Importance of Organisational Design Theory in Organisational Structure

This document discusses the importance of organisational design theory in the context of organisational structure and fulfilling organisational strategy. It also analyses different approaches and techniques used for attracting, maintaining, developing and rewarding human resource to create a skilled and dedicated workforce.

Unit 36- Human
resources- valid and
contribution to
organisational success

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
TASK 1............................................................................................................................................1
P1) Evaluate the importance of organisational design theory in the context of organisational
structure and fulfilling organisational strategy...........................................................................1
M1) Apply appropriate theories and concepts to critically evaluate the importance of
organisational design...................................................................................................................3
TASK 2............................................................................................................................................5
P2) Analyse the different approaches and techniques used for attracting, maintaining,
developing and rewarding human resource to create a skilled and dedicated workforce...........5
M2) Critically analyse different approaches and techniques to motivation, human capital and
knowledge management..............................................................................................................7
D1) Recommendations supported by justification based on a synthesis of knowledge and
information to show how to improve the delivery of sustainable performance..........................8
TASK 3............................................................................................................................................9
Covered in ppt.............................................................................................................................9
TASK 4............................................................................................................................................9
P4) Evaluate how organisational design has to respond and adapt to change management and
the relationship that exist between the two using a specific organisational situation.................9
M4) Evaluate the different types of changes that can affect organisational design, including
transformational and psychological change..............................................................................10
D3) Critically evaluate the complex relationship between organisational design and change
management..............................................................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Human resources defines the set of individual that makes the workforce of the company
regardless the significant asset as like abilities, skills, capability etc. It is the department of the
business that deals with the hiring, training the staff, administration, retention and many other
aspects as well. It is a terms that include the management and development of all the employees
that are working within the business (Bender, 2019). It is the wider concept that consist of human
capital, manpower, personnel and labour that performs the human resource management as like
employee benefits, compliance as labour law, off boarding and many more. HR is being more
vital for the growth and development of company as perform the planning, selection and
recruitment, performance analysis, payroll and appraisal benefits, reviewing payrolls,
involvement benefits. The following report is based on Tesco that is a British multinational
general merchandise and groceries and one of the largest and leading retailer with having the
headquartered in Welwyn Garden City, Hertfordshire, UK. The report consist of importance of
organisational design theory, approaches and techniques used by human resource department and
organisational design to respond change management its relationship with other organisational
situation.
PART 1
TASK 1
P1) Evaluate the importance of organisational design theory in the context of organisational
structure and fulfilling organisational strategy.
The organisational design theory provide clear structure that is formulated with the better
support of rules and procedure that is followed by each and every individual so that productive
working is attained in timely basis. There are some different theory of organisational design that
is needed and used to analyse and ensure that organisation must have use the different structure
to work within the company (De Mauro, 2018). These design has been followed up to manage
the organisational strategy under which appropriate strategies get managed and implement in
systematic format and some of theories in context to design are as defined below as:
Traditional organisational theory: It is a theory that is based on the bureaucratic style
and in this leader of Tesco provide appropriate guidance and direction to its subordinates by
which they have perform their function in better and efficient manner under which perfect work
1

is processed. As per the context of this theory the matrix structure get followed by Tesco and
according to this lower and middle level employees have performed their duties as per the
guidelines of higher level management. It is a structure that is usually used within the large
organisation such as Tesco, Marks and Spencer Aston Martin, Tesla etc. and it is due to the fact
that employee performed certain function as per the uniform flow of information and with this
suitable decision making get managed and controlled (García Lillo, 2018).
It has vital importance over the working of Tesco as in support of traditional organisation
theory higher management provides appropriate guidance to its subordinates by which work is
completed with not only perfection but within the stipulated period of time as well. A selective
information is transmitted with the support of adequate channel thus in this employee
encouragement and involvement is increases by which goals and standardised objectives is
achieved in timely basis. The organisation design is much important for the business and in this
communication level within the employee is increases so that innovatory outcomes is conceived
within timely basis.
Tesco follows matrix structure as in support of this management of business must have
ensure to provide clear and better level transparency so that all the goals are achieved with
flawlessness. In this Tesco has gain long term success and development as its goals are
accomplished in timely basis. Traditional theory assist each individual under which clear
information and statistics is transferred in between all the employee's. In support of this
organisational structure is getting stronger and outcome is conceived in timely frames. In
addition strategy development of Tesco also increases as in this management knows the
loopholes and working to emphasis the productivity. Thus in this effective strategy is developed
that is easily accepted and understand by the workforce by which rate of achievement of target
also increases.
Open system theory: It is a theory that is known as contemporary theory as it is based
on the concept that business environment has strong influence on the working of organisation. In
this the manager have been followed the democratic style of leadership and with this try to
influenced the working behaviour and nature of employees. In this the workers get motivated
under which the productivity and profitability of Tesco get ameliorate (Ciobanu, 2018).
It is important for Tesco as in this management uses different style of leadership and in
support of it manager provide solution of each task and activity. It improvises the working
2

