Importance of Organisational Design Theory in HR

This article discusses the importance of organisational design theory in HR and its impact on business profitability. It explores different approaches and techniques used for attracting, maintaining, developing, and rewarding human resources. The article also highlights the role of contemporary knowledge in supporting emerging HR developments. Additionally, it discusses the influence of government regulations and technology advancement on HR management.

Human Resource Value

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Importance of organisational design theory ..........................................................................1
Task 2...............................................................................................................................................4
P2 Approaches and techniques used for attracting, maintaining, developing and rewarding
human resources...........................................................................................................................4
Task 3...............................................................................................................................................6
P3 Research and use contemporary knowledge to support evidence for emerging HR
developments ..............................................................................................................................6
Task 4 ..............................................................................................................................................7
P4 Organisational design has to respond and adapt to change management and relationship ...7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Human resource is the main department of organisation who manages all functions and
activities effectively in order to run a business and increase profitability. In organisation number
of employees works together for the betterment of organisation as well as themselves. The main
aim of HR department is to understand the needs and wants of people and provide them products
and services so they can be satisfied and feel happy (Amankwah-Amoah, 2016). To understand
about this Aston Martin has selected that is luxury sports cars and grand tourers which was
founded in 1913 by Lionel Martin and Robert Bamford. Different topics are discussed in this
report such as importance of organisation design theory, different approaches and techniques
used for attracting and maintaining human resource to create skilled and dedicated workforce,
research and use of contemporary knowledge to support evidence and design of organisation that
has to respond and adopt to change management.
Task 1
P1 Importance of organisational design theory
HR is the valuable department in all organisation that contribute in success and
profitability by running all activities effectively. In Aston Martin, HR is playing important role
and responsibilities by understanding employees needs and make feel them good. The
organisational design theory in context to chosen organisation are as defined:
Organisational design theory – The design theory to organisation is considered as a
framework which is used for the purpose of running a business and structuring the hierarchy of
management in company. In other words, organisational design is the way in which a company
structured and operated by people. The organisational design of Aston Martin is in hierarchical
form where rules and regulations are formulated and implemented by HR manager in order to
run their business effectively. In this form superior and subordinates coordinate with each other
and share the information which is related to business. The main target of organisation is to
increase the profitability and execute operations independently. This assist HR management to
identify the dysfunctional aspects, procedures, system and structures of workflow that helps to
maintain the productivity (Bradford, Guzmán and Trujillo, 2017).
Importance of organisational design theory – The design theory in relation to
organisation is considered as a step by step methodology which is used to identify dysfunctional

aspects of work flow, procedures, systems etc. that helps to implement the changes efficiently. In
context to Aston Martin design theory is important that can help to meet with long term goals
and strategy effectively. If organisation have good design and attractive structure then people get
ready to work easily and accept the challenges in order to increase the profitability.
The importance of design theory are as defined:
Dealing with contingencies – Contingency can be defined as event that can occur at any
time without any expectations in organisation. It is the duty of management to plan properly and
meet with contingencies that can change the business environment. Design of company states
that how efficiently management control various factors in environment. The design of Aston
Martin is highly attractive and managers are capable to plans for contingencies that help to run a
business continuously. Herein, HR manager have ability to attract skilled employees, permanent
customers and government contracts. It manage all environmental factor that can impact on
business (Importance of organisational design, 2019).
Competitive advantages – In competitive time, all organisation wants to design their
structure in a way where it can get maximum sustainable advantages and increase profitability.
Competition allow a company to develop a proper business strategy to out perform competitors
by offering quality of products and services. In Aston Martin, managers make solid business
strategy in which they offer better quality of sports cars with new features that attracts customers
and increase competitive advantages (Wang, Cooke and Huang, 2014).
Diversity in workforce – Workforce is the main element of organisation who contributes
in organisational activities together with HR that increases value and productivity. For running a
business effectively there is need to skilled and diversified employees who get ready to work in
challenging situation. This is also important for Aston Martin to make plans in advance for
accepting the changes with the help of diversify employees. This helps to increase the
organisational effectiveness (Mabasa and Ngirande, 2015).
Improvement in communication – The design of organisation should be effective so
employers feel free to share the information that can help to work efficiently. In Aston Martin,
design is important as having effective design help to communicate properly between employer
and employees. It helps to increase the productivity and profitability effectively.
The theories and model used in design related to organisation that are as defined:

