Organisational Performance and Culture in Practice 5CO01 Report UK

This report provides a detailed analysis of organisational performance and culture, focusing on BMC, a UK-based company. It examines different organisational structures, their advantages and disadvantages, and the connections between organisational strategy, services, products, customers, and revenue generation. The report includes a PESTLE analysis of external factors impacting BMC and evaluates the company's strategic priorities, including addressing its centralised structure and competition. Furthermore, it critically assesses the relationship between the employee lifecycle and organisational work, highlighting the importance of employee attraction, recruitment, on-boarding, development, retention, and separation. The report concludes by discussing the impact of people practices on organisational systems and structures, emphasising the need for decentralisation and participative leadership to improve employee satisfaction and reduce turnover.

5CO01 Organisational
performance and culture in
practice

EXECUTIVE SUMMARY
In today's business every organization has its own business structure some has
Hierarchical some of them is having matrix. The businesses are using organizational strategy and
policies to work effectively. The present study is going to provide detailed information about
The external factors which are essential for an organization BMC to analyse in order to survive
and maintain its competitive edge in the industry. Organizational strategies are based on the
analysis of these external factors. Strategies are vital to respond to the areas of priorities. There
exists a close relationship between the life cycle of employee and the organizational work. The
people practice that are followed within an organization shapes the behaviour of the people
towards the organization. With the help of theories and model, the study is going to show how
human behave in company.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
1. Advantages and disadvantages of two different types of organizational structures...............4
2. The connections between organizational strategy, services and products, customers and
revenue generation. ....................................................................................................................5
3 Analysing External Factors and its impact over BMC.............................................................6
4. Current strategic priorities of BMC and its cause...................................................................7
5. Critically evaluating relationship between employee life cycle and organizational work......8
6. Explaining two themes impacting people practice..................................................................8
7. Assessing the impact of people practice on organizational systems and structures................9
8. ...............................................................................................................................................10
CONCLUSION..............................................................................................................................11
TASK 2 .........................................................................................................................................13
COVERED IN PPT ..................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
As we all know that organizational performance plays a vital role for the successful
business as it is the actual output measured against its intended results/outcomes of the firm. The
present report will be based on BMC situated in London, UK. In Manchester, the company has
recently purchased and expanded its operations to grow its portfolio in a large area of UK named
as city centre licensed food area. The firm is facing some challenges related to its organizational
structure, so study will highlight connections between organizational strategy, business
environment and structure. Furthermore, it will outline how the people practice team could help
the company and its managers to accomplish their business objectives and goals for successful
growth.
TASK 1
1. Advantages and disadvantages of two different types of organizational structures.
An organizational structure is a company's system that highlights how business
operations and certain activities are directed to meet the objectives and desired target of the firm.
In short, it determines how important details and information flows between firm's levels.
Currently the BMC is operating a traditional top down organizational structure to share
information between departments of the firm. It is also known as hierarchical organizational
structure in which the chain of command goes from the top-level management of the firm to low
level team members.
Hierarchical organizational structure
Advantages
Majorly this type of structure is used by big companies where there are more employees
and staffs working to run business smoothly (Hierarchical-organizational-structure, 2022). With
the help of this method, a company and its employees can understand their task, authority,
responsibilities and roles clearly. Plus, by following this structure staffs can get clear paths
related to their professional career which helps them to achieve task on time and motivate them
to work effectively in the future and current projects (Liu and et.al., 2019). The major benefit of
using this method is to show who each staff reports to or who to talk to about specific issues
related to company's project. If the information flow properly between department of the firm it

