Evaluate the advantages and disadvantages of both a divisional structure and a matrix structure. Within the evaluation, you should include the reasons underpinning each structure.
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Avado PQ
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1095
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4808 words
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Question
Page
1. Evaluate the advantages and disadvantages of both a divisional structure and a matrix structure. Within the evaluation, you should include the reasons underpinning each structure. (AC 1.1)
3-4
2. Analyse the extent to which the organisational strategy in your organisation (or an organisation with which you are familiar) helps to ensure products or services meet customers’ needs.
4-5
3. Analyse the current impact of interest rates, inflation, and one other external factor on your organisation (or one with which you are familiar). Identify organisational priorities arising from your analysis.
5-7
4. In February 2024, Peter Cheese, current CEO of CIPD stated, “AI is transforming jobs, careers and workplaces. People professionals have a key role to play in encouraging safe experimentation and rapid learning so that we can reap the benefits and mitigate the risks.” Assess the extent that AI is, or could be, used in your organisation (or an organisation with which you are familiar) and assess how AI impacts work.
7-9
5. Explain Charles Handy’s model of organisational culture and explain David Rock’s SCARF theory.
9-11
6. Assess how employee selection or employee development impacts organisational culture and behaviour in your organisation (or one with which you are familiar).
12-13
7. An organisation is planning a change relating to hybrid working. Many employees moved to home working during the Covid-19 pandemic. Whilst this approach worked well at the time, the organisation now wants all employees to work at least two days a week on-site. Explain how Kotter’s approach to managing change could be used to successfully implement this change.
13-15
8. Using the Kubler-Ross change curve, discuss how change is experienced.
15-17
9. The CIPD’s Health and Wellbeing at work survey 2023 found the percentage of organisations that have a standalone wellbeing strategy has risen from 40% in 2018 to 53% in 2023. Although the percentage has increased, this means that 47% of organisations do not have a standalone well-being strategy. Assess the importance of wellbeing at work and assess how good work could impact wellbeing.
17-18
10. Provide a brief overview of the employee lifecycle and discuss people practice roles at the recruitment, development, and separation stages of the lifecycle.
19
11. Analyse how people practice supports organisational strategy through vertical integration and how people practice supports wider people strategies through horizontal integration.
20-21
12. An organisation is planning to introduce a four-day working week. Discuss the processes the people function could use to consult and engage with managers and employees to understand their needs when moving from a five-day to four-day working week.
21-22
AC 1.1
Divisional structure
A divisional structure is defined as the kind of structure in which an organisation is split into divisions based on its geographical location or the kind of products they produce or services they give (Saiti and Stefou, 2020). A divisional organisational structure can group the organisation into semi-autonomous units.
Advantages and disadvantages
The main advantage of a divisional structure is that it can group employees based on their area of expertise. This allows employees to showcase their full potential. Other than this, the reporting lines in a divisional structure are also clear. However, a disadvantage of this structure is that since the divisional structure follows centralised decision-making, the response from the organisation is quite slow (Joseph and Gaba, 2020). The viewing of the organisational goals is also limited in such a structure
Example
Samsung is an organisation whose organisational structure is designed around a divisional structure as it is a large corporation. The organisation has many divisions or units that are based on specialised criteria such as product lines, geographical regions, and services. The divisional structure can boost Samsung’s efficiency, accountability, and strategic focus (Gadalla, 2020).
Matrix structure
A matrix organisational structure is a type of organisational structure that combines two or more types of organisational structures. This kind of organisational structure allows organisations to set up their business in grids and matrices rather than in a traditional hierarchy (Laronha and Caldeira, 2020).
Advantages and disadvantages
The main advantage of a matrix structure is that it provides organisations with efficient resource utilization. Communication in the organisation is also enhanced through this structure and employees enjoy more flexibility however, a drawback associated with this organisational structure is that the decision-making process becomes complex (Canadas et al., 2021). Employees also need to report to dual reporting lines.
Example
Nike is an organisation known in the industry for its matrix structure. The organisation has functional teas like HR and merchandising along with divisional teams based on the organisation’s product and its geographical region. This matric structure allows Nike to effectively facilitate its customers in different areas (Nike, 2024).