efficiency as problem solving capacity is increases and along with this clear and effective
communication is processed in between the employee's and manager. It is also used to develop
suitable designing of product and services so that long term market stability is attained with
easiness. The organisational design is much vital for the Tesco as it helps to make improvement
in relation to productivity and performance management so that all the issues and redundancy is
removed in sustained mode.
The matrix structure is followed by Tesco and under this employee has to report their
working to various managers. It is more valuable as in this organisation working is enhanced
because as in this manager analyse all the different situation and make clear understanding thus
ratio of conflicts generation is minimised. In this Tesco and its management get ensure that all
employee performed their work with better efficiency by which ability to meet customer's
expectations get flexure (Coita, 2019). It is being more useful to meet the better execution of
employees, higher level of involvement and engagement, better execution of all task by which
the affordability of business get folded multiple times.
In support of open system theory strategy development of Tesco is getting enhances as
management has better understanding about the need and requirement of employee's. Thus
management formulate different strategy in order to make sure that productive alteration is
induced within the working standards. In this strategies development is used by Tesco in order to
strengthen the purpose and importance of the structure. It support of it the management of the
company able to accomplish the long terms goals and objectives that is being used to attain the
better level of engagement and involvement of all the employees.
M1) Apply appropriate theories and concepts to critically evaluate the importance of
organisational design.
As per the evaluation of organisational design with support of traditional and open
system theory it is acknowledge that Tesco must have manage and control employee
encouragement and conflict resolution so that productive amount of changes addressed within
stipulated period of instance. In respect of these importance Maslow's theory of motivation and
McClelland's theory of need is analysed that make assist to improvise working condition by
which employee's get retain for longer time period. These are as explained below as:
Maslow's theory of motivation: It is a theory that is used by Tesco in order to motivate
the employee's so that better working is processed in systematic manner. In accordance to this
3

theory management of Tesco ensure that employee engagement is increases and for that manager
tries to fulfil different kind of needs and it is as explained below as:
Physiological needs: It is the basic need that is essential while motivating any employee
and for this management must provide food, water, rest, warmth to its employee's. If this need is
fulfilled then employee's must have connect themselves within the working and also tries to
make full of its effort in order to complete its working (Gattiker, 2019).
Safety needs: In this management of Tesco ensure that safety and security is offered to
the employee's and for that company provide adequate wages and incentives. It is used to
motivate an individual so that employee's connectivity towards business operation is increases.
Belongingness and love needs: It is the basis in which management of company tries to
intimate relationship and make friends. It motivates an individual and in this employee develop
trust with others due to which healthy surround is created that has positive impact over the
working.
Esteem needs: In this Tesco worked on to offer a feeling of accomplishment and prestige
and for this management must provide rewards and acknowledgement of employee working. In
this employee get appreciate as per its working and to gain more benefits employee's
performance is increases.
Self-actualisation: It is a basis in which management make sure that all its individual
achieve its working with full potential (Hubner, 2018). In this employee's get connect and retain
for longer period of time as its they get better response of its working.
In support of maslow's theory of need, an organisational design of Tesco enhance
employee engagement and connectivity by which working efficiency is getting increases. In this
management worked to motivate all the individuals so that they have worked effectively and get
retain for longer period of time. All the employee's has worked to fulfil its basic need first and
after that their wants and requirement get increases accordingly. If the prior needs are fulfilled by
employee's as after their efforts then they have put more efforts to achieve higher heights. As per
the achievement of physiological need employee's worked over to gain higher needs and if it
doesn't get achieved than employee's get de-motivated so that its performance ability also
decreases.
4