McKinsey's 7S model: This is a framework which is used by organisation to maintain
the changes and increase profitability effectively. Different types of elements are described
below:
Strategy – This means a strategy should be made by management that can help to
increase the organisational profitability. The main strategy of Aston Martin is to bring
improvement in production process and reduce the wastages that can help to make profits. So
this strategy will build and maintain competitive advantages over the competitors.
Structure – This states how a organisation is organised where people need to report their
superior for running activities effectively. Aston Martin is following hierarchy structure where
employees are responsible to report their superior by implementing plans and strategies
effectively (Chiappetta Jabbour, Mauricio and Jabbour, 2017).
System – It refers as system which is used by organisation in running daily activities and
procedures where employees get the job done. The management of Aston Marin is following
MIS system that helps staff to complete the job by maintaining day by day activities.
Shared values – These are considered as core values which is shown in corporate culture
and helps to attain the business goals. The management of Aston Martin is working under
corporate culture that helps to work independently and increasing business performance.
Style – The leaders and management of Aston Martin is adopting participative leadership
style where all management participate in organisational activities and business performance so
strategies can be implement effectively (Cavanagh and et. al., 2017).
Staff – The staff of Aston Martin have general capabilities that can help to produce cars
accordingly and accept the challenges properly so task can be complete efficiently.
Skills - The employees of chosen organisation are having technical, communication and
coordination skills that help to bring improvement reduce wastages and increase profitability.
Open system theory – This is considered as simple concept that affect the environment
and human factors in business organisation. It is the way of thinking about dynamics systems
that interact with environment effectively. This theory provides tools for thinking about change
such as explanations, descriptions and obstacles that occurs in organisation. Aston Martin is
applying open system theory that helps to implement the changes by paying attention on
feedback and informations helps to increase the organisational profitability (Chinyamurindi,
2016).

Task 2
P2 Approaches and techniques used for attracting, maintaining, developing and rewarding
human resources
Motivation is the important for all organisation which influences employees to work and
increase productivity effectively. If employees are motivated then they can perform well and
develop the organisation profitability. All companies are having goal carrying operations that can
help to maintain the organisational effectiveness. In Aston Martin, HR manager is playing vital
role by understanding their need and give them motivation that helps to increase business
effectiveness. Moreover, it attracts, maintain, develop and rewarding employees so goals can be
achieved in certain period of time. The management of such organisation are applying different
approaches and techniques that are as defined:
Content theory – This is motivational theory, involves various theories which is used to
motivate employees at workplace and get done the work in effective time period. It involves
Maslow's hierarchy, Herzberg two factor, McClellan's three needs, Alderfer's ERG theory etc.
Aston Martin is applying Maslow theory that are as explained:
Physical motivation: This is related with basic needs which should be provided to
employees so they feel good and motivated. The management understand the basic needs of its
employees and provide ample breaks for lunch, pay salaries that helps employees to buy life's
essential.
Safety needs: Here, employees aspects working environment that is related to safety,
freedom and job security. The management of Aston Martin are completing such needs of
employees that helps to make feel good and work effectively.
Social needs: The management of Aston Martin generate a feeling of acceptance
between employees by giving them respects and increase the organisational performance (Ihuah,
2014).
Esteem motivators: In this, managers of chosen organisation recognises achievements,
assign projects and provide status that helps employees to feel valued and appreciated.
Self actualization: This is also important for organisation that make feel employees good
by offering challenges and meaningful work assignments that helps to attain the business goals
effectively.