To conclude both divisional and matrix structures are important for organisations and come with their own sets of advantages and disadvantages. The organisation employing them should take effective measures against the disadvantages and try to exploit the advantages more.
AC 1.2
Organisational strategy
Such actions and plans that can assist an organisation in achieving its goals and objectives are termed an organisational strategy (Gadzali et al., 2023). With assistance from organisational strategy, organisations can achieve those goals and objectives that are a part of the organisation’s mission and vision.
Organisational strategy of Samsung ensures that products and services meet customer needs.
Meeting the needs of its consumers is the main aim of the organisational strategy is Samsung. The technology that Samsung employs for developing its products is advanced and upgraded technology that can make certain that all products of Samsung are up to date (Alerasoul et al., 2021). This way, the products designed by Samsung exceed the expectations of its consumers and can satisfy all their needs
Fulfilling the needs of the consumers is what Samsung believes in. For this purpose, Samsung employs the use of various channels to obtain data to gain information regarding the preferences of its consumers. The data obtained is then employed to provide the highest quality of services and products to consumers (Mousa et al., 2021). This organisational strategy also allows Samsung to drive a sustainable quality innovation environment.
Example
The current organisational strategy of Samsung allows it to place itself strategically in the market globally in more than fifty countries. In all these markets Samsung has brought upgraded technology and innovation to its customers (Trzeciak, Kopec, and Kwilinski, 2022).
AC 1.3
Interest rates
Interest rates are the costs incurred for borrowing money. It is represented as the percentage of the total amount of money that is borrowed or saved over a year. The interest rates of Samsung are 4.79% as of June 2024 (Vayanos and Vila, 2021). The rising global interest rates have dampened the demand for Samsung’s smartphones as well as the semiconductors. The interest rates of Samsung fluctuate due to changes in the supply and demand of credit.
Priority
Samsung needs to ensure that its interest rates do not make its product unavailable for its normal consumers because it would lead to the business facing a severe backlash (Beyer and Ullrich, 2022).
Inflation
Inflation is defined as the gradual loss of buying power of consumers. The higher the inflation, the lower would be the buying power of consumers. Recently due to inflation, Samsung witnessed a significant rise in its procurement costs of raw materials (Cevik, Fan and Naik, 2024). This has led Samsung to increase the costs of their product which has in turn led to the buying power of its consumers to decrease.
At this point, inflation has negatively impacted Samsung and its sales by reducing the buying power of its consumers.
Priority
Samsung needs to ensure that during high inflation, it can keep the prices of its products in check so that consumers are still able to access its products according to their needs (Beyer and Ullrich, 2022).
PESTLE
PESTLE analysis is carried out (see appendix) and one factor is chosen from that to analyse the impact:
Legal factors
Samsung needs to ensure that all its products can meet the market criteria appropriately. If Samsung fails to comply with the market criteria then it could lead to fines and brand reputation damage. Since it is a tech company, Samsung needs to protect its innovations and inventions through patents, trademarks, and copyrights to ensure that none of its technologies gets copied. However, in the past, Samsung had to face heavy penalties for its imitation of Apple’s iPad and iPhone (Lu and Wang, 2020)
Besides this Samsung also needs to comply with employment laws and labour laws of the countries it is operating in. Besides this, it also needs to ensure that adheres to data protection and privacy laws. The legal factors when adhered to properly will impact Samsung positively, assisting it in the long run (Rodrigues, 2020).
Priority
Samsung needs to ensure that it can adhere to its legal factors at all times because not being able to do so can lead it to face legal claims and public beating as well since Samsung is a huge organisation with many consumers (Beyer and Ullrich, 2022)
AC 1.4
Artificial Intelligence
Artificial intelligence is the technology that enables computers to perform a variety of advanced functions. AI has become an important aspect of the business world. As days pass by more and more organisations are employing the use of AI (Enholm et al., 2021)
Cost saving
AI will allow organisations like Samsung to save on costs. Through the implementation of AI Samsung can save on costs and employ those saved costs on something else that is beneficial for the organisation.
