Level 5 Associate Diploma in People Management

Organisational performance and culture in practice

- Unit 5C001
Week 1
About this unit

This unit examines the connections between organisational structure and

the wider world of work in a business context. It highlights the factors and
trends, including the digital environment, that impact on business strategy
and workforce planning, recognising the influence of culture, employee well-
being and behaviour in delivering change and organisational performance.
Learning outcomes

On completion of this unit, you will:

1. 2. 3.
Understand the connections Understand organisational Understand how people
between organisational culture and theoretical practice supports the
structure, strategy and the perspectives on how people achievement of business goals
business operating behave at work. and objectives.
environment.
Why are we studying this?

Organisational Organisational How People

setting and culture and Management
context behaviour supports success
5CO01 Assessment
Week 1

• AC1.1: Evaluate the advantages and disadvantages of different types of

organisation structures, including the reasons underpinning them.

• AC1.2: Analyse connections between organisational strategy, products,

services and customers.
Learning Outcome 1
Understand the connections between organisational structure, strategy
and the business operating environment.
AC1.1 Evaluate the advantages and disadvantages of different types of
organisation structures, including the reasons underpinning them.
Organisational sectors

Private
• Law firms, Banking, Private enterprises
• Directors are the decision makers
• Work hard play hard culture, aim of maximising profits

Public
• Government hospitals and schools, military, police
• Decisions are made on public trust
• Process driven, effective application of funding to maximise services

Not for profit

• Charities, foundations,
• Driven by organisations’ mission, sensitive to environmental change (e.g. fewer donations
from the public during times of economic downturns)
Purpose of organisations

Mission Vision Values

• Why do we • What must • How must we
exist? we become? behave to be
• Why do we successful?
do what we
do?

Business Objectives Business Culture

Corporate strategy:
‘A decision-making process by which the organisation attempts to meet its objectives. It is the way
the organisation plans its long-term future.’
Organisational structure

An organisational chart shows a company

according to its unique goals and objectives
(e.g. increasing production, government services,
innovative products) by clarifying: In other words…
…the organisational
• Which jobs and departments exist in the structure lays out who
organisation
does what so the
• What responsibilities and what authority
company can meet its
they have
objectives.
• How the network of relationships between
them is formed
• What the vertical flow of information and
commands looks like
Organisational structures

Different types of organisation structures:

• Functional
• Divisional
• Flat
• Tall
• Matrix
• Flexible
• Virtual
• Shamrock
Functional structure
Divisional structure
Flat structure
Tall / hierarchical structure
Matrix structure
Flexible firm
Virtual structure
Shamrock organisation

Charles Handy: Network model of organisations with 3 types of workforce

Organisational structures

• Which type of structure does your organisation have?

• What do you think are the advantages and disadvantages?
Organisational structures

Group exercise:
What do you think are the reasons for each type of structure and the
advantages and disadvantage of each type of structure:

• Functional
• Divisional
• Flat
• Tall
• Matrix
• Flexible
• Virtual
• Shamrock
Break
Learning Outcome 1
Understand the connections between organisational structure, strategy
and the business operating environment.
AC1.2 Analyse connections between organisational strategy, products,
services and customers.
Approaches to strategy development

1.Rational • Commonly seen as the ‘classical’ approach. Plan of action is

determined by the senior managers, who monitor the external and

Approach internal environments. Strategy formulation requires a defined set of

steps for effective implementation

2. Emergent • Incremental and emerge over time as and when the organisation needs
to respond to changing circumstances. These are not planned top-

Strategies down, but more trial and error, usually done on a lower scale and scope
and learned from as each stage is completed.

3. Symbolic • Organisations continue with business as usual, only trying different

approaches if required and success is down to luck rather than
Approach judgement and they can be in reaction to unforeseen changes.
Rational approach to strategy formulation
Levels of strategy

Competitive or
tactical strategy

Corporate strategy

Operational
strategy
Business exercise

Missio
Vision
n Create an idea for a business.
Discuss these elements for
your new business.

Values
Business exercise

Discuss how you will form the

strategy for your business,
thinking about the product /
service for your business and
the customers you will target.
Expanding your customer market

What ideas could you

use to expand your
customer markets?
What examples can
you think of?
Expanding your market

Examples:

• Increasing your marketing budgets to reach more people

• Incentivising your sales and marketing teams
• Widening your marketing reach
• 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 geographical reach
Finish