Organizational Performance And Culture In Practice Assignment Sample

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Organizational Performance And Culture In Practice Assignment

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The organizational structure and strategy are the most required things for any organization as these two features effectively can improve the current scenario of any organization. Strategies need to focus on the most important functions of an organization. The study focuses on describing the two key organizational structures and their advantages and disadvantages. The external factors like political, social, economic, technological, environmental, and legal that impact the organizational operations are also described. Technology has a huge impact on the current organizational operations.

1.1 Organizational structure

Functional structure

Functional structure is the most common feature of organization structure. The functional structure of an organization gathers all the workers of the company together to form a team that has an objective and goal. The functional structure of the organization includes various activities in sales, accounting finance marketing resources, and production of the organization. In this structure, each department of the functional structure includes a different and independent management group. This type of structure is suitable for large organizations that produce homogeneous products and services (San Cristobel, 2018).


The advantage of this type of functional structure is that it only focuses on a specialized group that has particular and specific skills for doing a particular activity. In this type of functional structure, the employees or workers of a particular field like finance marketing, and product development department gather and share their ideas with one and another for improving their skills. It helps the employees improve their knowledge and become more efficient.

The functional structure of an organization consists of different departments including finance procurement marketing operations in human resource management. The finance department includes planning and the budget for completing the organizational activities. The department of procurement looks for the acquisition of different products from the market. It also begins costs and leverages the economics of scale. The marketing department implements effective strategies for reaching out to the customers to identify their needs to set the price of the product and improve the quality of the product. The marketing department also focuses on choosing a particular area for the promotional activities of the organization to promote the organizational products to the customers (Fernandez, 2018).

The functional operations of the organization include the production of the services and the development of a strong communication system with our customers by using social media platforms. The human resource management department focuses on developing planning and strategies for enhancing the talent and skills of the employees. The department also aims at developing the skills of the employees (Diaz, 2018).


The main advantages of this functional structure are the limitation or gap of the communication system among the employees of the different departments. Employees do not have an open avenue of generating communication systems among one another.

Flat organizational structure


A flat organizational structure reduces the operational costs in the organization as it focuses on making decisions at the staff level. In this type of organizational structure, the employees are given the authority with very significant or no supervision. The organization does not explain that much for employing and recruiting but the expenses are directed towards developing the marketing strategies and advertising processes. It eliminates all unnecessary costs and also eliminates various and multiple managers. It only focuses on the participation of executive-level managers. Thereby increasing the productivity and efficiency of the employees (Abu Naser, 2018).

It improves the communication system among the employees. In this organizational structure, the employees are limited in number so they can directly connect and interact with one another and can generate a robust communication system.

The flat structure of an organization can also improve the motivation and satisfaction of the employees. The employees are given the authority to share and implement their thoughts and ideas. By the sharing of knowledge and ideas, the employees increase productivity and efficiency. It helps in building loyalty, motivation, and trust of the employees.


The main disadvantage of this type of organizational structure is that it can hinder employee retention. In this type of organizational structure, there are limited advancement options for the employees that can impact negatively on employee retention.

This structure has a lack of management. It creates struggles and conflicts of power among the employees (Abu Amuna, 2018).

1.2. Organizational strategy

Organizational strategy defines the planning made by the organizational leaders to boost and improve the operations of the company to achieve the goals and objectives of the company. The organizational strategy has a direct connection to the product, services, customers, and revenue generation of the company.

Strategies are made in organizations for developing the products and improving the quality and quantity of the products to reach out to maximum customers. The quality of the products is improved for meeting the demands and requirements of the customers. The leaders make strategies for increasing the satisfaction and loyalty of the customers by providing the best quality products and services at an affordable price. The main strategy of the company is to develop the best quality products and reach them to the customers (Hsiao, 2020).

For improving the quality of the services, the leaders also make strategies. Strategies are developed for building a communication system with our customers to understand their preferences in buying experience and thereby the services and the product quality are improved. By developing effective marketing strategies that can attract customers the strategies also help in generating revenue collection and increasing sales of the products and services (Wu, 2018).

 The leaders use social media platforms to track the purchasing behaviour of the customers and by identifying their buying patterns effective marketing strategies are developed. It also helps in improving the quality of the services and products of the company which can help in generating new customers and retaining the existing customers. Therefore, it can be said that the organizational strategy is a set of multiple activities that includes product development, product quality improvement, customer retention, customer satisfaction, and revenue generation (Daniel, 2018).

