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ASSOCIATE DIPLOMA IN PEOPLE MANAGEMENT

Module 1 – Unit 5CO01

ORGANISATIONAL PERFORMANCE AND CULTURE IN PRACTICE

Aims

To explore the connections between organisational structure, strategy and the business operating environment, and how the impact of external forces influence business strategy and direction

To identify and examine the factors and trends, including the digital environment, the influence of culture , employee well-being and behaviour in delivering change and organisational performance

To interpret theories and models of organisational and human behaviour and the drivers for change, and to examine how to build diversity and inclusion to promote a positive culture

To evaluate the relationship between the employee lifecycle and your work and how people practice connects and supports wider people and organisational strategies.

Learning outcomes

Evaluate the advantages and disadvantages of different types of organisation structures, including the reasons underpinning them

Analyse connections between organisational strategy, revenue generation, products, services and customers

Analyse external factors and trends impacting organisations

Assess current organisational priorities and the associated issues and causes

Explain how people practices impact on organisational systems and structures

Evaluate the scale of technology within organisations and how it impacts work.

1 Understand the connections between organisational structure, strategy and the business operating environment

1.1

1.2

1.3

1.4

1.5

1.6

Learning outcomes

Interpret theories and models which examine organisational and human behaviour

Evaluate the drivers for change and basic models for how these changes are experienced

Explain how to build diversity and inclusion into your work in order to build a positive culture

Assess how people practices impact on organisational culture and behaviour.

Assess the importance of well-being at work and the different factors which impact well-being.

2 Understand organisational culture and theoretical perspectives on how people behave at work

2.1

2.2

2.3

2.4

2.5

Learning outcomes

Critically evaluate the relationship between the employee lifecycle and your work

Assess how people practice connects with other areas of an organisation and supports wider people and organisational strategies

Discuss key themes that currently shape the work of an area of people practice and how these impact on the provision of people solutions

Discuss processes for consulting and engaging with internal customers to understand their needs

Explain the key components of planning strategies for ensuring that projects are delivered in line with customer requirements.

3 Understand how people practice supports the achievement of business goals and objectives

3.1

3.2

3.3

3.4

3.5

LO1: Understand the connections between organisational structure, strategy and the

business operating environment.

AC 1.1: Evaluate the advantages and disadvantages of different types of organisation structures, including the

reasons underpinning them.

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)

Types of organisation – (AC 1.1)

• Sectors – Government –

Private – Third

• By focus/product e.g. – Banking – Hospitality

- Oil and Gas

• By size: – Micro – SME –

Corporation.

SME European model – (AC 1.1)

• Small – Medium (sized) – Enterprise • Determining factors: – Headcount – Turnover.

Category Headcount Turnover

Medium <250 <€50 m

Small <50 <€10 m

Micro <10 <€2 m

SMEs – (AC 1.1)

• Products? • Services? • Customers? • Typical structure? • Rationale for

structure? • Other

considerations?.

Global company – (AC 1.1)

• Or “Global Corporation”

• “Global” = all around the World

• Any company that operates in at least a country other than the country where it originated.

Global company – (AC 1.1)

• Products? • Services? • Customers? • Typical structure? • Rationale for

structure?.

3rd Sector – (AC 1.1)

• Range of organisations that are neither public sector nor private sector

• Independent of government (key to history and culture)

• “value-driven” – social goals • Reinvest revenues – “not for

profit” • Includes voluntary and

community organisations - both registered charities and other organisations such as: – Associations – Self-help groups and

community groups – Social enterprises – Mutuals and co-operatives.

3rd Sector – (AC 1.1)

• Products? • Services? • Customers? • Typical structure? • Rationale for structure?.

Organisational structure – (AC 1.1)

• Tall/hierarchical • Flat • Functional • Divisional • Matrix • “Virtual”.

Purpose of an organisational structure – (AC 1.1)

• Help the organisation achieve its aims and objectives

• Help employees carry out tasks effectively and efficiently

• Clarifies roles and responsibilities

• Helps Management coordinate activities

• Reflects the “vision” of the company.