can give staff member a speciality and create good relationship between staff members which
enhance the positive working environment.
Disadvantages
Apart from its benefits, this structure of business also highlights some limitations. just
because of increased bureaucracy, the company may face challenges such as slowing down in
innovation strategies (Liu and et.al., 2019). As most of the important decisions is made by the
top-level management of the firm, due to this lower level staffs can feel demotivated and feel
unvalued and less ownership. Due to this structure, low level management team can't express
their knowledge level, experience, creative and innovative ideas for the business success.
Flat or Horizontal organizational structure
Advantages
This type of organizational structure is used by small-medium companies where few
employees are working to run business smoothly. Nowadays, many start up businesses are
following this structure with few levels between low level of management team and upper
management team. The major benefit of using this structure is it is helpful for company to
encourage staff by involving them in important decisions, provide them more projects and
responsibilities, and share their innovative ideas. With less supervision, this structure increase
the use of open communication system between staffs which can improves collaboration and
coordination.
Disadvantages
As there is a less supervisor available, staffs can get confuse to whom they are going to
report. Hence, it can create confusion in working environment which can sometimes demotivate
people and managers may face issues while maintaining staff once the firm grows beyond start
up business status.
2. The connections between organizational strategy, services and products, customers and
revenue generation.
 Due to corona virus pandemic many businesses has been impacted just because of
changing business operations and strategy. So, owners of the business considered that it
is essential for the company to enhance their structure and strategy to satisfy customers
by providing them quality services or products as per their convenience, requirements

and preferences (Lukito-Budi, Manik and Indarti, 2022). In addition to this, they say to
keep it up to date to avoid any uncertainty in the future.
 As we all know that a business strategy gives the firm with the basis for making the
correct and important business related decisions which can enhance working
environment. So, to be successful, the company determine about if a new product idea
should be developed or not and how much investment is needed to be spent on new or
existing goods.
 By providing quality services and enhancing employees work and higher customer
satisfaction level with effective strategies, the firm can generate good revenue. In order to
reach market, the firm can diversify its goods or services and increase customer
relationship to achieve sales and profit margins (Ma and et.al., 2018). Sometime change
in product or service strategy improve the tactical/ important decision made by company's
team members which can enhance their motivational level to achieve task. On the other
side, things changes and products managers of the firm need to be very active in order to
prepare plan so that necessary changes can be done accordingly and adjustment can be
made to deal with those challenges.
3 Analysing External Factors and its impact over BMC
External factors and market trends that influence the external environment of the BMC
are analysed by using PESTLE analysis model.
Political Factors: Sustainability in Politics: The commitment from the top governing
authorities of the nation motivates the company in formulating and adapting to the new practices.
The country main at being sustainable through green processes and reducing its overall carbon
footprint largely (Alhamali, R. M., 2019). The various laws have been implemented by the
government for the same. Compliance with the laws will be beneficial for the company as it will
improve the image of the company.
Economic Factors: Lifestyle in UK: The purchasing power of the consumers in UK is
declining this entails great threat for the company.
Social Factors: Consumer Behaviour: With the rise in education consumers are
becoming more aware about the food ingredients and being more health conscious. Adding
dishes that are healthy will have positive impact over the company revenues. Diversity: The
culture of UK is highly diverse. People have different food tastes. For increasing the revenues

and supporting the diverse tastes of the consumers BMC requires continues experimentations in
its menu.
Technological Factors: Disruptions: Disruptions in the technology negatively impacts
BMC. Also, for ensure competitive edge the company requires to have updated with the
technology.
Legal Factors- Focus development of the government: The government is increasingly
focusing on the tax payments and the regulatory framework regarding the food products being
produced using sustainable ingredients (Leliga, Koapaha and Sulu, 2019). BMC should adhere to
all the laws and trends in the legislation for the smooth functioning of business processes.
Environmental Factors: Making business operations more environment focussed is
never economical for the business organization. But in true sense an enterprise largely depends
on the environment for its resources and all the materials required for its effective function of the
operations. Adopting policies that cares for the environment and ensures minimum damage to it
will improve the brand image and increase the revenue.
4. Current strategic priorities of BMC and its cause
Strategic competitive environment is analysed using the competitive forces of the Porter
Model. The first strategic priority of the company is to change the current structure of the
company. Currently the company follows centralized structure which is the reason behind the
discontentment of the managers. The operations are dictated by the head office which leads to
the decision-making being delayed regarding the company's response towards the trends in the
market (Larsson and et.al., 2020). By following the top-down approach the company neglects the
opinions that it can get from its employees which ultimately could result in the betterment of the
organizational processes. The top-down approach is the cause behind greater staff dissatisfaction
and turnover rates. The company is facing staffing problems as a result of its image of carrying
the legacy if high staff turnover and poor satisfaction among its employee. There is urgent need
for BMC to decentralize its authority structure and adapt to participative leadership style to
improve the satisfaction levels of its employees.
The second strategic matter of priority for the top management at BMC is to make
decisions that could help the firm to survive the competition in the market. BMC is facing
competition from the small scale cafes that run independently in the market. The cafes offer
variety of dishes in their menus along with the local food products that attracts the customers as