1.3. The current and ongoing impact on the organization

PESTLE analysis

Political factors

Political factors have a huge impact on the organization. The major political factors that have impacted the business operations include the current changes in the government rules as per Brexit, the trade war between China and USA. As per the covid19 pandemic situation, almost all the government rules and regulations have been changed (Goel, 2017). Virtually built organizational operations have also impacted the economy of the country, a huge amount of job losses, less wage, and problems of immigration all have a huge impact on an organization.

Economic factors

The changes in the tax rates, inflation rate, exchange rates, GDP, economic growth, and trade policies all have been changed. The changes in the tax rates and other economic affairs thereby have negatively impacted the entire organizational growth and development (Baker, 2020).

Social factors

The social factors are equally impactful. The main social impactful factors include demographic areas, gender, society, religion, migration, etc. based on the social needs, the organization implements effective product development and delivery. The changing buying pattern and experience of the customers are the main crucial factor for the organization. Depending on the different religions and cultural beliefs of the customers, the organization needs to develop effective strategies and plans for organizational growth and development (Perera, 2017).

Technological factors

The emergence of technology has also impacted the entire organizational operations. With the development of social media platforms, digital technology, and AI system. these have a huge impact on the changes of the organizational operations and activities. Technology has boosted the communication system among not only the employees and the business organization but it has also built a robust communication system among the company and the customers. The managers can identify the needs and requirements of the customers and thereby can improve the product and service quality. Automation has also boosted organizational tasks and operations (Pagani, 2017).

Legal factors

The legal factors are also an important part of the external factors. Various legal aspects like employment laws, consumer protection laws, environment laws, intellectual property laws, and trade policies have to be maintained in an organization. Due to the Covid pandemic, these laws have been changed by the government. Depending on these laws, the managers need to develop strategies that can help in dealing with the changes in the legal obligations of the organization.

Environmental factors

The environment protection laws, climate change, and other rules and regulations that can protect the environment need to be maintained by the organization. Natural resources can be used for reducing energy consumption and environmentally friendly products can be used for reducing carbon consumption in the organization. It can help in building an environmentally sustainable organization.

1.4. Current issues and priority

Labour shortage

 Due to the covid19 pandemic, people are restricted to staying home and maintaining the social distancing norms. It has brought many problems for the organization. Due to labour shortages, organizational tasks are greatly affected. Labour shortage has also created problems in product development and product delivery. The products become difficult to be delivered to the right place at the right timer because of labour shortage. Many employees have also lost their jobs. For meeting the needs of labour, technological advancements are done for overcoming the problem of labour shortage. It is the main reason for many employees losing their jobs due to a lack of competency and knowledge in operating technical operations (Maul and Pearson, 2020). It has thereby highlighted the main priority of the organization to recruit employees having knowledge and skills of technology. Another priority is to develop the skills and competencies of the existing employees to meet the needs and requirements of the organization. It has also highlighted to prioritize the need of increasing the value proposition in the organization, the need of increasing employee retention, and employees (Kurdi, 2020). It has become very crucial to make strategies to deal with the problems of labour shortage and lack of effective labour. it thus can also impact the people practices as with the shortage of labour causes a problem, HR needs to implement effective strategies and planning to recruit and employ the right employees and workers to meet the organizational needs and requirements.


Another issue is technology as the pandemic has made it crucial to have technological advancements in the organization. The importance of technological up-gradation has become very prominent for an organization as the product delivery is greatly affected. All the organizational tasks are needed to be operated virtually from conducting a business meeting to marketing the products and services. At this moment, various technical apps, systems, and platforms can only help. There is also another issue that it needs a vast skill and knowledge for operating the services virtually (Pagani, 2017). Therefore, training and coaching for technological knowledge can only help in this context. The key priorities of technological issues are productivity and efficiency of an organization, competitive advantage, communication, data quantity and quality, collaboration, and remote working. Technological issues have identified that the organization can improve the situation by increasing technological advancements. It can help in building productivity and efficiency of the organizational tasks in less time and effort with the help of AI (Hall and Pesenti, 2017). Within less time the more products can be produced. More products can be ordered and thus it can help in increasing sales and revenue collection of the organization. People can even work from anywhere and at any time which can provide flexibility to the employees and workers. A better and robust communication system can be developed within the workforce. It has put pressure on HR to implement effective training programs for increasing the knowledge and skills of the employees and also to recruit skilled and efficient employees and workers (Nigam, 2019).

1.5. People practice

People practices define processes that manage the talent of people by encompassing the processes of talent optimization, talent retention, and talent acquisition. People practices include the practices of human resource management for managing people who are working in an organization. The practices of management include recruitment, talent management, performance management, safety, wellbeing, employee motivation, employee engagement, employee retention, communication, training, reward systems, and administration, etc.