Increase in productivity
Organisation like Samsung will experience an increase in productivity after the implementation of AI in their organisation. These AI-powered tools will help Samsung in optimizing various aspects of work such as what tasks are to be prioritised and which routine processes need to be automated (Zhang and Lu, 2021). Employees can focus on other important tasks at hand which will lead to a significant increase in productivity.
Example
Like every organisation, Samsung is also working towards employing more and more AI. Samsung is known to be moving towards developing a generative AI model known as Samsung Gauss which was inspired by the legendary mathematician Carl Friedrich Gauss. Samsung is on its way to harnessing this power of AI to significantly improve the lives of its consumers (Jiang et al., 2022).
Advantages and disadvantages
The first and foremost advantage of AI to businesses is the reduction in error. AI is an advanced technology that is incapable of making any errors like humans do. So if Samsung employs the use of AI then it would be able to ensure that fewer mistakes are being made in the organisation. AI can assist the organisation with decision-making (Kemp, 2023). AI can employ its updated technology to ensure that it can weigh the pros and cons of a decision before employing it practically.
However, AI still possesses some disadvantages to Samsung that cannot be ignored. The first disadvantage is that AI lacks emotional intelligence. The technology can recognise only a few special emotional clues and is unaware of the others. The decisions made by AI lack emotional empathy and can sometimes be not in the favour of everyone in the organisation. AI also lacks creativity (Briganti and Moine, 2020). The lack of creativity is something that Samsung cannot afford because it is an innovative tech company that works based on creativity and innovation.
AC 2.1
Charles Handy’s model of organisational culture
Power
Sometimes, the power in the organisation remains in the hands of a few people. These are the people who have the authority to make any decisions in the organisation or have any special privileges at work. These individuals are also responsible for delegating responsibilities to other employees in the organisation (Morais, Abdala, and Rebelatto, 2021). Such a culture is called the power culture. The employees of the organisation have no choice but to follow their superiors. Samsung however does not follow this type of culture in its organisations and is known to take a keen interest in its employee’s suggestions.
Task culture
In this type of culture, organisations form teams to achieve or solve target or critical problems. Individuals or employees who have similar areas of expertise form a team and work together towards a similar goal in the organisation (Sokolović et al., 2022). Task culture is employed in Samsung because it also forms groups of employees who have a similar area of expertise and can work together towards a common goal.
Person culture
There are certain organisational cultures where employees begin to feel that they are more important than the organisation they are working for. In such cultures, employees do what they think is best in their interest without having any regard for the organisation they are working for. In such organisational cultures, the organisation takes a back seat and eventually suffers (Bojan, 2023). Such a culture is not followed in Samsung and the employees of Samsung prioritise their organisation and believe that the organisation comes first before anything.
Role culture
In this culture, employees are delegated roles and responsibilities according to their specialisations and qualifications. In such cultures, employees can decide what they do best and can contribute to their organisation according to that. In this culture, every individual is accountable and responsible for something and has to take ownership of the work assigned to him (Espinoza-Cjumo, 2023). Power comes with a huge responsibility in such a culture. Samsung follows this kind of culture and its employees contribute to the organisation according to their expertise.
David Rock’s SCARF theory
Status
This aspect of the theory is related to an employee’s need to feel recognised, competent, and accepted. When an employee feels embarrassed or overlooked, it threatens their status. So, Samsung needs to ensure that an employee is treated appropriately in the organisation and nothing makes them feel threatened (Campbell et al., 2022). The organisation should ensure that employees feel a sense of belonging in the organisation.
Certainty
Predictability and certainty are two things that make employees feel at ease. When employees are not certain about something it makes them uncomfortable which eventually negatively impacts their work. Samsung should ensure that nothing in the organisation should lead to the employees feeling uncertain (Neenet Baby Manjaly, 2024). The organisation should try and bind things in the organisation by timeline.
Autonomy
Autonomy is the need to handle everything in one’s way. When the employees of an organisation feel micromanaged, overruled, or controlled, they become uncomfortable and annoyed by working in the organisation. These changes in the organisation result in employees becoming more and more demotivated. Samsung should ensure that they provide their employees with autonomy so that the employees can work comfortably.
