5ODG Report: Analyzing Organizational Design for Strategic Alignment

This report analyzes the organizational design of Body Image, a company operating in the bath accessories and beauty products market. The report begins by summarizing the internal organizational context, including the company's structure, processes, and external influences assessed through STEEPLE factors, along with measures of organizational performance. It then explores historical and theoretical perspectives of organizational design, comparing the McKinsey 7s Model and Galbraith's Star Model. The core of the report involves a critical analysis of Body Image's structure and management using these two models, evaluating the alignment between its design, culture, systems, and processes, and its ability to achieve business objectives. The analysis includes the application of various organizational design tools and models to evaluate the company's performance and strategic alignment. The report concludes with recommendations for HR strategy and practices to improve strategic alignment and provides a summary implementation plan. The author also reflects on the knowledge and skills gained during the assignment, and how it will be used in future practice.

 Assignment – 5ODG - Part B
This assignment must be submitted through Online Services
Part B (A.C. 1.1, 1.2, 2.1, 2.2 & 2.3) (1,500 – 2,000 words)
A member of the senior leadership team has recently read an article on the relationship
between sustainable organisational performance and the strategic alignment of an
organisation’s different components such as its structure, culture, processes, and people
management approaches, and is keen to explore the following question:
“To what extent does the current ‘design’ of the organisation support organisational success?”
You have been asked to produce a 1500 – 2000 word report which:
 Summarises the current internal organisational context in terms of key influences on
business strategy, and measures of organisational performance. Include consideration of
 Organisation type
 Organisation elements (structures, processes and systems)
 External influences (STEEPLE factors), performance measures.
 Summarises the historical and theoretical perspectives of organisation design, and gives a
brief explanation and comparison of two organisation design models.
 Selects and uses two organisational design models/diagnostic tools (above) as a framework
to critically analyse the structure and management of the organisation, and to evaluate the
relationship between the various aspects of organisation design and the performance
measures previously identified.
 Draws conclusions as to the alignment between the current design of the organisation, its
culture systems and processes, and its ability to successfully deliver on current and future
business objectives.
 Makes recommendations in terms of HR strategy and practices to support and improve
strategic alignment.
The leadership team will expect your report to:
 Use a range of relevant models and analytical tools as a framework for your evaluation
(summarising key points in the main body of the report and including any supporting detail
in the appendices).
 Provide references for any theory or articles you cite, so they are able to follow up any of
your ideas they may find interesting.
 Provide recommendations that clearly support organisational strategy, and that are
achievable, practical and cost effective. (A summary implementation plan should be
included in the appendices).
 Please also comment on how you will transfer the new knowledge and skills gained during
this assignment into working practices. You may also use this reflection for your CPD.
 You should also include 3-5 references from up to date and relevant sources in order to
support your findings. This assignment must be submitted through Online Services.
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 Assignment – 5ODG - Part B
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NAME: Mohammed Alhaddi COHORT: HRM13D
COMPANY: Body Image WORD COUNT 1882
Section 1 (1,500 words)
Summary of the current internal organisational context in terms of key influences on business strategy,
and measures of organisational performance.
Organisation type
The main types are The types are: 1. Line Organization 2. Line and Staff Organization 3. Functional
Organization 4. Project Organization 5. Matrix Organization.
Line organization is one of the most simple as well as old organizational structure that has been
followed widely by multiple organizations. The line administrative method includes the simple way
of execution of the orders. It has been monitored that the administrative decisions flow from the
higher authorities to the lower organizational structure. The line organizational structure is
perceived as the simplest type of organizational structure. In this structure, the commands of the
mangers and the leader are communicated through a continuous flow (Madnani et al. 2015).
Hence, it can be regarded as highly effective as there is no gap in the communication process. A
staff line organization follows the primary features of a line organization. However, the significant
difference of the staff lie organization is that it provides the employees, especially the lower level
staff members with the necessary supports. To elaborate it furthermore it can be sad that the staff
line type of organization follows the method of command flowing from the higher level to the
lower (Goetsch and Davis 2014). Along with that, these types of organizations provide their staffs
with proper training and also gives out necessary advices to ensure smooth functioning of the
operations. In contrast to these organizational types, the functional organization depends on the
individual and independent functioning of each departments. Whereas, a project organization is a
type of organization that primarily depends on the project activities. These organizations are
focused on delivering the smooth functioning by taking up easy communication amongst the
employees.