they are cheaper alternatives (Hobbs and Skalski, 2019). According to the Porter's model threat
from the substitutes and new entrants in the market are the forces that are adversely affecting the
company. The company should use the increasing consumer focus on health consciousness as the
key to retain its competitive edge in the market. Various health based food products should be
launched by the company to attract consumers by offering them healthy and tasty food.
5. Critically evaluating relationship between employee life cycle and organizational work
The relationship between employee life cycle and BMC work can be described by the
employee life cycle model. There are six stages of life cycle of employees namely attraction,
recruitment, on-boarding, development, retention and separation (Crane and Hartwell, 2019).
The relationship of employee with the work at organization starts with attraction. Individual gets
attracted for apply working with the enterprise by various channels such as social media,
newspapers, etc. Employee attraction rate of BMC is too low because of its legacy of high
employee turnover and increased level of dissatisfaction of the workers. The next stage is
recruitment that this stage company reaches the required talent and get them hired. There are
various recruiting platforms that helps in the process such as referrals and websites. BMC needs
to recruit more of talent to cater the organizational needs. Improvements in organizational culture
will help the firm in the process as existing employees will bring new employees. On-boarding is
the next stage in the cycle, newly recruited employees are made familiar with the existing
employees and their job roles in this particular stage (Cook, 2018). The fourth stage is concerned
with the development of the employees. Employees need to be developed to fit in their job roles.
Employee training and development requires cost to be incurred by the company. High employee
turnover means need to incur more expenses on the training and development of new people in
the organization. Retention is the fifth stage of the cycle. It is important for BMC to retain its
employees for saving the limited funds and time of the company in the recruitment and
development processes. Employees can be influenced to stay longer with the organization
through effective employee well-being schemes. The last stage is separation, employee leaving
the company. BMC have high employee turnover rates. The situation can be improved by
focusing on employee reattainment schemes.
6. Explaining two themes impacting people practice
The organizational structure that currently prevails in the BMC is centralized and line
structured (top-bottom approach). The current structure helps the management to foster effective

communication and have a stable environment in the organization. Line structure also defines the
responsibilities of each individual and the superior and subordinate relationship clearly ensuring
that the efforts does not get overlapped (Stein, 2019). Changing circumstances and situations are
also easily adaptable. The limitations that BMC is currently suffering are specialization is
limited, business model becoming rigid and high power to the manager. All the authority of
taking decisions lies with the central authority this results in lack of specialization benefits that
the organization could have by involving the expertise of other members in the organization.
Inflexibility and rigidity in the structure of organization makes the employee efforts ineffective.
The decision-making process gets delayed because of the current structure.
The effective grievance handling methods at the organization will positively impact the
organization. Employees of the organization will be motivated to work for their job roles.
Motivated employees performs and do their best towards the achievement of organizational
goals. Employees will communicate all the discomfort they can in the organization that hinders
their effective working and efficiency. Resolving the grievance will be positive for the
organization as the productivity of the employees will increase (Iradukunda, and et.al., 2021).
Through continues grievance resolution at the organization will highlight the means for fast and
fair methods regarding the process. Resolution of grievance at minor stage prevents in from
taking the shape of big disputes that may impact the daily working of the enterprise. Employees
can have a unit in the company where all their discontents and frustrations are heard at resolved
timely. The management money and time gets saved as problems at the workplace are resolved
leading to low employee turnover.
7. Assessing the impact of people practice on organizational systems and structures
The people practice at BMC have its impact on organizational systems and structure.
There is no emphasis on employee wellbeing by BMC currently. The company does not make
any efforts that results in the motivation of the employees. The current theme is responsible for
high level of employee dissatisfaction and high employee turnover (Levin, 2019).
Discontentment among employees regarding the practices of the organization results in lack of
motivation and low employee retaining power of BMC. Employees increasingly leaving the
organization leads to increasing need of employee recruitment for the firm. Recruiting
employees means increase in cost of the company in training and hiring activities (van de Ven,
Boardley and Chandler, 2022). The talent pool of the company is also affected as due to its

