Value and Contribution to Organizational

This study explores the importance of organizational design theory for sustainable performance and organizational structure. It also discusses different approaches for attracting, maintaining, and rewarding human resources for creating a skilled workforce. Additionally, it examines the use of contemporary knowledge to support HR development.

Value and Contribution to
Organizational
1

Table of Contents
PART 1.........................................................................................................................................................4
LO 1.............................................................................................................................................................4
P1 Importance of organizational design theory for sustainable performance and organizational
structure..................................................................................................................................................4
LO 2.............................................................................................................................................................6
P2 Different approaches for attracting, maintaining and rewarding human resources for creating
skilled workforce.....................................................................................................................................6
LO 3.............................................................................................................................................................9
P3 Use of contemporary knowledge to support HR development..........................................................9
PART 2.......................................................................................................................................................11
LO 4...........................................................................................................................................................11
P4 Ways of adapting changes management and its relationship with organizational design...............11
CONCLUSION.............................................................................................................................................14
2

INTRODUCTION
Organizational value can be defined as a framework and foundation on which the
company is formed and which guides it in taking actions for providing a great value to its
customers (Fink, Yogev and Even, 2017). This present study is based on Walmart which is an
American multinational retail corporation. It operates a chain of hypermarket, grocery stores and
gave approximate 11, 440 stores in 27 countries. It was founded in the year of 1945 by Sam
Walton. This present study of value organization is going to show the importance of motivated
and satisfied employees. Motivated and valued employees help the company in increasing their
productivity and accomplishing their vision. For motivating them, different approaches help the
company such as rewarding to them, providing learning opportunities to employees via training
and make them feel safe by giving positive working environment. It will also show the
increasing importance of organizational design and structure which supports the company in
making their business and activities sustainable. Further, this study will show the importance of
contemporary knowledge that develops HR which leads an effective performance and effective
functions of HR. Lastly, part 2 of this report shows some ways by which an organization adapts
change management which has strong relationship with organizational design.
PART 1
LO 1
P1 Importance of organizational design theory for sustainable performance and organizational
structure
Organizational design and structure refers a step by step procedure and methodology which
identifies dysfunctional aspects of procedures and workflow. An effective organizational design
or structure helps the company in increasing productivity, communication among different
functional departments and inspire motivation. It also helps them in creating and making a
working environment effective where people from different level and departments can work
collaboratively and productively. There are mainly 2 types of organizational design which shows
different sub structure and organizational design. The main 2 designs are known as traditional
and contemporary (Types of organizational designs, 2005). Below described designs can help an
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organization in fulfilling its organizational strategy and also can make it able to accomplish its
goals. All sub designs and organizational structure are described in a detailed manner:
Traditional designs
Simple: It is being made with low departmentalization and having centralized authority,
wide spans of control. It is effective for those companies where number of employees are few
and are start up businesses. In this type, manager have all the authority of controlling activities .
There is a lack of standardized policies.
Functional: This design is being developed and made as a design that groups similar or
may be related occupational specialties together.
Divisional: It is a design which is made up of separate and individual units and
departments. There are different divisions and units which have their personal goals to be
accomplished. The manager is responsible for the success of all division an for them they
requires to control and oversee all functions.
Contemporary designs
Team structure: It is a design which is made of teams which work towards a common
and same goal. In this type of organizational structure and design there is no hierarchy of chain
of commands. So, team members can work in the way they want to as they are given power to be
innovative as their own basis.
Matrix: In the type of matrix structure, each functional department is assigned specialists
with the main aim of competing one or more than 1 projects effectively. Each project is being
assigned to a project manager which has responsibility to make them complete in the time. Some
functions and projects involved in this type of design are: accounting, operations, marketing etc.
There are mainly 2 managers such as project and other one is specialist and department manager
(Foss, Lyngsie and Zahra, 2015).
Project: There are a lot of projects in this type of organizational structure and design and
completed by continuous work of employees. It is somehow like the matrix structure but
employees do not require going back to their department after completing the project. They
require working continuously on projects in an effective team.
Learning: It is an organizational design in which manager developed an environment
and capacity of employees to continuously learn and make changes. For making and developing
this design, there is a requirement to have skilled and experienced workers who can share their
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knowledge to others while working in a team for accomplishing common goals. It is more
innovative a creative which helps the company in getting competitive advantages.
