5CO01 Assignment Example
5CO01 assignment explores how organisational structure intersects with the broader realm of work within a commercial framework. It emphasises the various factors and trends, such as the digital landscape, that influence business strategy and workforce planning. It acknowledges the role of culture, employee wellbeing, and behaviour in driving organisational change and enhancing performance.
Table of Contents
Assessment Questions
Tasks
AC 1.1 Evaluate the advantages and disadvantages of both a divisional structure and a matrix structure. Within the evaluation, you should include the reasons underpinning each structure.
Divisional Structure
A divisional structure organizes a company based on products, services, or geographical regions. Each division operates like a smaller organization with its own resources and departments, such as marketing and finance (Gillikin, 2019).
Why Companies Use Divisional Structure
Large organizations with diverse products or markets need specialized attention to meet customer demands. This structure allows divisions to adjust their strategies based on their specific markets or product areas (Gillikin, 2019).
Advantages and disadvantages
A divisional structure increases flexibility, enabling companies to respond quickly to market changes (Sherman, 2020). It also promotes accountability by making each division responsible for its performance. However, overlapping functions can lead to inefficiencies and higher costs. Maintaining coordination between divisions can also be challenging, requiring strong leadership (Sherman, 2020).
Example
Microsoft follows a divisional structure based on its products, such as Windows, Office, and Azure. Each product division operates independently to serve different market needs (Organimi, 2024).
Analyse the extent to which the organisational strategy in your organisation (or an
organisation with which you are familiar) helps to ensure products or services meet
customers’ needs.
AC 1.2 Analyse the extent to which the organisational strategy in your organisation (or an organisation with which you are familiar) helps to ensure products or services meet customers’ needs.
Organizational strategy is a company’s comprehensive plan for achieving its long-term vision and mission (Personio, 2023). It involves three main components: strategy analysis, strategy development, and strategy implementation.
Strategy analysis focuses on evaluating the organization’s environment to identify strengths, weaknesses, opportunities, and threats. This process relies heavily on market intelligence, which includes understanding trends, market coverage, and competitor activities (Edrawsoft, 2024). Based on this analysis, organizations develop strategies by setting goals and determining how to allocate resources effectively (Edrawsoft, 2024). Once the strategies are established, the implementation phase begins. This involves executing the strategies through various projects and initiatives while continuously monitoring progress, managing control processes, and assessing outcomes at all levels of the organization (Edrawsoft, 2024).
Microsoft’s organizational strategy is closely tied to its products, services, and customer focus. The company’s vision of enhancing productivity for individuals and organizations is evident in its core products, such as Windows, Office, and Azure (Microsoft Corporation, 2024). Microsoft also invests heavily in research and development to improve its products, ensuring they remain competitive in the fast-evolving technology industry. Additionally, the company focuses on product integration, seamlessly connecting offerings like Office 365 with Windows and Azure to enhance user experience and foster customer loyalty (Microsoft Corporation, 2024).
Beyond its products, Microsoft’s strategy extends to its service offerings, including cloud computing, artificial intelligence, and professional consulting. Azure Cloud has become a critical part of Microsoft’s business model, reflecting the company’s adaptation to market demands for scalable and cost-effective cloud solutions (Sushmith, 2023). Furthermore, Microsoft provides professional consulting services to help customers maximize the benefits of its products, ultimately increasing satisfaction and strengthening long-term business relationships.
Customer-centricity is another key element of Microsoft’s strategy. The company leverages big data to gain insights into customer needs, which influences product development and service enhancements (Sushmith, 2023; Brand Credential, 2023). Additionally, Microsoft’s international expansion strategy enables it to serve customers across different regions, adapting its offerings to meet diverse market demands. Through these strategic approaches, Microsoft continues to maintain its competitive edge and grow its global customer base.
AC 1.3 Analyse the current impact of interest rates, inflation and one other external factor on your organisation (or one with which you are familiar). Identify organisational priorities arising from your analysis.
