Value and Contribution to Organisational Success

This study material explores the value and contribution of organisational design theory, different techniques for awarding human resources, emerging HR developments, and organisational design along with change management. It focuses on the case of ARM Holdings Plc, a successful global business venture.

VALUE AND
CONTRIBUTION TO
ORGANISATIONAL
SUCCESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
LO 1.................................................................................................................................................3
P1 Importance of organisational design theory...........................................................................3
LO 2.................................................................................................................................................4
P2 Different techniques for awarding human resources..............................................................4
LO 3.................................................................................................................................................6
P3 Emerging HR Developments..................................................................................................6
LO 4.................................................................................................................................................7
P4 Organizational design along with change management.........................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Creating Value for any organisation is an extremely detailed and intricate process
involving various aspects such as organisational design, structure, change management,
motivational level of employee’s contribution of HR etc, (Mooney and Burdon, 2017). ARM
Holdings Plc is a successful global business venture focusing mainly on the innovation aspect. In
the following report, different aspects of the organisation will be evaluated in context of ARM
and then appropriate conclusion will be drawn regarding the analysis done in the report further.
MAIN BODY
LO 1
P1 Importance of organisational design theory
Organisational design signifies the entire process through which an organisation develops their
structure for the business activities and function that are to be performed and also sets up the
entire procedure that is to be followed in the organisation (Nwinyokpugi and Ordu, 2019). ARM
Holdings Plc is a diverse organisation and therefore it is necessary to maintain a diverse
workforce that works for the organisation. The organisational design that is adopted is crucial in
the success of operating organisation successfully and its importance can be ascertained using
following method:
Impact on organisational structure: The organisational structure signifies the flow of
communications between the different hierarchies or levels that have been developed for the
organisations working. For instance at ARM, agile organisational structure is followed where the
entire team of employees works collectively and engages in real time communications back and
forth rather than the communication flow in one direction. The model of transformational
organisational design is applicable in the organisation where the structure of the organisation is
just a single aspect amongst the aspects getting affected due to organisational designs (Scott,
DeLone and Golden, 2016). ARM also ensures that the transformational model is well integrated
with the manner in which entire system works thus affecting the structures implemented in the
company as well. However, the model can sometimes create a structure that might not be
feasible with the operations of the organisations for instance developing hierarchical
communication structure in ARM would make the organisation lose its very essence of operation
i.e., the involvement of employees in every decision that is taken at ARM.
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Impact on organisational strategy: Strategy often is categorised into two different segments
where one is the business strategy and another is organisational strategy. The guiding principles
of ARM have always been to incorporate the employees in the decision making so that they
remain motivated and loyal to the business and can feel belongingness in the organisation
(Stevenson, 2018). The McKinsey’s 7S model is the guiding principle behind the strategy
formulation at ARM because it not just helps in the identification of the different tools required
to achieve the vision of the organisation but implementation of this model will also help in
aligning the efforts of the organisation towards the achievement of the productive results.
However, implementation of this model is a long and tiresome process because it involves
consideration of too many aspects before finalising the strategy that is to be adopted.
Along with the structure and strategy, sustainability should also be the key focus for
organisations and at ARM, all the practices that are adopted and implemented are wholly
sustainable which has helped them in succeeding on the global platforms (Serra, Font and
Ivanova, 2017). Therefore, it can be recommended to ARM Holdings that in order to enhance the
development of sustainable strategies in their organisation, it is necessary to ensure that the
structure is employee friendly and strategies are developed after properly taking into account the
resources that are available in the organisation and the impact that they will have so that the
effect can be measured accurately.
LO 2
P2 Different techniques for awarding human resources
In order to enhance the productivity of the human resources working in the organisation,
ARM already follows a series of steps but in order to further evaluate the state of employees
working in the organisation, three critical aspects can be evaluated:
Motivation: Employees of a company can be kept motivated by addressing their intrinsic i.e.
internal motivational needs and extrinsic i.e. external motivational needs. This can be done only
when organisation is aware of the desires of the employees. Content Theories such as Maslow
and Herzberg are applied to address the individual needs of the employees where ARM can
identify what employees want (Kelly and Cameron, 2017). At ARM, this is already well
implemented where organisation regularly provides opportunity for the career growth and has
also engaged employees thoroughly in the solution providing committee where around 120
employees act as active members. Process theories on the other hand are implemented usually in
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order to enhance the team spirit at the organisation and to identify the how aspect of increasing
motivation. This can be done by implementing theories like Adam’s Equity theory, Vroom’s
theory etc. that help in gaining a balance between the inputs and outputs of an employee in the
organisation collectively (Titov and Umarova, 2017). Development of proper employee
satisfaction mechanism has always been a critical activity of ARM where they have tried to
prioritise the requirement of their employees so that the employee productivity can be
maintained at higher levels at all times. Therefore, collectively the mechanisms developed and
adopted by ARM have always helped in increasing the motivational levels of employees as an
individual as well as team and therefore, the performance and productivity of the company has
always risen.