Organisational structures – (Practical) – (AC 1.1)

• Pairs • Identify own organisational

structure • Brief explanation of

organisational type • 2 – 3 advantages and

disadvantages of structure type

• Summary of products and/or services

• Who the customers are? • How do customers link to

organisational purpose?.

AC 1.2: Analyse connections between organisational strategy, revenue generation,

products, services and customers.

An analysis of the way in which organisational strategy should be linked to products, services, customers and revenue (AC 1.2)

Organisational corporate strategies – (AC 1.2) • Sum of the actions a

company intends to take to achieve long-term goals

• Steps to achieve the strategy = “strategic plan”

• Senior managers responsible for strategy

• Middle managers adopt goals and plans (step-by- step) to achieve strategy.

Organisational context – (AC 1.2)

• Organisational purpose • Vision • Mission and goals • Industry and market

conditions • Competitor analysis • Importance of value

chain • Company structure and

strategy aligned to value chain.

VUCA High dynamics and speed of changeVolatile

Uncertain

Complex

Ambiguous

Unpredictable – great prospects for surprise

Multiplicity of forces – chaos and confusion

Hazy – difficult to understand

External context – (AC 1.2)

• VUCA • Competitive

environment • Rate of change • Globalisation • Advances in technology • Changing demographics • Customer requirements.

Factors impacting on a business – (AC 1.2) • Macro factors e.g.: – VUCA – PESTLE (external)

• Specific e.g.: – Quality of leadership – Level of engagement – Skill levels – Competitive market.

Models of strategy formulation – (AC 1.2)

• Traditional approach: – Vision – Values – Mission – 5 year plan

• “Agile” approach: – Rigorous process of

exploration and experimentation

– Takes account of rapidly changing environment

• Incremental: – Step-by-step – specific areas

e.g. new product • Radical approach:

– Make it up as you go!.

Balanced scorecard – (AC 1.2) Finance

L&D

Customers Processes

- Return On Investment - Cash Flow - Return on Capital - Financial Results

- Activities per function - Duplicate activities? - Process alignment? - Process bottlenecks? - Process automation?

- Level of expertise - ROI/ROE - Employee turnover - Job satisfaction - LD opportunities

- Delivery performance - Quality performance - Customer satisfaction rate - Customer retention rate

Strategy

Vertical and horizontal integration strategies – (AC 1.2)

• “Horizontal integration” = taking over a company at the same level in the value chain

• “Vertical integration” = taking over a company at a different level in the value chain.

Linking revenue to organisational strategy – (AC 1.2)

• Evidence-based decision-making linked to revenue planning

• Targeted business strategies (relevant)

• Focus on business performance

• Creating value for shareholders

• Healthy profit • Cost-efficiencies.

Linking products, services and customers to strategy – (AC 1.2)

• Product/Service strategy – Product development – New products – New technology – New emphasis e.g. on

customer service • Customer strategy

– Competitor analysis – Customer satisfaction

surveys • How are these accounted

for in organisational strategy?.

AC 1.3: Analyse external factors and trends impacting organisations.

An analysis of the current and ongoing impact on organisations of the range of external factors and trends. (AC 1.3)

Main external influences impacting on organisations – (AC 1.3)

• Why is it important to understand the market and competitive contexts of organisations?

• Own experience: – Market forces – Competitive forces

• What tools can be used to help capture and analyse these forces?.

Environmental scanning tools – (AC 1.3) • PESTLE/STEEPLE • SWOT/TOWS • Porter’s 5 Forces.

PESTLE/STEEPLE – (AC 1.3)

• STEEPLE = same + 3rd ‘E’ – ‘Ethical’.

SWOT – (AC 1.3)

Strengths

Weaknesses Opportunities Threats.

TOWS – (AC 1.3)

• SWOT - Personal perception

• TOWS more involved • Forced to think:

– S & W as internal – O & T as external

• Inter-linkages.

TOWS S1 S2 S3

W1 W2 W3

O1 O2 O3

T1 T2 T3

Porter’s 5 Forces – (AC 1.3)

External factors and trends – (Practical) – (AC 1.3)

• Identify 3 external factors and trends impacting on organisations (general)

• For each: – Identify immediate

impact – Assess future impact.