Technology has had a significant and lasting impact on Microsoft, particularly in artificial intelligence, cloud computing, and cybersecurity (Althoff, 2021). The continuous advancements in AI allow Microsoft to enhance its products by incorporating intelligent features into platforms such as Office 365 and Dynamics 365. Similarly, improvements in cloud technology have strengthened Azure, enabling Microsoft to provide more efficient, reliable, and scalable cloud solutions.
To fully leverage these technological advancements, innovation remains a top priority for Microsoft. The company consistently updates its products and services, integrating AI-powered features and expanding cloud capabilities. This approach helps Microsoft stay ahead in the highly competitive technology industry. By focusing on continuous innovation, the company ensures it delivers valuable solutions to customers while maintaining its position as a market leader (Althoff, 2021).
Globalization has also played a crucial role in Microsoft’s growth, bringing both opportunities and challenges. Expanding into international markets allows Microsoft to diversify its customer base and increase revenue. However, entering foreign markets means navigating different regulations, business standards, and competition (Morales, 2023). To mitigate risks while capitalizing on opportunities, Microsoft prioritizes market expansion by tailoring its products and services to meet local needs. This includes compliance with regional laws and localization efforts to strengthen its presence in various countries (Morales, 2023).
Legal regulations and government policies also have a significant influence on Microsoft, with impacts ranging from neutral to negative. Laws such as the General Data Protection Regulation (GDPR) in Europe and antitrust investigations can impose restrictions on Microsoft’s operations (Ferguson, 2023). To manage these challenges, Microsoft prioritizes regulatory compliance by developing strong compliance frameworks and ensuring adherence to evolving legal standards. By doing so, the company minimizes legal risks, avoids penalties, and maintains a positive reputation with both governments and customers (Ferguson, 2023).
Through strategic adaptation to technological advancements, globalization, and regulatory requirements, Microsoft continues to thrive in the ever-changing business environment.
AC 1.4 In February 2024, Peter Cheese, current CEO of CIPD stated, “AI is transforming jobs, careers, and workplaces. People professionals have a key role to play in encouraging safe experimentation and rapid learning so that we can reap the benefits and mitigate the risks.” Assess the extent to which AI is, or could be, used in your organisation (or an organisation with which you are familiar) and assess how AI impacts work.
Technology plays a crucial role in modern organizations, improving efficiency, communication, and adaptability.
One of the main uses of technology is enhancing operational efficiency. Companies use technology to reduce costs, minimize manual labor, and streamline business processes (Althoff, 2024). Enterprise Resource Planning (ERP) systems help centralize key functions like inventory management, finance, and human resources, making information more accessible and improving decision-making (Althoff, 2024).
Technology also improves communication and collaboration within organizations. Tools like email, instant messaging, and video conferencing platforms such as Microsoft Teams and Zoom allow employees to connect and collaborate regardless of location (Gregory, 2023). These technologies enable remote teamwork, making it easier for employees to share ideas, conduct meetings, and work together efficiently.
As technology evolves, cloud computing has become increasingly popular. Services like AWS, Microsoft Azure, and Google Cloud allow businesses to store data and run applications online, offering greater flexibility, cost savings, and accessibility (Lavanyapg, 2023). Cloud computing supports remote work by ensuring employees can access essential resources anytime, anywhere, enabling business continuity.
Technology also has a significant impact on workplace productivity. Automation reduces repetitive tasks, allowing employees to focus on more strategic work. For instance, automated data entry and processing systems minimize errors and save time, while project management tools like Trello and Asana help teams track progress, meet deadlines, and allocate resources efficiently (Lavanyapg, 2023).
While technology improves productivity, it also affects employee well-being. Remote work tools provide flexibility, allowing employees to balance work and personal responsibilities. However, constant connectivity can lead to digital fatigue, as employees may feel pressured to be available at all times. To prevent burnout, organizations need clear policies to manage work-life balance and limit excessive screen time (Fingent, 2024).
Overall, technology continues to shape the modern workplace, offering both opportunities and challenges. By using it effectively, organizations can improve efficiency, support remote work, and enhance employee productivity while ensuring a healthy work environment.