McClelland's theory of need: It is a theory that is used to drive motivation and not get
based on gender and age. It is used to drive better behaviour as by enhancing experiences and it
is as explained below as:
Achievement: It is a basic need that is used to accomplish better competency as in this
management of Tesco provide responsibilities as by noticing the working experiences. In this
progress within working potential is acknowledged through which efficiency to get over from
complex situation is managed and controlled.
Affiliation: It is a stage in which individual need belongingness and acceptance through
which they have felt more motivated and also get accepted by others as well. In this employee of
Tesco take participate in every gathering so that rate of conflicts is reduced in sustained manner.
Power: It is a need that is worked over to control desire of each individual and for this
management of Tesco influence others so that workers understand its responsibility and worked
by performing all authority (Jekiel, 2020).
In context of Tesco, they have worked over to satisfy its employee's and for that provide
all the basis factors as like wages, salary, incentives and other facilities as well. In this as
employee's initial need is satisfied they become more greedy about to achieve higher heights.
The employee's always worked to gain more growth but as after achieving adequate success self
believe is developed that sometime converted into egoistic by which level of conflict is
increases.
TASK 2
P2) Analyse the different approaches and techniques used for attracting, maintaining, developing
and rewarding human resource to create a skilled and dedicated workforce
The companies have worked with the objective to manage the different working
operation and functions by which the involvement of employees get developed. The human
resource management has worked with the ought to use the better capabilities of employees with
the help of different strategy under which the contribution of employee to achieve the goals of
business and its motivation get intensify (Kmecova, 2018). Thus manager has been used the
different approaches and techniques so as to address and develop the creative and dedicated
employees. Some of the theories and concepts that are used by Tesco is as described below as:
Theory for motivation:
5

Alderfer-ERG theory: It is a theory that is used to categorise the need of an individual.
In this management and Tesco has worked to manage existence, relatedness and growth related
need in which better satisfaction is induced in satisfactory manner that is as furthermore
explained below as:
Existence needs: It is a need that is based on the physiological needs and desire such as
food, water, shelter, clothing, safety, affection, relation etc. Tesco and its management fulfill
these needs by which employee get motivated and get attracted towards the business so that
effective connectedness and relatedness is measured.
Relatedness needs: This is a need that is encompassed with the external and social
esteem in which individual need significant relationship with family, friends, employers,
colleague etc. In order to provide these need management of Tesco must have recognise
employee's working and introduce security by offering adequate wages and other benefits as well
(Meyer, 2018). In this ability of Tesco to maintain effective relation with the skilled and talented
employee's is increases so that productive outcome is attained with sufficiency.
Growth needs: It is related to self actualisation in which individual works to make
creative and profitable working so that better progress is measured with effectiveness. In this
employee's ensure that all the task is completed in timely basis where management maintain
record of it and at the time of appraisals make priority accordingly. For this Tesco provide
rewards to its employee and it is based on the performance.
Theory for human capital:
The human capital theory is a framework that is developed to measure determinants so
that effective earning is analysed as by making suitable investment. It is being uses to emphasis
better level of satisfaction within the working so that productive and efficient changes is
addressed. It is also being used to make productive changes so that economic capabilities is
increases as it also assist to make better accessibility of resources. It basically reflect human
capital in which stock of knowledge, personality, attribute, habits is addressed by which ability
to perform better values is increases (Rombaut, 2018). It is a capital that is different from any
other capital as it helps the business to accomplish development, goals and innovation in
successful manner. In support of it Tesco provide training and development by which skills and
ability is getting increases and it impart motivation among workers. In order to maintain balance
management ensure that each task and activity is completed with adequate period of time. In
6

addition Tesco and its management always looking forward to attract skilled workforce so that
human capital is increases in constraint way.
Concepts for knowledge management:
Knowledge management is a process that is used by the company in order to manage the
skills, ability and strength of an employee by which the effective outcome get generated over the
continuous period of time and some approaches as described below as:
 In support of knowledge management manager of Tesco develop different strategy such
as developing employee benefit plans, allowance, gifts etc. so that working efficiency is
increases. As if employee gain more knowledge then it increases skills set and ability of
an individual. In this employee get attract towards the working of business and always
get retain for long time period.
 In addition to this Tesco provide adequate training and development to its employee's so
that skills and ability development is getting managed. In this learning and working
efficiency of worker is increases in sustained mode by which probability of achieving
certain task and objectives become more clear.
 To manage knowledge working Tesco provide reward to its employee's and it is
completely dependent on performance rating (Stewart, 2019). For example, if employee
get rewards in terms of appreciation then they get motivate and always performed its
working with more efficiency in which knowledge and skills both get improvise.
M2) Critically analyse different approaches and techniques to motivation, human capital and
knowledge management.
These are some technique and approaches that is used by Tesco in order to create the
skilled and dedicated workforce. There is some recommendation that are as justified below as:
 To motivate employee's Tesco uses Alderfer-ERG theory and in this they have fulfil the
basic need of an individual as by providing adequate wages and other many other benefits
as well. It has positive impact over the working of employee's as if basic need get
fulfilled then employee's get connected towards business. On the other hand this theory is
also used by Marks and Spencer and it has negative impact over its performance as
business is not able to found exact need of employee's thus it is hard to motivate the
worker over continuous period of time.
7

