: Value and Contribution to Organisational Success

36 HR: Value and
contribution to
organisational success
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Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
TASK 1............................................................................................................................................2
P1 Significance of organisational design theory in relation to organisational structure and
fulfilment of organisational strategy......................................................................................2
M1 Application of suitable theories and concepts to critically evaluate importance of
organisational design..............................................................................................................3
TASK 2............................................................................................................................................4
P2 Analysis of different approaches and techniques used for attracting, developing and
rewarding human resources....................................................................................................4
M2 Usage of particular examples to analyse motivation, human capital and knowledge
management techniques..........................................................................................................5
D1 Suitable recommendations with justifications on the basis of knowledge synthesis.......6
TASK 3............................................................................................................................................6
P3 Usage of contemporary knowledge to support evidence for emerging HR development 6
M4 Evaluation of impact of emerging HR development on role of HR in future..................7
D2 Judgements and conclusion on the basis of synthesis of knowledge...............................7
TASK 4............................................................................................................................................8
P4 Ways in which organisation design has to adapt and respond to change management and
the relationship between organisational design and change management.............................8
M4 Evaluation of different types of changes which impact on organisational design including
transformational and psychological change...........................................................................8
D3 Critical evacuation of the complex relationship between organisational design and change
management............................................................................................................................9
CONCUSION................................................................................................................................10
REFRENCES.................................................................................................................................11
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INTRODUCTION
Organisational design of a business firms influences the daily activities conducted at a
company and plays a critical role in deciding success or failure of a business firm. The present
report is based on the American chemical manufacturing company DuPont which was
established in the year 1802 and has expanded to 40 countries. The company is leading chemical
manufacturer in America and is responsible for developing various innovative materials such as
Teflon, Mylar, Dacron and Lycra. The present report focuses on the organisational design of
DuPont. The importance of organisational design in context of organisational structure is
provided in this report. Approaches of attracting, developing and retaining skilled labour is
analysed in this report in context of DuPont. Emerging HR developments are described in this
report and the impact of these developments on or role of HR is evaluated. Response of
organisational design to change management is mentioned in this report along with critical
evaluation of change management and organisational design.
MAIN BODY
TASK 1
P1 Importance of organisational design theory in connection to organisational structure and
fulfilment of organisational strategy
The fundamental premise of organisational design theory is that the organisational design
is important factor in deciding success of business firm as it impacts the organisational output.
Performance of a business firm is impacted by organisational design as it specifies and regulates
the ways in which employees and teams work in the organisation (Barnard, 2020). In context of
DuPont organisational design of the company contributes to the high performing employees of
the firm and decides the success of the company.
Organisational structure determines the way of completing certain activities and the
information flow in the company. The business activities which are impacted by organisational
structure of the company include regulations imposed by the company and roles and
responsibilities of the employees. The reporting structure of a company is directly shaped by the
organisational structure of the company (Fenech, Baguant and Ivanov, 2019). In case of the
American chemical manufacturer DuPont, the company has adopted decentralised organisational
structure under which employees are divided into department on the basis of their function such
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as decision making, management, sales team, support team or research and management. This
type of organisational structure is defined as functional organisational structure. The functional
organisation structure enables the company to build specialisation in employees and enhance
managerial efficiency of the company. The importance of organisational design theory for
DuPont in context of organisational structure is provided below:
Matrix organisational structure
The matrix organisational structure is formed with dual supervision on employees.
Organisational design of the company changes as employees work with different departments
which have different functions and are supervised by more than one manager (Gloss, 2019). This
type of organisational structure is beneficial as it increases job security and internal
communication in the company. In addition to this productivity and flexibility of the company
also increases. In context of DuPont the adoption of this type of organisational design is essential
as it helps in completion of daily tasks with maximum expertise and coordination. This enhances
the performance of the company and assists in timely attainment of organisational goals.
Divisional organisational structure
The divisional organisational structure is defined as the type of business firm which
groups employees on the basis the geographical location. The adoption of this organisational
structure is beneficial for DuPont as business firms are able to concentrate the main area of
expertise in relation to every division. This assists business firms to encourage construction of
unique products and enhances utilisation expertise firm other business firms and develops high
level of coordination. In addition to this, divisional organisational structure decision making
process is given to hierarchies at th elower end of the firm to ensure hat every decision is
uniquely made.
M1 Applying suitable conception and constructs for critical evaluation of value of organisational
design
Organisational design decides the business regulations and shapes in which employees
work in a business firm. This affects business performance and depicts the importance of
organisational design (Haghighi, Bijani and Parhizkar, 2019). DuPont has adopted functional
organisational structure which has de centralised organisational design. The benefit of utilisation
of this organisational structure is that it minuses duplication efforts and enhances managerial
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efficiency. This showcases the significance of organisational design as the selection of effective
organisational design helps business firms enhance efficiency and gain success in their fields.
