organizztional culture

1. Level 5 Intermediate Diploma in Human Resource
Management
Organisational performance and culture in practice
(Unit 5C001)
Week 1

2. Welcome and Introductions
I am... (insert trainer name)
• (Insert previous experience/roles in HR)
• (Insert previous History with the Bradfield Group)
• (Insert experience of training/providing Bradfield courses)

3. Session outline
1. Introduction to the Unit and this week (15 minutes)
2. LO1 / AS1: Evaluate the advantages and disadvantages of different types of
organisation structures, including the reasons underpinning them (45 minutes)
3. LO1 / AS2: Analyse connections between organisational strategy, revenue
generation, products, services and customers (50 minutes)
4. Break (30 minutes)
5. LO1 / AS3: Analyse external factors and trends impacting organisations (1 hour)
6. LO1 / AS4: Assess current organizational priorities and the associated issues
and causes (40 minutes)
7. Close

4. Learning Outcomes
On completion of this unit, you will:
1.
Understand the connections
between organisational
structure, strategy and the
business operating
environment.
2.
Understand organisational
culture and theoretical
perspectives on how people
behave at work.
3.
Understand how people
practice supports the
achievement of business goals
and objectives.

5. Organisational
setting and
context
Organisational
culture and
behaviour
How PM
supports
success
Why are we studying this?

6. Task 1: recap – what is professionalism?
Give an example of
professional behaviour
you have encountered
in the past month
Give an example of
unprofessional
behaviour you have
encountered in the past
month
Share some examples
of three ways that HR
professionals can use
the Profession map in
their role
Share some examples
where you have
exemplified the
standards of the CIPD
code of practice

7. Learning Outcome 1
Understand the connections between organisational structure, strategy
and the business operating environment.
1.1 Evaluate the advantages and disadvantages of different types of
organisation structures, including the reasons underpinning them.

8. Organisational sectors
• Law firms, Banking, Private enterprises
• Work hard play hard culture, aim of maximising profits
Private
• NHS, Colleges and Higher Education Universities
• Process driven, effective application of funding to maximise services
Public
• Charities, pressure groups
• Driven by organisations mission, sensitive to environmental change (i.e. Fewer donations
from the public during times of economic downturns)
Not for profit

9. Organisational sectors
• Mixed economy
• Public sector – health, education, etc (decisions
made on public trust)
• Private sector –
• exist to make profits
• ownership – shareholders (voice at the AGM)
• directors are the decision-makers.
9

10. Purpose of the organisation
• To provide a service or financial return for those who they serve, to survive and
to develop.
Corporate strategy (definition)
• ‘A decision-making process by which the organisation attempts to meet its
objectives. It is the way the organisation plans its long-term future.’
10

11. Organisational structure
An organisational plan or chart shows a company
according to its individual goals (e.g. increasing
production, safeguarding the future, growth) by
clarifying them:
• Which jobs and departments exist in the
company
• What responsibilities and what authority
they have
• How the network of relationships between
them is formed
• What the vertical flow of information and
commands looks like
In other words…
…the organisational structure
lays out who does what so the
company can meet its
objectives.

12. Structures
• Functional
• Divisional
• Matrix
12

13. Functional
13

14. Tall / Flat Organisational Structures

15. Divisional
15

16. Matrix
16

17. Flexible Organisation

18. Flexible Firm
18
Core group
Primary workers
Internal labour market
Functional flexibility
Self-employed
First peripheral group
Secondary workers
Internal labour market
Numerical and functional flexibility
Secondary peripheral group
Secondary workers
External labour market
Numerical flexibility
Agency
workers
Sub-
contracting

19. Virtual Org
19

20. Fluid and Flexible Structures: Networked & Shamrock

21. Learning Outcome 1
Understand the connections between organisational structure, strategy
and the business operating environment.
1.2 Analyse connections between organisational strategy, revenue
generation, products, services and customers.

22. Task 2: discussion
What activities might you as a HR
professional undertake to gain
insight into organisational
performance?
What sources of data might you
use?

23. Task 2: discussion
HR activities
• Collating meaningful evidence from
consultation with stakeholders
• Being able to measure impacts and
outcomes across the business and its
people
• Using a systematic and structured approach
to collect business and people data
• Accurately use metrics and dashboards to
inform development and progress
• Linking metrics and outputs to help inform
clear insights and add value
• Only invest time on exploring relevant
issues and actionable conclusions
Data sources
• workforce costs and
• performance results shown
for each department,
• turnover rates and
• trends by role levels and
• daily lost revenue for open
positions

24. Levels of strategy
Competitive or
tactical strategy
Corporate strategy
Operational
strategy

25. How Strategy is Developed
• Analyse contexts (SWOT / PESTLE)
• Analyse resources
• Determine / clarify: Vision, Mission, Goals, Values
• Identify Options
• Determine priorities
• Implement

