Value and Contribution to Organisational Success

This study explores the value and contribution of organisational design to the success of an organisation, using Tesco as a case study. It discusses the importance of organisational design, the relationship between design and structure, and different approaches for maintaining a dedicated workforce. It also examines the application of contemporary knowledge and research in supporting emerging HR developments, and the relationship between change management and organisational design.

VALUE AND
CONTRIBUTION TO
ORGANISATIONAL
SUCCESS

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Importance of organisational design to the delivery of sustainable............................................1
Analysing different approaches and techniques that used for maintaining, attracting,
rewarding and developing HR to create a dedicated workforce.................................................3
Applying contemporary knowledge and research to support emerging HR developments........6
PART 2............................................................................................................................................7
Relationship between Change management and Organisational design.....................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Success of an organisation is based on various elements that add value and contribute
effectively. The present study of “Value and contribution to the organisational success” is based
on the study of Tesco, a British global general merchandise and groceries retailer. For analysing
successful contribution, the study will first understand the importance of the organisational
design that contribute to the sustainable performance of the business. Furthermore, the report
will identify requirements regarding developing, motivating, enhancing the knowledge and
experience of the team and individual will be analysed. The study will also evaluate application
of the contemporary knowledge that influence development of Human resource. Lastly, report
will identify relationship between organisational design and change management.
PART 1
Importance of organisational design to the delivery of sustainable
An overview of TescoAn overview of Tesco
Tesco is a British global general merchandise and groceries retailer that is headquartered
in England, UK. In terms of gross revenue, Tesco is 3rd largest retailer across the world. Tesco
was founded by Jack Cohen in 1919 (Tesco, 2019). The company operates in the field of
supermarket, hypermarket, superstore and convenience shop through 4,50,000 people that serve
the consumers through their sustainable performance.
Organisational structure of TescoOrganisational structure of Tesco
Organisational structure defines how activities such as task allocation, coordination, and
supervision are directed toward the achievement of organizational aims. In simple words,
organisation structure refers to the formal system of work and reporting relationship that
controls, coordinates and motivates the workforce (Agrawal and Rahman, 2015). The focus of
forming structure in business is on the actual system and process in place to develop efficient and
innovative working environment. The organisational structure of Tesco is hierarchical structure
that is constructed with five committees that led by the group executive chief. The hierarchical
structure of organisation ensures smooth functioning from the base root level.
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Concept of organisational design and its relation with structure of TescoConcept of organisational design and its relation with structure of Tesco
Organisational design: OD is the process of aligning structure of the company with its
goal that aim to improve efficiency and effectiveness. In other words, organisational design is a
step-by-step method that identifies dysfunctional elements of flow of the process, work, system
and structure and realigns them to fit to the goals of organisation and develop plans to implement
new changes. There are various type of organisational design or structure; matrix structure,
project-based structure, organisation by consumer/market, organisation by product, functional
organisation (Badewi, 2016). Contemporary organisation design is all about a flexible structural
method in which the tasks regarding the job are grouped or distributed and coordinated for the
response to dynamic environmental factors. The design of Tesco creates a room for innovation
and creativity in the operations and the purpose is meet the strategic aim of the industry. It is
essential for the company to consider that the company is structured in such way that efficiently
deliver sustainable long- and short-term objective.
Concept of business designConcept of business design
Following are the key concept of organisational design;
 Span of control- range of staff who report to the managerial position
 Authority and Responsibility
 Delegation- assigning task to the subordinates
 Chain of command
 Line authority and staff departments
Tesco developed functional organisation design, where all the functions present in the
company have their sub sections that represented at the board level (Bradley, 2016). The
relationship between the concept of organisational design and structure of Tesco is effective to
build a strong base. Designing concept is based on the formal process of integrating information
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and technology, people together to achieve objective. On the other hand, the structure of the
organisation is line of power and authority as well as define the role of employees. The
relationship between the structure and concept of organisational design is based on balance
between employee relation and production. There are various factors that have significant impact
on the OD such as; external business environment. The impact mainly seen in the intense
changes bring to the organisational structure of Tesco that can either improve the sustainable
performance or affect the performance negatively (Doppelt, 2017).