TASK 2
P2 Analysing various approaches used to build skilled workforce
One of the most common approach for attracting skilled employees is employer branding.
This approach focuses on building a brand image of the company which depicts the firm as an
ideal workplace of employees. Advertising employee benefits, positive working environment and
diversity programs of the company help business firms attract skilled employees from all over
the globe (Ito and Iijima, 2017). The main advantage of this approach is that it helps the firm
attract employees from the existing talent pool and persuade employees from rival firms to join
the company. The main disadvantage of this approach is that it is takes time to give effective
results. DuPont an utilise this approach to ensure vacancies at every branch of the company is
occupied by skilled employees.
Career planning is an effective approach to maintain a skilled and talent workforce.
Career planning is defined as the efforts taken by the company to help skilled employees secure
their professional goal. This is completed by determining the interests and professional ambition
of the employee and developing skills of the employees to ensure that they gain employment at
their desired position. Increasing employee retention is an advantage of this approach. The
disadvantage of this approach is lack of objectivity and flexibility. DuPont can utilise this human
resource maintenance approach by developing career planning programmes for skilled
employees.
Job rotation is an human resource development approach. Job rotation includes assigning
employees to different roles and giving them different responsibilities in their field after brief
time intervals. The aim of giving employees different responsibilities is to ensure that they
understand various aspects of their department in an effective manner. Each role an employee
handled is unique and different from other as each job role and responsibilities are different from
each other. In addition to this, concluding result of job rotation is that employees who participate
in job rotation gain profound disclosure to different line of work in their division, likewise the
overall capabilities of employees is enhanced by handling different jobs (Lee, and Wang, 2017).
The primary advantage of job rotation is that it reduces employee boredom and eliminates
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monotonous working hours as employees are shifted to new job roles after a period of time. The
main disadvantage of job rotation is that it is costly and time consuming. DuPont can utilise this
approach to train newly recruited employees.
Public statement is an approach for rewarding human resources. This approach provides
employees recognition and appreciation as business firms have to release a companywide public
statement of thanks to talented employees which cites the ways in which these members of the
company have contributed to organisation progress. The advantage of this approach is that it
enhances employee motivation. Increase in possibility of employee conflict is the disadvantage
of this approach. This approach can help DuPont rewards skilled workers while also motivating
entire workforce.
M2 Usage of particular examples to analyse motivation, human capital and knowledge
management techniques
Maslow’s hierarchy of needs
This theory can be used by business firms to develop highly motivated workforce. The
description of Maslow’s hierarchy of needs in context of DuPont is provided below:
Physiological needs: In this level food water and shelter are the main physiological needs
of the employees (Sims and Bias, 2019). DuPont needs to provide fair remuneration so that
employees can fulfil these needs.
Health and safety needs: This need is related to healthy and safe workplace.
Implementation of employee health and well-being policy will help the respective firm attain this
need.
Belonging needs: This need is related to being a part of the community. DuPont can
attain this by building a team based organisational culture which facilitates positive employee
relations.
Esteem needs: This need is related to gaining appreciation which can be completed by
respective company with the help of employee reward programs.
Self-actualisation needs: In this level employees seek personal growth. This need of
employees can be attained by DuPont by providing employees career advancement opportunities.
The skills and knowledge of employees is defined as human capital. Human capital
management technique is analysed below in context of DuPont:
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Selective hiring: This human capital management technique involves targeted hiring of
employees by adding behavioural and cognitive assessment and testing (Scott and Rye, 2021).
This human capital management technique has benefit of allowing the company to hire the most
suitable employees with high expertise and experience related to their job role. The drawback of
selective hiring is that it is time consuming. This human capital management technique will help
DuPont hire skilled employees at important positions in R&D department to ensure continuous
innovation.
The process of developing, using, maintaining and sharing of knowledge in a company is
defined as knowledge management (Webb, 2017). Compartmentalising knowledge is one of the
most effective ways on knowledge management as it involves separation of knowledge into
different formats. The benefits of this technique is that it enhances efficiency gathering required
components of knowledge on the basis of similarity. DuPont can use this knowledge
management technique to enhance efficiency.
D1 Suitable recommendations with justifications on the basis of knowledge synthesis
Organisational design theory has high influence on the growth of a business firm. DuPont
needs to adopt organisational structure which facilitates employee expertise and innovation such
as thee matrix organisational structure. This is justified recommendation as the matrix
organisational structure has dual supervision and enhances specialisation. DuPont needs to utilise
various approaches to attract, develop, maintain and reward human resources by understanding
the benefits and drawbacks of each approach. In addition to this application of human capital
acknowledge management techniques will help the company build skilled and efficient
workforce.
