Organizational Design: Value, Contribution, and Adaption Report

This report delves into the significance of organizational design within ARM Holding Plc, a prominent semiconductor and software design firm. It examines the importance of organizational design, its influence on organizational strategy, and the application of change theories. The report further explores techniques for attracting, rewarding, and developing human resources, including intrinsic and extrinsic motivation, coaching, and knowledge management strategies. It also addresses emerging HR developments such as talent management, technological advancements, and the management of an aging workforce, analyzing their impact on HR functions. Finally, the report discusses how organizational design adapts to changes, highlighting the relationship between organizational design and change management, and the importance of effective training and organizational structure adjustments to ensure sustainable growth and success within a competitive business environment.

VALUE AND
CONTRIBUTION TO
ORGANIZATIONAL
SUCCESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................................3
MAIN BODY..................................................................................................................................................3
LO1..............................................................................................................................................................3
P1 Importance of organizational design..................................................................................................3
LO2..............................................................................................................................................................5
P2 Techniques for attracting, rewarding as well as developing the human resources............................5
LO3 .............................................................................................................................................................7
P3 Emerging and recent HR developments..............................................................................................7
LO4..............................................................................................................................................................8
P4 Ways in which organizational design adapt to the changes................................................................8
CONCLUSION ............................................................................................................................................10
REFERENCES..............................................................................................................................................11

INTRODUCTION
Organizational design is basically the systematic methodology that mainly recognizes the various
dysfunctional aspects of the work flow, structures, systems as well as procedures and thus
develops a plan for implementing the new and defined changes. The main aim of this report is to
analyze the importance of organizational design in ARM holding Plc.
ARM holding Plc is basically the semiconductor as well as software design organization
being established in 1990 and headquartered in England, UK.
This report gives a brief about importance of organizational design, techniques for
attracting, rewarding as well as developing the human resources, emerging and recent HR
developments and ways in which organizational design adapt to the changes.
MAIN BODY
LO1
P1 Importance of organizational design
The organizational design theory is basically structured process through which the
appropriate combinations of operation of organizations are conducted within the systematic way
fort aligning business goals with the organizational environment.
Organizational structure
Organizational structure is predominately the system which mainly outlines that how the
various activities and tasks within an organization are generally directed for accomplishing
goals. There are various types of organizational structures like functional structure, divisional
structure, matrix organization etc (Aukhoon, 2019). ARM holding Plc mainly has a complex
organizational structure where the staff is at the functional level in form of the managers,
supervisors etc and thus follows the functional organizational structure. The organizational
design helps ARM holding Plc helps in improving the communication between the various levels
of hierarchy. Besides this, their theory helps in increasing the productivity of employees by
appropriate allocation as well as supervision.

Organizational strategy
The organizational design is mainly associated with affirming that the aims as well as
objectives of the organization are fulfilled. Organizational strategy is basically the series of
actions which are undertaken by organizations for achieving their long-term goals (De Silva,
Howells and Meyer, 2018). The major strategy of ARM holding Plc is to decrease its operating
cost as well as improve the efficiency of services and products. In this view, organizational
design helps this organization to make the effective strategic decisions by ensuring its
sustainable growth. Besides this, ARM holding Plc has three main aspects in its strategy which
are social, economic, environmental aspect. Organization mainly chooses various different
organization designs for ensuring that these three aspects are met in an effective manner.
M1
There are various theories of change which that are mainly linked with the organizational
design and thus helps to evaluate its importance.
Change theory
Change theory is basically based on the concept for ensuring that various changes takes
place in a systematic manner within the organization. It is highly essential for the organization to
make sure that changes takes place in the systematic manner in order to survive through this cut-
throat competition. In ARM holding Plc, changes takes place constantly like for example-
company continuously adopt to the new technologies for ensuring sustainable working. The main
importance of organizational design is that it helps the organization to adapt to the various
changes and hence implement them effectively. For example- any change in the organizational
structure of ARM holding Plc will directly affect its workflow as well as the activities and hence
overall organizational design. Due to change in the organizational structure, the reporting
relation will change and also the way in which employees conduct their work. Thus, proper
organizational design helps to deal with changes effectively (Bosch, Schurink and Pelser, 2016).
D1
McKinsey 7S model
This is basically the model which assesses the organizational design of firm by exploring
7 elements for improving and delivering sustainable performance. ARM holding Plc should align