AC 1.4: Assess current organisational priorities and the associated issues and causes.

An assessment of two current issues and causes that identify key priorities within organisations that will affect product/service delivery, and the impact

this may have on people practice and solutions. (AC 1.4 & AC 3.3)

Organisational priorities – (AC 1.4)

• Expansion • Down-sizing • New markets • New products • Market position • Financial targets • Survival! • How do you prioritise?.

Current priorities – (Practical) – (AC 1.4)

• Pairs • Identify own

organisation’s current priorities (2 – 3)

• Identify impact on delivery of products/services

• Identify what the impact will be on people management practices.

AC 1.5: Explain how people practices impact on organisational systems and structures.

An explanation of the ways in which people practices can impact on organisational systems and structures, and therefore affect the effective

employment, management and development of people (AC1.5)

People professionals – impact on systems and structure – (AC 1.5)

• Strategic influence – place at the “Top Table”

• Operational impact – “business partnering”

• HR activities.

Forces shaping the HR agenda – (AC 1.5) • Globalisation • Rapidly changing

technology • Intensified

competition: – Products – Talent

• Focus on ethics • Uncertainty (VUCA) • Changing

demographics e.g. nationalisation.

HR’s strategic imperatives? – (AC 1.5) • Be more aware of the external

environment and the impact on the organisation

• Ensuring organisational survivability – ‘future-proofing’

• Ensuring organisational competency at all levels

• Linking HR activities to the organisation

• Change management agenda • Balance between essential

‘infrastructure’ management, and activities that add value

• Focus on ‘big data’ – but awareness of people factors.

Oakwood research (2021) based on interpretation of CIPD research.

Impact of people practices – (AC 1.5) • Adopt a forward-

looking approach to people practices!

• How do people practices impact: – Employment of

people? – Management of

people? – Development of

people?.

AC 1.6: Evaluate the scale of technology within organisations and how it impacts work.

An exploration of the impact that technology has on people, work and working practices, and the current and emerging scale of the use of

technology within organisations. (AC 1.6)

Technology in organisations – (AC 1.6)

• Where and how is technology used?

• What is the impact on work processes?

• Impact on people? • Efficacy? • Need for updating: “Here

today, gone tomorrow? • Cost implications • Positive and negative

considerations?.

Impact of technology – (AC 1.6)

• Worker efficiency • Well-being • Enabling remote working • Supporting collaborative

working • Automation • Encouraging innovation • More effective

communications • Knowledge sharing.

Impact of technology – (Practical) – (AC 1.6) • Identify an example of

technology used in your organisations

• Assess the impact this technology has had on: – People (e.g. employees,

customers) – Work and working practices – How might the use of the

technology be developed?.

LO2: Understand organisational culture and theoretical perspectives on how

people behave at work.

AC 2.1: Interpret theories and models which examine organisational and human behaviour.

An explanation of the principles of different approaches, theories and models of organisational and human behaviour that illustrate the factors that can influence how individuals, groups and teams contribute to organisational success. (AC 2.1)

Team performance (effectiveness) models – (AC 2.1) - Practical

• Tuckman’s model of group dynamics

• Belbin’s team roles • Beckard’s GRPI model

– Background theory – Practical application – How does the model link

to individual and team effectiveness in contributing to organisational success?.

Systems theory – (AC 2.1) • Organisation is made up of

parts • Parts interact and are

interdependent • Must have synergy to be

effective • “Closed system”

– Internally focused – No account of the external

environment – Adapts slowly

• “Open system” – Takes account of the

external environment – Agile.

High Performance Working (HPW) – (AC 2.1)

• Optimum performance levels

• Synergy of systems and processes

• Adoption of optimum practices

• Vision • Culture • Employee engagement.

Handy’s cultural typology – (Practical) – (AC 2.1) • Research the

meaning of: 1. ‘Power’ culture 2. ‘Role’ culture 3. ‘Task’ culture 4. ‘Person’ culture.