 To manage human capital Tesco provide training and development and make better
investment by which working efficiency of workers is getting enhanced (Terziev, 2019).
On the other hand Marks and Spencer uses this but it doesn't produce favourable outcome
as while providing more values to employee's they become free from job role thus
business is not able to complete its work on time.
 The develop knowledge management Tesco ensure that skills and ability of each
individual is enhance with continuity. For this not only provide training but also make
provide adequate guidance as well. On the other Debenhams didn't invest much amount
in effective training and only provide guidance by which workers takes time to get
trained to complete working with effectiveness.
D1) Recommendations supported by justification based on a synthesis of knowledge and
information to show how to improve the delivery of sustainable performance.
There are some different recommendation that is supported by the justification of
knowledge and information about the improvement of sustainable performance that is as defined
below as:
 In order to make sustainable changes within the working Tesco must have analysed all
the loophole in appropriate period of time. In order to enhance working efficiency and
encouragement within employee's Tesco and its management always make sure that
appropriate level of communication is processed so that clear information is transferred
within the business.
 It addition it is recommended that in order to reduce the probability of conflicts
generation management of Tesco make sure that employee involvement towards different
activities is increases. If employee's get connected towards with others then not only
positive surround is developed but along with this transparency within working is
achieved.
8

TASK 3
Covered in ppt
TASK 4
P4) Evaluate how organisational design has to respond and adapt to change management and the
relationship that exist between the two using a specific organisational situation.
Organization like Tesco plc is required to have design structure that has been helping in
development of various things that leads towards overall development of working in an
organization. Mangers of Tesco plc is required to improve business structure as per then
requirements. Examples regarding change has been explained as follows:
Transformational Changes: These are the changes that has been taking place within an
organization from the perspective of enhancing every process involved in changes related to
technology, individual and process. Tesco plc has been using old technology like using
calculators and maintaining records in floppies. Now they are using more advance form of
computers that has made generation of bill essay and making accounting to be done in faster and
better manner(Rodríguez-Sánchez, 2018). Also managing of data has been done in more secured
manner that has made availability of data and has helped in enhancing strategies in more
efficient way. Design that was being used by Tesco plc earlier were using traditional methods for
storing data and maintaining accounts like CD, pen drives, LAN and now they are being using
WAN with high speed net connection that has made data storage possible in effective manner.
Relation between change and design is that process of business has been ease down through
enhancement of technology and employees are being selected as the requirements of task.
Both change and design is connected with each other in a way that change in technology
has brought strength in accounting system and design that is being used by Tesco has made
compilation of data to be done in more simpler manner. If changes would have not been done
then new designs would have not been made.
Psychological or People Centric Changes: These changes that has been taking place
within an organization is helpful to enhance various aspects that is related to workplace. Change
brought in Tesco plc has made environment at workplace to be safe. An organization like Tesco
plc has been using Autocratic style of leadership in which what the leaders has said is to be done
9

