5CO01Organisational performance and culture in practice Assignment
Task One –Report for strategic planning day
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1.1 The Advantages and Disadvantages of two Different Types of Organisational Structures
Analysing current structures and benchmarking them against shifting market needs is necessary for putting a new corporate strategy into action. Opening a new location is a management challenge for BMC Company since managing a larger workforce necessitates fundamental changes to the organisation's management structure. When it comes to a company's productivity, it all relies on the organisational structure that is put in place. Management structures are chosen based on an organisation's overall goals and advantages(Auchter et al., 2018). When deciding on a management system, it is essential to consider both the system's strengths and weaknesses and see whether it is compatible with the overall aims of the business. BMC Company may utilise the comparison of functional and divisional organisational designs to determine the best course of action. BMC Company's unique goods at various regions of operation complement the divisional design. It is also important to note that the divisional organisational design balances business and employee motivation(Battaglia, Landoni, and Rizzitelli, 2017).
The technique used to classify employees according to the many tasks inside an organisation is known as a functional organisational design (FOD). A company's functional divisions rely on a wide range of talents and knowledge to manage its many departments. Finance, marketing, operations, sales and human resources are just a few departments that work together to achieve a similar objective. Using a functional structure can reduce overlap in job responsibilities and prevent the waste of company resources(Winnubst, 2018). In addition, since the design is compatible with the abilities of the majority of workers, periodic training is made simpler. Managers' comprehension of other departments is hindered under a functional system since responsibilities are well defined. Managers who lack a thorough grasp of their company's other areas are less prepared for senior management positions. Employees have difficulty making decisions because of the functional design's hierarchical nature.
A divisional organisational architecture categorises employees depending on the items or services to customers. As a result, assigning workers following a company's various goods aimed at different demographics offer a foundation for ensuring that consumers are happy. Employees at a company like Disney, for example, are aligned based on multiple consumer items. There are several benefits to this approach, including monitoring individual performance and optimising the utilisation of assets(Jaakkola, and Hallin, 2018). In a divisional organisational design, positions are likely to be duplicative because of the specialisation in distinct consumer brands. ' In addition, the fight for limited resources across various consumer divisions may cause a non-performing product to be phased out.
1.2 The Connections Between Organisational Strategy, Products &Services, Customers and Revenue Generation
As a result of the time and resources required for implementation, innovative designs take time to implement. Revenue growth, customer satisfaction, and the quality of products and services are all intertwined with an organisation's strategy. Workers' motivation levels may impact a company's overall productivity, which is dependent on human resources(Kumar, Lahiri, and Dogan, 2018). BMC Company has to know how organisational strategy affects product development and revenue creation to implement a new system to help its industry rise to the top. Products and services are influenced by the organisation's structure for aligning its employees. Increased product production is necessary for an organisation's development, and this is strongly reliant on establishing an organisational structure that is tailored to the business.
For businesses, customers are essential because of their buying power and influence over potential customers. Any changes to the manufacturing structure should consider any immediate consequences on customers to keep sales and profits flowing. The company's goal should be to match its personnel with the items it sells to consumers, focusing on quality. The quality-focused design encourages consumer input and prioritises customer pleasure. Increased customer satisfaction leads to increased sales and profitability for the company. Another aspect that contributes to increased productivity and customer happiness is the motivation of workers(Geissdoerfer, Vladimirova, and Evans, 2018). These real-world examples show how a company's organisational design decisions directly impact the wants and behaviour of its customers.
Strategic management serves two purposes for a business: increasing revenue and ensuring the company's survival in a highly competitive market. A company's productivity and income are directly related to its chosen organisational structure. The process of implementing a brand-new system requires substantial financial resources, as well as personnel time and money. Organisations are burdened by their high financial requirements in the near term, yet this influences the money they gather in the long run(Bustinza et al., 2019). New management systems reduce time and resources spent on redundant tasks. A company's income may be improved by using an organisational structure that reduces resource waste. Implementing organisational structures based on functional and divisional functions also aids in increasing productivity by making the most of employees' existing talents.
1.3 The External Factors and Trends that are Impacting or are Likely to Impact BMC’s future Strategic Direction
The environment in which organisations operate comprises elements that either help or hinder their existence. The strategic growth of enterprises necessitates an evaluation and adaptation to external developments in their field of operation. Several external factors might impact the performance of any business, such as political and economic factors. Businesses are better equipped to anticipate and respond to changes in the environment by analysing external influences. Certain items are disliked by customers, while others have a strong affection for a particular brand or service(Szczepa?ska,and Kosiorek, 2017). Any shift in consumer buying habits impacts companies since they are the lifeblood of any profitable enterprise. In the wake of the Covid 19 outbreak, a shift in client demand for automation, delivery sales, and special packaging occurred. As a result, organisations must guarantee that their operations align with contemporary client preferences to remain viable.
