Importance of Organizational Design Theory

The provided assignment discusses the significance of organizational design theory in achieving set objectives. It explores how Tesco implements different approaches to ensure effective human resource functions, including recruitment and selection procedures. The document also touches upon various human resource practices studied to formulate tactics in a cutthroat competitive world.

Value and Contribution
to Organisational
Success

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1: Value and Contribution to organizational Success...........................................................1
Introduction to organisation........................................................................................................1
Organisation structure.................................................................................................................1
Concept of organizational Design and how it is related with structure of the firm. ..................2
Examine distinguished approaches and techniques to create skilled and dedicated workforce..4
Emerging HR developments and approaches would adopt HR practices to examine internal
and external environment of workplace. ....................................................................................5
RECOMMENDATION...................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
PART 2: Managing Change.............................................................................................................8
Covered in poster........................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Value can be stated as fundamental belief which motivate attitude of organization and
employees to perform better on continuous basis. Every organization has varied values and
beliefs according to their types of business in the competitive world. This plays a significant role
in the growth and development of the administration in the open market place. This report is
based on Tesco which is a leading multinational general merchandise retailer which is located in
Welwyn garden City, United Kingdom. Enterprise came into existence in the year 1919 by Jack
Cohen. This assignment covers importance of organizational theory design so that firm's
strategy and objectives can be achieved on set time frame. Also, various approaches are studied
for maintaining, rewarding etc. employees (Acciaro, 2015). However, research conduct is
examined to focus the emerging HR development. Additionally, the two organizational design
are deeply focused in order to study the relationship between changing environment.
PART 1: Value and Contribution to organizational Success.
Introduction to organisation
Tesco is a British multinational grocery retail store in UK. It is located in Welwyn
garden City, United Kingdom and came into existence in the year 1919 by Jack Cohen. It deals
in products like, hypermarket, superstore, supermarket and convenience Shop. Across the globe
450,000 staff members are working day and night to full-fill the demand of the consumers. It
deals in products such as, superstore, supermarket, convenience shop, hypermarket etc. six
thousand eight hundred shops are there worldwide. This leading company is serving it's product
and services in countries like, Hungary, Czech Republic, Ireland, United Kingdom, India,
Malaysia, Thailand etc.
Organisation structure
Organizational structure can be defined as system which outlines the activities of
business through which set objectives can be achieved in the set time duration. The structure of
the enterprise varies from business to business ion the cut throat competitive world. In this a
hierarchy order is formulated so that information can flow smoothly through this channels. It is
important to carry out effective organizational structure in the working premises so that proper
solution and guidance is given on issues related to human resource (Agrawal and Rahman,
2015).
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There are distinguished type of organisational structure which are, divisional line,
Hierarchical, flat, network, matrix, team based, line organizational structure etc.
Network based organizational structure: This is a modern concept adopted in the
organization. This particular structure is flexible in nature and are more decentralized as
compared to other organizational structure. By implementing this in the working premises best
outcomes are achieved in short time period. In this case, manger of the company monitors and
controls relationships of both internal and external.
Hierarchical organizational structure: In this structure the power and authority flows
from top level to lower level. A proper sequence is carried out in the business so that
miscommunication does not take place and productive results are achieved.
Tesco adopts hierarchical structure in their working premises as it is difficult to keep eye
on all the department by single person. This the reason they adopt this structure so that
everything can be managed systematically in distinguished stores, departments, countries etc. It
directly or indirectly helps business associates to serve best services to the customers in the
competitive world. As well as hierarchy structure is easy to use and implement in the large and
multiple layers organization in the intance competitive world.
Concept of organizational Design and how it is related with structure of the firm.
Organizational design theory can be stated as process or activity of coordinating the
structural elements of an firm's in systematic manner. On the other hand it can be said that how
task such as, supervision, allocation and coordination are guided in order to accomplish set
objectives in the global market. This a formal system of task in which it states how people
coordinate their action and resources to achieve firm's objectives. By doing so set objectives can
be achieved respectively (Agrawal and Rahman, 2015). As well as competitive advantages can
be attained against competitors in the open market place. Here, the importance of organizational
design theory in context of Tesco is discussed as follows:
Hierarchical structure: In this kind of structure top level management of the Tesco
controls lower level activities. Here, the power flows from top top lower level. The duties and
authority is assigned from upper level to lower level. In this case the lower segment is
accountable to perform the assigned work effectively and efficiently to meet the set objectives.