Organisation elements (structures, processes and systems)
Mainly there are five types of organizational structures:
1- Functional Organizations: In this structure, each department will represent its own function, such as
Sales, HR, Finance, etc.
2- Geographical Organizations: This is will based on developing the operation across national
boundaries.
3- Organization by product: Common structure is to be organized by a specific product type. As each
product falls under one structure reporting to executive who oversee the whole process.
This type might be useful to be implemented in Body Image as each major brand could be shaped
into product structure.
4- Organization by customer / market: When the organization is relying on small number of customers,
automotive components manufacturer considered organization by customer.
5- Matrix Structure: this kind of organizational structure maintains the matrix or grid system of
organizational relationship, rather than depending on the traditional hierarchy.
The Geographical organization considered as the most suitable structure to be implemented to Body
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 Assignment – 5ODG - Part B
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Image for the following reasons:
1- Body Image has geographical expansion over 61 countries with different time zones.
2- Geographical structure will facilitate delivering the business objectives for “Body Image” for sales
targets.
3- Each country with separate management will affect the culture.
External influences (STEEPLE factors), performance measures.
STEEPLE Factors:
Social:
- Demographic: As the Organization is off-shoring their products industry in Asia, and the
Multilanguage and different cultures.
- Population Growth:
- Age Distribution: As it’s indicates that higher percentage of population are under age of 30 as
population growth rates.
Technological:
- Technological growth: As this will affect –to an extent- the online sales, and the server’s
development to cope with the increase in sales.
- Automation: Continuous development with current software’s market will lead to have more
options with sufficient costs.
Economical:
- Economic situation of the countries in which the organization is operating can highly
influence the functioning and production.
- Taxation policies as well as the fiscal policies differ widely from one country to another
(Adorni 2013).
- The purchasing capacity of the consumers also differs widely.
- GDP of a country plays significant role in demand and supply.
Environmental:
- Environmental protection laws of a country vary from one place to another. Moreover,
failure to abide by these laws often resulted into failure of maintaining environmental
sustenance.
- Waste management and disposal policies are to be considered with importance.
Political:
- Political stability of the countries in which the organization is operating are to be regarded
as important. In the context of Body Image, it can be said that the political inconsistency of
the Asian countries often affect the business.
- Marketing and trade agreement regulations also vary from country to country
Legal:
- Difference in rules and regulations are to be kept in mind while operating in a foreign
country.
Ethical:
- Organizational morality and integrity are highly important. Exercising these practices help
organizations to maintain sustainability.
Measures of organisational performance
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 Assignment – 5ODG - Part B
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In order to measure the organizational performance, it is very important to determine an appropriate
tool for understanding the improvements of individuals. Before measuring the organizational
performance, it is very important for developing smart goals depending on the five basic criteria of
specific, measurable, achievable, relevant and timely. In the second step, it is important for
determining what is critical for measuring (Mayne 2017). In order to achieve the organizational
goal, individuals need to focus on setting their own goals. It cannot be denied that effort off the
employees and the leadership initiatives the performance can be measured. Different changes can
be implemented for measuring the outcome in the workplace training and development practices
can be introduced for measuring the ultimate result. Performance report needs to be maintained so
that it can be compared with the present report after implementing the changes. Therefore, it can be
said that by continuous monitoring organizational performance can be measured in an effective
manner.
Summary of the historical and theoretical perspectives of organisation design, and gives a brief
explanation and comparison of two organisation design models.
Historical and theoretical perspectives
Organizational design ensures the overall process of organizational functioning as well as it ensures
the organizational structure. The organizational design is responsible for ensuring the operation and
the planning (More, Probert and Phaal 2015). Moreover, the organizational design focuses on the
strategies of providing excellent customer service, increasing efficiency as well as reduction of the
cost of operations. According to the classical organizational theory the organizations are regarded as
machines and the employees of the organization are perceived as the components of the machine
(Lang et al. 2013). It can be understood that the classical theory of organizational design hence,
acknowledges the importance of employees in order to maintain the effectiveness of the
organization. The neo-classical theory of organizational design focuses on the economic, social and
technical influences on the organization (Lindebaum and Ashkanasy 2017).