• Typical features? • Impact on

organisation?.

Motivation theory – (AC 2.1) • How does motivation

affect peoples’ behaviour in the workplace?

• Is this something the organisation can manage and control?

• Motivation theories: – Maslow’s ‘hierarchy of

needs – Herzberg’s ‘2 factor

theory’ – Mayo’s Human’ school

approach.

Mayo’s ‘Human School’ (AC 2.1) • Hawthorne

experiments • Importance of

relationships • Supportive group =

greater productivity • ‘Hawthorne effect’.

Maslow’s Hierarchy of Need – (AC 2.1)

Hertzberg 2-Factor theory – (AC 2.1)

Factors that lead to dissatisfaction Factors that lead to satisfaction

• Company policy and administration • Achievement • Supervision • Recognition • Work conditions • Work itself • Salary • Responsibility • Relationship with peers • Advancement • Personal • Growth • Status • Development opportunities • Security • Perception of fairness.

Management and leadership theory – (AC 2.1) • How does management and

leadership influence the way individuals, groups and teams contribute to organisational success?

• How might this be reflected in organisational culture?

• Features and significance of approaches: – Autocratic – Custodial – Supportive – Collegial.

AC 2.2: Evaluate the drivers for change and basic models for how these changes are experienced.

An identification of the main drivers of change in organisations, and using at least two established models, an explanation of how people might experience change (AC 2.2)

Change experience – (AC 2.2) • What is your experience

of change? • What were the drivers of

change? • What was the impact of

change on organisational performance?

• What was the impact on people?.

- (AC 2.2)

Typical drivers of change – internal – AC 2.2) • Change in Leadership • Expansion/contraction of

the business • Change in organisational

structure (hierarchical to flatter, management style, etc.)

• Process improvement • Following a significant

incident – e.g. accident (critical incident analysis)

• Internal analysis of processes – e.g. job analysis/job evaluation.

Change terminology

• Planned change • Emergent change • Proactive approach • Reactive approach • Radical • Incremental • Ackerman’s approaches:

– Transitional – Developmental – Transformational.

- (AC 2.2)

Change approaches (models) – (AC 2.2)

• Kurt Lewin’s “Unfreeze-Change- Refreeze”

• Kotter’s “8 Steps” • McKinsey’s “7S” • “ADKAR” • Others?.

Unfreeze-change-refreeze – (AC 2.2)

(Kurt Lewin - 1940’s)

Get the organisation ready for change

Consolidate the change

Make the change

Kotter’s model of change – (AC 2.2)

1. Create urgency

2. Form a powerful coalition

3. Create a vision for change

4. Communicate the vision

5. Empower action

6. Create quick wins

7. Build on the change

8. Make it stick Implementing and sustaining for change

Engaging & enabling the organisation

Creating the climate for change

McKinsey’s 7S model – (AC 2.2)

ADKAR – AC 2.2) • People dimension – must get people on side • Business dimension – understand reasons for change

and polices to support

A wareness • Employees need to understand what is happening and why • Crucial role of managers

D esire • Employees must believe in and want the change • Include them in the change project

K nowledge • Employees will need new knowledge • They must be supported in acquiring new knowledge

A cquire • Knowledge must be developed • Can only happen if they have the ability to do this

R einforce • Change must be consolidated and reinforced • Avoid slipping back into old ways.

Peoples’ reaction to change – (AC 2.2)

• How do people typically react?

• Content of change • Scale of change • Perceived affect • How change is

managed.

Change curve (Kubler-Ross) – (AC 2.2)

Spencer & Adams – 7 stage model

1. Losing focus – being overwhelmed

2. Minimising impact – going back to what is normal

3. The pit – individual experiences

4. Letting go of the past – moving towards optimism

5. Testing the limits – new identity is established

6. Searching for meaning – self-reflection

7. Integration – accept change.

AC 2.3: Explain how to build diversity and inclusion into your work in order to build a positive culture.