TASK 3
P3 Usage of current cognition to aid grounds for rising HR development
Human resource is continuously developing with new practices which help business firm
construct a highly talented workforce. The emerging HR developments and their contribution in
improving Human resources at DuPont are described below: Virtual Reality and augmented reality training: The introduction of this HR
development cam be contributed to development in virtual reality and augmented reality
technology. Business firms can utilise this HR development to provide flexible training
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options to employees which can be accessed from home (Bhatia, 2019). In addition to
this, VR and AR technology can also be used by business firms to monitor and evaluate
performance of individual employees and provide customise training. DuPont can use
this technology to increase work life balance of employees as they can use it in their
home.
 Artificial Intelligent: Artificial intelligence can be used by business firms in various
human resource management activities. Swift development in this field provides various
opportunities to enhance various Human resource activities such as recruitment.
Candidate CVs can be screened by AI along with their social media presence to
determine the most suitable employees (Bhatia, 2019). Apart from this AI can also
monitor employee performance and improve the accuracy of employee reward
programmes.
M4 Evaluation of impact of emerging HR development on role of HR in future
Emerging technological HR development will influence role of HR in future. Virtual and
augmented reality technology will reduce the role of HR in employee training most of the
activities of training sessions such as monitoring employees and provide them feedback will be
completed by the VR or AR technology. The role of HR will be to guiding employees as most
tasks will be completed by machine. The advantage of this influence is that it will save the labour
of the company. The disadvantage of this is that lack of technology will not be able to provide
effective supervision as employees (Thite, 2018). AI will also affect the role of human resources
as the recruitment can be completed with the help of AI. Candidate screenings, virtual tests can
be conducted with thee help of AI limiting the role of Human resources. The advantage of this
role is that it reduces expenditure of the company while the disadvantage is that algorithm biases
can affect fair selection negatively.
D2 Judgements and conclusion on the basis of synthesis of knowledge
Technological developments in the field of virtual and augmented reality along with
artificial intelligence provide development opportunities in the human resources. Business firms
can utilise these technologies to improve various HR activities and gain better results. Artificial
intelligence, VR and AR have various benefits and as the these technologies improve the role of
human resources will also change. In the future, changed human resource role will have both
negative and positive influence the company.
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TASK 4
P4 Ways in which organisation design has to adapt and respond to change management and the
relationship between organisational design and change management
The ways in which organisational design responds to change management can be understood
with the help of change management. The application of McKinsey’s change management model
is provided below: Strategy: This element of the model focuses on the business strategy of the company. The
business strategy of DuPont is to integrate product development for assets, applications
and services. Structure: DuPont has adopted functional organisational structure. Systems: Employees at DuPont conduct various tasks for smooth functioning of the
company. Shared Values: The shared values of DuPont are values of Safety & Health, Protect the
Planet, Respect for People and Highest Ethical Behaviour (About Us, 2021). Style: The leadership style of DuPont is transformational leadership. Staff: The firm has hired workforce of 34,000 highly motivated employees.
 Skills: The company ensures that the employees of the firm are highly skilled with the
help of various Human resource activities.
M4 Valuation of assorted types of changes which impact on organisational design considering
transformational and psychological change
Transformational change is defined as companywide change which alters the
organisational structure of the company. Changes in strategic direction of a company is an
example of transformational change. Transformational change affects organisational design as it
involves alteration in organisational design. This type of change provides the advantage of
dealing with unexpected market change (Hayes, 2018). The disadvantage of this change is that it
invites high employee resistance.
Psychological organisational change involves changes which later the mind-set of
employees at the workplace. Cultural change at the workplace is an example of psychological
change. The positive impact of psychological change is that it can enhance employee motivation.
The negative impact of psychological change is that it increases possibility of dispute.
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D3 Critical evacuation of the complex relationship between organisational design and change
management
Organisational design and change management are related to each other and effective
change management couples with suitable organisational design helps business firms gain
success in the industry. The relation between organisational design and change management has
positive impact on the company as it increases the responsiveness of the company. Employee
resistance created during change management process affects organisational design which
influences employee performance.
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CONCUSION
From the above report it is concluded that organisational design plays an important role
in success of the company as employee performance is affected by the organisational design of
the company. Organisational design decides the regulations and manner in which employees
work which influences organisational structure of the firm. Business firms need to implement
various HR approaches to develop and retain employees such as career planning. Motivation,
human capital and knowledge management is essential for workforce development of business
firms. Emerging HR developments will change HR roles in the future and provide various
benefits to organisations. Change management and organisational design are related and there
are various changes which affect business firms such as transformational change.
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