Process theory – The motivation of employees is important for all companies because if
they are satisfied and motivated then only be ready to accept challenges that helps to bring
improvements and increase productivity. Different theories are considered such as Adam Equity,
Vroom expectancy, Reinforcement, self efficacy and goal setting theories. The management of
chosen organisation are using motivational process theory that are as explained:
Adam's equity theory – This is a motivational process that provides high level of
employee motivation in workplace and it can be achieved when employees perceives their
treatment to be fair relatively to others. This theory is applied by management of Aston Martin
who treats employees fairly and get the complete the work in certain period of time. With the
help of this theory employees feel good and they retain in organisation for long period of time
(Purcell, 2014).
Human capital theory – This is concerned with knowledge and experiences of small
scale where business owners run their business effectively. In other words, it is the stock of
knowledge, habits, personality and social attributes that increases economic value and business
performance. This theory is different from any other capital which is required to complete the
goals and objectives effectively. In Aston Martin, this theory is applied by management where
employees and management oversees workforce acquisition and management effectively. With
the help of this productivity and profitability of organisation increases effectively. This theory
develop the growth of organisation and maintain business effectiveness.
Performance appraisals – This is appropriate and suitable approach is using by
organisation to maintain, develop, retain and improving business profitability by motivating
employees. In Aston Martin, employee's performance is measured by management by reviewing
and monitoring the performance that helps to reward them and increase the business
performance. This increases employees performance and profitability effectively so
organisational goals and objectives can be achieved efficiently (Herbel, Rocchigiani and Ferrier,
2015).

Task 3
P3 Research and use contemporary knowledge to support evidence for emerging HR
developments
Every organisation wants to see their profitability and success by running business
activities effectively. To complete task and attain business objectives it is important for
management to manage their personnel and secure internal information so changes can be accept
effectively. In Aston Martin employees coordinate with each other by sharing information and
data so new ideas can bring in organisation and complete the goals. For getting success,
confidentiality is important so problems can be resolved in specific duration and motivate
employees effectively. The management of Aston Martin uses contemporary knowledge that
support evidence HR development such as:
Adoption of artificial intelligence in recruitment process – Artificial intelligence is
growing factor that works as a solution and leads innovation in different sectors. With the help of
this organisation can increase its productiveness by hiring skilled and experienced people. This is
used by Aston Martin while recruiting employees online and operating business successfully.
This provides a online platform which is conducted by management in order to run a business
and increase profitability. Moreover, by using artificial intelligence the supply chain process and
operations become smooth and easy (Rane, Sunnapwar and Rane, 2016).
Extensive use of data analytics – This is another requirement of organisation where
management need to conduct a research regarding data and information so changes and changes
can be accept easily. This is important factor in contemporary research which is based on HR
developments and running their business effectively. It is related with country/region where
people are working effectively by accepting challenges. In highly competitive environment, it is
important for organisation to analyse data rapidly and take right business decisions effectively.
Adequate use of feedback tool to continuously improve the performance – Feedback is the
important for organisation which is given by employees in order to improve organisational
performance. Companies needs to encourage the employees engagement that helps to bring
improvement and profitability. In Aston Martin, management get feedback from employees that
states what should be need to bring improvements by solving employees problems so goals can
be complete in effective time period. With the help of this organisation can attain the business
goals and objectives effectively.

In current environment there are many external factor that affects human resource
management
Government regulations – This involves new workplace compliance standards which
pressured on human resource department to stay within law and run a business. Such regulations
and policies influences every process of HR department by involving hiring, training,
compensating, rewarding terminating etc. in case of not adhering such regulations a company
can be fined. In context to Aston Martin, HR department is following all government policies
that helped to run a business effectively. If it is not following or stop to following they company
will be shut down.
Technology advancement – This is considered as biggest external factor that influences
shape of current business in new achievement by using new technologies. When new technology
is introduced by management then HR department is playing a key role in which it start to look
at how a organisation can implement this and save money. This is the effective factor which can
be used by Aston Martin to improve the organisational productivity and profitability. With the
help of this, employees get prepare attractive design of sports cars that attracts customers and
increase business profitability.
Task 4
P4 Organisational design has to respond and adapt to change management and relationship
Change management is a collective term for all theories and approaches which is used by
organisation to support and help individuals, team and organisation is making changes
effectively. In other words, it is considered as a process, techniques and tools to manage the
people by accepting changes and attain the business outcomes. Herein, changes are accepted by
all management and employees so goals can be attain in efficient time. In context to Astonn
Martin, organisational design is used to adapt changes relationship effectively that is defined by
following situation:
Situation 1 Conflict of interest and ethical behaviour – This situation arises in
organisation while performing accepting changes and performing business activities. It means
employees of Aston Martin faces problems in relation to ethical conflicts where they need to get
what to do. If organisation is facing threat to their compliance, fundamental principles of