AC 2.1 Explain Charles Handy’s model of organisational culture and explain David Rock’s SCARF theory.
Charles Handy’s Organisational Culture Model
Charles Handy’s model explains how different leadership styles influence a company’s culture. He identifies four main types, each shaping how decisions are made and how employees work.
Power Culture
In a power culture, authority is held by one person or a small group. Decisions come from the top, and rules are flexible. This type of culture works well in environments where strong leadership is needed for quick decision-making (L&D Hero, 2023).
Role Culture
A role culture is structured with clear roles and responsibilities. Employees focus on their specific tasks, and their performance is judged based on how well they fulfill these duties. This culture is common in large organizations and government institutions, where rules and procedures guide operations (L&D Hero, 2023).
Task Culture
A task culture values teamwork and collaboration. Instead of following a strict hierarchy, employees work together to solve problems and complete projects efficiently. Organizations with this culture emphasize cooperation and flexibility (Veigas, 2022).
Person Culture
In a person culture, the focus is on individual employees rather than the company’s goals. Employees have control over their work, and the organization supports their career growth and personal development (Fraraccio, 2023).
David Rock’s SCARF Theory
David Rock’s SCARF model describes how social and emotional factors affect workplace behavior. It highlights five key areas—Status, Certainty, Autonomy, Relatedness, and Fairness—that influence employees’ motivation and reactions. Understanding these factors helps organizations create a positive work environment.
Status
Status refers to an employee’s position within a group. People value recognition, and if they feel unappreciated, they may become insecure or disengaged (World of Work Project, 2019).
Certainty
Employees need predictability in their work. Unclear goals and expectations can cause stress and anxiety. Organizations can reduce uncertainty by providing clear communication and structured processes (World of Work Project, 2019).
Autonomy
Autonomy is the ability to make decisions independently. Employees who have control over their work feel more motivated and engaged, while those with little autonomy may become frustrated and less productive (Cloke, 2020).
Relatedness
Relatedness is about feeling connected to colleagues. Strong relationships improve teamwork and productivity, while isolation can lead to stress and low motivation (Cloke, 2020; Fitzgerald, 2023).
Fairness
Fairness ensures that employees feel they are treated justly. If workers perceive unfairness in promotions, rewards, or decision-making, it can lead to distrust and dissatisfaction. Transparency and equal treatment help build trust and morale (Fitzgerald, 2023).
By understanding these cultural models and psychological factors, organizations can create a better work environment, improve employee satisfaction, and enhance overall performance.
AC 2.2 Assess how employee selection or employee development impacts organisational culture and behaviour in your organisation (or one with which you are familiar).
Microsoft places great importance on its employee selection process, as it shapes workplace culture and influences employee behavior. The selection process ensures that new hires have the right skills and align with Microsoft’s values, expectations, and team-oriented work environment. By carefully choosing employees who fit its culture of innovation and collaboration, Microsoft strengthens its workforce and enhances overall performance (Lenka, 2018).
Positive Impacts
Cultural Alignment and Innovation
Microsoft seeks employees who embrace innovation, teamwork, and continuous learning. The company looks for candidates who are flexible, eager to grow, and capable of creative problem-solving. This is particularly important in product development and artificial intelligence roles, where Microsoft prioritizes hiring individuals with strong problem-solving skills and a talent for innovation (Ann, 2024). By selecting employees who fit this profile, the company fosters a culture of creativity, ensuring teams work together to develop cutting-edge solutions that drive success (Ann, 2024).
Strengthening Teamwork and Collaboration
Teamwork is a core principle at Microsoft, and the hiring process reflects this. The company assesses candidates’ ability to work effectively in team settings, often testing their collaboration skills during interviews. For instance, cloud computing employees must coordinate with multiple departments to develop innovative cloud solutions. By selecting candidates who excel in teamwork, Microsoft ensures a collaborative work environment that enhances productivity and innovation (Microsoft, 2025).