In the context of Walmart, it is stated that it follows hierarchical organizational design because it
is large in the size. It is an effective structure and design because it improves knowledge of
employees of responding problems. It also helps this retail business in adapting changes and
growing their business internationally. It has 2 main features such as: vertical line of commands
and authority throughout the company. All employees of department has a superior which guides
and support them in making their functions and projects successful (Vogel and et.al., 2017).
Some features and benefits of this structure are described as below:
Department loyalty: It is stated that all departments work to fill a common role so, there
are more chances of improving an effective relationship with other who share the same role. The
main feature is organizational communication which allows all employees and department to
increase their relationship and loyalty towards the company.
Skilled manager in all areas: The main feature of this structure is manager have deep
knowledge and skills by which they effectively manage all departments and functions. They do
not only manage employees work and functions but also advice and guide them. They also held
meetings for discussing on special topics and personal development (Burton and Obel, 2016).
In addition, with the help of an effective contingency theory of organizational design, some
principles and effectiveness can be understood. According to the contingency theory, several
authors and people believe that there is no best way of organizing and managing company’s
functions. The way of managing functions and organization is contingent or dependent upon the
business environmental or internal and external situations. An effective manager applies their
best style of managing performance and functions according to the situation.
So, from the above it can be said that the best style of organizational structure is
learning design and structure because it allows employees to learn something new which
improves knowledge of employees of responding problems. So, it can be said that it increases
their decision-making and critical thinking skills which is beneficial for them. On the other hand,
some authors argued and said that team organizational structure is beneficial more than learning,
They said that team structure improves relationship of employees which is beneficial for both
employees and employers.
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LO 2
P2 Different approaches for attracting, maintaining and rewarding human resources for creating
skilled workforce
It is stated that skilled workforce and employees plays a key role in an organization and they are
considered as the main factor of the success of the company. An organization and Walmart can
accomplish their goals in an efficient manner only when if it has satisfied employees and
workforce (De Gieter and Hofmans, 2015). When employees feel valued, motivated and satisfied
then only they support the company, for which they work in achieving their pre determined goals
like increasing sales, revenue, improving brand image, satisfying customers etc. So, for
satisfying customers, there is a requirement for the company to satisfy employees before and for
that they need to implement some approaches which can motivate them. There are several ways
and approaches by which, Walmart can motivate and make them feel valued such as:
Positive working environment: It is stated that working environment and a place where
employees spent a lot of time, needs to be happy and positive. Positive working environment
keeps employees happy and give positive vibes of working more effectively. Positive working
environment means to having an effective and friendly relationship with colleagues, boss and
other members who are involved with the company. An effective manager and leadership play
an important role in retaining and motivating employees and providing a healthy, safe and
positive working environment is one of them strategies. Employees feel happy and fresh in a
positive working environment which leads a productive and qualitative work which is beneficial
for both the company and employees. It can be analysed that positive working environment
make employees feel fresh and happy. It increases their productivity. On the other hand, it can be
said that lack of this approach can hamper the success and objectives of the company.
Rewarding and celebrating success: It can be said that employees and people work for
several reasons. Different employees have different types of needs and motivation which push
them to work efficiently (Al Mamun, C.A. and Hasan, M.N., 2017). It is important for the
manager to know the reason and needs of employees by which he/she can motivate them. When
employees get what they were trying to get then they feel happy and valued. For example, some
employees want to be recognized in front of other because it increase their self esteem and some
employees want money. By providing financial and non-financial rewards as per the
requirements of employees, employer of Walmart can retain, attract and motivate the best and
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talented workforces. It increases their brand image and overall productivity as well. Employer
also needs to celebrate the success of employees as it is an effective way of showing them their
effectiveness and performance level in front of others. When employer gives rewards to
employees than it motivates them by which they work more efficiently. Whereas, it can also be
said that absence of this practice can become the reason of labour turnover.
Training and learning opportunities: There are different types of employees who work
in the same place. Some employees do not have proper knowledge or every employee has some
areas which they need to improve for an effective career and bright future. Due to lack of skills
and knowledge related to the company’s tasks, they feel de motivated and hesitated to work.