Design model (1)
One of the most prominent and widely accepted organizational design is the McKinsey’s 7s Model.
Published in the year 1980. The McKinsey’s 7s Model is primarily based on seven components that
are regarded as highly influencing the organizational structure as well as the functioning of the
organization (Larsen, Manning and Pedersen 2013). The major components of the organizational
functioning are system, strategy, style, skills, staff, and structure. The benefit of adopting
McKinsey’s 7s Model is that the important organizational elements are being described effectively
through the model (Kessler, Nixon and Nord 2017). Moreover, it can be said that the organization
that is implementing the McKinsey’s 7s Model can effectively use these elements in order to have
effective communication amongst the employees as well as the leaders. However, it can be said that
the model has few limitations as well (Foss, Lyngsie and Zahra 2013). One of the most prominent
drawback of the McKinsey’s 7s Model is that it does not incorporate the analysis of the external
environment. Moreover, it can be noticed that the model does not include the process of obtaining
feedback from the employees as well as from the external stakeholders (Waring 2017).
Design model (2)
The Galbraith’s Star Model is another popular organizational design that has been taken up by
multiple organizations. It has been noticed that the model effectively uses the organizational
structure to gain competitive advantage (Foss, Lyngsie and Zahra 2013). Moreover, the Galbraith’s
Star Model effective uses reward mechanism in order to ensure effective functioning and staff
retention. The benefit of applying the model is that it effectively uses the organizational elements.
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 Assignment – 5ODG - Part B
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However, it can be noticed that the model fails to address some of the organizational structure.
Drawing from findings from use of 2 organisational design models
Critical analysis of the structure and management of the organisation
Body Image is an organization that primarily deals in the bath accessories. The organization
specializes in sponges as well as other bathing accessories and is operating more than 60 years. In
addition to this the organization also specializes in beauty and wellness products. The organization
that has started operating in the year 2005, has the headquarters in Paris. In order to analyze the
organizational structure, it can be understood that Body image has a strong brand image as well as
distributive strategies (GalbRaith 2014). In this regard it can be analyzed that the organizational
structure, that Body Image is following, is the functional organization type. It can be monitored that
the organization has a well-constructed. The organization has taken up the strategy of accessing the
needs of the global market and the current trends. The organization that has been operating over
61countries all over the world, has taken up effective strategies to present cross-functional
collaboration in order to provide efficient solution to the address the beauty and wellness needs of
the targeted market.
Evaluation of the relationship between various aspects of the organization and the performance
measures used
By analyzing the organizational structure, and the management, it can be understood that Body
Image follows an organizational structure that is interlinked. As a result of the functional structure,
the organization has efficient link and communication amongst the departments (Huczynski,
Buchanan and Huczynski 2013). The marketing section is regarded as highly important and they are
responsible for advertising the new products as well as accessing the changes in the global market.
In this regard, it is easily understandable that the production and operation of the organization is
correlated as well as they are related to the marketing department.
In order to analyze the access the performance of the organization, several measures can be
employed. It can be understood that in order to measure the organizational performance and
maintain effective functioning, Body Image needs to identify effective strategic measurements.
Incorporating strategic measurements will help the organization to achieve desired goals. The most
effective tool for measuring organizational performance is process mapping (GalbRaith 2014). The
process mapping tool enables the organization to access the steps and decisions taken up by the
management. Another effective way of measuring organizational performance is employing cause
and effect diagram. Popularly known as the fish bone diagram, this tool can be regarded as one of
the most effective ways to identify the possible causes behind any problem.
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 Assignment – 5ODG - Part B
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Conclusions as to the alignment between the current design of the organisation, its culture
systems and processes, and its ability to successfully deliver on current and future business
objectives.
As per the analysis, it can be noticed that the organization is following the functional structure.
Moreover, it can be understood that the departments of the organization are working effectively and
individually. Moreover, the organization has successfully maintaining the organizational culture
that is depending on the inclusive approach. It is to be monitored that Body Image is operating over
more than 61 countries and planning for future expansion (Niu, et al. 2015). In addition to this, the
organization aims at constant upgrade of their products to gain competitive advantage. Hence, it can
easily be understandable that the Body Image needs to adopt inclusive approach where the
employees will be able to communicate their views and ideas. The effective ideas will be
incorporated in the process of product development and organizational functioning. As it can be
understood that the organization has a taken up diversified approach while employing the staffs.