Flat structure: In this case there is no or less stages among top level management of
Tesco and staff members. Here, employees can easily communicate their quarries and get a best
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result. Firm involve staff members while taking decision for the betterment of anything.
Matrix structure: A matrix organizational structure is a administration structure in
which the relationship are rigid in nature. Tesco adopting this in their working premises achieve
productive outcomes. As the employees have dual reporting relationship especially to functional
and product manager.
Divisional structure: In case of divisional structure it groups each administration's
functions into a division. Whereas, each and every division contains all the necessary functions
and resources in order to support marketing, finance, information technology departments etc.
Tesco by adopting this structure distinguished department can be carried out smoothly.
Tesco is adopting Hierarchical structure organizational design in their working premises
so that best results can be attained. Administration avoid complexity in their business scenario.
Hierarchical structure is carried out in Tesco and power and authority flow accordingly.
Dealing with contingencies: In this case contingencies can be stated as occurrence of
unexpected events in the marketplace. Organizational design theory plays a vital role in meeting
desirable goals and formulating effective firm's structure. It directly guide to adopt effective
marketing strategy in order to survive in the neck to neck competition. In order to over come this
Tesco plan effective tactics on continuous basis so that set objectives can be achieved. As well as
hierarchy structure (Organizational structure) of Tesco can be carried out easily in the
competitive world. Example: Organizational design theory help Tesco in order to frame strategy,
organizational structure and objectives effectively and efficiently as it guide them in systematic
manner. It also provide information regarding how the dysfunctional elements in the firm can be
arranged systematically in the market place.
Innovation and Efficiency: In today's world nation with low labour costs are more
competent and efficient to come up with creative and quality goods and services as per
consumers requirements. Tesco investigate the market scenario and design the innovative
product accordingly. Organizational Design theory helps to arrange dysfunctional elements so
that strategy can be framed to meet the desired goals. By doing so Tesco's organizational
structure (hierarchy structure) can be aligned to perform better. Example: Organizational design
theory guide Tesco to systematically arrange dysfunctional elements so that workforce efficiency
can be raised to come up with innovative idea. By doing strategy are framed to meet the desired
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objectives in the open market place (Badewi, 2016). As well as motivate structure of the
company to function smoothly.
Diversity in Workforce: Tesco is working in diversified sector such as , food, clothing,
house hold items, electrical appliances etc. in the cut throat competitive world. Employees
working are diversified in gender, race, religion etc. Organizational Design theory improves the
dysfunctional elements in the company and motivates workers to perform better. This model is
directly related with goals of the firm as it helps to achieved them effectively. Example:
Organizational Design theory aid Tesco to run the organizational structure smoothly a well as
guide them to use effective strategy to meet the emerging needs of the customer (Bradley,
2016).
Examine distinguished approaches and techniques to create skilled and dedicated workforce
Tesco adopts various approaches and techniques to create skilled and dedicated
employees in the open market place. Distinguished approaches and techniques are used different
organization depending upon their type of business. Various approaches and techniques such as
human capital, knowledge management, internal and external approaches, motivation etc. are
used for attracting, maintaining, developing and rewarding human resource in order to create
skilled and dedicated workforce. Here, they are explained with complete details which are as
follows:
Performance appraisals approach: Tesco provides monetary and non-moneatry amount
to the deserving employees for their hard work. Irrespective of gender caste, sex, religion etc.
discrimination performance appraisal is given to the most appropriate staff members. By doing
so workers are motivated to perform better on continuous basis.
Maintaining employees relations approach: Tesco involve employees in their decision
making process in order to ensure then that they are valuable assets of the administration. By this
act potential and skilled staff members are retained for longer time period.
Recruitment and selection approach: Hiring qualified candidate for the post in Tesco
will leads to increase in productivity and profitability over the years. This approach assist the
company to raise goodwill in the marketplace. As well as set standards are meet on set time
duration.
Internal and external approaches: Tesco adopts this approaches and techniques in
order to attract skilled, capable and dedicated employees in their working premises. This
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approaches is mostly used at the time of hiring nominee for the vacant post. Participant are
stimulated at a large scale in order to join the organization which is a leading British
multinational company across the boundaries. Firm provides proper training and development
programmes to new candidates so that they get can examine distinguished approaches and
techniques to create skilled and dedicated workforce
Human capital approaches: This approaches is adopted by Tesco so that desired staff
member can be rewarded for their hard work. Human capital approaches is implemented
effectively by the organization so that desired and potential staff members can be awarded
without any discrimination and favouritism. The reward can be any form it ca be either
monetary(cheques, cash etc.) or non- monetary (gifts, holiday trip, appraisal etc.) which directly
motivates employees to perform effectively to meet the set standards. By implementation of
human capital approaches human assets can be retained for longer time duration in the
competitive market place (Bradley, 2016).