They have fear of committing mistakes ad errors which limits and slow down their productivity.
So, by giving an effective training, employer can strengthen their skills and knowledge. It is the
best way of motivating and retaining employees. When employees have proper knowledge
related to the tasks which they need to perform, they produce qualitative and errorless work
which satisfies customers (Pregnolato, Bussin and Schlechter, 2017). Training and development
incraese skills and knowledge of employees which helps them out in producing qualitative and
errorless work. On the other hand, when employees do not get effective training then they
commit mistakes which decrease their and overall productivity of the company.
Rather than, all these approaches and techniques, company can implement some theories
of motivation which helps them out in retaining and motivating employees. It is stated that
Walmart makes an effective use of Maslow’s motivational theory whose motivational factors
and hierarchy of needs and effectiveness are discussed as below:
Physiological needs: According to this first need of Maslow’s hierarchy, it can be said
that there is a primary and basic needs which all types of employees seek and have. It includes:
food, shelter, air etc. It is stated that for making employees work properly it is important to
provide all these needs initially. So, it is the basic need by which, Walmart motivates and retain
their employees.
Safety needs: After completing basic needs, employees seek safety from internal and external
factors. If they feel safe and secure then they work more efficiently. It includes: freedom to
speak, performing things, freedom from fear, stability, laws, safety etc.
Love needs: Employees and people needs never can be satisfied as completing some needs they
develop and seek for other needs. Every type of employees wants belongingness and love from
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people with whom they work and communicate. It includes: friendship, trust, acceptance,
affection etc. It makes them feel respected and loved.
Esteem needs: This type of needs can be divided into 2 parts. All employees do not posses this
need but some employees want to be fulfilled this need. Esteem for oneself such as achievement,
independence, dignity which increases their self motivation and increases inner growth. Other
one is the desire for reputation and respect from others. Some people want to be respected by
other by achieving a strong status and prestige. This type of need can be satisfied by giving
promotional opportunities to employees (Maslow’s Hierarchy of Needs, 2018).
Self-actualization: It is the last need, which can be felt by some employees only. If employees
feel this need and fulfill this need then they do not go further for any needs. Some example of
this need includes: realizing personal potential, personal growth and peak experience. In other
words it refers a desire to become everything one is capable of becoming.
So, from the above it can be said that there are several techniques and approaches by which
Walmart is motivating its employees and can retain their skilled workforce in the future as well.
LO 3
P3 Use of contemporary knowledge to support HR development
Human resource development refers a framework which is being developed by companies and
Walmart to help and develop its employees’ skills, knowledge and abilities. Human resource
plays an integral role in accomplishing company’s goals. For that they hire and recruit the best
and talented employees, motivate them and retain them. In the context of emerging human
resource it can be said that there are several problems which HR is facing and which needs to be
solved out in a timely manner for their development. It can be possible by contemporary
knowledge and the way of Walmart of applying that contemporary knowledge. Globalization,
increasing competition, advanced technology, dynamic environment, change management and
changing trends in the market are some emerging problems and challenges in HRM (Avby,
Nilsen and Ellström, 2017). Contemporary knowledge refers modern things that helps out the
company in managing changes and develop themselves accordingly. Some uses and importance
of contemporary knowledge in developing HR are described as follows:
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Internal training: The key of the success and development is an effective training. It
allows HR departments and employees to gain new knowledge and share new information’s. It
increases their knowledge and also makes them know about the current and latest trends. With
the help of this, company can take competitive advantages by providing latest trends of products.
Consistent feedbacks: Consistent feedbacks is a modern way and knowledge which can
help HR department in solving problems and develop themselves. By getting feedbacks and
reviews from customers and employees they can know their limitation and effectiveness. On the
basis of feedbacks they can make changes accordingly and can meet the needs and demands of
employees and customers (Cavanagh and et.al., 2017).
Advanced technology: Making an effective use of technology like social media
platforms for marketing products, introducing features of products to customers and also get
knowledge about current trends. This contemporary knowledge and modern way is helping out
HR in making growth, development and become the market leader.