these 7 elements for ensuring organizational excellence and thus should integrate its strategic
goals with the 7 elements of this model (Pooe and Munyanyi, 2019).
Transformational/Transactional
These leadership traits have the profound impact upon organizational design as well as
strategy. ARM holding Plc should focus these two traits for delivering high performance to the
employees and customers. Organization should integrate these two leadership in order to deal
with the change as well as for motivating employees.
LO2
P2 Techniques for attracting, rewarding as well as developing the human resources
Attracting workforce
The favourable and positive working environments as well as comfortable flexible
working hours are generally two of the most important techniques for attracting the employees as
well as attracting the new talent. By maintaining the positive and safe working environment,
ARM holding Plc directly increases the motivational level of employees and thus helps to attract
the employees. Besides this, another significant technique which is being used by this
organization for attracting workforce is trajectory of personal growth. The workforce and new
talent gets attracted towards the organization when they see the chances of the personal growth
and development (Soliman, 2018).
Reward management
Reward management is basically providing financial or non-financial benefit to
employees for retaining the employees. The technique which ARM holding Plc uses for
rewarding its employees is haring the profit of organization with employees as well as providing
non-financial benefits like ESOP, paid leaves etc. These techniques basically help this
organization to retain the employees as the trust of employees and their commitment towards
organization increases. Along with this, company also uses other techniques like providing fair
incentives, promotions for increasing the productivity of employees (Hanson, Melnyk and
Calantone, 2017).

Employee development
There are various techniques for employee development lie Job rotation, coaching,
mentoring etc. Continuous training as well as workshop are the major techniques which are
being used by ARM holding Plc for developing the skills and capabilities of its employees. This
comp any offers periodic training to their employees as well as host various workshops for
enhancing the talent of employees and for their personal and professional growth. These two
techniques helps this organization to continuously incorporate the necessary skills which are
required for performing definite job (Samuel and et.al.,2017).
M2
Intrinsic and extrinsic motivation
Intrinsic motivation assist employees to function within areas where they have natural
interest while extrinsic motivation are factors which are associated with external rewards which
drives the behavior of employees (Paletti, 2018).
Coaching and mentoring
This is the most effective technique being used by organizations for developing the
human capital. The main advantage of coaching is that it provides a right direction as well as
guidance to the employees and helps in their development. For example- ARM holding Plc
provides effective coaching to their employees for the enhancement of their skills.
Knowledge management
Training as well as development is one of the most remarkable technique for knowledge
management being used by organizations. Biggest advantage of this is that it helps in increasing
the knowledge as well as abilities of employees. For example- ARM holding Plc provides
weekly training to their employees on various aspects like advanced technologies (Görög, 2016).

LO3
P3 Emerging and recent HR developments
There have been a lot of HR developments which have affected the functioning as well as
operations of the various organizations whether small or big. There are various HR developments
which is affecting the overall performance of ARM holding Plc.
Talent management
This is one of the major development which has occurred in the HR and overall
workforce. Each and every organization now ensures that they remain profitable by surviving
through the tough competition. In this emerging scenario, organizations have started to manage
its overall talent by effectively motivating its employees. For example- ARM holding Plc is
providing effective training to its employees for inculcating various skills within them. Besides
this, ARM organization attracts the new workforce by hosting the various events periodically
which eventually helps them to efficiently manage the talent (Pollack and Algeo, 2016).
Emerging technology
Since the advent of globalization, the emergence of advanced technology has taken a drastic turn
and has transformed the operations of various departments within organizations. This
development has also affected HR and this is one of the major change which has surrounded it.
Nowadays, HR departments are equipped with various technologies like artificial intelligence.
For example- the HR department of ARM holding Plc has installed various self-learning systems
as well as artificial intelligence technologies like predictive analyzes for searching for various
candidates across world and for maintaining the talent (Kontor, 2019).
Managing ageing workforce
This is the another development which has surrounded HR in each and every
organization. It has become highly essential for the organizations to empower their employees by
improving the decreased productivity of old employees. For example- AGF holding Plc
effectively manages its ageing workforce by continuously motivating them through providing
financial as well as non-financial benefits (Aukhoon, 2019).

M3
The various developments which has taken place in the HR will directly as well as
indirectly affect the functions of HR. The technological development where on one hand will
make the complex workforce planning easily will also affect it in negative way as there remains
security issues in using advanced technology. For example- the use of artificial intelligence in
ARM holding Plc will help to effectively manage the records of employees but will also pose
threat regarding data privacy (De Silva, Howells and Meyer, 2018).
The another development which is managing ageing workforce will also affect HR
functions in ARM holding Plc. For example- providing the effective training to ageing workforce
and retaining them will help company to increase market share while this will also create conflict
among employees due to generation gap and cultural differences.
D2
There are various developments which has taken a drastic turn in HR and thus has
transformed the entire HR department. The numerous developments like talent management,
retention of ageing workforce, technological advancements which has affected the overall
operations of HR. For example- ARM holding Plc has incorporated artificial intelligence in its
organization for increasing the knowledge base of employees where they can easily
communicate with each other regarding their work. Besides this, the growing focus of
organizations for managing and retaining the aged employees has also affected their overall
functions. For example- HR of ARM holding Plc is continuously involved in providing effective
training to the old employees for increasing their knowledge and motivating them (Bosch,
Schurink and Pelser, 2016).
LO4
P4 Ways in which organizational design adapt to the changes
Organizational design in adapting to changes
Change management is basically the process through which organizations respond to
various aspects of changes and thus manages it in order to effectively implement the change.