The staff members belong to varied cultural background. Hence, it is easily understandable that they
are capable of providing effective inputs regarding the varied market trends. This will be highly
beneficial for the organization in achieving their present as well as future goals.
Recommendations in terms of HR strategy and practices to support and improve strategic
alignment.
It can be monitored that the strategic alignment is one of the most important process of obtaining
competitive advantage. In this regard, it is to be mentioned that the strategic alignment enables the
organizations to encourage the employees to perform better. In order to implement strategic
alignment successfully, implementation of effective HR policies is also important (Lang et al.
2013). The initial step that has to be taken by the HR department is to employ candidate irrespective
of their cultural backgrounds and with more focus to their skills and knowledge. By adopting this
policy, the organization will also be able to maintain diversity in organizational culture. Moreover,
the company should be more focused on the process of incorporating to ensure better security and
facilities for the employees. Moreover, proper and timely training initiatives are also to be taken up.
Incorporating these practices will ensure effective functioning of the organization.
Section 2 (as required)
Appendix – Implementation Plan
Type here:
Appendices
Type here:
Section 3 References
Ensure that every reference included here is sign-posted in your report
Adorni, E., 2013. The steeple spire of the Parma Cathedral: An analysis of the glazed bricks and
mortars. Journal of the European Ceramic Society, 33(13-14), pp.2801-2809.
Foss, N.J., Lyngsie, J. and Zahra, S.A., 2013. The role of external knowledge sources and
organizational design in the process of opportunity exploitation. Strategic Management
Journal, 34(12), pp.1453-1471.
GalbRaith, J.R., 2014. Organizational design challenges resulting from big data.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
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 Assignment – 5ODG - Part B
This assignment must be submitted through Online Services
Saddle River, NJ: pearson.
Huczynski, A., Buchanan, D.A. and Huczynski, A.A., 2013. Organizational behaviour (p. 82).
London: Pearson.
Kessler, S.R., Nixon, A.E. and Nord, W.R., 2017. Examining Organic and Mechanistic Structures:
Do We Know as Much as We Thought?. International Journal of Management Reviews, 19(4),
pp.531-555.
Lang, P.T., Loarte, A., Saibene, G., Baylor, L.R., Becoulet, M., Cavinato, M., Clement-Lorenzo, S.,
Daly, E., Evans, T.E., Fenstermacher, M.E. and Gribov, Y., 2013. ELM control strategies and tools:
status and potential for ITER. Nuclear Fusion, 53(4), p.043004.
Larsen, M.M., Manning, S. and Pedersen, T., 2013. Uncovering the hidden costs of offshoring: The
interplay of complexity, organizational design, and experience. Strategic Management
Journal, 34(5), pp.533-552.
Lindebaum, D. and Ashkanasy, N.M., 2017. A “new” heart for institutions? Some elaborations on
Voronov and Weber (2016). Academy of Management Review, 42(3), pp.548-551.
Madnani, N., Heilman, M., Tetreault, J. and Chodorow, M., Educational Testing Service,
2015. System and method for identifying organizational elements in argumentative or persuasive
discourse. U.S. Patent 9,208,139.
Mayne, J.W., 2017. Monitoring performance in the public sector: Future directions from
international experience. Routledge.
More, E., Probert, D. and Phaal, R., 2015, August. Improving long-term strategic planning: An
analysis of STEEPLE factors identified in environmental scanning brainstorms. In Management of
Engineering and Technology (PICMET), 2015 Portland International Conference on (pp. 381-394).
IEEE.
Niu, L.Y., Chen, Y.Z., Zheng, H.R., Wu, L.Z., Tung, C.H. and Yang, Q.Z., 2015. Design strategies
of fluorescent probes for selective detection among biothiols. Chemical Society Reviews, 44(17),
pp.6143-6160.
Waring, S.P., 2016. Taylorism transformed: Scientific management theory since 1945. UNC Press
Books.
Section 4 (approx. 200 words)
CPD Record – what key things have you learned from undertaking this assignment?
From this assignment, the important organizational structure and the external factors that play
influential role in achieving organizational success. Moreover, the organizational designs and the
measures of measuring tools have also been analysed in the assignment. In this regard, it is also to
be mentioned that the efficient human resource policies are also helpful in successful
implementation of organizational design.
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