So, it can be said that all these knowledge and strategies can help HR in developing itself and
help them in performing future roles and functions in an efficient manner. Some future roles of
functions of emerging HRM are:
Strategic partner: For managing changes and going with the changes it is important for
HR to think themselves as a strategic partner. In this role, Strategic partner and HR tries to
accomplish organizational wide business objectives and plan. To understand the design of work
system of the company by which they can motivate employees for increasing productivity. This
role and strategic partner impacts on the HR services like: hiring, reward recognition,
performance development, appraisal etc. For becoming an effective strategic partners, it is
important for HR to think like business people and become responsible for cost reduction and
increased sales (Tracey, 2016).
Employee advocate: As an employee advocate, HR manager and department plays an
important role in making their organization successful via their knowledge about advocacy of
people. This role and knowledge includes ability in creating a positive working environment
which motivates employees and make them feel happy at workplace. HR professionals in this
role help the company in establishing an effective organizational culture where employees can
communicate and share their knowledge efficiently. In this role, the HR manager provides
overall talent management strategies, employee development opportunities etc.
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Change champion: Effectiveness of HR professional can be seen by constant evaluation
and champion change that can give effective results to the company. For performing this role,
there is a requirement for HR to have knowledge about implementing successful change
strategies as per the change and situations. They also need to see the way by which they can
make all employees influenced and able to adapt changes and minimizing dissatisfaction among
them. This role and ability to adapt changes and implementing appropriate strategies help the
company and HR to monitor employee’s satisfaction and build an effective organizational
design.
Flexible organization: There should be flexibility in an organization. Flexibility and
ability to adapt changes make an organization and employees efficient. By improving this ability
company can take competitive advantages. By this ability, employees can also solve any type of
problem and can deliver projects on time if they have flexibility.
Rewards: Rewards is considered one of the main and effective HR practice by which
company can motivate employees and make them feel valued. For example, if an employee
perform effectively then company should give them promotional and other financial rewards.
When employees get extra then it makes them feel valued and motivated. So, it can be said by
using all these practices, company can accomplish its goals.
So, from the above, it can be said that modern and contemporary knowledge plays an
important role in developing emerging HR and also in solving challenges related to emerging
HRM. All these strategies and knowledge also helps the company and HR in performing their
roles efficiently and continue it in the future (Velmurugan and Rajan, 2018)
PART 2
LO 4
P4 Ways of adapting changes management and its relationship with organizational design
Change management can be defined as a process, techniques and tools that helps the
company and people in to manage employees and things of change in order to achieve pre-
determined goals and outcomes (Doppelt, 2017). The main aim of implementing change
management system and change is to make and improve the company by alerting how work is
done. Change management impacts on different elements and functions of the company such as:
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organizational structure, process of performing roles, systems and job roles. As a Junior HR
manager it is important to adapt changes in efficient manner and implementing appropriate
change management theories and tools. There are several factors that drive organizational
changes such as: environmental conditions, increment in knowledge, technology, trends in
professional roles, emerging technologies, changing population, redesign of organization,
globalization and changes in market conditions. It can also be said that in the context of
organizational structure that there is no best structure who can match with all requirements of the
company as all types of structure and design have some limitations. Organizational change
means to modify existing structure that was not appropriate and cannot be fit with the
requirements of the strategy. Some types of organizational changes described as below that
affect organizational design and structure:
Technological changes: Technological changes is a forces and a type of change as well.
Changes in technological means changing process of innovation, invention and production. This
changes is the invention of a technology or up gradation in technology. This changes occur due
to increased competition, changing market needs and globalization.
Management change: This change occur due to some internal forces. Manager, CEO
and leadership are main players who impact on the performance and activities of the company.
So, it is important for the company to understand risk associated with them at the time of hiring
them. They can change the whole management system and changes in their skills and behaviour
become the reason of management change (Brunsson and Olsen, 2018).
Organizational restructuring: It is important for the company to make some change
and modification in organizational structure and design for making them effective. Due to
changes in other factors like innovation in existing products, new product development, global
expansion require making changes in the design of organization. This changes in structure can
disrupt hierarchy, chain of commands and communication. For adapting all these changes,
company also requires to train their employees for making them able to adapt changes in a very
efficient manner.