Each and every organization has to adapt as well as respond to various changes in order to
achieve their goals as well as objectives. In order to prevent the negative impact of these changes
on organization, ARM holding Plc have to ensure the use of proper organizational design. In this
changing scenario, ARM organization have to ensure that the various functions of HR are mainly
associated with providing the support to organization to adapt to the various changes that could
impact its overall organizational strategy. Through the use of effective training, ARM
organization can deal with the changes as the proper training will help the organization to
manage their workflow as well as activities (Pooe and Munyanyi, 2019).
Relationship between organizational design and change management
Change management as well as organizational design share a great relationship and thus
complement each other. Change management is highly essential for every organization for
ensuring the survival in this cut-throat competition. For example- When a change in the
organizational structure of ARM holding Plc took place then the organization adapted to this
change effectively. Seeing the market scenario and the efficiency of market, ARM holding Plc
decided to change its organizational structure and hierarchical level in order to increase the
productivity of employees. The major barrier which this company faced was the increased
resistance of employees as due to change in hierarchy, employees were being shifted to the
another position (Soliman, 2018). Thus, in order to deal with this situation ARM holding Plc
effectively managed change by providing the effective training to employees and chnaging its
organizational design.
M4
There are mainly two types of the changes which can affect the organizational design in
ARM holding Plc. Transformational changes are the one which basically addresses the change in
overall business culture. Any transformation or change in various aspects of organization can
affect the organizational design of ARM holding Plc as the workflow as well as the manner in
which activities are performed gets changed. The another type of change is psychological
changes. The psychological changes are mainly associated with the changes in social relation
between different levels of hierarchy. When this change will occur in ARM holding Plc then the
communication of employees with each other and other levels of hierarchy also changes and this
can lead to distortion of organizational design. Due to the disruption of these communication
channels, overall flow of the activities as well as tasks gets distorted and this eventually affects

the organization design as well as organizational structure (Hanson, Melnyk and Calantone,
2017).
D3
The change management as well as organizational design plays a highly imperative role
within organization and thus shares a great relationship. Whenever some degree of change occurs
in the organization then the overall structure as well as workflow gets disrupted. Thus, when any
change affects the organization in a positive way then this leads to great organizational design.
The using of the different organizational design mainly depends on the type of change which an
organization is deciding to bring. Thus, they have a great relation where the utilization of wrong
organizational design might impact the changes in organization in a negative way (Samuel and
et.al.,2017).
CONCLUSION
It has been summarized that organizational design plays an important role within
organization and thus helps in attaining organizational strategy. There are various techniques
which organizations utilize for maintaining, rewarding and developing human capital like
offering training, coaching etc. Besides this, there are various developments which has
surrounded HR and affected their overall functions like technological advancements, managing
ageing workforce etc. At the end, organizational design helps the organization to adapt to the
various changes and hence implement them effectively within organization. Organizational
design and change management shares a great relation and complements each other by critically
evaluating the changes.

REFERENCES
Books & Journals
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Bosch, A., Schurink, W. and Pelser, H.J., 2016. An organisational coherence model to maintain
employee contributions during organisational crises. SA Journal of Human Resource
Management.14(1). pp.1-11.
De Silva, M., Howells, J. and Meyer, M., 2018. Innovation intermediaries and collaboration:
Knowledge–based practices and internal value creation. Research Policy.47(1). pp.70-87.
Görög, M., 2016. A broader approach to organisational project management maturity
assessment. International Journal of Project Management.34(8). pp.1658-1669.
Hanson, J.D., Melnyk, S.A. and Calantone, R.J., 2017. Core values and environmental
management: a strong inference approach. In Strategic Sustainability (pp. 91-103).
Routledge.
Kontor, M.F., 2019. The Effects of Person-Organisation Fit and Employee Commitment. The
Mediating Role of Organisational Culture. Archives of Business Research.7(10). pp.121-
131.
Paletti, A., 2018, May. How to plan an organisational strategy to manage ICTs mediated co-
production: a public value perspective. In Proceedings of the 19th Annual International
Conference on Digital Government Research: Governance in the Data Age (pp. 1-6).
Pollack, J. and Algeo, C., 2016. Project managers’ and change managers’ contribution to
success. International Journal of Managing Projects in Business.
Pooe, D. and Munyanyi, W., 2019. The influence of collaboration-oriented organisational
capabilities on supply chain competence among small and medium enterprises. Acta
Commercii.19(2).pp.1-9.
Samuel, A.B and et.al.,2017. A synthesised literature review on organisational culture and
corporate performance. Journal of Advanced Research in Social and Behavioural
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Soliman, F., 2018. Role of HRM in Sustainable Organisational Development. In Sustainable
Development: Concepts, Methodologies, Tools, and Applications (pp. 115-131). IGI
Global.