The relation between design and structure is interrelated. For example; organisational
design involves decision about work specialisation and organisational structure focus on the
degree to which tasks in the business are categorised into separate jobs. The relation also can be
seen as Tesco have contemporary organisational design that form team structure in the
organisation.
Analysing different approaches and techniques that used for maintaining, attracting, rewarding
and developing HR to create a dedicated workforce
Human Resource of Tesco is responsible to recruit effective people for the vacant
position to motivate and create dedicated workforce (Noe and et. al., 2017). There are various
approaches and theories that show how the HR functions contributes to the design of the
organisation.
Motivation and Motivation theoryMotivation and Motivation theory
Motivation can broadly refer to the drive that influence an individual to perform their task
in certain way. It also can define as the energy that pushes employees in the business to work
hard to achieve the goal. Motivation can be categorised into two types; extrinsic (outside) and
intrinsic (inside) motivation. Intrinsic motivation: This type of motivation states that individual in the company are
motivated through internal rewards instead of external rewards such as contentment and
fulfilment (North and Kumta, 2018). This type of motivational factor includes;
acceptance, getting respect and appreciation,
 Extrinsic motivation: Extrinsic motivation states that individual are motivated through
external rewards such as raise or bonus. This type of motivation includes; benefit
packages, employee of the moth award, bonuses and other organised activities.
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In this, HR of Tesco is responsible to identify that what employees make feel motivated
and set their rewards on the basis of their performance.
Content versus process theory of motivationContent versus process theory of motivation
Content theories concentrated on “What” and on the other side process theory focuses on
“How” behaviour of employee motivated (Pugh, 2016). There are various content theories such
as; Maslow's need hierarchy, McClelland's achievement, Alderfer's ERG theory and two-factor
theory of Herzberg. The main process theory of motivation includes; Vroom's expectancy theory,
Skinner's reinforcement theory, Adam's equity theory.
How motivation can be harnessed to support competitive advantageHow motivation can be harnessed to support competitive advantage
Tesco control and make use of McClelland theory and Vroom's expectancy theory that
supports the competitive advantage.
McClelland theory- Under this theory, HR utilising and follow three motivators that are;
Achievement, power, affiliation.
 Achievement motivator pertains individual's need for significant success and high
standard. Individual in the organisation required that their work praised and receive
feedbacks on their achievement and progress (Rahim, 2017).
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 Affiliation motivation is a need for relatedness and belongingness. Individuals get
motivated through building strong social relationship with other members in the
company.
 Need of power reflects the desire to control other through the power of authority or
position.
This motivation should harnessed through take actions as per the need and ability of an
individual as it based on learning that enable individual to learn and implement new things.. This
provide an opportunity to Tesco to take advantage of competition and enhance the performance
of top to bottom level employees (Agrawal and Rahman, 2015).
Vroom's expectancy theory- This theory believes that employees get motivated through
expectancy, instrumentality and valence. This theory helps Tesco in achieving the competitive
advantage as this theory is based on the outcome and value that enable employees in the
company to perform well.
 Expectancy is the degree to which the employees believes that putting more efforts will
result in successful outcome and it will result in better performance.
 Instrumentality refers to the belief of person on the connection between activity and
objective. They believe that if individual perform well they get reward.
 Valence refers to the degree to which the individual value the reward.