26. Approaches to strategy development
• Commonly seen as the ‘classical’ approach. Plan of action is
determined by the senior managers, who monitor the external and
internal environments. Strategy formulation requires a defined set of
steps for effective implementation
1.Rational
Approach
• Incremental and emerge over time as and when the organisation needs
to respond to changing circumstances. These are not planned top-
down, but more trial and error, usually done on a lower scale and scope
and learned from as each stage is completed.
2. Emergent
Strategies
• Organisations continue with business as usual, only trying different
approaches if required and success is down to luck rather than
judgement and they can be in reaction to unforeseen changes.
3. Symbolic
Approach

27. Rational approach to strategy formulation

28. Strategy Formulation
How is strategy formulated within
your organisation?
Discuss within your groups and
feedback to the class

29. How organisational strategies are shaped
Vision Mission
Goals Values

30. Exercise
Vision Mission
Goals Values
Devise an idea for a business.
Discuss these elements and
come up with some ideas for
your new business.

31. Horizontal integration
• Horizontal integration is a merger
between two companies who are at
the same stage of production or
compete in the same industry.
• A real life example would be when
Telewest purchase Virgin Mobile in
order to provide a home phone,
broadband, mobile phone and home
entertainment solution. The new
company is known at Virgin Media

32. Advantages and disadvantages
Advantages
• Increased market share
• Increased customer base
• Increased offering
• Ability to purchase a
better brand image
Disadvantages
• Destroyed value. M&A rarely add value to the
companies. More often M&A fail and destroy the
value of the companies involved in it because
expected synergies never materialize.
• Legal repercussions. HI can lead to a monopoly, which
is highly discouraged by many governments due to
lack of competition. Therefore, governments usually
have to approve any larger M&A before they can
happen.
• Reduced flexibility. Large organizations are harder to
manage and they are less flexible in introducing
innovations to the market.

33. Revenue generation
Key elements that the HR Professional might want to consider are:
• How do we add value to the customers
experience?
1. Customer value
proposition
• How does this create financial success for
this business?
2. The profit
formula
• What people aspects are required to make
this happen
3. Resources
needed
• How do we ensure that the above needs
are met by how we are completing tasks?
4. Processes
needed

34. Revenue generation: expanding the market
Another way of
thinking about
revenue generation is
to explore a range of
ways to expand your
customer markets.
What examples can
you think of?

35. Revenue generation: expanding the market
Another way of
thinking about
revenue generation is
to explore a range of
ways to expand your
customer markets.
What examples can
you think of?
Examples:
• Increasing your marketing budgets to reach more people
• Incentivising your sales and marketing teams
• Widening your marketing reach
• Repositioning or reviewing the currency of your product and
brand
• Reducing or increasing process to reach a different buying
market
• Selling through partners or agents
• Diversifying your products and services
• Increasing repeat buys and loyalty
• Increasing your customer relationship management
• Offering extra or free customer experiences
• Expanding geographic reach

36. Break (30 minutes)

37. Learning Outcome 1
Understand the connections between organisational structure, strategy
and the business operating environment.
1.3 Analyse external factors and trends impacting organisations.

38. Environmental Scanning
• This makes it vital to be able to
‘scan’ your environment and react
to change
• Information is the prerequisite for
this
• This needs to be applied to long
and short term aims to support
organisational performance

39. PESTLE Analysis
The outside world in which an
organisation operates can be examined
by using a PESTLE Analysis.
The six areas which might affect an
organisation can be seen as:

40. PESTLE Analysis of an Organisation
Political
Economic
Environmental
Social
Legal
Technological
A PESTLE analysis is a useful tool to help
you consider the potential impact of
influences in the macro-environment.
It allows you to identify possible key
changes in the outside world, in a
structured manner.
That external environment is broad and
complex, so any tool to help you assess
existing and future influences on your
organisation is worth using.

41. Example PESTLE analysis
• Example PEST
41
PESTLE factor Outline of external factor Impact on the organisation
Political Austerity measures in public sector
Redundancy
Restructure
Changes to teaching programmes
Social Less students going to University
Redundancy
Restructure
Changes to workload model
Reduction in flexible workforce
Technological Increased use of e technology
E learning programmes offered
Online recruitment
Podcasts
Blackboard
Online registers
Environmental
Increased awareness of energy
saving
Solar panels on main directorate building
Recycling bins throughout the University
Cycle to work schemes
Car sharing encouraged

42. SWOT analysis

43. SWOT analysis
Strengths:
attributes of the
organization that
are helpful to
achieving the
objective.
Weaknesses:
attributes of the
organization that
are harmful to
achieving the
objective.
Opportunities:
external
conditions that
are helpful to
achieving the
objective.
Threats: external
conditions which
could do
damage to the
business's
performance
Can be used for:
• business planning
• decision making
• problem solving
• strategic planning
• project planning
• career development

44. Business SWOT analysis

45. Take one of the following organisations:
• Twitter
• Adidas
• Cancer Research UK
• (or another of your choice)
Group Exercise
What would be some of the key
issues when “scanning”
their business environment?