Negative Impacts
Risk of Homogeneity
While hiring employees who fit Microsoft’s culture has benefits, it also presents challenges. A strong focus on cultural alignment may lead to a lack of diversity, as new hires might be too similar to existing staff. This could limit fresh perspectives, reduce creativity, and weaken problem-solving abilities. In highly competitive technology markets, companies like Microsoft need diverse ideas to drive innovation, and an overly uniform workforce may hinder this progress (Singh, 2024).
Pressure to Conform
Emphasizing cultural fit can sometimes create pressure for employees to conform to specific behaviors. While it is important to align with company values, strict expectations may make employees feel they need to suppress their individuality to be accepted. Those who prefer working independently or have different collaboration styles might struggle to fit in, leading to feelings of exclusion (Klinghoffer & McCune, 2022). Employees who do not fully conform to Microsoft’s cultural norms may find it difficult to thrive in such an environment (Gershgorn, 2020).
AC 2.3 An organisation is planning a change relating to hybrid working. Many employees moved to home working during the Covid-19 pandemic. Whilst this approach worked well at the time, the organisation now wants all employees to work at least two days a week on-site. Explain how Kotter’s approach to managing change could be used to successfully implement this change.
Lewin’s Three-Step Model of Change
Kurt Lewin’s Three-Step Model of Change is one of the earliest and most influential frameworks for understanding organizational change. It remains relevant in modern businesses, providing a structured approach to managing transitions. The model consists of three key stages:
1. Unfreezing
The first stage involves preparing the organization for change by recognizing that transformation is necessary. This step disrupts the current way of doing things and challenges existing practices, behaviors, and attitudes. Employees must understand why change is needed and how maintaining the status quo may be harmful. Organizations can achieve this by clearly communicating the risks of not changing and presenting a compelling case for the new direction (Raza, 2019).
2. Change
At this stage, the organization begins to implement new processes, behaviors, and perspectives. It is a transitional phase where employees adopt new ways of working, which can bring uncertainty and resistance. To ensure a smooth transition, organizations must provide clear communication, training, and skill development to support employees in adapting to their new roles and responsibilities (Hicks, 2022).
3. Refreezing
The final stage focuses on reinforcing and stabilizing the changes so they become part of the organization’s culture. This involves embedding new processes into workplace policies, rewarding employees for embracing change, and providing continuous support. The goal is to make the new way of operating the standard practice without requiring constant reminders or reinforcement (Hicks, 2022).
Reactive Methods in Change Management
Reactive change management occurs when organizations respond to external pressures or unforeseen events. These approaches are often implemented quickly to address urgent challenges.
1. Crisis Management
Organizations sometimes face crises such as financial difficulties, public scandals, or the sudden departure of key employees. In such situations, quick decisions, resource reallocation, and immediate corrective actions are necessary to stabilize the organization (Abbas, 2023). However, while reactive responses can resolve immediate issues, they do not always prevent similar problems from occurring in the future, especially if no long-term strategy is put in place (Reactive Executive, 2023).
2. Ad-Hoc Problem Solving
This approach involves addressing specific problems as they arise without a long-term plan. For example, if a company experiences declining sales, it might respond by launching an aggressive marketing campaign or cutting costs without analyzing the root causes of the decline. While these measures can provide temporary relief, they may lead to fragmented strategies that fail to address underlying issues effectively (Reactive Executive, 2023).
AC 2.4 Using the Kubler-Ross change curve, discuss how change is experienced.
Kubler-Ross Change Curve
The Kubler-Ross Model was initially developed to explain the grieving process but was later adapted to describe how people respond to change. It outlines five stages that individuals typically go through during transitions:
1. Denial
At first, people may refuse to acknowledge the change, believing it is unnecessary or not happening. This stage is marked by shock and avoidance (Malik, 2022).
2. Anger
As reality sets in, frustration and resentment may arise. Employees may express dissatisfaction, resist the change, or question why it is happening (Cruse Bereavement Support, 2022).