Issues associated with low levels of motivationIssues associated with low levels of motivation
Low motivation can lead Tesco towards a number of negative effects. Lower level of
motivation cause low level of commitment or involvement of the staff with their job or with the
company that can affect their performance and outcome as well (Badewi, 2016). The
consequences of low motivation are;
 Endangers economic stability
 lower performance of business
 Poor work quality and atmosphere
 Demotivated teams and dissatisfied clients
Overall HR is responsible to develop dedicated workforce in Tesco that can be created
through; providing a positive working environment, recognise, reinforce and reward, enhance
involvement and engagement of the workforce. Along with the function of HRM helps the
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Human Resource to build strong relation with employees, manage risk and staffing contributes to
the organisational design.
Applying contemporary knowledge and research to support emerging HR developments
Human resource development is a framework that assist employees to develop
organisational and personal knowledge, skills and abilities. This focuses on integrating training,
career development efforts to enhance effectiveness of individuals, teams and organisation.
Trend in HR development is getting more technological and fast. For last 10 years HR concept
has changing a lot with the emerging development (Bradley, 2016).
 Review culture and continuous feedback- It is one of the most predicted HR trend in
UK that enable HR to focus on the continuous real time feedback in the workplace. As
per the emerging HR development, they are required to focus on improving departments
by providing constructive and frequent feedback.
 Speeding up of performance management- Performance and job satisfaction both
develop when employees have an opportunity to explore their creativity. The emerging
element comes in the HR development focuses on to speeding up the growth and promote
healthy performance management to both organisational and individual level.
 Digitalisation in HR- Development is also reached to the process of rewards and
recognition as that are the effective motivator for the employees. In UK, every
department in the organisation try to being advance with the trend that also applicable to
the HR department (Doppelt, 2017). Hence, digital recognition is a trend that need to
implement in the industry. Digital technology also enable HR to changing the way of
recruiting and selecting, performance management, etc.
As with the changing trend in Human resources' development, HR adopt the approaches
that enabled them to respond to the external and internal environment of Tesco. The external
environment includes; technological element and physical element. Establishing clear goals is
essential on how Artificial intelligence that enhance the employee experience as well as benefit
to the organisation. The emerging HR development have significant impact on the HR function
in the future (Noe and et. al., 2017). It is recommended to the Human Resource of the
organisation to adapt the emerging development on the consistent basis that do not create any
regret problem in the future. Before adapting any changes or trends, HR of the company is
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required to have an understanding that the change is really wanted to adapt and implement in the
company and in their function (North and Kumta, 2018).
PART 2
Relationship between Change management and Organisational design
Covered in Poster
CONCLUSION
From the present study it has been summarised that there is a link between role and
function of Human resource in the business and emerging HR developments. HR is the key
contributor to the organisational success. Human Resource management played various roles in
Tesco such as; attracting, recruiting workforce, motivate them to achieve the goal, reward them
that contributed in motivating, etc. that add value to the activities that contributes effectively to
the organisational success. Along with it, design and structure of the organisation also add value
in the sustainable performance of employees as well as of the whole industry. Changing
environment in the business can create various conflicts within the company, thus, manager of
Tesco applied various theories to the change management. The change has been identified as the
performance driver element in the company that enabled organisation to stay ahead with the
technological advancement and enhance employee's performance.
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REFERENCES
Books and Journals
Agrawal, A. K. and Rahman, Z., 2015. Roles and resource contributions of customers in value
co-creation. International Strategic Management Review. 3(1-2). pp.144-160.
Badewi, A., 2016. The impact of project management (PM) and benefits management (BM)
practices on project success: Towards developing a project benefits governance
framework. International Journal of Project Management. 34(4). pp.761-778.
Bradley, G., 2016. Benefit Realisation Management: A practical guide to achieving benefits
through change. Routledge.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Noe, R. A. and et. al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
North, K. and Kumta, G., 2018. Knowledge management: Value creation through organizational
learning. Springer.
Pugh, L., 2016. Change management in information services. Routledge.
Rahim, M. A., 2017. Managing conflict in organizations. Routledge.
Online
Tesco. 2019. [Online]. Available
Through:<https://www.tescoplc.com/about-us/our-businesses/tesco-uk/tesco-in-the-uk/>.
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