Relatedness
Employees need to feel a sense of relatedness. When employees in an organisation feel alienated it negatively impacts their working capacity. Samsung needs to ensure that it can build trust and rapport in its organisation (Aplin-Houtz et al., 2023). These results in the organisation nurturing effective teams that can increase the productivity and effectiveness of the organisation.
Fairness
Any kind of injustice in the organisation leads to the employees becoming uncomfortable and demotivated. Organisations like Samsung need to ensure that they treat their employees justly and fairly. Any kind of misjudgment or unfairness should be avoided in the organisation altogether (Aplin-Houtz et al., 2023).
AC 2.2
Employee development
Employee development is defined as the process of assisting employees of an organisation in promoting and enhancing their careers by allowing them the opportunity to learn various new skills (Jehanzeb, 2020). Through this process of employee development, the existing employees of the organisation can retain their jobs for a long time by continuously enhancing and developing their skills.
The process of employee development can be carried out by a leader of the organisation. The organisation also offers its employees coaching and mentoring sessions along with providing the employees with constructive feedback (Jayathilake et al., 2021). The organisation can also set up goals for its employees to ensure that they can develop and enhance their skills accordingly.
Example
Coaching and mentoring are quite common development processes in an organisation. Samsung can provide its employees with coaching and mentoring sessions to ensure that they can learn new skills and enhance and promote their already existing ones (Sachdev, 2022).
Employee development impacts organisational culture.
Employee development is seen as an asset for organisations. This asset is built and enhanced through the organisation’s own culture. Research and studies have indicated that organisational culture and employee development have a direct relationship because organisational culture is responsible for promoting the development of its employee (Dachner et al., 2021). When the culture of an organisation promotes the development of its employees, the organisation’s productivity and motivation benefit from it.
Example
An employee developed by the organisation’s own culture will increase productivity more than those employees who were developed through external training programs (Akdere and Egan, 2020).
Employee development impacts organisational behaviour.
Organisational development is crucial for organisational behaviour. When employee development is promoted in an organisation it automatically enhances organisational behaviour. Through employee development, the management of an organisation can improve organisational behaviour and interaction (Paais and Pattiruhu, 2020). This will lead to increased productivity and motivation in the organisation. Employees who are developed according to the organisation can promote organisational behaviour and culture better.
Example
An employee who is better developed will be able to have such an organisational behaviour that would promote the organisation as well as its performance and productivity (Akdere and Egan, 2020).
AC 2.3
Kotter’s Change Management Model
Samsung’s employees had shifted to hybrid working during the pandemic but now the organisation wants its employees to work on-site for 2 days. To implement this, change the organisation is going to employ Kotter’s 8-Step Change Model to implement the change.
Step 1: Create urgency
The first step to implementing a change in Kotter’s 8-step model is to create the urgency for change. This includes making the employees realise why the change is important (Graves et al., 2023). Samsung should ensure that it can make its employees understand why on-site work is necessary.
Step 2: Form a powerful coalition
In this step, the leaders of the organisation are urged to implement the change. Through its leaders, Samsung can create a team and employ that team to make its employees understand why working onsite is necessary for the employees (Haas et al., 2019).
Step 3: Create a vision for change
In this step, the organisation needs to create a vision for change. The leaders of an organisation have many different visions when implementing change. It is necessary to bring together those ideas and visions and create a single vision that can be implemented for the change to happen (Sittrop and Crosthwaite, 2021). The leaders of Samsung need to bring together their ideas into a single concept that can be conveyed to their employees.
Step 4: Communicate the vision
Communication is an important part of any change. Samsung needs to ensure that it can appropriately communicate the vision it is trying to achieve by implementing the change. This will make the implementation of the change easier (Graves et al., 2023)
Step 5: Remove obstacles
Every change implementation faces some kind of obstacle. Samsung should try and remove any obstacles that the employees might be facing in their journey towards implementing the change. Since Samsung wants employees to work onsite, it might face obstacles like employees finding it difficult to commute to work (Haas et al., 2019). Samsung should ensure that these obstacles are taken care of.