46. Globalisation
Legal requirements
Demographic trends
Technology
Competitive contexts
External factors

47. External Factor: Globalisation
• International domain has become more
relevant to employers and HR alike
• Technological and social developments
have made the world more connected
• Examples of this include: financial
markets, use of social media, growth in
CSR

48. Globalisation
What changes have occurred with globalisation for your
organisation in these areas:
• Developing and implementing organisational
strategy
• Organisational practices (work life balance etc)
• Workforce demographics
Discuss in your groups and feedback in 10 minutes

49. Legal regulation
• Organisations need to consider more
than just their shareholders and
employees
• Regulatory bodies such as
Governments, the EU and global
regulation such as international trade
and WHO, have an affect on business
practices
• Legislation and regulation has an affect
on a variety of areas...

50. Legal Impacts on organisations
Rules on
Health &
Safety
Working
Hours
Maternity
&
Paternity
rights
Data
Protection

51. Demographic trends
What examples of demographic
trends can you think of?

52. Demographic trends
population growth
rate,
birth control
regulations and
incentives,
age distribution
(ageing of societies
can
change demand),
life expectancy rate,
sex distribution
(differences between
number of men and
women in society),
average family size
and family structure,
relative influence of
minorities in society,
immigration rate,
emigration rate,
social diversity (of
income, education,
race, gender, etc.),

53. Demographic trends

54. Technology
CIPD report into technological trends recommended the following for the HR
profession. We should:
• address digital skills gaps and develop skills in people analytics and data
interpretation
• lead on managing resistance by engaging with our people throughout digital
change programmes and fostering a digital readiness culture
• challenge other business areas to consider the impact of digital transformation
on people and their work.
• address ethical considerations when handling data and implementing new
technology and digital programmes.
• build our in-house reputations as teams with business acumen and a
credible business partner that works collaboratively and asks the right
people questions.

55. Competitive context
With more and more sources of
information available, being able
to effectively process and analyse
information is crucial for an
organisation’s success.
Who are your competitors?

56. Porter’s Five Forces
Michael Porter developed a
framework known as the
‘Five Forces’ or ‘Porter’s Five
Forces’ to determine the
competitive intensity of an
industry
Competitive
rivalry
Threat of
new entry
Buyer
power
Threat of
substitution
Supplier
power

57. Organisational priorities
57
Reactor
Little consideration of
environment; drift with
little concern for strategy
Prospector
Stress innovation and
growth; seek new
opportunities
Analyser
Stress maintenance of
status quo with moderate
innovation and growth
Defender
Stress stability,
conservatism, and
maintenance of status quo
Dynamic, growing
environment
Characterised by high
uncertainty and risk
Moderately stable
environment with some
uncertainty and risk
Very stable environment
with little uncertainty and
risk

58. Organisational lifecycle

59. Learning Outcome 1
Understand the connections between organisational structure, strategy
and the business operating environment.
1.4 Assess current organizational priorities and the associated issues and
causes.

60. Current business priorities
• Financial constraints
• Restructuring and reorganisation
• Skill and labour shortages
• Seasonal factors
• Technological developments
• Remote working
• Furloughing
• Shift to new products and customer bases

61. Current priorities & issues
• What are some of the issues
that might occur in some
sectors but not others?
• How can HR change its
approach to support
organisational needs?

62. Specific financial issues
• Employment costs; wages and equal pay
• Inflation & Price stability affects customer
spending
• Balance of payments deficit/surplus
• Taxation and spending; disposable income
for customers
• Interest and exchange rates; imports and
exports
• Economic growth or decline; post covid

63. Example: ageing workforce
• What are the pros and
cons of ageing
populations and
workforces?
• What opportunities
does it give us?
• What are the
disadvantages?

64. Labour shortages
• Are you prepared for an older worker profile and delayed retirement?
• Have you considered introducing part time positions and dual jobbing?
• Are you aware of the workforce skills that you will need in the future?
• Are you prepared to train your workforce to gain those skills?
• Are your plans for succession planning sufficient for future labour turnover?
• Will you face difficulties with recruitment and retention in the near future?
• Have you considered new/alternative sources of labour?
• Have you considered growth through productivity gain rather than employment
gain?
• How will the local factors affect your business?

65. Post-session work
Task 3: Selecting an
organisational
structure
Task 4: PESTLE
analysis
Task 5: Trends
affecting our work
Task 6: Sharing
ideas on
technological
trends

66. Finish