Solution

5C001-Organisational Performance and Culture in Practice

Table of Contents

Task-Questions. 2

1.1 Divisional structure and a matrix structure. 2

Divisional Structure. 2

Matrix Structure. 2

1.2 Organisation strategy in organisation. 3

Link to Strategic Goals and Objectives. 3

Ensuring Customers’ Needs Achieved. 4

External Context Impact. 4

1.3 Interest rates, inflation and external factors impact 4

Interest Rates. 4

Inflation Rates. 5

Social Factors. 5

1.4 AI use in organisation and impacts on work. 6

Artificial Intelligence Processing Information. 6

AI Natural Language Processing. 6

Impacts to Organisation. 6

Impacts on Work Practices. 7

2.1 Charles Handy’s Model of organisational culture and David Rocks SCARF Theory. 7

Charles Handy Model of Organisation Culture. 7

David Rock’s SCARF Model 8

2.2 Employee selection/development impacts organisational culture. 8

Option Selected: Employees Development and Organisation Culture. 8

Employees Development and Organisation Behaviour 9

2.3 Kotter’s approach to managing change. 9

Hybrid Working Change. 10

Success in Implementing Change Process. 10

2.4 Kubler-Ross Change Curve. 11

Emotion, Behaviour and Positive Impact of Change. 11

2.5 Importance of wellbeing at work. 11

Wellbeing at Work. 11

Impact of Lack of Wellbeing. 12

Good Working and Impact on Wellbeing. 12

3.1 Employee lifecycle and people practice roles. 12

People professionals in recruitment. 13

People professionals in development. 13

People professionals in exit 13

3.2 People practice supports organisation strategy. 13

Vertical Integration. 13

Horizontal Integration. 14

3.3 People function consult and engage with managers and employees. 14

Consultation and engagement of different stakeholders. 14

Needs Analysis. 14

Focus Groups or Workshops. 15

Surveys for progressive feedback. 15

References. 16

Task-Questions

1.1 Divisional structure and a matrix structure

Divisional Structure

Adopting the definition of Miskiewicz (2017), this is an organisation structure where it include various divisions and departments working in an independent manner to develop products, deliver services or operation area. An example is my employer organisation (Saudi Aramco) which operate through this structure.

Strengths

In the entities which use this form of structure, success in their operation is achieved. A case example is Saudi Aramco in their onshore and offshore operations in the broader region of KSA.

Another strength is that autonomy nature of the different divisions lead to easily embracing the resources issued since there is no requirement for getting recommendation from top management similar to the rest of structures. According to CIPD (2024), wastage of used resources is limited in these different departments.
Weaknesses

This structure is largely affected by the issue of functions duplication. In the various divisions of the organisation, some of the functions would get duplicated. This is while being costly to implement the divisional structure as all the divisions are provided with independent budgets.

Saudi Aramco, with more than 10,000 employees operating in different locations in Saudi Arabia, the organisation is large. To coordinate the operations of all these employees in different departments/divisions, divisional organisation structure is most appropriate (Miskiewicz, 2021). Also, for increasing their profitability and dominate the oil and gas industry in KSA, divisional organisation structure is most appropriate.

The underpinning/appropriateness of embracing divisional structure is that it is used in large organisations based on revenues and operating capital.  According to Miskiewicz (20217) an enormous organisation could be classified in various divisions/departments which enhance evaluation outcomes, monitoring and track departmental performance.

Matrix Structure

For this structure, employees operate through directly or indirectly answering to or more management levels. In line with Raziq et al. (2020) findings, it start with functional manager with the other including products/services management. This lead to initiation of team oriented work practice in allocated functions with their alignment with functions/departments. The matrix structure is comprised of financial teams, people practice and L&D. An example of an organisation using the matrix is Exxon Mobil which is a subsidiary of an international company in United Kingdom (UK). With local leaders in Saudi Arabia and in UK, the employees report to all these leaders.

Strengths

The matrix organisation structure is characterised with a possibility of improving team-work among various specialists. In terms of services delivery quality levels, various players operate in their functions mutually with the rest of the organisation (CIPD, 2023). Further, matrix organisation structure is linked to effectively making decisions and productivity owing to elimination of potential bureaucratic tendencies.