Step 6: Create Short-Term Wins
To motivate the employees to keep moving towards the change, Samsung can create short-term wins. These short-term wins can be small tasks that are accomplished with the implementation of the change (Sittrop and Crosthwaite, 2021). These short-term wins would be able to motivate employees effectively.
Step 7: Build on the Change
The organisation makes certain that the change is properly implemented. This means that Samsung needs to make certain that the change is implemented deep into the roots of the organisation (Haas et al., 2019). Gradually the organisation can increase the number of days that employees need to be present if needed when the two-day implementation is successful and permanent (Sittrop and Crosthwaite, 2021).
Step 8: Anchor the Changes in Corporate Culture
In this last step of the change, the change needs to be incorporated into the culture of the organisation. This would allow the change to stick to the organisation. Eventually, this change will become an obligation for the employees of Samsung, making it necessary for them to implement it (Graves et al., 2023).
AC 2.4
Kubler-Ross change curve
This curve assists organisations in understanding how their employees perceive a change in the organisation:
Stage 1: Denial
Whenever a new change is implemented in the organisation, shock is the first response that employees have and that is quickly followed by denial. This is the stage where the employees of Samsung would be in denial regarding the change and would not be able to accept it (Lindblad, 2022). The motivation and productivity in the organisation are quite low at this stage of the curve model.
Stage 2: Anger
When the reality finally sinks in and employees realise that the change has been implemented, they display anger towards it. This stage has risks associated with it because change has the potential to spiral out of control at this stage (Truong, 2024). This is because the employees of Samsung might need to take on new workloads and might fear irrational consequences.
Stage 3: Bargaining
Once the stage of anger is over, employees attempt to salvage the situation. For this purpose, they try to bargain or negotiate in hopes of finding a compromise (Lukianov et al., 2020). At this stage, Samsung might experience an increase in productivity because employees feel that they can negotiate the reality of change.
Stage 4: Depression
This is the stage where the employees lose hope entirely. At this stage, employees display signs of extreme sadness, isolation, apathy, and regret. This is the stage where Samsung would experience the lowest productivity (Hagemann, 2024). Organisations must support their employees at this stage.
Stage 5: Acceptance
This is the final step in the change curve. The employees of Samsung would finally come to terms with the change that has been implemented, knowing that nothing can be done besides accepting what has been implemented by the organisation (Abebe, Bakombo, and Konkle, 2023). Once this stage has been achieved, Samsung needs to ensure that it makes the change permanent and does not revert to its old ways.
AC 2.5
Employee well-being
Employee well-being encompasses all the major components that make an employee’s experience with his organisation great and fulfilling. Employee well-being is a broad term that encompasses the mental, physical, and emotional aspects of an employee’s life (Juchnowicz and Kinowska, 2021). Many different aspects could contribute to an employee’s well-being. This could include flexible working hours, insurance plans, rewards, etc.
Importance of employee well-being
Boosts employee productivity
When organisations like Samsung can ensure that the well-being of their employees is promoted, they can experience an increase in productivity of their employees. This is because when employee well-being is promoted, employees become motivated and their morale is increased as well (Gosnell, List and Metcalfe, 2019). This causes the employees to become highly productive, leading to an increase in organisational productivity as well.
Increases employee retention
When organisations can promote the well-being of their employees, it leads to an increase in employee retention. This is because when employee well-being is promoted in an organisation, employees find no reason to leave the organisation and stay with it for the long term (Kurdi, Alshurideh, and Afaishat, 2020). This increases employee loyalty and leads to higher retention rates and reduced turnover
Factors impacting employee well-being
Employee voice
Employee well-being is negatively impacted when employees feel that they lack a voice. For maintaining employee well-being, it is necessary to promote employee voice. When employee voice is promoted employees feel heard. The organisation is also able to effectively solve any employee grievances through employee voice (Morrison, 2023). This promotes employee well-being and employees can effectively express themselves on important matters.
Example
An employee with an employee voice will display better and enhanced well-being as compared to an employee who does not have an employee voice (Mowbray, Wilkinson, and Tse, 2020).