by employees. The design that use to exits earlier was based on Autocratic style of leadership
that has been making an employee feel that he is not part of organization. New design that being
used is Democratic leadership style which makes employees feel part of organization and makes
him part of decision making mechanism that makes high level officials to be aware of problems
existing in an organization like Tesco plc. Both design and change has been made employee's to
improvise behaviour because organization like Tesco has been focusing on ethical code of
conduct which eventually made work environment to be healthy
M4) Evaluate the different types of changes that can affect organisational design, including
transformational and psychological change.
Changes that can impact design of organization like Tesco in a way that transformational
changes has made Tesco faced a positive change in a way that more trustable process of
accounting has been installed and billing process has been enhanced with recruitment process.
All this has made possible due to using more advanced computers instead of CDs, floppies and
pen drives. Due to Psychological changes taken place in Tesco work environment has been
impacted in positive manner as all employees is working with coordination and feeling of
togetherness (Khandelwal, 2019).
D3) Critically evaluate the complex relationship between organisational design and change
management.
Tesco plc has been using various kinds of technologies that were complexed in nature
and impacting over all performance of employees. Using of old technologies like floppies, CD's
and pen drive increased burden on data storing team. Now using WAN with high speed data has
been able to store data in more secured manner. Then shifting from autocratic leadership style to
democratic leadership style brought change in attitude of employees towards each other. This
change was necessary to make growth of organization possible. Also it lead towards making
employees filled with feeling of togetherness.
10

CONCLUSION
It has been concluded from the above report that the human resource is being vital aspect
within the business as it enhance the level of participation and revert of employee performances.
In this the ability and capability of the company get enlarged as with this all the functions and
operation get performed with better support. In this the organisational design is being used to
make and ensure that better flow of services get managed under which the implementation of
different strategy also get more smoother. There are some approaches and techniques as well
that is used by the company to attract, maintain, develop and reward the human resource by
which have gathered the workforce that is more skilled and dedicated towards its work by which
the accessibility of business get improvised and more profit get attained by the business. In
additional the human resource management produce the better values and make effectual
contribution in the success of organisation. It is better for the HR to make the appropriate design
as under this the suitable response get managed to make the certain change within the business.
11

REFERENCES
Books and Journals
Bender, C.E. And et. al., 2019. 2018 ACR Commission on Human Resources workforce survey.
Journal of the American College of Radiology. 16(4). pp.508-512.
Ciobanu, A. and Androniceanu, A., 2018. Integrated human resources activities-the solution for
performance improvement in romanian public sector institutions. Management
Research & Practice. 10(3).
Coita, D.C. And et. al., 2019. Effects of the blockchain technology on human resources and
marketing: an exploratory study. In Strategic Innovative Marketing and Tourism (pp.
683-691). Springer, Cham.
De Mauro, A. and et. al., 2018. Human resources for Big Data professions: A systematic
classification of job roles and required skill sets. Information Processing &
Management. 54(5). pp.807-817.
El Talla, S.A. And et. al., 2018. The Availability of the Focus Standards on Human Resources
and Processes as a Potential for Excellence in Palestinian Universities According to the
European Model.
García Lillo, F. and et. al., 2018. Mapping the “intellectual structure” of research on human
resources in the “tourism and hospitality management scientific domain”: Reviewing
the field and shedding light on future directions.
Gattiker, U.E. and Larwood, L. eds., 2019. Managing technological development: strategic and
human resources issues (Vol. 1). Walter de Gruyter GmbH & Co KG.
Hubner, S.V. and Baum, M., 2018. Entrepreneurs' human resources development. Human
Resource Development Quarterly. 29(4). pp.357-381.
Jekiel, C.M., 2020. Lean human resources: redesigning HR processes for a culture of continuous
improvement. CRC Press.
Khandelwal, K. and Upadhyay, A.K., 2019. Virtual reality interventions in developing and
managing human resources. Human Resource Development International, pp.1-15.
Kmecova, I., 2018. The processes of managing human resources and using management methods
and techniques in management practice. Ekonomicko-manazerske spektrum. 12(1).
pp.44-54.
Meyer, M. and Leitner, J., 2018. Slack and innovation: The role of human resources in
nonprofits. Nonprofit Management and Leadership. 29(2). pp.181-201.
Noe, R.A., Hollenbeck, J.R., Gerhart, B. and Wright, P.M., 2018. Fundamentals of human
resource management. McGraw-Hill.
Rodríguez-Sánchez, J.L. And et. al., 2018. Successful human resources management factors in
international mergers and acquisitions. Administrative Sciences. 8(3). p.45.
Rombaut, E. and Guerry, M.A., 2018. Predicting voluntary turnover through human resources
database analysis. Management Research Review.
Stewart, G.L. and Brown, K.G., 2019. Human resource management. John Wiley & Sons.
Terziev, V., 2018. Importance of human resources to social development. Proceedings of
ADVED.
Terziev, V., 2019. Social activity and human resources as social development factors.
Proceedings of INTCESS.
12