Human Capital: The concept of human capital theory discusses the variety of nature, culture,
beliefs, knowledge and habits, that the employees in a diverse organisation possess. Since the
ARM is present and operating at a global level, the employees working in the company are form
extremely diversified cultural backgrounds but it is the duty of the management of the
organisation to ensure that the productivity and efforts of all the employees collectively focus
towards achievement of overall organisational goals (Motivation-within-an-innovative-work-
environment, 2019). The human relations approach developed by Elton Mayo is also a major
contributor in order to maintain the diverse background and ARM has therefore, explains the
vision of the company to the employees, has ensured that tem work rather than solo work is
encouraged and also, the training is provided to employees regularly so that they can place the
goals of the organisation before their personal goals and work peacefully.
Knowledge Management: The practice of knowledge management helps in identifying and
retaining the knowledge that the employees of the organisation possess and then also analyse the
performance of the employees on their job roles so that it can be evaluated who are the
employees in the requirement of the training and who are already skilled. For ARM, this helps in
identifying the talent of their employees by the practice of Talent Management where they invite
employees to share their unconventional ideas and thoughts and has implemented an open door
policy where the communication barriers and gateways between managers or seniors and
employees are very less (Chan, 2019). This has helped them in segregating the skilled from the
unskilled and yet not differentiating between them at the workplace.
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LO 3
P3 Emerging HR Developments
The perception and role of Human Resource in the organisation has shifted drastically and
they are no longer just limited to the simple functions of recruiting employees in the organisation
but it has become more complex and diversified since then. There are some major developments
that have been observed in the field of HR today and they have all affected their normal
functioning method:
Technological Advancement: In the existing scenario, the technological integration has been
noteworthy in the completion of various HR functions such as recruitments, performance
evaluations, holding Skype meetings for occupying better resources etc. This requires the HR
today to be technologically updated and at ARM, the HR is fully updated (North and Kumta,
2018). The HR strategy developed by ARM focuses on global learning and development of
employees where everyone is encouraged to train and develop themselves on the basis of skills
that they themselves require. Additionally, the entire nature of the business is technical oriented
thus increasing the technological integration further in the organisation.
Work Culture: The duties of HR have further extended to regularly engage the employees in the
activities going on in the organisation and this can be done only when they reduce the
communication gaps or barriers at working place. It is essentially, the duty of the HR today to
ensure that the environment in hic the employees are working is safe and motivating for them in
order to boost their overall productivity. In ARM as well, the employees are motivated to
generate as many innovative ideas as they can rather than only expecting the research and
development department to generate ideas and also the communication flow is very easy and
simple (Motivation-within-an-innovative-work-environment, 2019). The HR of ARM is able to
increase the commitment and loyalty of the employees by giving them a supportive and fostering
work culture to work in which is a crucial aspect of any HR in today’s modern organisation.
Forecasting Challenges: This is not so much of a development because it has more or less
always been the duty of HR to evaluate the market trends in the industry currently and identify
the potential threats, if there are any, regarding the availability of the human resources in the
company (Mooney and Burdon, 2017). At ARM, they have always been able to meet the
challenges thus identified and this has led to the HR manager enhance the performance level and
cooperation of the existing employees even when the pressure is extremely high thus keeping the
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employee motivated. They also ensure that the employees do not face any challenges or
difficulties while reaching out to the senior management or to the HR department in their
company.
Therefore, it can be conclude that the role of HR today has indeed turned dynamic where
they no longer are just performing basic duties but are also supporting the entire employees in
the organisation especially the non- HR manager who have different job roles but yet play a
crucial part in the success of the organisation (O'Dwyer and Gilmore, 2018). Along with this, the
legal protection and safeguarding the rights of the employees is another positive attribute of HR
at ARM thus proving the un- conventionability of the organisation.