Businesses compete for customers' business by providing similar goods or services. In order to remain relevant in a highly competitive market, businesses must be flexible enough to respond to changing consumer and market expectations. Because of the previously existing food-related firms in Manchester and elsewhere, expanding operations into other areas presents a more significant difficulty in terms of competitiveness. BMC is more likely to endure competition if it implements a strategy prioritising consumer goods. As a result of the design, distinctive brands can thrive in a competitive commercial climate because of their creative nature(Chernikova, and Zvyagintseva, 2017).Aside from the economy's health, BMC Company's growth might be affected by this. During the Covid 19 epidemic phase, most businesses saw decreased consumer spending and income growth. Most customers' shopping habits have shifted due to government restrictions such as curfews and social exclusion. The employment of robots in service delivery is one method of preparing for changes in the economy. Adapting enterprises to government policy changes is difficult, but the company may employ a flexible production structure.
Another external aspect that influences an organisation's operations is technology. Today's world has seen a radical technology change and has embraced automation. The Covid19 epidemic led to a shift in corporate practices, resulting in an increase in the employment of robots for delivery, points of sale, self-service platforms, and a decrease in human interaction. When social distance requirements or customer service demands change, BMC Company will be prepared using technology-based service(Lee, and Shon, 2018). The development of self-service platforms speeds up the delivery of services and enhances customers' experience.
1.4 Current Strategic Priorities for BMC
The capacity to overcome obstacles affects whether or not an organisation succeeds or fails. The organisational structure and managerial emphasis are the problems at BMC Company. The current structure prioritises its commercial aspects, such as production, expansion, and meeting client requests, but it downplays the importance of employee growth and fulfilment. BMC Company's rigorous hierarchical organisation is stressful for lower-level staff, which is sluggish to react to employee and customer problems. There should be an engaged staff at a good workplace, unlike BMC Company, which has a significant turnover of employees(Ruban, and Yashalova, 2021).
When working in separate locations, a strictly hierarchical system is more prone to cooperation across distinct capabilities. The system employs an authoritarian territorial management style that is unpleasant for the personnel and hinders a unified organisation aim. The bureaucracy associated with hierarchical systems is sluggish and onerous for customers and low-level workers. Customers may decide to go with a rival if a company takes too long to respond to their criticism(Szczepa?ska, and Kosiorek, 2017). The company's existing structure, which incorporates feedback, necessitates a shift in organisational structure. Customers might expect quicker service delivery if a divisional organisational structure is implemented.
A lack of motivation and a high personnel turnover rate may harm production. Low morale and a focus on the bottom line at the cost of employee happiness are to blame for the high rate of staff departures at BMC Company. Employee morale declines due to a lack of respect, fair play, and acknowledgement from management. Organisations lose competent workers to their competition and train new staff because of high turnover(Lee, and Shon, 2018). Although BMC Company has been successful in growing into new regions, the departure of staff is expected to impact the company's operations in the future. This issue may be solved by shifting the organisation's structure to one where all workers are treated with respect and dignity. Allowing for the promotion and engagement of personnel to new business points is made possible by abolishing a purely hierarchical organisation. Employees are more likely to stay with a company if their contributions are recognised via the distribution of responsibilities.
1.5. Impact of people practices in the organisational systems as well as the organisational structures
People practices help the employees of the organisation in understanding the requirements of changes. It also helps them to accept the processes involved in managing changes that are required to be implemented by the organisation. This is the practice where the employees support the organisation in accepting changing situations and managing them efficiently. People practices is a way to implement strategies that can help the organisation to sustain in the market competition. This can be done with the help of gaining a competitive advantage for the organisation.
3.1. Relationship between employee lifecycle and the work as people professional
There is an efficient relationship between the employee lifecycle as well as the people professional. Employees lifecycle is a model or process in HR that helps in tracking the journey of employees taken by them. Maintaining an efficient employee lifecycle is essential for the maintenance of the efficient performance of the organisation (Cattermole, 2019). As an employee of the BMC people practice team, it is my responsibility to follow an efficient employee lifecycle that is essential for the enhanced performance of the organisation.
The following stages of the employee lifecycle can be implemented in the organisation for getting efficient employees for enhancing the operations of the business organisation.
Attraction: This is the first stage in which the applicants are made aware of the organisation and its operations. Based on the different processes that are used by the organisation to promote their brand and operations to the employees, they will decide whether to join the organisation or not. Thus building or creating an enhanced brand reputation becomes important for the organisation and the team associated with the purpose.
Recruitment: The next step would involve the recruitment of efficient and skilled employees for the organisation. This process is critical a skilled employee is required to be chosen for managing the operations of the business successfully and striving towards achieving organisational goals.
Onboarding: Onboarding or orientation of the employees to the organisation is done for welcoming them to the process and employees working within the organisation. At this stage the employees hired will be provided with the information related to their goals and objectives. They will also be made aware of their reporting bosses and the team they will be associated with (Sato, Kobayashi and Shirasaka, 2020).
Retention: This is another crucial stage for an organisation. It aims at keeping the employees motivated, engaged and satisfied with their jobs. These factors are essential for them to stay connected with the organisation and work for achieving their organisational goals. Development: This is the stage where the employees within the organisation are responsible for arranging programs that can help in the development of skills of the employees. BMC People Practice Team also aims at the arrangement of workshops, seminars, and several other training or development programs that can help the employees enhance their skills of performing efficiently within the organisation. This is also responsible for the growth and development of the organisation.