Job design and nature of work
The most significant factor that impacts employee well-being is the job design and the nature of work. The type of work that employees do and the design of their jobs significantly impact their well-being. If the nature of an employee’s work is not according to their expertise and specialty then it impacts the well-being of the employee negatively (den Boer, van Vuuren, and de Jong, 2021). Organisations like Samsung must ensure that they provide employees with the right kind of work to ensure that they can cope with the work assigned to them.
Example
An employee working in his area of expertise will be able to cope better and hence would have better well-being as compared to those who are not working in their area of expertise (Shin et al., 2020)
AC 3.1
Stages of employee life cycle
Attraction:
Recruitment:
Onboarding:
Development:
Retention:
Exit : Separation:
AC 3.2
People practice supports organisational strategy through
People practices can align the organisation’s goal and objectives with the organisation’s strategy. This is because people`s practices can forecast talent needs and skill gaps and fulfill them accordingly. This allows them to ensure that the organisation can meet its goals and objectives.
Vertical integration
Vertical integration is defined as the kind of business strategy which allows the company to take ownership of two or more stages in its supply chain (Wang et al., 2023).
Links between people practice and strategy
The people practices ensure that whatever strategy they employ for taking ownership of two or more stages in the supply chain, aligns with their organisation’s goals and objectives and is not against it (Jiang et al., 2021).
Policy development that aligns with organisational strategy
The people practice in the organisation ensure that any kind of policy implemented for overtaking two or more stages in the supply chain is according to the organisational strategy. This is because if a policy does not align with the organisational strategy, it would be difficult to implement and it can disrupt the working of the organisation (Choné, Linnemer, and Vergé, 2021)
Horizontal integration
Horizontal integration is defined as the kind of strategy that aims to promote a specific area of the value chain to dominate competition (Madhuvu et al., 2022).
Designing internally consistent HR. practices
This ensures that the practices implemented by HR are coherent and unified and can create a smooth workflow (Pérez-Lara et al., 2018). This allows organisations to dominate a targeted area in the supply chain and reduce competition.
Services provided by different areas of people`s practice
Through horizontal integration, different services are provided by people practices and these services ensure that the organisation can create a workflow that can dominate any competition the organisation might have (Ferrell et al., 2019).
AC 3.3
Methods to consult managers and employees
If the organisation wants to introduce a four-day working week then they would need to consult and engage with their managers and employees. Managers in the organisation are responsible for the implementation of policies and assist organisations in ensuring that the stakeholders of the organisations adhere to these policies as well. (Baran and Sypniewska, 2020). Following methods are employed for consulting managers and stakeholders:
Stakeholder analysis
Managers and organisations are able to assess the needs and preferences of their stakeholders through a process called the stakeholder analysis. With this process, managers are able to make certain that whatever policy or regulation is implemented is according to the needs and preferences of the stakeholders (Eskerod, 2020). With the assistance of this analysis managers communicate with stakeholders to now about their preferences
Consultation and communication
With the assistance of consultation and communication the organisation is able to make certain that its managers are able to stay up to date regarding what is happening n the organisation (Freeman, 2023). Through this consultation and communication managers are able to assist their employees effectively so that no new policy comes as a surprise for stakeholders and they are able to cope with it accordingly.
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Appendix
PESTLE ANALYSIS
P =Political
This aspect includes all the government policies, trade regulations and tax guidelines. Samsung needs to ensure that it adheres to all the relevant guidelines.
E = Economic
Samsung’s fortunes are dependent upon the global economic health. An economic upstart could increase the sales and downturns could reduce them
S = Social
Since Samsung caters to diverse audiences., it is necessary for it to be culturally attuned
T = Technological
Technological advancements are the most dynamic facet of Samsung. In order to stay on top, Samsung needs to ensure that it can keep up with the technological advancements of the industry
L = Legal
Samsung needs to ensure that it adheres to all legal laws and procedures. Samsung has often found itself on the forefront of legal debates and patent tussles. Its legal teams ensure that Samsung complies and advocates
E = Environmental
Samsung has made its products increasingly sustainable and their endeavours are mostly eco-friendly showcasing their commitment to the environment
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