3. Bargaining
In this stage, people try to find ways to delay, modify, or negotiate the change. They may attempt to make compromises to avoid the inevitable (Malik, 2022).
4. Depression
When individuals realize the change is unavoidable, they may feel overwhelmed with sadness, fear, or uncertainty. Employees may lose motivation, experience stress, or struggle with their workload (Cruse Bereavement Support, 2022).
5. Acceptance
Finally, people begin to accept the change and adjust to it. They learn how to incorporate the new reality into their daily work and move forward (Cruse Bereavement Support, 2022).
This model helps organizations understand the emotional responses to change, allowing them to provide timely support to employees and ensure smoother transitions.
AC 2.5 The CIPD’s Health and Wellbeing at Work survey 2023 found the percentage of organisations that have a standalone wellbeing strategy has risen from 40% in 2018 to 53% in 2023. Although the percentage has increased, this means that 47% of organisations do not have a standalone wellbeing strategy. Assess the importance of wellbeing at work and assess how good work could impact wellbeing.
The Importance of Employee Well-being at Work
A healthy work environment enhances employee satisfaction, motivation, and overall productivity. Organizations that prioritize well-being create a positive workplace culture, leading to long-term success.
1. Employee Engagement and Motivation
Work is a major part of people’s lives, and their well-being directly affects their performance. Employees who feel physically and mentally supported are more engaged, motivated, and committed to their roles. This results in higher productivity, better efficiency, and greater job satisfaction (Bold, 2022).
2. Physical and Mental Health
A workplace that promotes good health reduces stress, burnout, and absenteeism. Employers should focus on creating environments that minimize work-related stress and provide resources to support mental well-being. When employees feel well-cared for, they can perform better and cope with workplace challenges more effectively (Bold, 2022).
Factors Affecting Well-being
1. Work-Life Balance
Balancing professional and personal responsibilities is crucial for employee well-being. Organizations that offer flexible working hours, remote work options, and sufficient leave policies help employees manage their work and personal lives effectively. A lack of balance can lead to stress, burnout, and high employee turnover (Suff, 2023).
2. Organizational Culture and Support
A positive workplace culture plays a key role in employee well-being. Organizations that recognize employee efforts, foster inclusivity, and provide access to mental health resources create a supportive environment. On the other hand, toxic workplace cultures with high stress levels, poor management practices, and lack of support can lead to low morale, workplace conflicts, and high absenteeism (McKinsey & Company, 2024).
AC 3.1 Provide a brief overview of the employee lifecycle and discuss people practice roles at the recruitment, development, and separation stages of the lifecycle.
The Employee Life Cycle
The employee life cycle is a model that outlines the different stages an employee goes through during their time in an organization (Fields, 2023). Each stage involves specific HR practices that help support and develop employees.
1. Attraction
This stage focuses on attracting potential employees to the organization. HR professionals play a key role in employer branding, recruitment marketing, and candidate sourcing. They create job advertisements, participate in recruitment fairs, and use online platforms to find suitable candidates (Fields, 2023).
2. Recruitment
During recruitment, HR professionals work closely with hiring managers to screen, interview, and select the best candidates. They ensure new hires not only have the required skills but also fit the company’s culture (Fields, 2023).
3. Induction/Onboarding
HR is responsible for helping new employees settle into their roles smoothly. This includes orientation sessions, explaining company policies and procedures, and providing basic training to help them integrate into the organization (Personio, 2021).
4. Development
Learning and development (L&D) professionals organize training programs to enhance employees’ skills and knowledge. Continuous development ensures employees stay effective in their roles and prepares them for career growth (Personio, 2021).
5. Retention & Engagement
HR plays a key role in keeping employees engaged and motivated. They implement performance appraisals, rewards, and employee engagement activities to create a positive work environment that encourages job satisfaction and loyalty (Verlinden, 2022).
6. Exit/Separation
When employees leave the organization, HR manages the exit process, including exit interviews, handling legal and administrative requirements, and ensuring a smooth transition. Proper offboarding helps maintain positive relationships and supports the company’s reputation (Verlinden, 2022).
