5CO01 Assignment Example- Organisational performance and culture in practice Executive summary
5CO01 Assignment Example- Organisational performance and culture in practice
Executive summary
Business strategy is essential to any business that seeks to succeed in the competitive world. Moreover, the business strategy needs to be woven around its organisational structure, internal and external environment, culture, customers, products and services for the best organisational performance. This report investigates the connections existing between the organisational structure and the wider world of work in the commercial context using BMC, an organisation with operations in the United Kingdom and currently experiencing an expansion.
The report points out that linking organisational strategies to products, services, customers, and organisational revenue influences determining what needs to be maintained or changed towards improving the nature of work in the organisation. Similarly, some of the tools that can be used to analyse the current and ongoing impact of external factors and trends on BMC include PESTLE analysis. Factors affecting BMC include political such as political stability, tax policies and trade restrictions, economic such as, economic growth, social-economic including COVID-19, and Technological such as technological advancement. Legal factors include the development of new legislations and regulations, while environmental include corporate social responsibility.
The report identifies support for employees through employee wellness and creating a positive working environment. In addition, an assessment of the impact of technology on people, work and working practices indicates that it enhances virtual communication and collaboration.
An evaluation of the advantages and disadvantages of two different types of organisational structures in different types of organisations, the range of products, services and customers associated with each, and how they link to organisational purpose. (AC 1.1)
Organisational structures determine people processes and engagements to organisational improvements and success. According to Green (2020), the structures determine people’s behaviours and inputs to enhance different ways of working.
The divisional organisation is a type of organisational structure where an organisation establishes different divisions and resources to complete and enhance the success of a specific product line. The people working in a divisional organisation are grouped depending on the products and services they produce. McDonald’s Corporation is an example of an organisation with a divisional structure, where the employees produce products and services depending on their geographical divisions. The geographical divisions at McDonald’s include Europe, the USA, Asia, Middle East and Africa. The advantages of divisional structures in an organisation are that the managers heading the divisions focus on establishing high levels of specialisation, bringing about efficiency in the business operations. For example, McDonald’s offers products to consumers in the Middle East that are different from products offered to consumers in Europe. The reasons are attributed to lifestyle and beliefs on what to consume in those geographical divisions. Disadvantages are that the costs of managing the businesses are high, and there are high possibilities of building silos (Stanford, 2015).
The second type of organisational structure is the hierarchical structure. This is common in public companies such as the National Commercial Bank in Saudi Arabia. Another example of a public company is Unilever. The National Commercial Bank is a large institution offering financial services to customers. Unilever, on the other hand, provides consumption goods to the customers. In these companies, the structures are hierarchical, with a high level of authority and chain of command from the senior personnel to the junior employees. The structure positions people in different organisational levels where they have to be highly formal in taking responsibility for their actions. According to Törnblom (2018), the employees working in hierarchical organisations experience challenges because of the complexities associated with the different functions and divisions of work. The top management makes decisions within the organisations, and information is passed down to the junior employees. The advantages of hierarchies in large organisations such as Unilever and The National Commercial Bank are that there is a clear line of authority. The senior personnel can allocate