Transformational changes: It is all related to strategies of the company. For making
changes in efficient manner it is important for the company to keep around with the environment
in order to see that what is going on. It includes: climate changes, cultural trends and
technological advances etc. Most of the companies including Walmart retailer are now focusing
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on using technology with highly upgraded such as mobile analytical, social media, cloud etc.
Most of the companies are taking risks for making changes as per the requirements of
people and the market to the point where it has become a cultural norm.
Rather than this there are some common areas which need to be changed according to the
generation and changes in market trends such as: mission, strategy, workforce, branding culture,
technology, management, employees etc. Organizational structure shows the way of doing things
and authority of control. When strategies, policies and other things get changed than it directly
impacts on the structure because structure shows the way. Changes in performing things put
pressure on the company to make appropriate changes in its design and structure.
Developing and implementing change is not easy at all because there are several factors that
create barriers in effective implementation of change in an organization. The main and common
problem which is related to change management is resistance of employees or deny by
employees to adapt changes. In this type of situation, company or Walmart retailer can make all
employees influenced by applying Lewin’s change management theory. Some elements and
change stages are described as below:
Unfreezing: Unfreezing is the most critical step in which manager of the company has to
identify a method by which he/she can make all employees able to let go the existing pattern and
adapting the new one. It can also be referred as ready to change stage. They need to examine all
factors that needs to be changes such as: organizational structure, processes, thinking, old
behaviors etc. The most difficult part of this stage is to make employees understand the
importance of making change and inform about the imminent change. For making them
introduce and understand, communication plays an important role so, it is also important for the
company to select the best and appropriate tool of communication. The main aim of introducing
and telling employees about the change is that the more they will know about the change the
more they will feel it necessary (Cummings, Bridgman and Brown, 2016).
Change: Now employees are unfrozen so, they can move in this stage. It is a stage in
which the company moves into a new change and thing from existing things. It can occur and
implemented only when change become real. In this stage employees and employers learn the
new ways of performing things, learn new behaviours and way of thinking. This stage is referred
and can be called implementation because change is being implemented in this stage . They need
to develop their skills and knowledge than before. For making this step effective and successful,
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company needs to focus on education, training by which they can provide support to employees
and making them familiar with changes. Throughout the process, employees are reminded the
main reason and importance of making changes by which they adapt changes with honesty and
voluntarily.
Refreezing: According to Lewin, it is an important and the final stage. In this stage,
manager sees that all their efforts have worth and it is not lost. Manager believes that making
effective changes and keep them in the structure for the long run, it is important to keep
employees motivated and happy. It is also known as making it stick stage because company
wants to keep changes within it for the long run. For keep them happy they reward and praise
their efforts in order to make them feel valued and having positive behaviour. Refreeze allows
employees and people to thrive in the new organization for taking the full and positive
advantages of change.
Rather, Lewin’s change management theory, company can make an effective use of nudge
theory. By developing and implementing this theory, manager of an organization can understand
the way of behaving, thinking and making decision by employees. By knowing their behaviours
and understanding all things about employees, company can improve their thinking and manage
change of all sorts.
So, from the above it can be said that making changes and change management affect the
organizational structure but successfully implementation of this system can give several
advantages to the company and employees as well. By implementing this theory within an
organization and providing training to employees, company can make them influence and adapt
changes.
CONCLUSION
From the above study it has been summarized that employees played a vital role in an
organization as it helped the company in satisfying customers, increasing their sales and
productivity. Motivated and satisfied employees helped an organization and for that motivational
approaches and techniques also played a vital role. It has shown several approaches of
motivating and retaining skilled workforces such as rewarding, training, effective working
environment etc. It has also shown the importance of an organizational culture and design as it
shows the way of performing functions by the company and employees. It also allowed
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employees to know the vision, mission and all necessary details of the company by which they
work efficiently. The selection of the type of organizational structure depends upon the size and
the nature of the company which has several advantages and disadvantages. Further, this study
has discussed the knowledge which is important for human resource development. Emerging HR
development affect some roles of HR functions in a positive and in a negative manner. Lastly,
next section of this study has shown some ways by which an organization adapts change
management system with the help of its organizational design. Different types of changes occur
in an organization that affect design of the company and solved with some ways. There is a
strong relationship between organizational design and change management.
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