a range of people. This is particularly effective if the SWOT analysis is carried out as a group brainstorm activity.

SWOT
Although SWOT analysis is criticized for being subjective and of limited value, human resources departments can use it to measure performance and set future goals. HR can use SWOT analysis with other situational analysis tools to develop action steps that support the HR department and the company’s mission. Example in practice
The SWOT analysis process begins by identifying the strengths and weaknesses of HR team members, policies and procedures, work environment, communication and impact on the organization.

HR’s opportunities can depend on internal and external factors and HR’s ability to act on those opportunities. Opportunities identified through the process should have a positive impact on the HR department and support the organization’s goals and objectives.

Threats can be internal or external, such as budget cuts, outsourcing, competition from new companies or increased health care premiums. Threats may be confined to HR or affect the entire organization To add objectivity to the process, customer or employee satisfaction surveys provide external feedback.

HR can use SWOT analysis results to set goals for the HR department and team members. Department strengths and weaknesses may be attributable to individual team members, which helps identify top performers and those who need training. The team should determine how to minimize or eliminate threats. Opportunities become budget and staffing items. SWOT analysis results become the basis for HR’s strategic plan