Separation: This is the stage that is implemented while an employee leaves the company. There are various reasons due to which an employee may leave the organisation. These reasons may be retirement, personal reasons or new employment. Thus the formalities of leaving an employee from BMC is also required to be maintained properly for future references.
Figure: Important stages of Employee Lifecycle
Thus the entire employee lifecycle process is responsible for creating an impression on the employees regarding the operations of the organisation. This is thus required to be maintained efficiently by the BMC People Practice Team.
3.2. Assessment of BMC’s team of people practice in connecting with as well as supporting strategic priorities of the organisation
The following is the assessment of steps that can be used by the People Practice Team of BMC in connecting and supporting the different strategic priorities of the organisation.
- A clear objective is required to be considered as a strategic priority of the organisation and these are required to be communicated to the employees. The strategic priorities of the organisation should be such that it is easily achievable by members of the organisation.
- Providing concise explanations to the employees regarding the strategic priorities also plays an important role in an organisation. This can be done with the help of arranging a session of discussion for the same with the employees and the managers. This will help in making the strategic priorities to be transparent to employees and they can work accordingly (Rhodes, Grant and de Bruijn, 2020).
- Explaining the importance of achieving the strategic priorities of the organisation is also required to be discussed with the employees. This can help them understand their roles and responsibilities towards achieving the same effectively and efficiently (Erjavec, Arsenijevi? and Starc, 2018).
- Measurement of the progress of achieving the organisation’s strategic priorities is also required to be considered by the organisation. This can be done by using different measurement metrics associated with it such as market share, cost reductions, etc.
3.3. Explanation of the two key themes that are having an influencing people practice and shaping the different areas of people practices that helps in supporting the organisation
The following are the two key themes that have an impact on the people's practice as well as shaping the different areas of the practice contributing towards supporting the organisation efficiently.
Gaining commitment: Gaining or creating commitment among the employees working with the organisation is very important. Thus this is one of the key themes that are significant in people as well as considering different areas of the practice of managing employees. The commitment can be created among the employees with the help of efficient job satisfaction among them. Job satisfaction can be provided to the employees by creating a work-friendly work environment (Fazriyah, Hartono and Handayani, 2019). It should be such that the employees can share their ideas or opinions with other members within the organisation without any hesitation among them. They should also be provided with efficient leadership within the organisation where the employees can work freely with their leaders. They should not feel stressed or depressed by the behaviour of leaders towards them.
Establishing Trust: This is another important factor for enhancing people management practices in an organisation. The employees should be made able to trust the organisation for their growth opportunities and performance efficiency. This can be done with the help of training and development programs that can be arranged at regular intervals for the development of the employees. This is also responsible for improving the performance and productivity of the organisation. The leaders and managers of the organisation should also be able to create an efficient trust factor among their employees for enhancing the team's performance in achieving goals and objectives. They should be able to trust that the changes can bring innovation and creativity to the organisational operations.
3.4. Consulting relevant parties in clearly understanding requirements for the same
The relevant parties that are associated with achieving the strategic priorities of the organisation are required to be consulted or communicated regarding the same. The following communication processes or strategies can be used for consulting with the parties.
- One-to-one communication among the employees associated with it is important for understanding the issues that may arise while working for the achievement of the strategic priorities. This can also help each member to speak without any kind of hesitation.
- Encouraging all employees associated with it to produce their ideas and opinions. Each member might have unique ideas or views that may be efficient for achieving the goals and objectives.
- Making use of the different communication modes can also be helpful in this case. It can use both face-to-face and digital communication mediums (Yap, 2019).
- The meeting regarding the purpose should have some humour that will help the employees stay active and engaged. This will also help them pay attention to the important points that are being discussed regarding the purpose.
- The topics and points to be discussed are required to be prepared beforehand the discussion takes place. This can help in avoiding missing out on points that can be important for the organisation.
- Jotting down the significant points during the discussion can help understand the priorities. This is also helpful in arranging the tasks of each employee associated with it accordingly.
3.5. Planning relevant projects as well as ensuring delivery of the line requirements
After the discussion of the project, efficient planning and organisation for the same have relevant importance in achieving the organisational goals. The following are the steps in creating an efficient plan for the completion and achievement of the project.
- The first step would include recognising the requirement for taking action of conducting the project.
- The next step would involve the setting of objectives or goals of the work as well as the employees engaged in the project.
- Development of the premises of the work to be conducted is also an important stage for the team.
- Identification of alternatives of the plan being executed is also required to be planned so that if there are any changes, this can be implemented. This can help in the successful completion of the project by the organisation.
- Implementing the plan is the last and the major step that is required to be executed efficiently. All members engaged with the project are responsible for executing the same and completing it successfully (Howes, 2018). Thus each member should take responsibility and implement efficient strategies in completing their tasks.
Figure 2: Planning Process
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