Tesco is using employees appraisal approaches to retain skilled and capable workers for
longer time period. By doing other staff members get encourage and work effectively to be in the
list of appraisal. This aid the enterprise to gain competitive advantages against rivalry in the cut
throat competitive world. This act directly or indirectly helps the organization to raise market
value in the open market place. The HR function of Tesco contribute in organizational design in
positive manner. Functions such as, marketing, production, finance etc. plays a vital role in
effectively designing Tesco structure.
Emerging HR developments and approaches would adopt HR practices to examine internal and
external environment of workplace.
HR development is directly related with the improvement in workers skills, ability,
behaviour, knowledge etc. It is adopted by firm so that potential employees can be retained for
longer time duration. The HR practices adopted by Tesco's top level management aid in
accomplishing set objectives in effective manner. Here, internal and external and human capital
approaches and techniques are adopted by firm in effective manner. Human capital approaches
helps the workers to perform effectively and efficiently in the market place. Here reward are
given to the workers for their best performance irrespective of favouritism. HR approaches are
accountable for occurrence of modification in internal and external environment in the work
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place. Tesco HR manger need to frame strategies or tactics so as to hire employees who can
perform task in effective manner.
Human resource planning: Tesco by using artificial intelligence best human resource
planning can be conducted. With the help of this potential and skilled staff members are hired in
Tesco which uplift their overall workforce efficiency. This leads to accomplishment of set
objectives in the global market.
Recruitment and selection: Tesco through LinkedIn website they are able to recruit
right candidate at right place. Which raises the productivity and profitability level of Tesco at a
tremendous scale in the international market. Here, online recruitment is done for the vacant
post in Tesco by examining all the necessary skills and abilities required for the vacancy.
Recruitment and selection approach is adopted by HR department of Tesco to overcome
the internal and external changes occurring in the open market place. By this appropriate
participant is recruited for the vacancy which upgrade the overall performance of the staff
members. As well competitive advantages is gained against rivalry in the cut throat competitive
world which is a positive sign for the firm.
RECOMMENDATION
The following are the recommendations which are explained as follows:
 Firm need to makes changes in their approaches and techniques on regular basis so that
best outcomes can be received.
 Effective implementation of HR practices should be there so that smooth functioning of
the business can be carried out easily.
 In appropriate manner training and development should be provided to the workers so
that skills and competences can be raised due to which productivity and profitability ratio
will uplift (Gill, 2015).
 Tesco by adopting recruitment and selection procedure helps the recruit effective staff
members for the post vacant.
 By implementing appropriate organizational structure in Tesco the overall workforce
efficiency of staff members can be raised at a tremendous scale.
 Performance appraisal approach encourage the staff members to perform better.
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CONCLUSION
From the above it can be summarized that importance of organizational Design theory
helps in fulfilling in set objectives. By doing so business functions can be carried out smoothly in
the cut throat competitive world. Two different approaches and techniques are implemented in
the working premises to ensure the effectiveness of HR function. Moreover, several human
resource practices are studied so that by evaluating internal and external environment tactics can
be formulated accordingly in the cut throat competitive world.
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REFERENCES
Books and Journals
Acciaro, M., 2015. Corporate responsibility and value creation in the port sector. International
Journal of Logistics Research and Applications. 18(3) pp.291-311.
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.
Bradley, G., 2016. Benefit Realisation Management: A practical guide to achieving benefits
through change. Routledge.
Gill, R., 2015. Why the PR strategy of storytelling improves employee engagement and adds
value to CSR: An integrated literature review. Public Relations Review. 41(5). pp.662-
674.
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PART 2: Managing Change
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REFERENCES
Books and Journals
Gurr, D., 2015. A model of successful school leadership from the international successful school
principalship project. Societies. 5(1). pp.136-150.
North, K. and Kumta, G., 2018. Knowledge management: Value creation through organizational
learning. Springer.
North, K. and Kumta, G., 2018. Knowledge management: Value creation through organizational
learning. Springer.
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