current working it has created the legacy of high employee turnover and increasing employee
dissatisfaction. The organization finds itself incapable of attracting the talented applicants for the
vacant positions at the company. People policy formulation are the part of people practice.
Effective people policies aims at diversifying, and inclusion of people working within the
organization. Diversifying the employees with the organization means allowing recruitment of
people from varied backgrounds, people of different nation, culture makes the organizational
culture diversified. This creates a need of well-established Human Resource department in the
organizational structure of the company. Diversified workforce needs good employee orientation
programs to be present in the organization system this is ensured by the HR department. A
decentralized organizational structure best works in an organizational structure that is divided
into departments. Each department is governed by the departmental head. Departmental
organizational structure supports decentralize authority practices within the organization. This
structure creates an environment where people are motivate to work and make their department
the best performer of the organization.
8.
The people practice team of BMC is connected with the two strategic priorities such as
centralised policy and recruiting the staff in order gain competitive advantages. As the managers
are not able to accept the new policy because they feel the old strategies were very effective for
them. To deal with this, People practice team is actively work on improving organisational
culture and behaviour. After pandemic, the company is facing difficulty to recruit the employees
they need for the business operations.
 To achieve success, people practice team is following open and honest communication in
order to support the managers so that they can achieve accountability in the firm.
 Firstly, practice team will understand the goals set by the firm and celebrate their success
after completion of task. As per people practice team, it is essential to create a healthy
and positive environment where employees can work effectively and exchange creative
ideas with each other.
 People practice team can allow team members to solve issues with the help of problem
solving skills. This can be done through proper communication and feedback system
which can encourage managers and its team members to share experience.

 They can consult with relevant parties in order to clearly understand the needs and
requirements. This can be done through individual depth interviews, meetings and
observation method. As per people practice team, it is necessary to consult with parties
and keep track on success criteria with the support of measuring tools KPIs.
 By effective consultation process, the firm will be able to manage contingencies and
create an opportunity to be informed as well as to provide information about context
related to policies and deal with issues raise by employees. With this they can help shape
the goals and objectives of the particular project and enhance outcomes.
 With this, they can provide input so that proper decision making process can be made.
Before implementing any strategy and policy, it is essential to consult with parties such
as employees, senior management team, legal team and experts. By taking opinion from
them, people practice team can help the managers to improve the overall business
activities and help shape the firm culture.
 People practice team would plan effectively about projects and make sure they were
delivered on time with the specific requirements. This can be done through proper
training and development sessions by using relevant resources. The team can help them
in order to identify room for advancement so that the company’s staff can develop their
skills and accept changes instead of criticism.
 As per the views of people practice team, it is an effective leadership technique to
provide empathy and build trust and mutual respect, which helps the managers to build
relationships with employees.
 As per the opinion of people practice team, it is essential to make effective project
planning as it will provide foresight for the execution step, with the help of project plan
the managers can eliminate wastage which is not beneficial for company.
CONCLUSION
Based on the report organizational culture and practice have been made clear. The report
has given an evaluation of the advantages and limitations of the organizational structure based on
which it has been evaluated that BMC follows hierarchical structure of organization. The report
has presented the analysis of the organizational strategy, products and services, customers and
revenue generation relationship. Further the report has analysed the external factors impact BMC
using pestle model. The report has outlined the strategic priorities and reasons behind the cause

for BMC. A critical evaluation of relationship that exists between the employee life cycle and the
organizational work has been highlighted in the report. In addition, the report also explains the
themes that impacts the people practice at BMC. An assessment of the impact on organization
system and structure by the people practice have been done. Lastly, how BMC's people practice
team connects and supports the strategic priorities, consults with the parties and plan the relevant
projects have also been assessed in this report.