Weaknesses

The use of the matrix structure negatively lead to confused or conflicts amongst the different parties. This confusion or misunderstanding slow the overall decision making process. According to Raziq et al. (2020), there are challenges with an implementation of matrix structure due to inter-linked characteristic of their operations.

For Exxon Mobil, being an international subsidiary organisation, the use of matrix is appropriate for enhancing communication in multi-cultural environments. Also, a newly introduced project in main headquarter is supposed to be cascaded to the subsidiary in KSA and other countries. As such, embrace of matrix structure mitigates an instance where teams always realign upon introduction of a new product/service.

The underpinning/appropriateness of application of matrix structure is informed by need of engaging different specialists of various areas. The outcome of this is controlled practices as part of their active practice. It is also appropriate to improve teams relations on a set of aspects which impact entities with appropriate improvement considered.                                                                                                             

1.2 Organisation strategy in organisation

Adopting the definition of CIPD (2023), organisation strategy represent a collection of initiatives and investments pursued by an entity for successful attainment of short and long-term based goals. The organisation strategy is aligned with the organisation objectives for their success. This is with an active competition in their business environment.

Considering an organisation strategy in Saudi Aramco, this entail;

Increased venture onshore and offshore (oil & gas)– This is a strategy pursued by an entity required for ensuring provision of high-level quality oil and gas products. These are delivered locally in KSA and internationally.

Link to Strategic Goals and Objectives

The organisation strategy directly correlate with organisation goals. For example, considering Saudi Aramco, their goals entail need to dominate the oil and gas industry in Saudi Arabia and profitability. According to Bryson and George (2020), they explore different areas of exploration to expand successfully. A successful operations ought to guarantee presence of resources people and finances for success in business sector. The goals are pursued despite of demand growth in oil and gas sector in Saudi Arabia and international realm.

Ensuring Customers’ Needs Achieved

In regard to the case of my employer which is Saudi Aramco, they explore both onshore and offshore oil and gas guaranteeing demand and supply achieved. The quality levels are assured in oil and gas sector operations in a timely and quality scope. According to Lambert et  al. (20210, this lead to increasing revenue growth therefore eliminating competing organisations with profitability increased.

A different strategy of my current employer (Saudi Aramco) of reduction of carbon emission at a rate of 90% as at 2025 directly impact sustainable practices. In line with Malik et al. (2020) this positively impact society growth and achieving staff expectations. This is with an appropriate positioning for engaging customers who come back through loyalty and trust levels.

External Context Impact

The economic landscape play a critical impact on noted strategy. Considering Saudi Aramco is a government owned organisation, less budget allocation imply hindrances in executing their roles. This is at the same time encountering a challenge in being a specialist in their sector (CIPD, 2024).

A different factor is the technological c changes directly impacting successful oil and gas exploration onshore and offshore. This is to ensure achievement of clients needs for products development. With increased technological growth in terms of robots and AI, competitors engagement is easy and leverage on large operating markets. Hence, for maintaining their competitiveness, technology-based investment is important for contemporary entities.

1.3 Interest rates, inflation and external factors impact

Interest Rates

Interest rates represent further costs attached to either made savings or sourced loans by individuals/organisations. According to Bauer and Rudebusch (2020), this can elicit an implication in increasing costs of getting credit or increasing earnings from savings. A case example is in my organisation which is Saudi Aramco which influence their capacity for being financed in their practice in oil and gas sector. The economic slow down manifested in current business environment have interest rates capped at less than 5%. According to Khan et al. (2021), the increase affect the capacity for entities accessing credit and competitiveness in business sector. Having fluctuating interest rates, organisation profits similarly are noted to be fluctuating.

Priority– Due to the increased interest rates, prioritisation is offered on restructuring their practice. The outcome of restructuring is an entity lowering costs of existing resources to expand and actively operate (CIPD, 2024a). Further, through an engagement of KSA administration, achievements are attained in regard to resources access in an organisation practice. This is at the same time transitioning holistically in oil and gas sector such as infrastructure.