An explanation of the steps that can be taken to increase diversity and inclusion in your work, and the implications for a positive and inclusive

culture of not taking these steps (AC 2.3)

Definition of Diversity & Inclusion – (AC 2.3) • In the organisational

context, what is meant by: • ‘Diversity’? • ‘Inclusion’ • ‘Diversity and

Inclusion’ (D&I) • Why is D&I an

important consideration?.

Equality legislation – (AC 2.3)

• UK Equality Act (2010) • “Protected Characteristics”

1. Age 2. Disability 3. Gender reassignment 4. Marriage and civil

partnership 5. Pregnancy and

maternity 6. Race & ethnicity 7. Religion or belief 8. Gender.

Impact of no diversity – (AC 2.3)

• What would be the impact if no focus was given to D&I? – On the

organisation? – On people? – Other

stakeholders?.

Features of a positive culture – (AC 2.3)

• Shared beliefs • Employee engagement • Employee voice and

involvement • Learning organisation • Fair processes and

policies • High performance,

innovation and creativity

• Others? .

AC 2.4: Assess how people practices impact on organisational culture and behaviour.

Using examples from your experience and current good practice concepts, an explanation of the positive and negative ways in which people practices

can affect organisational culture and behaviours. (AC 2.4)

How do people practices impact on culture and behaviour? – (AC 2.4) • Role-modelling • “value-driven” behaviour • “Stewardship” – monitoring • Legal and regulatory

compliance • Collaborative working • Policies and procedures • Employee engagement

practices • Overcoming ‘unconscious bias’.

Potential impact of influence – (AC 2.4)

• Beliefs and values • Levels of openness and

trust • Levels of motivation • Levels of engagement • Productivity/profit • Commitment to learning

and knowledge sharing • Levels of staff well-being • Employer brand:

– Retention – Attraction.

Focus on assessment – (AC 2.4)

• Examples of good practice?

• Can you think of a personal example?

• Positive impact? • Examples of bad

people practice • Impact of bad people

practice.

AC 2.5: Assess the importance of well-being at work and the different factors which impact well-being.

An assessment of the importance of wellbeing in the workplace and identification of the different factors affecting wellbeing that can impact physically and psychologically and upon relationships, affecting health,

commitment and performance. (AC 2.5)

Well-being in the workplace – (AC 2.5)

• What is “wellbeing”? • Why should we pay

attention to it? • What impacts on

wellbeing? • Business case for

promoting wellbeing?.

Impact of well-being on the individual – (AC 2.5)

• Employee engagement • Motivation • Job satisfaction and sense

of purpose • Physical and mental health • Self-image and resilience • Links to psychological

contract • Links to work-life balance.

Impact of not giving focus to well- being – (AC 2.5)

• Attendance issues • Sickness and stress • Attrition rates • Employer brand • Lack of engagement • Productivity/profit • Negative working

environment.

Focus on assessment – (AC 2.5) • Identify 3 – 5 reasons why a

focus on wellbeing is important

• Identify 3 – 5 factors that might impact on physical and/or psychological wellbeing

• Identify why a focus (or no focus) on wellbeing might impact: – Relationships – Health – Commitment – Performance.

LO3: Understand how people practice supports the

achievement of business goals and objectives.

AC 3.1 Critically evaluate the relationship between the employee lifecycle and your work.

A critical evaluation of your experience of work and how this illustrates and supports the concept and principles of employee lifecycle (AC 3.1)

“Employee Lifecycle” – (AC 1.1) • The employee life

cycle model (ELC) is an organisational method used to visualise how an employee engages with the company they are a part of

• Stages: 1. Attraction 2. Recruitment 3. Induction 4. Performance

management 5. Development 6. Retention 7. Separation.

“Touchpoints” – (AC 3.1) • What is your

involvement at each stage of the employee lifecycle?

• How do you demonstrate “value- driven” behaviour?

• How do you engage with stakeholders during your involvement?.

AC 3.2: Assess how people practice connects with other areas of an organisation and supports wider

people and organisational strategies.

Explains both the strategic and operational links and support between people practice and other organisational functions. (AC 3.2)

How people practice connects with other areas of an organisation – (AC 3.2) • Links between:

– a specific area of people practice (HR or L&D or OD) and other aspects of the organisation

– between an area of people practice and the strategy- making function

– between people practice and business/operational functions

– services provided by an area of people practice and how they support the business.