AC 3.2 Analyse how people practice supports organisational strategy through vertical integration and how people practice supports wider people strategies through horizontal integration.
The Role of People Practice in Organisational Success
Organisational success depends on effective people practices that align HR functions with business goals. By integrating HR strategies both vertically and horizontally, organisations can create a well-structured people strategy that supports long-term growth (CIPD, 2023).
Vertical Integration: Aligning HR with Organisational Goals
Vertical integration ensures that HR strategies directly contribute to business objectives. HR professionals play a key role in workforce planning and performance management to align employees’ efforts with organisational priorities (Hayden, 2023).
- Workforce Planning and Talent Management
HR teams develop people-focused strategies that match business needs. For instance, if a company values innovation, HR focuses on hiring creative and adaptable employees while providing continuous learning opportunities. Workforce planning ensures the organisation has the right talent in place to support long-term success (Hayden, 2023). - Performance Management and Organisational Culture
HR professionals design performance management systems that connect employee goals with business objectives. They establish key performance indicators (KPIs) to encourage a high-performance workplace culture (Gifford, 2024). For example, a customer-oriented company may set performance targets that reward employees for excellent customer service.
Horizontal Integration: Creating a Unified People Strategy
Horizontal integration ensures that different HR functions work together rather than operating separately. This alignment strengthens people strategies across recruitment, learning and development (L&D), employee well-being, and performance management.
- Learning and Development (L&D) and Career Growth
HR ensures that L&D programs support recruitment, retention, and succession planning. Career development opportunities help employees grow within the organisation, strengthening internal talent and supporting business expansion (Criterion, 2024). - Employee Well-being and Engagement
A well-integrated HR strategy includes initiatives that enhance employee well-being, leading to higher engagement and retention. A strong workplace well-being culture reduces absenteeism, boosts morale, and improves overall performance (Engagement Multiplier, 2024).
AC 3.3 An organisation is planning to introduce a four-day working week. Discuss the processes the people function could use to consult and engage with managers and employees to understand their needs when moving from a five-day to a four-day working week.
Consultation and Engagement for a Four-Day Workweek
Switching to a four-day workweek involves collaboration between managers and employees to ensure a smooth transition. The HR team plays a central role in gathering input, addressing concerns, and securing support across the organization through different methods.
Surveys and Feedback Mechanisms
Surveys are a valuable tool for collecting insights from both employees and managers about their preferences and potential challenges during the transition.
Why They’re Useful:
Surveys offer employees, including those who may not feel comfortable speaking up, a chance to share their thoughts anonymously (Nandwani, 2022).
What They Add:
They help HR identify potential issues such as workload distribution, work-life balance concerns, and expectations around productivity and compensation (Nandwani, 2022).
How to Implement:
Surveys should assess how employees manage their workloads and how reducing workdays could affect their performance. Ongoing pulse surveys can help track satisfaction and identify new concerns as they arise (McQuillen, 2024).
Focus Groups and Workshops
Once survey data is gathered, HR can organise interactive sessions where employees, managers, and HR representatives can have open discussions.
Why They’re Useful:
Focus groups offer a space for direct conversations, allowing employees and managers to address concerns and work together to find solutions (Boatman, 2021).
What They Add:
These discussions help HR address concerns about workload changes, operational efficiency, and team performance expectations. Managers can also share strategies to support their teams during the transition (Boatman, 2021).
How to Implement:
Workshops should be tailored to different departments to ensure they align with specific roles. Case studies from other organizations that have successfully adopted a four-day workweek can also help leaders and employees understand the potential benefits and challenges.
Pilot Programs and Structured Reviews
Before fully adopting a four-day workweek, organizations should run a pilot program to evaluate its impact.
Why They’re Useful:
Pilot programs allow organizations to test the concept and adjust their strategies based on real-world feedback (Ingram, 2025).
How to Implement:
A phased rollout lets organizations refine their approach based on actual workplace dynamics. Regular reviews should be conducted to ensure continuous improvement.
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