employees and ethical code then they should have strong knowledge to deal and accept the
changing environment .
To solve this situation management is need to use transformational change theory that
can help to accept the changes and new technology easily. With the help of this, employees and
management of Aston Martin become able to accept changing ethical behaviour of employees
that helps to attain the business goals. For example, Aston Martin is a leading organisation in
auto mobile sector that bring new technology and service in order to produce innovative cars and
operating business successfully. Moreover, management should use rule based and principles
based approach to specify the principles and ethical problem. Theses rules can help chosen
organisation to resolve ethical problem and maintain the effectiveness.
Situation 2 -Low productivity -This is another challenge which is facing by Aston
Martin is low productivity and profitability due to improper communication. To accept the
changes and increasing profitability there is need to have clear communication between
employees so goals can be achieved effectively (Pimentel and Major, 2016).
To overcome this problem there is need to use psychological change theory that can
help to accept the changes effectively and increase business profitability. It has defined that
motivation and productivity of Aston Martin is affected by relationship between employees and
management which helps to improve the organisational productivity. In this theory, manager
communicates with employees and share disputes which arises in organisation and increase the
profitability efficiently. In this organisation, managers plays a role of disturbance handler who
understand problems and get them a best solution so changes can be adopt effectively.
CONCLUSION
HR is the main function in organisation who understand needs and wants of employees
and satisfied them effectively. Different types of changes are faced by organisation where
management need to communicate with employees so goals can be attained effectively. All
activities are important that ensures organisational design theory is used run a business by
executing plans and strategies. Motivational theory such as process and content theory model is
used to influence people who are working at workplace and share the information so task can be
complete in effective time period.

REFERENCES
Books and journals
Amankwah-Amoah, J., 2016. An integrative process model of organisational failure. Journal of
Business Research. 69(9). pp.3388-3397.
Bradford, H., Guzmán, A. and Trujillo, M. A., 2017. Determinants of successful
internationalisation processes in business schools. Journal of Higher Education Policy
and Management. 39(4). pp.435-452.
Wang, J., Cooke, F. L. and Huang, W., 2014. How resilient is the (future) workforce in C hina?
A study of the banking sector and implications for human resource development.Asia
Pacific Journal of Human Resources. 52(2). pp.132-154.
Mabasa, F. D. and Ngirande, H., 2015. Perceived organisational support influences on job
satisfaction and organisational commitment among junior academic staff members.
Journal of Psychology in Africa. 25(4). pp.364-366.
Chiappetta Jabbour, C. J., Mauricio, A. L. and Jabbour, A. B. L. D. S., 2017. Critical success
factors and green supply chain management proactivity: shedding light on the human
aspects of this relationship based on cases from the Brazilian industry. Production
Planning & Control. 28(6-8). pp.671-683.
Cavanagh, J., and et.al., 2017. Supporting workers with disabilities: a scoping review of the role
of human resource management in contemporary organisations. Asia Pacific Journal of
Human Resources. 55(1). pp.6-43.
Chinyamurindi, W. T., 2016. A narrative investigation into the meaning and experience of career
success: Perspectives from women participants. SA Journal of Human Resource
Management. 1(14). pp.1-11.
Ihuah, P. W., 2014. A review of soft and hard approaches of human resource management and
the success of real estate development in Nigeria. Journal of Business Management and
Economic Development (JBMED). 1(1). pp.16-23.
Purcell, J., 2014. Disengaging from engagement. Human Resource Management Journal. 24(3).
pp.241-254.
Herbel, D., Rocchigiani, M. and Ferrier, C., 2015. The role of the social and organisational
capital in agricultural co-operatives’ development Practical lessons from the CUMA
movement. Journal of Co-operative Organization and Management. 3(1). pp.24-31.
Rane, A. B., Sunnapwar, V. K. and Rane, S., 2016. Strategies to overcome the HR barriers in
successful lean implementation. International Journal of Procurement Management.
9(2). pp.223-247.
Pimentel, L. and Major, M., 2016. Key success factors for quality management implementation:
evidence from the public sector. Total Quality Management & Business Excellence.
27(9-10). pp.997-1012.
Online
Importance of organisational design. 2019. [Online]. Available through:
<http://www.yourarticlelibrary.com/organization/4-importance-of-organizational-
design-explained/25686>