Recruitment and talent management

Human resource management manager talent of the workers. Understanding the key skills and knowledge of the employees they build an effective and efficient team. Human resources managers recruit people whose skills and competencies match the requirements of the organization. For developing the skills and knowledge of the employees, human resource management also implements coaching to improve their skills to suit the dynamic needs of business organizations. By doing so and investing in the skill development of the employees, human resource management enhances the trust, loyalty, and commitment of employees to the company (Pitroda, 2021).

Apart from that human resource managers also try to enhance the talent of the employees by providing them and enlisting them in a team. Teamwork helps in increasing their knowledge and sharing the knowledge and skills among one another. By providing the employee's effective tasks, they can also manage the talent of the employees by building the right team (Curado, 2020).


HR tries to maintain transparency in the organization by fostering the employees to share their thoughts and ideas with one another and give their feedback. It helps in building a robust communication system. And it also helps in increasing trust, respect, and loyalty among the employees. HR creates a healthy work environment by promoting ideas sharing and collaboration. By promoting transparency and openness, HR also helps in enhancing a culture of loyalty and trust among employees (Martin-Alcazar, 2018).

Employee motivation

The HR department focuses on to continuous development of employee satisfaction. By implementing effective incentives and rewards and organizing training for the employees, HR tries to motivate and satisfy them and it also helps in building the commitment of the employees towards the company. The employees are provided effective and fair wages. When the employees get remuneration and effective incentives for their work, they get motivated and satisfied (Ozkester, 2019).

Well-being and health

The most prominent activities of HR are to enhance the well-being, health, and safety of the employees. HR implements necessary safety training practices for the employees to enhance their protection and safety in the workplace. Thereby, the Human Resource practices help in improving the well-being and health of the employees by boosting their confidence and motivation (Raya and Sivapragasam, 2018).

1.6. Impact of technology

Technology plays a critical role in an organizational operation by impacting people's work and work practices. Changes in technological development have brought changes in management operations. With the advancement in technology, organizational operations have been widely changed. Technology impacts the productivity and efficiency of the workforce. The impact of technology is described in the following:

Impact on people

Motivation and satisfaction

Technology adversely impacts the motivation and satisfaction of the employees of an organization. With technological advancement, many organizational tasks are performed with the help of software, artificial intelligence, and machines which has eliminated human efforts and thus, has dehumanized jobs. It has also made employees free from routine tasks. As it has demoralized jobs and has also eliminated human efforts many people have lost their job and has increased the motivation and satisfaction among the employees (Acemoglu, 2019).

Professional and personal life

As per Covid-19 the situation, the employees have been provided tasks to work from home. Meaning always using technology has impacted the work-life and professional life of the employees leading towards dissatisfaction and motivation. On the contrary, the presentation of work has become more flexible.

Impact of remote working

With the starting of remote working the welding and health of employees are also affected. People can even work being isolated due to the covid-19 pandemic situation. Remote work has provided a lot of opportunities to the employees to work from a remote distance without traveling. Apart from that remote work has also helped in saving a necessary cost and time. With the help of technology autonomy and trust have also increased among the employees (Grimm, 2021).

Job losses

Job losses have become a widely extended issue for many employees. Due to technology, online shopping, remote working, many employees are facing jobs in security which has increased stress and anxiety among the employees (Restrepe, 2021).

Impact on work

Technology has impacted on work and working practices of a company. Technology has also helped in building a robust communication system among the employees with the introduction of different social media platforms like Skype, Zoom app, and Google meet. Even in the covid-19 pandemic situation interaction between the organization and employees becomes smooth. The organizations can discuss over different platforms like Skype and share their business plans objectives and strategies. Document sharing and keeping records of our ideas and documents have also made an easy with the help of one drive, Google Docs, MS office, etc.

Artificial intelligence has also brought many new dimensions by improving the process of the performance of a company by improving cost reduction and helping to track the organizational activities with the help of automation transformational and informational effects (Harris, 2021).

Social media platforms have also helped marketers in making effective strategies to develop marketing operations to reach out to more customers. It also helps the casting organization to identify the requirements differences and feedback of the customers. Thereby the managers can improve the quality of the products and services (Karami, 2021).

Digital and machine-based automation technologies about song increase the risk of alienation in the workplace and also have lowered the satisfaction level of the workers.


Therefore, it can be concluded that the entire study has provided enough information about the structure of the organization that can be developed in different companies to make strategies for product development, customer retention, people engagement, and revenue generation. The people practices have a huge significance on developing employee satisfaction, and motivation through different activities.


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