LO 4
P4 Organizational design along with change management
With the dynamic and constantly changing environment, every organisation has to
integrate the process of change management in their organisation so that any redundancy in the
business can be avoided and they can do this change management by utilising different models
that are available (Scott, DeLone and Golden, 2016). The Kurt Lewin change model is one such
where the entire procedure on implementing change is segregated into three simple stages. For
ARM, this model can be evaluated in following context when the organisation decided to reduce
the hierarchy and redundancy in the existing organisational design and make it more agile or
friendly.
Unfreezing: At this stage the management decides that the current environment is no longer
feasible for the company and the need for implementation of change is identified. At ARM, this
is then communicated to the employees in a systematic manner where they try to make them
understand why the change is necessary and how it will contribute in their overall success in the
long run (Stevenson, 2018). This is the most critical stage because the driving and resisting
forces get developed at this stage. It is necessary to gain the support of the employees in
implementing the change strategy where they can be made to acknowledge that the structure of
ARM is no longer viable for the flexible operation of the company and then ultimately, the
benefits such as simplified work etc. need to be highlighted so that they can be kept motivated.
Changing: In the second stage, the management recognises that whether the employees are in
favour of the change or not and this is then integrated with the change management strategy that
has been developed by the organisation. For ARM, the employees were largely in favour of the
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change implementation because they realise that they would become outdated if they did not
undertake the changes that have been developed thus (Nwinyokpugi and Ordu, 2019). This
simplified the process of the company because only older people, i.e. majority of the older
people were required to be adequately and quickly trained and this minimised the problems
effectively.
Refreezing: In the last stage, the manager regularly evaluates the performance of the clients and
the situation of the business after the change is implemented and once it is identified that the
change has become properly integrated with the organisation, the entire model is completed and
uplifted.
The major types of changes that can usually occur for any other business are typically the
transformational change and the psychological change (Titov and Umarova, 2017). Currently,
the change for ARM is not very major and can be resolved as per the transactional change where
the change in the working location helps in increasing the performance. It can also be
psychological change where the emotional and feelings range of the employees are triggered and
once this aspect is activated, it gets very difficult to bring the employee in favour again.
CONCLUSION
The research done in the report above helps in concluding that the organisational design
and structure are the key for the success of any business. It was also concluded that the ARM
Holdings Plc is an intensely diverse organisation where the employees have been kept motivated
and loyal to the organisation by the contribution of HR in creating value for business along with
the structure and design of the entire organisation. It was also identified that the change
acceptance level of the employees at ARM is very high and this is the major contributing factor
behind the success of the organisation as a whole.
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REFERENCES
Books and Journals
Chan, K., 2019. The Impact of Perceived Organisational Support on Employee Retention and
Successful Organisation Management (Doctoral dissertation, UTAR).
Kelly, J. and Cameron, K., 2017. Applying positive organisational scholarship to produce
extraordinary performance. In Positive psychology interventions in practice (pp. 207-
217). Springer, Cham.
Mooney, G.R. and Burdon, S., 2017, January. Organisational Ideation: Engaging Motivation as a
Creative Catalyst. In British Academy of Management Conference 2017. British
Academy of Management.
North, K. and Kumta, G., 2018. Knowledge management: Value creation through organizational
learning. Springer.
Nwinyokpugi, P.N. and Ordu, O.L., 2019. Institutional Values Management and Organisational
Success of the Manufacturing Sector in Rivers State, Nigeria. Asian Research Journal of
Arts & Social Sciences, pp.1-11.
O'Dwyer, M. and Gilmore, A., 2018. Value and alliance capability and the formation of strategic
alliances in SMEs: The impact of customer orientation and resource
optimisation. Journal of Business Research. 87 pp.58-68.
Scott, M., DeLone, W. and Golden, W., 2016. Measuring eGovernment success: a public value
approach. European Journal of Information Systems. 25(3). pp.187-208.
Serra, J., Font, X. and Ivanova, M., 2017. Creating shared value in destination management
organisations: The case of Turisme de Barcelona. Journal of destination marketing &
management. 6(4). pp.385-395.
Stevenson, D. ed., 2018. Managing Organisational Success in the Arts. Routledge.
Titov, E. and Umarova, L., 2017. Impact of real and propagated values on organisational
success. Congruence of personal and organizational values, pp.13-30.
Online
Motivation-within-an-innovative-work-environment.2019. [ONLINE] Available through: <
https://businesscasestudies.co.uk/motivation-within-an-innovative-work-environment/ >
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