Inflation Rates

In an economic/political setting, this entail increased costs of goods evidencing growth of economy. Inflation rates are identified in Eldomiaty et al. (2020) to directly impact clients ability to purchase as a hindrance in sourcing products/services or purchasing power.  A case example is where my organisation (Saudi Aramco) has inflation rates at less than 2%. This impact labour market by making it more tight, availability of resources and costs of management. Therefore, this has a direct impact on capacity for profits management while capitalising on competitive advantage.

Priority– For the case of an organisation such as Saudi Aramco, prioritisation is on costs management and efficient operations to manage the growing inflation levels. This has a positive implication in ensuring sufficiency of resources enabling success in oil and gas sector. According to CIPD (2021), this enhance strategy for saving on costs, optimise resource and embrace innovation.  The outcome of this is an entity being well positioned in managing entire inflation effects with profitability maintained and financial stability.

Social Factors

By using the PESTLE analysis model, social detail on the lifestyles, culture, work-life balance and growth in their careers. According to CIPD (2024b), cultural expectation and customers engagement impact Saudi Aramco operations. This is to ensure customer satisfaction and loyalty levels. Also, in regard to demographic changes for KSA increasing Gen Z and Millennials at 50% for labour sector, recruitment and selection approaches are affected. The preferences of this social stratification include career growth and total rewards, Saudi Aramco succeeds in their roles.

Priority– The priority on the social factors lead to customised rewards in aligning Gen Z and Millennials successfully. These entail using technology to improve resourcing and manage social factors in modern communities (CIPD, 2024b). This attract and retain loyal customers while guaranteeing sustainability in their success in business environment.

1.4 AI use in organisation and impacts on work

In contemporary organisation sector, the overall revenue for AI is approximately $60.45 billion and expected to surge with an upward of 40% approaching 2025 with 55% accounting for $80.45 billion. Working in Saudi Aramco, AI would be instrumental for active organisation operations in oil and gas.  These include;

Artificial Intelligence Processing Information

This represent a form of AI embraced to improve employees productivity in their functions. This is by holistically implementing data management, payroll management and time-off scheduled to get approved and accredited.

The advantages of using the AI type entail improved automation of routinely implemented functions and HR roles identified as procedural and custom-made (Doguc, 2022). A leverage on the AI type enhance participation in value addition initiatives in execution of their roles. Another strength is ability to mitigate human-based errors, inefficiency and administration roles prompt processing. The drawbacks of this AI type is being costly to implement with immense time invested.

AI Natural Language Processing

This is a type of AI which leverage on application of chatbots and virtual assistants to guide employees to raise their issues, responses received and input to various organisation operations. The importance of this AI type is to improve experiences of staff in recruitment and retention of highly qualified employees. With Saudi Aramco currently having an upward of 34,000 employees, this AI type would be embraced for active organisation practice. This is by advancing scope of facilitation to employees in active practice (Kang et al., 2020).

Impacts to Organisation

Benefits– For AI processing information type, it benefits an organisation performance since all the employees are engaged to plan and execute roles. Also, the AI Natural Language Processing make it easy to enhance communication therefore gaining a feel of being appreciated. According to Kang et al. (2020), their application lead to improved services quality by admin of an entity improving services.

Risks– A substantial limitation of use of the AI Natural Language Processing is capacity for regulating their practices. This is owing to the likelihood of facing am influence with normalcy of their operations embracing critical thinking. Similarly, the natural language processing is defined with ethic issues and failure to adhere to legislations owing to replacement of human input to their practice.

Impacts on Work Practices

Benefits– By effectively using the two AI types, it contribute to an improved success of the entity and productivity guiding people practice teams in being creative. According to Kang et al. (2020), this is with staff gaining from less needs by administration and attentive in people practice.

Risks– In past years, AI has been substantially embraced in workplace leading to a feel of being insecure owing to potential of replacement of their functions. By fearing this, they are negatively impacted in terms of output of their roles in an entity (Doguc, 2022).

2.1 Charles Handy’s Model of organisational culture and David Rocks SCARF Theory

Charles Handy Model of Organisation Culture

 This is a model of organisation culture categorising culture to different types which impact behaviour and decision making. According to Sokolovic et al. (2022), culture types include power, role, task and person culture.

The key features of power culture include existence of an elaborate authority with……………………….

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