How people practices supports wider people and organisational strategies – (AC 3.2)

• How do people practices derive from the business strategy?

• How do people practices support the business strategy?

• What do we mean by “people strategies”?.

AC 3.3 Discuss key themes that currently shape the work of an area of people practice and how these impact on

the provision of people solutions.

An assessment of two current issues and causes that identify key priorities within organisations that will affect product/service delivery, and the

impact this may have on people practice and solutions. (AC 1.4 & AC 3.3)

Key themes shaping and influencing people practice – (AC 3.3) • Consider: – Globalisation – Nationalisation

programmes – Uncertainty – Advances in technology – Demographic changes

• How does each influence on the way solutions are delivered?.

HR’s strategic imperatives? – (AC 3.3) • Be more aware of the external

environment and the impact on the organisation

• Ensuring organisational survivability – ‘future-proofing’

• Ensuring organisational competency at all levels

• Linking HR activities to the organisation

• Change management agenda • Balance between essential

‘infrastructure’ management, and activities that add value

• Focus on ‘big data’ – but awareness of people factors.

Oakwood research (2015) based on interpretation of CIPD research. 99

AC 3.4: Discuss processes for consulting and engaging with internal customers to

understand their needs.

Explores the principles of different approaches for engaging with internal customers to establish their needs (AC 3.4)

Processes for consulting and engaging with internal customers – (AC 3.4)

• What do we mean by “consulting”?

• What are the features of consulting?

• What are the features of effective engagement?

• Stakeholder analysis - – What is it? – Why is it useful/essential?.

101

Guiding Principles – (AC 3.4)

• Trust • Integrity • Honesty • Openness • Clarity • Flexibility • Positive relations • Creative.

102

Working with the client – key consultancy – (AC 3.4) • Active/empathetic

listening • Questioning skills • Investigative skills • Problem-solving

techniques • Facilitation skills • ‘Curiosity’ (behaviour) • Business savvy (acumen) • L&D process knowledge.

103

• Causality – establishing ‘cause and effect’

• Effects on business of issue/problem

• Financial impact? • Impact on

business? • Impact on people?.

Identifying the client need – (AC 3.4)

104

105

– (AC 3.4)

105

Fishbone/Ishikawa – (AC 3.4)

106

AC 3.5: Explain the key components of planning strategies for ensuring that projects are delivered in line

with customer requirements.

Explains the key components of project planning strategies that can be used for ensuring projects are delivered in line with customer

requirements. (AC 3.5)

Delivering projects in line with customer requirements – (AC 3.5) • Why is project

management a useful approach?

• How do you engage with your client to create a project plan?

• What is included in a project plan?.

108

Features of a project plan – (AC 3.5) • Objectives • Resources • Key actions • Timeline • Reporting points • Contingencies • Critical path.

109

Phases – (AC 3.5)

• Conception – Establish need

• Development – Create solution

• Realisation – Implementation

• Termination – Evaluate.

110

Learner Assessment brief • Pre-assignment activities • Assignment template • Explain theory and

practical application • Research • ‘Reading Resources’ • ‘Materials’ • Referencing • Structure • Spelling and grammar • Wordcount (+/- 10%).

111

Initial Assessment Checks • Before you submit your Assessments for marking, you MUST ensure that the

following checks have been completed by you. You must be able to say YES to each of the below. Otherwise your assessment will be rejected. This will delay the marking process

• You have signed your Learner Assessment Brief (a downloaded image NOT electronically)

• You are sure that you have NOT overused secondary resources in the completion of your assessments .

112

Initial assessment checks Yes No

Is the wordcount within the limits? ☐ ☐ Has all necessary information been included on the front cover sheet?

☐ ☐

Are the headings in line with the learning outcomes? ☐ ☐ Has a reasonable attempt been made in each section of the assignment template?

☐ ☐

Has referencing been included? Recommended at Foundation Level 3.

☐ ☐

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